Welcome to the Setheum Wiki Space, the Setheum dictionary for learning, and working on building or maintaining the Setheum Network. The wiki, and the network is in it's early days.
Setheum creates a unique technology and economy that makes it the pioneer in it's conception & implementation.
Setheum is also built on Parity's Substrate, a modular blockchain development framework pioneer in building modular interoperable blockchains. Therefore Setheum Network is an interoperable blockchain network where cross-chain activities can occur with external blockchains even those that are not substrate chains and not connected to the polkadot network.
Setheum offers a fully decentralized algorithmic Decentral Bank system that contracts and supplies newly minted stablecoins to SettPayX Slots, i.e. ecommerce vendors, dapps & platforms, and offline stores that accept SettPay payments via SettPayX. Distributing newly minted stablecoins as discounts and cashback for the users/customers of the SettPayX Slots/Vendors/Stores/Apps.
Setheum offers a fully decentralized algorithmically elastic stablecoin ecosystem and payment system for ecommerce, day-to-day and peer-to-peer payments. Unlike older versions of stablecoins that are backed by a central entity in a centralized reserve in a corporate bank, Setheum collateralized its stablecoins with absolutely decentralized assets. The SETT is backed by the SERP Reserve and collateralized by the DNAR. The Consensus of the Setheum Network is based on NPoS similar to that of Polkadot. The Governance Model of Setheum contains 5 chambers/councils.
Blockchain Interoperability is the ability of a blockchain to communicate seamlessly with another blockchain outside its scope of protocols. Blockchain interoperability generally tackles the ability of sharing states and transacting across different chains . Blockchains can be seen as isolated databases, without proper interfaces for intercommunication of data. Blockchain interoperability could enrich use cases for blockchains like portable assets, payment-versus-delivery and cross-chain oracle. Ideally, different blockchains would be abstracted, such that a user can readily manipulate all the functions without accurate understanding of each blockchain.
In the early days of the crypto-ecosystem, most of the cypherpunks subscribed to the ideology that there will be “one blockchain to rule ’em all”, which will be the panacea for all the problems. Setheum will be built on Parity’s Substrate and connected to the Polkadot Network through a bridge parachain.
A plethora of blockchains has been designed to cater to various needs and use cases. In the blockchain space, blockchains try to negotiate various trade-offs amongst various traits such as security, privacy, scalability, decentralisation, ease of development, flexibility, et al.. which in turn affects the conduct of adoption and stability in the blockchain space. In our world of public and consortium blockchains, it is natural that there is a need to build platforms that do much more than a simple API integration, to facilitate seamless movement of data and value from one blockchain to another.
And this is how cross-chain or interoperable blockchain projects came into existence. With interoperable blockchains, little effort is needed on the part of operators, as decentralised third parties can be employed for movement of assets from one platform to another and accessing information from one chain inside another.
The objectives achieved by interoperability could broadly be listed as follows:
Transferring assets from one chain to another.
Adoption of financial derivatives and digital assets across chains, resulting in a free open universal market.
Assets on chain A get locked based on an event on chain B. This is useful in situations where collateral plays a part.. for example, financial derivatives, bankruptcy clawbacks et al.
Atomic Swap, meaning that either both transfers happen or none happens. An example is user A has to transfer asset X to user B if and only if B transfers Y to A.. Atomic swaps automatically ensure both parties fulfill the objective.
General cross chain contracts such as paying dividends on chain A to holders of an asset in case the ownership is registered on chain B.
Scaling is arguably the biggest obstacle that blockchains face when it comes to achieving mainstream adoption. While some applications can thrive today, most are still too slow and expensive for regular users.
In Setheum, things are going to at an unprecedented speed — because, in Polkadot, we use what we call “Parasharding” , basically — where there is a main chain we call “Relay chain”, orbited by smaller chains called “Parachains”. Setheum will have a Parachain on Polkadot and Kusama that itself is a bridge chain. We think, a universe of blockchains that will start from Substrate, Kusama and Polkadot. So, we are talking of fast-finality since all parachains compute parallel to each other and can have distinct sovereign rules, hence the name “Parachain”.
Setheum is in the Polkadot Ecosystem, not only does Polkadot allow blockchains to connect, but also allows them to pool the security together so that the individual chains can leverage the collective security without having to build from scratch to gain trust and reliability.
Security in proof-of-stake networks depends on economics, so there can only exist a limited amount of security in the world because economic value is, by definition, limited. As the number of blockchains increases due to scaling issues on single chains, their economic value.. and therefore their security gets spread out over multiple chains, leaving each one weaker than before.
The reliability of any blockchain is the ability of the network to effectively record a digital asset’s creation and its transfer in accordance with the intended purpose.
A reliable blockchain should have an effective design for its intended purpose by observing certain reliability factors including deployment services like block explorers, digital wallets et al, a reliable consensus protocol, a reliable system of governance and a cryptographically secure network.
Thanks to the Web3 Foundation and Parity Technologies, Setheum could survive Post-Quantum World, WWIII, WWIV and even Zombie Apocalypse. Setheum provides reliability as a service through the development of a cluster of reliable protocols & services including but not limited to Setheum explorer, SettPay wallet and many more to come. Setheum is based on a NPoS (Nominated Proof of Stake) consensus algorithm and a Finality Algorithm called “GRANDPA”(GHOST-based Recursive Ancestor Deriving Prefix Agreement), invented by Web3 research scientist Alistair Stewart and implemented by Thiel Fellow and Polkadot cofounder Robert Habermeier. GRANDPA gives asynchronously, accountable safe finality in a hybrid consensus blockchain. Under good network conditions, GRANDPA can finalise blocks nearly instantly. Under bad network conditions, like a network partition, GRANDPA can finalise millions of blocks at once when the partitions resolve. GRANDPA can finalise a new block regardless of how many blocks have passed since the last one was finalised. GRANDPA figures out which blocks are in at least ⅔ of nodes’ chains and finalises them. It can also give different validators different weights, e.g., by the amount staked in the protocol.
As for reliable governance, here are many definitions of governance, especially as of late in the blockchain space, so it is important to agree on the foundational principles of governance. Wikipedia defines governance as, “the way rules, norms and actions are structured, sustained, regulated and held accountable.” The United Nations says, “Governance has been defined as the rules of the political system to solve conflicts between actors and adopt decision.”
The governance of Setheum is on-chain and all changes to the network require a stake-weighted majority to be agreed upon. This is performed using sophisticated mechanisms, that differentiate highly from other recent coin-voting mechanisms appearing in this early stage of on-chain governance blockchains.
Keep in mind, however, the rules set at the beginning of Setheum can change later to provide improved representation and enactment as the community learns from experiences in governing a large network.
Setheum uses a sophisticated governance mechanism that allows it to evolve gracefully over time at the ultimate behest of its assembled stakeholders. The stated goal is to ensure that the majority of the stake can always command the network.
The governance system in Setheum is similar to and inspired by that of Parity’s Polkadot, because we see it as the foundation for a really human and efficient representation of a regime. So it lays the foundation for Setheum’s governance, which will differ in a lot of ways though.
There are five (5) governance Councils or Chambers in Setheum
Check the Setheum Governance Wiki for more details.
For a blockchain to be stable over time, it needs a strong governance and an efficient monetary regime. It needs a balance of incentives and governance between the participants in the network — the validators, collators, blockchains et al. Setheum introduces a strong monetary regime that holds into account the best of the both worlds of cryptocurrency and fiat. Providing a system also inspired the gold standard, Setheum’s gold is the Dinar (DNAR) token and the gold standard in Setheum is the SETT family of tokens — formerly named the STP258 Standard (Setheum Tokenomy Protocol To Fiat Standard). The STP258 Standard is a fiat-pegged stablecoin standard that allows the creation fiat-pegged yet completely decentralized cryptocurrency, the SETT currencies are backed by the DNAR and the PES / TES (Token Elasticity of Supply) economic algorithm which enabled the elastic minting and contracting of a SETT currency based on it’s price relative to the market cap of the DNAR and SETT — deriving the DS3 (Dinar-Sett Stability System) on the SERP (Setheum Elastic Reserve Protocol). And there is also the STP20 standard, where development of SETT-free sovereign tokens is standardised for blockchain projects to develop and deploy their tokens — interoperable tokens that can be evaluated and exchanged in all blockchains connected to the Setheum, Polkadot and Substrate ecosystem. Setheum’s currency supply contraction happens through the Serp Market, which is completely on-chain and based on the DS3 & SERP automation. The Serp Market requests to buys back from the validators and burn to decrease supply and stabilize the price of SETT.
Sett tokens get issued through SettPay after being minted by the SERP (Setheum Elastic Reserve Protocol). SettPay issues the tokens to the SettPay Slots, and Apps that use SettPay as their payments provider each have a SettPay Slot. Check Setheum Wiki for more details.
Liquidity is a measure of the ease at which an asset can be converted to another asset without affecting its price. In simple terms, liquidity describes how quickly and easily an asset can be bought or sold. ... A similar asset in the world of cryptocurrencies is a stablecoin.
Setheum's stablecoin system offers liquidity, check here for more details.
Elasticity is a measurement term that applies to a variable’s sensitivity to a change in another variable. In most cases, this sensitivity is the difference in price relative to changes in an array of other factors. In the field of business and economics, elasticity is a reference to the degree to which individuals, consumers, or producers modify their demand.
As you can tell such a system like Setheum has a wide variety of use cases, it opens up a whole new world of opportunities for everyone. From eCommerce to on-demand ride hailing, to sports arena tickets, to a cup of coffee, to airplane tickets and even government pensions can be done on Setheum. Check the Setheum White Papers for more details.
Setheum provides an easy to use interface for the users to interact with the network and layman products & services that are easier to use. Setheum also provides, a library of deployment services and modules including SettInDEX, SettPay (Payment App) and SettPayX (Payment Gateway App) apps for users to send and receive payments P2P(Peer-to-Peer), P2B(Platform-to-Business), O2O(Online-to-Offline), B2P(Business-to-Public), B2B(Business-to-Business) et al. Check the Setheum Products & Services Wiki Page for more details.