The Nomic project’s first derivative is a blockchain bridge that enables users to transfer and use Bitcoin in the cosmos. This project’s central policy and motto, which still needs to complete its development path, is to build a side chain for Bitcoin. The use of Bitcoin in DeFi protocols attracts users to projects like this.
The Nomic network has a native token with the symbol Nomic which was distributed to ATOM holders during the first airdrop event in January 2022. The second and third stages of the airdrop will be held simultaneously with the development of the network.
Although we have little information about the project, we have prepared a summary of how the Nomic network works, the Nomic bridge, the Nomic cryptocurrency, and the development team.
Once Upon a Time Nomic Network
The layer one blockchain Nomic provides a decentralized and non-custodial bridge for Bitcoin to enter the Cosmos ecosystem.
- WBTC can be considered an example of a Bitcoin token on the Ethereum network.
- Namek also offers another version of the Bitcoin token with the ticker nBTC.
- nBTC is an IBC-compliant token that has a one-to-one ratio with Bitcoin.
When someone deposits Bitcoin in the bridge, they will receive an equivalent amount of nBTC, equal to the value of their actual bitcoins.
Once they deposit Bitcoins to the destination address, nBTC will appear in their wallet. Users even can stake nBTC on IBC-compatible DeFi protocols and profit. Bitcoin Bridge is Nomic’s first product.
This bridge facilitates users by creating a new asset called nBTC which has the full support of the Bitcoin blockchain and helps us to transfer Bitcoin from the leading network to Cosmos. nBTC also is compatible with the Cosmos inter-blockchain protocol.
How the Bridge Works
The Nomic Blockchain Bridge is the first product of the Nomic network that enables the conversion of Bitcoin to nBTC tokens and vice versa. nBTC is a Bitcoin token compatible with the Cosmos ecosystem. In practice, you can use it in Cosmos protocols.
- Deposit Bitcoin in exchange for receiving nBTC.
- Deposit nBTC in exchange for receiving mainnet Bitcoin.
How Does the Nomic Network Work?
Nomic enables users to use Bitcoin in Smart Contract based applications.
Also, attacks similar to proof-of-stake networks are prevented by creating a periodic time stamp of the side chain in the Bitcoin blockchain.
Nomic also attacks Proof-of-Stake networks which cannot create a periodic tamp of the side chains in the blockchain network. This results in obtaining the security of the proof-of-work protocol and the immediate execution of the transaction, similar to BFT protocols.
The system works independently and is called a side-chain network.
Validators of this network act as signatories of network reserves (bitcoins deposited into the network).
At first, Nomic may seem similar to other Cosmos chains, but there are fundamental differences. For instance, other chains are built on the Cosmos SDK platform, which has advantages and disadvantages, when Nomic is written on the custom “Orga framework” and in the “Rust language,” and these two factors increase Nomic’s performance up to 100 times compared to other Cosmos chains.
Bitcoin storage is done through a particular Multisig (Multi signatures) contract.
The custody of Bitcoin reserves is not given to any nodes in the network, but they all play a role in maintaining or restoring them.
The validators of the sidechain network are the signers of the reserve wallet. Their signature is required to control the funds on the Bitcoin blockchain. The signature of more than 2/3 sets of validators is needed to withdraw money from the reserve, and it is applied through the reserve script on the Bitcoin blockchain.
What is Nomic Cryptocurrency?
$nom is The Nomic network native cryptocurrency, which users can use for staking, depositing, and securing the network, besides they can also pay network fees.
The name token total supply will start at 21 million tokens, and the maximum supply will reach 210 million tokens after nine years of inflation.
- Airdrop: 3,500,000 to ATOM token holders and stickers (Initial Airdrop held on January 1, 2022)
- Reserve for 2nd and 3rd airdrop: 7 million will be provided in the following network upgrades, and the details will be announced. Until then, these tokens will remain reserved and will not be circulated.
- Strategic reserve: 10,500,000 tokens will be awarded to the project’s strategic partners based on the standard of Cosmos projects.
The Nomic developer team has a long-standing familiarity with Bitcoin and Cosmos networks, and as the first engineers of Cosmos, they have been working with Bitcoin since 2011.
They started developing Bitcoin Bridge in 2018, and according to their website’s published data, this team is based in Austin, Texas. The bridge is the platform’s first product, and the team will focus on Dows, Bitcoin-backed stablecoins (overcollateralized), and other monetization opportunities in the future.
Nomic is a layer-1 blockchain whit several services the network provides for users. The most important and primary of those services is the blockchain bridge, which allows its users to enter and use Bitcoin in Cosmos-based protocols.
This project uses a combination of “PoS” and “PoW” algorithms to provide security and speed up transactions. The exciting thing about Nomic is that you can get a Bitcoin reward by staking the NOM token.