Cryptopedia - Dymension
Dymension is the Internet of RollApps, a network composed of RollApps (layer 2s) and the Dymension Hub (layer 1). RollApps are modular blockchains that are easy to deploy and integrate natively with the Dymension Hub, which supplies them with security, liquidity, and connectivity.
Why DymensionCrypto applications urgently need better usability and economic sustainability. Rollups have recently demonstrated a simple, effective business model where profit equals fees minus base layer costs. Consequently, many L2s were deployed, each with its own custom implementation, multi-sig bridge, and security assumptions. This resulted in a fragmented, insecure, and chaotic user experience that reduced the benefits of rollups and modular blockchains.
How DymensionDymension standardizes rollups using IBC (Inter-Blockchain Communication Protocol), similar to how ERC standardized tokens. RollApps are a new crypto primitive that provide the rollup business model alongside speed and scale in a unified experience. This prepares the way for a true Internet of rollups to emerge.
RollApps are modular blockchains; rather than maintaining expensive validators, they use the Dymension Hub (layer 1) to secure their funds and Data Availability (DA) networks to publish transaction data.
Building Blocks of DymensionSecurity IBC is a key component of Dymension. It is a battle-tested bridging protocol that enables secure communication between different chains. RollApps connect to the IBC economy through the Dymension Hub, similar to how a server connects to the internet via an internet service provider.
Dymension replaces the centralized and risky multi-sig bridges common in Ethereum and L2 ecosystems with IBC-connected rollups. By building IBC for rollups, Dymension ensures that all funds deposited into a RollApp are as secure as the Dymension Hub itself.
Liquidity The Dymension Hub hosts an embedded liquidity layer that supports asset pricing, swapping, and efficient token routing across the ecosystem. This encourages economic growth by enabling a seamless user onboarding experience to RollApps and easy access to RollApp tokens.
Data, Scale and Costs RollApps publish transaction data to external blockchains such as Celestia, Avail, NEAR and others to provide verifiability for RollApps. RollApps can choose which blockchain is the best option for their data based on costs, values, tech and more. This generates competition and a data market needed to scale all data requirements of the entire Internet of RollApps.
Crypto UX The future of crypto UX is deposit, play, withdraw. Dymension’s infrastructure streamlines this at scale, allowing developers to deploy RollApps in a few clicks with the Dymension RollApp Development Kit (RDK). Users can easily deposit from Ethereum and further across all of the crypto ecosystem with a single transaction routed through the Dymension Hub.
