Mechanics in Detail
Web5 Identity Matrix Step by Step
Step 1: DID Anchoring
Creation: A Decentralized Identifier (DID) is generated by the user.
Anchoring: The DID Document is hashed and anchored to Bitcoin via the ION protocol.
Immutability: The Bitcoin blockchain provides an immutable record, ensuring that the DID cannot be tampered with.
Step 2: Credential Management on Ethereum
Issuance: Verifiable Credentials (VCs) tied to the DID are issued by trusted entities and cryptographically signed.
Storage: These credentials are stored off-chain in decentralized storage systems such as IPFS or Arweave, ensuring scalability.
Smart Contracts: Ethereum smart contracts store references to these credentials and validate their authenticity when queried by dApps.
Step 3: Cross-Chain Synchronization
Monitoring: Validators in the Identity Matrix monitor DID updates on Bitcoin and synchronize these with Ethereum smart contracts.
Consistency: Synchronization ensures that identity operations remain trustless and consistent across both blockchains.
Integration: Off-chain credential data is seamlessly linked to Ethereum’s on-chain identity workflows.
Step 4: Scalable Operations with zkSync
Batching: Layer 2 solutions like zkSync batch identity-related transactions to reduce gas fees and improve throughput.
Anchor Back: Validators ensure that operations on zkSync are anchored to Ethereum for transparency and security.
Efficiency: This approach enables real-time identity operations at a fraction of the cost of Layer 1 interactions.
Validator Mechanics
Staking Requirements
Validators must stake a minimum amount of $DIOM tokens to join the network.
Dynamic Scaling: Validators with larger stakes can handle higher transaction volumes, contributing to the scalability of the system.
Slashing Risk: Validators risk losing a portion of their staked $DIOM if they act maliciously or fail to meet performance standards.
Validator Selection
Proof-of-Stake Rotation: Validators are selected through a rotational proof-of-stake model.
Weighted Selection: Selection is weighted based on:
The amount of $DIOM staked.
Historical performance metrics, such as uptime and accuracy in data synchronization.
Performance Audits: Regular performance audits ensure that validators maintain high standards of operation.
Fee Distribution
Fees collected from DID updates, Verifiable Credential verification, and other operations are distributed as follows:
50% to Validators: Distributed proportionally to active validators based on their contribution to the network.
30% to Treasury: Allocated to a decentralized treasury for funding ecosystem development and growth initiatives.
20% Burned: Permanently removed from circulation, creating a deflationary effect that benefits $DIOM token holders.
Slashing and Accountability
Malicious Behavior: Validators found acting maliciously or failing to synchronize data accurately are penalized through slashing.
Transparency: A decentralized monitoring system ensures that slashing decisions are fair and transparent.
Gradual Penalties: Minor infractions may incur smaller penalties, while repeated or severe misconduct results in larger slashes or validator removal.
Advanced Mechanics
Dynamic Workload Allocation
Validators are assigned workloads dynamically based on their staked $DIOM and recent performance.
This ensures that validators with higher capacity handle more transactions without overloading smaller participants.
Cross-Chain Messaging
A secure cross-chain messaging protocol ensures that updates from Bitcoin are relayed to Ethereum efficiently.
Validators use cryptographic proofs to verify the integrity of messages before recording them on-chain.
Layer 2 Validator Efficiency
Validators monitor zkSync batches for identity operations, ensuring that batched transactions are correctly anchored to Ethereum.
zkSync reduces costs while maintaining transparency by enabling validators to process thousands of operations in a single transaction.
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