Validation Cloud joined DIN, a decentralized RPC-as-a-service initiative to enhance the accessibility, reliability, and efficiency of Web3 data access by enabling developers to securely connect to Ethereum and other blockchain networks. This blog will give you an overview of node infrastructure, DIN, and why Validation Cloud joined DIN.

What is Node or RPC-as-a-Service?

In simple terms, a “node” is a computer connected to the blockchain, which helps by verifying, storing, and updating all of the transactions that happen across a particular network. This setup ensures that information is distributed across many points rather than centralized in one location, making the network more resilient and less prone to failure or attack. The collective effort of these nodes helps maintain the integrity and efficiency of the blockchain, ensuring that it operates seamlessly. Essentially, node infrastructure is the fundamental component that supports the operation and security of the blockchain network. Node-as-a-service enables developers to deploy, run, and scale decentralized applications without managing the underlying infrastructure, simplifying development processes and reducing operational overhead. To learn more about this infrastructure that supports the millions of users within the blockchain ecosystem, read our blog.

What is DIN?

DIN, or the Decentralized Infrastructure Network, is a decentralized Remote Procedure Call (dRPC)-as-a-service offering developed by Infura. This initiative aims to enhance the accessibility, reliability, and efficiency of Web3 data access by enabling developers to securely connect to Ethereum and other blockchain networks. DIN seeks to foster a decentralized internet infrastructure, providing a robust and efficient way for developers to interact with multiple blockchain APIs. By decentralizing the RPC layer — critical infrastructure that allows for the communication between various computer programs across the blockchain — DIN aims to enhance the scalability and accessibility of blockchain applications. By supporting a multi-chain world, DIN makes Web3 technologies more accessible and reliable for developers.

Why Validation Cloud Joined DIN

Validation Cloud joined DIN to enhance access to RPC services and support more users building critical applications across Web3. DIN allows Validation Cloud to join other RPC providers to support a better user experience for builders across even more networks. Starting in early April, Validation Cloud will be supporting BNB and Avalanche on DIN.

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at validationcloud.io | LinkedIn | X

About Infura

The Infura development platform provides instant, scalable API access to a range of L1 and L2 networks including Ethereum, Arbitrum, Optimism, Starknet, IPFS, Filecoin and other blockchain networks

About Consensys

Consensys is the leading blockchain and web3 software company. Since 2014, Consensys has been at the forefront of innovation, pioneering technological developments within the web3 ecosystem. Through our product suite, including the MetaMask platform, Infura, Linea, Diligence, and our NFT platform, we have become the trusted collaborator for users, creators, and developers on their path to build and belong in the world they want to see. Whether building a dapp, an NFT collection, a portfolio, or a better future, the instinct to build is universal. Consensys inspires and champions the builder instinct in everyone by making web3 universally easy to use and develop on. To explore our products and solutions, visit https://consensys.io/.

Bitcoin is often referred to as “digital gold” due to its superior qualities as a store of value. Despite its dominance, Bitcoin faces significant hurdles that hinder its potential for broader adoption. Among these challenges are scalability issues, slow transaction speeds, limited throughput, and rising transaction fees. To address these limitations and explore better functionality and efficiency, Bitcoin Layer-2 solutions have emerged. In this blog, we will explore Bitcoin Layer-2 solutions and their impact on the Bitcoin ecosystem.

The Need for Bitcoin Layer-2s

Bitcoin was originally envisioned as a secure and decentralized payment system. However, its inherent limitations have hindered its adoption as a mainstream digital currency. With an average block creation time of ten minutes and a throughput of seven transactions per second, Bitcoin falls short in comparison to traditional payment processors like Visa or even other blockchains such as Solana. This sluggish performance, coupled with network congestion, has led to high transaction fees.

Moreover, Bitcoin’s basic scripting language does not support the complex functionalities of smart contracts and decentralized applications (dApps) as seen in platforms like Ethereum. This means that innovations in decentralized finance (DeFi) and non-fungible tokens (NFTs) have largely bypassed the Bitcoin blockchain.

The Emergence of Bitcoin Layer-2 Solutions

Bitcoin Layer-2 solutions are innovative protocols built atop the foundational Bitcoin blockchain, designed to improve scalability by processing transactions off the main chain. These protocols not only address Bitcoin’s technical limitations but also introduce additional functionalities, enriching the Bitcoin ecosystem.

Key Advantages of Bitcoin Layer-2 Solutions

• Improved Scalability: By facilitating transactions off the main blockchain, Layer-2 solutions significantly boost Bitcoin’s transaction throughput, reduce block confirmation times, and lower transaction costs.
• Enhanced Programmability: These solutions enable the implementation of complex smart contract functionalities, expanding the realm of possibilities within the Bitcoin network.
• Inherited Security: Layer-2 protocols benefit from the robust security mechanisms of the underlying Bitcoin network, ensuring a high level of safety for transactions.
• Expanded Capabilities: With these solutions, Bitcoin can venture into new territories, including payments, DeFi, NFTs, and more, exploring unprecedented utilities.

Bitcoin Interoperability Protocols

Several pioneering protocols exemplify the potential of Bitcoin Layer-2 solutions:

ZetaChain: ZetaChain is a Proof-of-Stake (PoS) blockchain built on the Cosmos SDK and Tendermint PBFT consensus engine, aiming to enable trustless, interoperable, general-purpose cross-chain communication across blockchains. Under ideal conditions, ZetaChain can reach 4,000+ TPS. Combined with the ZetaClient and ZetaVM, Zeta operator nodes can observe and interact with any chain that plugs into it. Of particular note is ZetaChain’s emphasis on interactivity with the Bitcoin network. ZetaChain smart contracts can manage BTC on the native Bitcoin network. This significantly enhances Bitcoin’s scalability and interoperability by enabling cross-chain transactions, expanding its utility enormously, and fostering a vastly more composable blockchain ecosystem.

BounceBit: BounceBit is building a BTC restaking chain bringing Bitcoin’s DeFi ecosystem to new heights. All funds staked on BounceBit stay on-chain and are secured by validators through the dual-staking PoS system that includes both Bitcoin and BounceBit tokens. BounceBit offers full EVM compatibility on their execution layer, allowing dApps to leverage liquidity locked on-chain.

Zeus Network: Zeus Network, utilizing the Solana Virtual Machine (SVM), serves as a cross-chain communication layer aiming to enhance Bitcoin liquidity and interoperability with Solana. By bridging the gap between Bitcoin and Solana, Zeus facilitates efficient asset transfer and interaction across these major blockchains. This initiative is designed to leverage Solana’s high throughput and low transaction costs, while tapping into Bitcoin’s vast liquidity and user base. Zeus Network not only broadens the scope of decentralized finance (DeFi) possibilities on Solana but also introduces advanced smart contract capabilities to Bitcoin assets, positioning itself as a pivotal element in the cross-chain ecosystem.

Leading Bitcoin Layer-2 Protocols

Several pioneering protocols exemplify the potential of Bitcoin Layer-2 solutions:

Stacks ($STX): Stacks enriches the Bitcoin ecosystem by enabling smart contracts and decentralized apps (dApps) on Bitcoin’s secure foundation. It leverages Bitcoin’s security to foster innovation, allowing for complex applications and contracts within the Bitcoin network. Stacks features a unique consensus mechanism, Proof of Transfer (PoX), which connects directly to Bitcoin, reinforcing the utility and scalability of dApps and smart contracts on the world’s most established blockchain.

Lightning Network: The Lightning Network is a Layer 2 solution enhancing Bitcoin by enabling faster and cheaper transactions, akin to an “HOV lane” for Bitcoin payments​. It has seen increasing adoption and the expanding ecosystem around it​​. This network uses smart contracts to create payment channels for nearly instant transactions. Notably, the Lightning Network facilitates El Salvador’s adoption of Bitcoin as legal tender with its Lightning-compatible wallet, Chivo, aiming to save on money transfer fees​​.

Rootstock (RSK): Rootstock is a smart contract platform that brings Ethereum-like functionality to the Bitcoin ecosystem. RSK integrates with Bitcoin, offering a seamless blend of Bitcoin’s security and the versatility of smart contracts. This enhances Bitcoin’s utility but also opens a new realm of possibilities for developers and enterprises, allowing them to create decentralized applications and execute complex contracts on Bitcoin.

The Future of Bitcoin Layer-2 Solutions

Bitcoin Layer-2s represent the next phase of growth for the Bitcoin network. By overcoming BItcoin’s technical limitations and unlocking new utilities, these solutions are pivotal in shaping a more scalable, functional, and composable ecosystem. As Bitcoin continues to mature, the role of Layer-2 solutions will undoubtedly be crucial in its evolution, paving the way for broader adoption and innovation in the blockchain space.

By harnessing these technologies, Bitcoin is poised to maintain its status as a pioneering force in the space, all while expanding its utility far beyond what was initially imagined.

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at Validationcloud.io | LinkedIn | X

Saga’s Mainnet launch marks a significant milestone in the blockchain space, introducing a new era of developer empowerment and application-specific blockchain deployment. Saga Mainnet aims to unlock unprecedented scalability, security, and flexibility, introducing seamless user experiences in the multichain metaverse — what Saga calls the multiverse — of blockchain technology.

What is Saga?

At its core, Saga is designed to empower developers by simplifying the process of launching application-specific blockchains within the multiverse. Saga addresses the critical challenges of scalability, security, and flexibility that have traditionally hindered the blockchain ecosystem.

Saga’s goal is to make launching a dedicated blockchain or “chainlet” as straightforward as deploying a smart contract. To do this, Saga offers a seamless, no-cost initial setup, predictable pricing for developers, and a dedicated environment that guarantees high throughput and easy upgradability. This approach alleviates congestion and fosters a new era of developer business models and user experiences, free from the limitations of traditional network fees.

Saga not only simplifies the creation of application-specific blockchains but also introduces innovations that enhance security, token economics, and sustainability. These features, pivotal to Saga’s architecture, are designed to address the intricate challenges blockchain faces:

• Shared Security Model: Enhances chainlet (Saga’s term for application-specific blockchains) safety with a collective defense mechanism, streamlining network protection and boosting trust among developers and users.
• Token Mechanism and Economics: Offers developers the flexibility to create custom business models and allows transaction fees in any IBC-compatible token, promoting a user-friendly experience by eliminating direct network fees for end users.
• Protocol Controlled Reserve (PCR): Serves as Saga’s economic foundation, supporting ecosystem growth and stability through strategic funding and incentives, including trial credits for developers and facilitating cross-chainlet transactions.

These features empower developers to build without constraints, and users to engage with blockchain technology in a more accessible, secure, and economically viable environment.

How Validation Cloud Supports Saga

With the launch of Saga Mainnet, the role of validators like Validation Cloud has become increasingly important. Validation Cloud is running a validator for Saga, ensuring the network’s integrity, security, and performance. By participating in Saga’s shared security model, Validation Cloud contributes to a robust ecosystem where every chainlet benefits from the collective security and expertise of the network’s validators. This collaboration underscores a future where developers can confidently build and scale their applications, knowing they have the support of a world-class infrastructure service. Over time, Saga will further decentralize their network adding more chainlets and onboarding additional validators. Validation Cloud is excited to support this phased rollout!

Looking Ahead: The Future with Saga

The launch of Saga’s Mainnet is a gateway to endless possibilities. With Saga’s focus on entertainment, such as gaming and art, Saga is set to revolutionize how applications are built and experienced. As the network matures, its innovations in blockchain technology will enable new classes of applications across various sectors, including DeFi, paving the way for processing low-value, high-volume transactions at scale.

Looking for validators to support your testnet or mainnet? Contact Validation Cloud to see how we can support your network growth.

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at Validationcloud.io | LinkedIn | X

Bitcoin’s technology continues to evolve, and the latest innovation on the horizon is BTC Runes, a new token issuance method developed by Casey Rodarmor, the creator of Ordinals. As Bitcoin enthusiasts and developers look forward to the next Bitcoin halving, they’re also gearing up for the debut of BTC Runes, which aim to create a more efficient and scalable approach to creating fungible tokens on the Bitcoin network.

What are BTC Runes?

BTC Runes are designed to function within Bitcoin’s unique UTXO (Unspent Transaction Output) model but with minimal on-chain footprint and responsible UTXO management. This method is in contrast to the BRC-20 token standard, which has faced criticism for causing network congestion and generating excessive “junk” UTXO. The goal of Bitcoin Runes is to provide a more scalable and efficient alternative for token issuance on Bitcoin.

Potential Impacts and Opportunities for the Bitcoin Ecosystem

Efficiency and Scalability: Runes aim to provide a more scalable and efficient alternative for token issuance on Bitcoin, without the drawbacks seen in previous standards. This could attract a wider range of developers and users, enhancing the overall utility and appeal of Bitcoin.

Innovation and Development: With the introduction of Runes, developers have the opportunity to explore new types of projects and applications, fostering innovation and growth within Bitcoin’s secure and decentralized environment.

BTC Runes represent a step forward in the evolution of Bitcoin’s capabilities, offering a fresh method for token issuance that aligns with the need for efficiency and scalability. As we approach the Bitcoin halving, the anticipation for Runes underscores the community’s enthusiasm for innovation. With the right adoption and implementation, BTC Runes could not only enhance the functionality of Bitcoin but also introduce new opportunities for applications and growth within the ecosystem.

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at validationcloud.io| LinkedIn | X

This blog dives into the intricacies of EigenDA, shedding light on how it operates and its potential to reshape the future of Ethereum. This development represents a strategic improvement with the capacity to impact the management of transactions and data on Ethereum, especially for rollups. For foundational context, read our overview of restaking on EigenLayer and our overview of Liquid Restaking Tokens.

Overview of EigenDA

Developed by EigenLabs, EigenDA is a secure, high-throughput, and decentralized data availability (DA) service built on top of Ethereum using the EigenLayer restaking primitive. As the first actively validated service (AVS) within the EigenLayer network, EigenDA presents a new approach to managing stake delegation and validation tasks. EigenDA will enable restakers the ability to delegate their stake to node operators. These operators are tasked with validating transactions and data storage requests within the EigenDA network, in return for compensation derived from service payments. This mechanism ensures a mutually beneficial relationship between restakers and operators, fostering a secure and efficient validation process.

EigenDA’s Impact on Rollups

Furthermore, rollups leveraging EigenDA will benefit from significantly lower transaction costs and higher throughput, with the system’s security and scalability designed to expand in tandem with the hardware advances of the node operator set. This innovative approach not only enhances transactional efficiency across the Ethereum ecosystem but also ensures a higher degree of secure composability within the EigenLayer ecosystem, setting a new benchmark for blockchain data storage and validation services. The more restakers and operators that participate, the stronger and more capable the system becomes. This scalability ensures that EigenDA can meet the demands of an ever-expanding Ethereum ecosystem without sacrificing speed or security.

Data Availability: A Technical Overview

At a technical level, the need for DA solutions arises from the “Data Availability Problem.” The core issue being if a block publisher withholds part of a block’s data (perhaps maliciously to withhold fraudulent block information) it can’t be fully validated by any node, even if its transactions are theoretically correct. This undermines the blockchain’s reliability, can expose cost-free Denial of Service (DoS) attack vectors to the chain and clients, and can disrupt processes like cross-chain swaps or data trading that depend on complete access to the block data.

The data today from any Layer 2 solution using Ethereum for data availability is stored in the smart contract’s storage on Ethereum. However, it’s not allocated to a specific “storage slot” in the traditional sense of individual Ethereum smart contract variables. Instead, the data is typically included as part of transaction calldata when submitting a batch of transactions (or “checkpoint”) to the smart contract. A checkpoint might contain the state root of the L2 chain at a specific block height, along with additional data necessary to assert the validity of the transactions up to that point. This additional data might include transaction information, state transitions, block headers, Merkle trees and roots, witness data, or other smart contract code or executions occurring on that L2.

All of this information costs significant amounts of gas to include as “CALLDATA” to Ethereum, and users of these L2 rollups can feel that pain. Despite the cheaper costs of off-chain execution, mitigating the current method of keeping L2 execution data available for a more affordable cost is a critical mission for the ecosystem.

The combined L1 + data availability throughput of Ethereum is a mere 83.33 KB/s, with a typical node bandwidth of 2 MB/s. Celestia supports a DA rate of 133 KB/s, with node bandwidth requirements up to 100 MB/s. EigenDA purports to support a data availability throughput of up to 10 MB/s, requiring nodes to manage 0.5MB/s of bandwidth. In practice, this would be over a 100x increase in throughput at four times less the operational cost, for blockchains plugging into EigenDA for their DA requirements.

The diagram above shows the basic flow of data through EigenDA.

Source: https://docs.eigenlayer.xyz/eigenda/overview#how-rollups-integrate

Validation Cloud and EigenDA

Validation Cloud is proud to be supporting multiple protocols building on top of EigenLayer. The current list today includes Aethos, Supermeta, and Etherfi, with many more on the way. Future blog posts will highlight these protocols in further detail, and how users can delegate their stake to them via Validation Cloud’s AVS interfaces. Once live, you can navigate to our operator dashboard by searching for “Validation Cloud” on Mainnet via https://app.eigenlayer.xyz/operator, or Holesky Testnet via https://holesky.eigenlayer.xyz/operator

While staking is the foundation to secure a PoS network, operating Ethereum and EigenLayer infrastructure requires specific hardware and software which are expensive, tedious, and risky to maintain for non-technical users. Beyond the high operational costs, the staker must be well-versed with on-chain staking mechanisms. However, staking-as-a-service enables professional node operators, like Validation Cloud, to run these validators on behalf of the staker.

Platforms such as Validation Cloud are launching AVS staking-as-a-service and adhere to SOC 2 Type 2 standards, ensuring the highest levels of security, performance, and protection against slashing in staking operations. We handle the infrastructure, maintenance, upgrades, and operational risks so you don’t have to.

Be the first to hear when EigenLayer Mainnet is live! Contact us and we’ll let you know when Mainnet is live.

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at Validationcloud.io | LinkedIn | X

Introduction to EigenDA was originally published in Validation Cloud on Medium, where people are continuing the conversation by highlighting and responding to this story.

This blog is part of our Restaking Series and dives into the concept of Liquid Restaking Tokens (LRTs), their significance, and the potential they unlock for Ethereum and the broader blockchain ecosystem. You can learn more about restaking in our restaking overview blog which will give you foundational context to understand restaking.

What is Restaking?

Restaking is a pioneering cryptoeconomic innovation introduced by EigenLayer. Operating as a middleware protocol on the Ethereum blockchain, EigenLayer offers a mechanism for users to utilize their staked ETH for the validation of the protocol’s smart contracts to support external systems such as rollups and oracles with a pre-existing economic security layer. This concept is critical for blockchains and blockchain-based applications, where achieving sufficient incentives and network effects for security is a significant challenge. Restaking allows Ethereum validators to repurpose their economic security by opting in to validate additional third-party services, called Actively Validated Services (AVSs), through the EigenLayer protocol. In turn, these services compensate validators with additional yield on top of the base ETH staking yield.

What are Liquid Restaking Tokens?

Liquid Restaking Tokens (LRTs) are tokens received when users deposit ETH in any number of liquid restaking DeFi protocols. As a liquid token representation of a restaked ETH position, LRTs allow users to gain access to the base ETH staking yield plus additional AVS yield, all while keeping their position liquid instead of locking up their tokens for an extended period of time. This is attractive to users because they benefit from increased yield on their ETH while also being able to use their restaked ETH position in other DeFi protocols. Essentially, LRTs are to restaking as Liquid Staking Tokens (LSTs) are to staking.

LRTs represent a significant advancement in the DeFi space by enabling users to earn on their restaked ETH without sacrificing liquidity, addressing a pain point of traditional restaking methods. This dual benefit of accessing enhanced yields while retaining the ability to participate in other DeFi opportunities makes LRTs an important tool for maximizing the utility and profitability of digital assets.

Features of Liquid Restaking Tokens

Several factors contribute to the rapid momentum of the LRT movement.

• Increased Yield Opportunities: With the demand for higher yields on ETH staking, LRTs offer an attractive avenue for investors seeking enhanced returns on their staked assets from AVSs.
• Simplified User Experience: The complexity of running a validator node is abstracted away by LRT protocols, making it easier for users to participate in the restaking process without needing technical expertise.
• Lower Capital Requirements: Users can gain access to ETH restaking yield without needing 32 ETH to run their own validator.
• Risk Management: Restaking comes with additional slashing risks since users are putting their ETH at stake to validate the Ethereum blockchain as well as AVSs. Each LRT protocol will decide which AVSs to validate with their pooled ETH, which means the protocol will be the one managing the AVS risk on behalf of its users.
• Capital Efficiency: Holders of LRTs receive restaking yield on their ETH while also keeping their position liquid. This gives them the ability to access other opportunities in DeFi with their capital such as borrowing against their LRTs on borrow/lend protocols.

Liquid Restaking Landscape Today

The Liquid Restaking landscape today consists of protocols like Ether.fi, Renzo, Puffer, Kelp DAO, Eigenpie, Swell, and others. The TVL of all major liquid staking protocols as of March 2024, stands at over $7 billion. This equates to roughly 60% of all restaked tokens finding their home in these LRT protocols, adding financialization to their natively restaked positions.

While the concept of rehypothecation is very familiar to the crypto scene, it is not without its risks. Liquid staking protocols are not officially endorsed by EigenLayer as an optimal destination for your restaked tokens. However, for users that accept these additional risks in exchange for additional yield on their Ether, these protocols are an option. We urge users to carefully consider these protocols individually, and evaluate them as they would any other protocol that receives staked assets. For more detailed information on the risk landscape of LRTs, you can read this report.

Be the First to Hear when EigenLayer Mainnet is Live!

Contact us and we’ll let you know when Mainnet is live.

Staking with Validation Cloud

While staking is the foundation to secure a PoS network, Ethereum staking directly on-chain requires specific hardware and software which are expensive and also tedious to maintain. Besides high operational costs, the staker must be well-versed with on-chain staking mechanisms. However, staking-as-a-service facilitates running the validator node on the staker’s behalf.

Platforms such as Validation Cloud offer staking-as-a-service and are SOC 2 Type 2 compliant, ensuring the highest levels of security and protection in staking.

Resources

• How-To Guide: How to Stake and Unstake Validators with Validation Cloud: A Step-by-Step Guide
• Validation Cloud Docs
• Blockworks: Validation Cloud launches platform for institutional stakers

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at validationcloud.io| LinkedIn | X

Liquid Restaking Tokens: What Are They and Why Are They Important? was originally published in Validation Cloud on Medium, where people are continuing the conversation by highlighting and responding to this story.

In the rapidly evolving landscape of Web3, where innovative technologies meet unprecedented security challenges, Validation Cloud has once again set a benchmark for excellence by achieving SOC 2 Type II compliance. This milestone marks a pivotal moment in our journey to bring enterprise-grade infrastructure to the forefront of Web3.

Bringing Web2 Security Standards to Web3

Following our previous achievement of SOC 2 Type I compliance, Validation Cloud recognized the importance of not just establishing but maintaining and continuously improving our security measures. SOC 2 Type II compliance signifies that our security practices, policies, and procedures have been rigorously and consistently applied over time, offering our clients and partners even greater assurance of our commitment to protecting their data and operations.

This level of compliance is rare in the Web3 ecosystem, positioning Validation Cloud as a leader in security and reliability. As we navigate through an era marked by cyber threats and security breaches, achieving SOC 2 Type II compliance underscores our dedication to fostering a safer and more trustworthy Web3 environment.

Why This Matters for Enterprises Engaging in Web3

The importance of SOC 2 Type II compliance extends beyond the validation of our internal processes; it reflects Validation Cloud’s commitment to our clients and the broader Web3 community. Here’s why this milestone is crucial:

• Enhanced Trust: For enterprises venturing into Web3, the assurance of working with a compliant and secure infrastructure provider is invaluable. SOC 2 Type II compliance means that our clients can trust us to handle their most sensitive operations with the highest security standards.
• Continuous Improvement: Achieving this level of compliance is not a one-time event but a continuous commitment to excellence. It demonstrates our ongoing efforts to not just meet but exceed industry standards, ensuring that our infrastructure remains at the cutting edge of security and reliability.
• Setting Industry Standards: In a sector as dynamic and innovative as Web3, setting high standards for security and compliance is crucial. Validation Cloud is proud to lead by example, encouraging the adoption of rigorous security measures across the Web3 ecosystem.

Looking Forward

As we celebrate this significant achievement, our journey towards enhancing the security and reliability of Web3 infrastructure continues. We remain dedicated to improving our security measures, enhancing our controls, and leading the charge toward a more secure and reliable Web3 future. Navigate Web3 with confidence, backed by an infrastructure that is not only high-performing and reliable but also secure and compliant with the highest industry standards.

Connect to Web3 Now

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at validationcloud.io| LinkedIn | X | Medium

What is Berachain? 🐻 ⛓️

Berachain is a new DeFi-focused Layer 1 blockchain designed to better align validators and stakers with applications building on the chain. Built with the robust Cosmos SDK and designed to be EVM equivalent, Berachain offers a unique and innovative solution to the challenges facing current blockchain infrastructures.

Polaris EVM is Berachain’s take on the Ethereum Virtual Machine, which stands out with its fully modular design and enables seamless implementation on top of any Layer 1 chain — whether it’s built on Polkadot Substrate, Cosmos SDK, or any other framework.

With the launch of Berachain Artio Testnet, now accessible to everyone, it’s the perfect opportunity to delve deeper into the unique aspects of the chain and uncover the excitement surrounding Berachain. Validation Cloud is thrilled to be a validator supporting Berachain’s Artio Testnet.

Foundation on the Cosmos SDK

At its core, Berachain leverages the Cosmos SDK and its custom EVM implementation, Polaris, a powerful framework for building blockchain applications. This choice enables Berachain to offer high scalability, interoperability, and the flexibility needed to cater to a wide range of DeFi applications. By positioning itself within the Cosmos ecosystem, Berachain benefits from the inter-blockchain communication protocol (IBC), facilitating seamless asset transfers and interactions between different blockchain networks.

EVM Compatibility: Bridging Worlds

A standout feature of Berachain is its EVM compatibility. This design choice ensures that Ethereum developers can easily migrate their applications to Berachain without significant modifications. EVM compatibility opens the door for a plethora of Ethereum-based DApps, smart contracts, and assets to operate on Berachain, enjoying the advantages of its underlying architecture while maintaining the rich functionalities of the Ethereum ecosystem.

What is Proof of Liquidity?

Perhaps the most innovative aspect of Berachain is its consensus mechanism, Proof of Liquidity (PoL). Moving beyond traditional Proof of Work or Proof of Stake mechanisms, PoL introduces a novel approach that directly ties the security and functionality of the network to the liquidity available within it. This mechanism not only enhances the security of the blockchain but also promotes a healthier, more liquid DeFi ecosystem, ensuring that assets remain easily tradable and accessible.

Benefits for Developers and Users

For developers, Berachain offers a fertile ground for innovation. Its compatibility with Ethereum tools and frameworks, combined with the advanced features of the Cosmos SDK, provides a versatile environment for building sophisticated DeFi applications. Users, on the other hand, stand to benefit from faster transaction times, reduced costs, and access to a broader range of DeFi services, all while enjoying enhanced security and liquidity.

Looking Forward

As Berachain continues to develop and expand its ecosystem, it sets the stage for a new era in DeFi, where scalability, interoperability, and liquidity are no longer bottlenecks but pillars of a thriving digital economy. With its unique blend of technologies and forward-thinking consensus mechanism, Berachain is poised to become a key player in the blockchain space, offering a compelling alternative for developers and users alike.

Berachain represents a significant step forward in the blockchain and DeFi ecosystem. By harnessing the strengths of the Cosmos SDK with EVM compatibility and introducing the groundbreaking Proof of Liquidity, Berachain not only addresses existing challenges but also opens up new possibilities for innovation and growth in the DeFi sector. Read Berachain’s docs to learn more.

Looking for validators to support your testnet? Contact Validation Cloud to see how we can support your network growth.

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at validationcloud.io| LinkedIn | X | Medium

Anyone who has built applications or been a user of Ethereum mainnet is likely familiar with its pain points. While Ethereum’s security and decentralization are nearly unparalleled, Ethereum doesn’t come without challenges. Layer 2 solutions like Arbitrum, Optimism, Scroll, and sidechains like Polygon offer interesting alternatives within the EVM landscape. However, this post shifts the focus to a different ecosystem altogether: Hedera Hashgraph.

Why Hedera? A Look Beyond Ethereum Mainnet

Hedera stands out not just technically but also in its strategic focus. Here are a few reasons why developers and enterprises are choosing to build on Hedera:

• High Throughput, Fast Finality, and Low Fees: Unlike Ethereum’s notorious gas fees and network congestion (which invariably percolates upwards even to the more affordable L2s), Hedera boasts high transaction throughput and predictably low fees, making it economically viable for startups and enterprises alike. Specifically, Hashgraph achieves high throughput with 10,000+ transactions per second today, and 3–5 second finality. Learn more on Hedera’s unique “Gossip-about-Gossip” protocol here.
• Unique Market Focus: While Ethereum broadly targets decentralized applications, Hedera has carved niches in sectors like supply chain management, where its low-cost transactions and fast finality are particularly beneficial. This focus on specific markets such as supply chain underscores Hedera’s strategic positioning beyond the generalist approach of Ethereum.
• Sustainability, Governance, and Security: Hedera’s governance model, led by a council of renowned organizations such as Avery Dennison and Standard Bank, offers a unique blend of decentralization with structured oversight, enhancing network trustworthiness. This is all underpinned by its proof-of-stake consensus mechanism — which is not just energy-efficient but also strategically aligns with the growing demand for green technologies in blockchain.

Overview: Integrating Validation Cloud’s JSON-RPC with Hedera

For developers seeking to harness Hedera’s advantages, the integration of JSON-RPC via Validation Cloud opens up a world of possibilities. This interface allows for seamless interaction with the Hedera network, leveraging familiar EVM tools and libraries to build and deploy your Web3 applications with ease.

The JSON-RPC relay for Hedera, accessible through Validation Cloud, provides a robust gateway for developers to engage with the Hedera network using popular development tools like HardHat and Foundry. This means you can develop smart contracts, deploy decentralized applications, and interact with the Hedera network using the same EVM-compatible tools you’re already familiar with, but with the added benefits of Hedera’s ecosystem.

To get started, developers can refer to the comprehensive documentation available at Validation Cloud’s JSON-RPC Relay API. Here, you’ll find detailed instructions on setting up your development environment, connecting to the Hedera network, and executing transactions or smart contracts. Whether it’s deploying your first smart contract on Hedera or querying the state of a contract, the documentation guides you through each step with clarity and precision.

Setting up your Hedera Hashgraph Environment

Before you begin, ensure you have Node.js, along with the web3 node package installed on your machine. (Of course, other frameworks can be utilized but for this post we focus on Node!). This will allow you to run JavaScript programs that interact with the Hedera network through JSON-RPC. You’ll also need to set up an account on Validation Cloud to obtain your JSON-RPC endpoint and API keys.

Example 1: Connecting to the Hedera Network

The most basic step to start with is establishing a connection to the Hedera network. This involves initializing a web3 instance with the Hedera JSON-RPC endpoint provided by Validation Cloud. The web3 node package will be required.

// Replace 'your_rpc_url' with your unique JSON-RPC URL from your Validation Cloud account

const hederaRpcUrl = 'YOUR_VALIDATION_CLOUD_HEDERA_HTTPS_RPC_URL';

const { Web3 } = require('web3');

const web3 = new Web3(hederaRpcUrl);

console.log('Connected to Hedera!', web3);

Example 2: Querying Account Balance

Suppose you want to build an accounting application to track balances over time. To query the balance of an account, you can use the getBalance method provided by web3.js. This method requires the account address as a parameter.

// Replace 'your_rpc_url' with your actual JSON-RPC URL from Validation Cloud

const hederaRpcUrl = 'YOUR_VALIDATION_CLOUD_HEDERA_RPC_URL';

const { Web3 } = require('web3');

const web3 = new Web3(hederaRpcUrl);

const accountAddress = 'any_evm_account_address'; // e.g. 0x1f8bcfe4c4e......

web3.eth.getBalance(accountAddress)

.then(balance => {

console.log('Account balance:', web3.utils.fromWei(balance, 'ether'), 'HBAR');

})

.catch(error => {

console.error('Error fetching balance:', error);

});

Example 3: Sending a Transaction

Another critical element of any web3 application is token transfers. Sending a transaction involves creating and signing a transaction object with your wallet, and then broadcasting it to the network. Since drawing a balance from a wallet is involved in the below example, we are dealing with the sensitivity of a private key. In my case, I prefer to invoke the private key from an environment file for some basic security. I would rather not have the private key displayed directly in my code, and neither should you. I will choose to install “dotenv” to easily invoke environment variables. Here’s a simplified example of how to send HBAR from one account to another:

// Replace 'your_rpc_url' with your JSON-RPC URL from Validation Cloud

const hederaRpcUrl = 'YOUR_VALIDATION_CLOUD_HEDERA_RPC_URL';

const { Web3 } = require('web3');

const web3 = new Web3(hederaRpcUrl);

const senderAddress = 'your_sender_address';

const receiverAddress = 'receiver_address';

const privateKey = process.env.HEX_ENCODED_PRIV_KEY;

require('dotenv').config()

async function sendTransaction() {

const gasPrice = await web3.eth.getGasPrice(); // get the current gas price

const nonce = await web3.eth.getTransactionCount(senderAddress, 'latest'); // get latest nonce

const transaction = {

'value': web3.utils.toWei('0.1', 'ether'), // value in ether

'to': receiverAddress, // recipient address

'gas': 3000000,

'gasPrice': gasPrice, // specify the gas price

'nonce': nonce,

'data': '0x0',

// Additional fields as necessary

};

// Sign the transaction with the sender's private key

const signedTx = await web3.eth.accounts.signTransaction(transaction, privateKey);

// Send the signed transaction

const txReceipt = await web3.eth.sendSignedTransaction(signedTx.rawTransaction);

console.log('Transaction receipt:', txReceipt);

}

sendTransaction().catch(console.error);

More information on getting started can be found on the Hedera documentation pages: https://docs.hedera.com/hedera/#set-up-your-environment

Start Building on Hedera

For developers seeking familiarity with high-performance blockchains, Hedera offers a compelling case. Its unique focus on specific markets, coupled with high-performance infrastructure and a developer-friendly approach through tools like Validation Cloud’s JSON-RPC relay, makes Hedera an attractive platform for building the next generation of decentralized applications. Embrace the shift and explore what Hedera has to offer to your Web3 development journey. Get started for free at validationcloud.io.

In our continuous effort to provide the most value and flexibility to our customers, Validation Cloud has updated the Scale Plan to remove the $19.99 monthly charge. The Scale Plan now operates as a true pay-as-you-go model with limitless scalability. With this new pricing model, Node API users can auto-scale their access based on their monthly usage.

The Scale Plan allows your project to grow without limits, offering unlimited compute units (CUs) to all Scale Plan users. Under the new Scale Plan, users will be dynamically charged based on monthly usage, with the price per 1M CUs decreasing as usage increases. This allows for limitless scalability, as the plan now enables you to use unlimited CUs and will automatically scale as your usage increases above 50M CUs/month.

Tailored for enterprise scale, this plan is designed to adapt to your growing needs while ensuring utmost control over your usage.

Overview: Free Plan vs Scale Plan

Free Plan

All Node API users can get started with the Free Plan, allowing users up to 50 million compute units (CUs) per month. CUs are a way to track usage associated with your endpoints when requests are made. On the Validation Cloud platform, your monthly usage is determined by calculating the CUs for all endpoints associated with your account rather than the compute units for each individual endpoint.

Get started with the Free Plan to connect to leading networks Ethereum, Polygon, and more at validationcloud.io/.

Scale Plan

For users wanting to unlock the full enterprise experience without any upfront monthly fee, the Scale Plan is now more accessible than ever. The Scale Plan offers:

• Pay-as-you-go pricing
• Global delivery network
• Unlimited Compute Units (CUs)
• Zero rate limits

Experience a truly unlimited, pay-as-you-go service tailored for enterprise growth with the Scale Plan at validationcloud.io.

About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at Validationcloud.io | LinkedIn | X