Diving Into Topl Thunder’s Technical Aspects

Written by Jacek

2023-09-28

Imagine Bitcoin’s inherent potential; now, magnify it—that’s Topl Thunder. Our innovation is built to make blockchain solutions more accessible and powerful to users in emerging markets and beyond.

UTXO Native

Like Bitcoin, the Topl chain operates natively using unspent transaction outputs, or UTXOs. This mechanism is often compared with digital cash, distinct from the account-based approach some other chains take. This means that, since users specify both inputs and outputs, the transaction’s outcome is predetermined by the sender and allows for much finer-grained control.

Additionally, since a transaction consists only of the state encoded in its inputs (and specified in its outputs), every node doesn’t need to validate the entire chain state for each transaction, which speeds processing.

By sharing this foundation, Bitcoin and Topl transactions can easily flow back and forth between chains without requiring complex state management, updating ledger balances, or any other account mapping steps needed for alternate systems.

Nakamoto Consensus

The probabilistic finality mechanism first proposed by Satoshi provides secure consensus even when up to 50% of participants are malicious. To preserve this important safety property, we also embraced this mechanism in the Topl consensus. The consensus model used within the Topl network, which we call Ouroborous Taktikos, takes this one step further. Based on Nakamoto proof of stake and leveraging a dynamically-adjusting difficulty threshold, we are able to maximize throughput without sacrificing consistency. This allows transactions to process quickly and with low latency.

Flexible fungibility

One of the unique functions introduced in the Topl chain lies in our custom asset model. We allow all assets to specify a multi-tiered fungibility model that enables the minter to control how it can be split, combined, or exchanged with other related assets in a very fine-grained manner.

For example, a restaurant group might wish to mint gift cards that work interchangeably at any restaurant within their network but not allow them to be combined or split to improve customer relationship management. Similarly, a jeweler may need to trace a gemstone from mine to store, while still capturing the ability to cut multiple smaller gemstones from a single, raw stone.

Bitcoin features

Building on these foundations, we can now support existing and future functionality in the Bitcoin ecosystem. For example, consider an ordinal that is being used to inscribe an NFT. When that asset is wrapped into the Topl ecosystem, rather than treating it as a wrapped satoshi, a user could instead represent that as a true NFT with metadata, group and series associations, and fine-grained control over fungibility. You could even choose to prevent that sat from being comingled with un-inscribed Bitcoin for added safety.

Similarly, when new functionality is added to the ecosystem, such as the upcoming Taro changes, incorporating those into the Topl ecosystem is very straightforward. Since the Topl network can support fungible and nonfungible custom assets and all the gradients in between, mapping custom Taro assets allows users to leverage the faster throughput of Topl while unlocking new functionality. When you’re ready to unwrap your assets, the process can be easily reversed.

We rely only on time-tested Bitcoin features to enable compatibility, such as cross-chain atomic swaps, which ensure that users can start building quickly with familiar interfaces and maintain confidence in stable and well-tested technologies.

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