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Why Coinweb?

At Coinweb we tracked down several fundamental obstacles in the blockchain space, which we believe can be solved. Most Layer 1 blockchains are limited in its speed and scalability by design. The rigid encapsulation on the other hand prohibits proper interoperability between the systems. In order for the blockchain space to advance and to leap forward these main issues must be resolved.

  • Develeopers of dApps must not be limited to one blockchain as it introduces great risks for the usability and maintenance of the applications. It must be easy to utilise blockchains by their features without the risk of selecting the wrong platform when the application requirements evolve.

  • Applications must not be entangled in one single blockchain and potentially face several unresolvable risks such as downtimes due to blockchain outages.

  • Users must not be presented with unbearable gas fees due to spontaneaously appearing busy hours beause of scalability limitations.

In the long run the blockchain space can only be advantageous if the scalability and interoperability limitations are resolved to a minimum while the security properties remain untouched.

How does Coinweb solve the existing limitations?​

The main features of a blockchain are its security properties implemented in form of a distributed consensus mechanism. The intermingling of advanced transaction processings with the consensus reduces the security of the consensus system as costs for the network go up and participation goes down, thus decentralization properties suffer. Therefore the responsibility for this main task in the first place, which is securing blocks and information, must remain on the Layer 1. Computations (such as smart contracts) on the other hand must not hold back a system by increasing the complexitiy during the consensus process in the underlying chain.

A clean separation of concerns that naturally belong to Layer 1 and those that can be efficiently processed in a deterministic manner by relocating them to the computational Layer 2 is one possible solution to address the current limitations. On the one hand this approach addresses the most scalability and speed issues. On the other hand it opens the door to interoperability by decoupling application features from the Layer 1. This way complex, batched and/or asynchronous computations can be executed on the computational layer while only transaction input data is written and secured by any ledger's consensus (Layer 1).

The steps illustrating and explaining how Coinweb operates are presented in the following video, using the example of tokenization.

Advantages of using Coinweb​

In its ultimate form, Coinweb becomes a decentralized, chain-agnostic distributed network situated on Layer 2. It overcomes blockchain limitations by introducing a protocol that incorporates multiple advanced features:

  • Gas fee abstraction

  • Consensus-free Interoperability

  • Frictionless developer experience with universal WASM modules

  • Decentralised mainnet on Layer 2

The following list is the set of provided tools.

Coinweb(-Protocol) Toolset​

Please feel free to get familiar with our protocol and tools in the following chapters.

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