Blockdaemon is proud to announce full end-to-end support for Provenance, the open source, permissionless, decentralized, Proof-of-Stake blockchain for the financial services industry.
Provenance is built with Cosmos SDK and full compatibility with Cosmos/Tendermint interfaces, RPCs, protocols, and consensus mechanism. It provides a ledger, registry, and exchange across several financial assets and markets. Banks, funds, asset originators and technology companies can use Provenance for loan origination, servicing and financing, marketplace trading, fund custody and administration, banking and payments, and private company cap table management. Provenance joins the growing suite of Proof-of-Stake networks offered in the Blockdaemon marketplace.
“We’re excited to collaborate with Blockdaemon, a leading independent blockchain node infrastructure provider, to provide full-node and staking support for Provenance,” said Matt Conroy, Provenance Blockchain Foundation.
In this announcement of our full end-to-end support, we will look at:
- An Introduction to Provenance
- How Provenance Blockchain Works
- Why You Should Use Blockdaemon for Provenance Support
- Provenance Use Cases
- Exciting Provenance Developments You Can Expect From Blockdaemon
An Introduction to Provenance
As a proof-of-stake network, Provenance is supported and secured by a network of validators in proposing and validating transactions. In return, validators earn stake-proportional rewards in native token Hash, including block reward, transaction fees and public commission. Token holders can contribute to network security by delegating Hash to validators and earn staking rewards.
Provenance’s native token Hash (utility token) has a 100bn fix supply, meaning no additional Hash will be issued. There are three main usages of Hash:
- Paying for transactions (similar to paying gas fee with ETH)
- Staking for network’s economic security
- Voting with staked Hash (governance)
Blockdaemon is included in the Active Set of Validators from day one. This recognises and rewards our commitment to the network.
“We’re thrilled to share our support for Provenance as they provide the foundation to build DeFi apps for the evolving financial service industry,” said Konstantin Richter, CEO & founder of Blockdaemon. “Based on the Cosmos SDK/Tendermint consensus, Provenance is launching in a secure, reliable way for scalable growth and adoption in the financial sector.”
How Provenance Blockchain Works
Inheriting certain network parameters and rules from Tendermint consensus mechanism, only top 20 validators with the most voting power (i.e. total staked on the validator including delegation) will be included in the active set initially, expanding based on community vote. Amongst the active validators, the ones with higher stake are selected deterministically to produce a block with additional bonus that increases linearly from 1%-5%. These selected active validators are called Proposers. The more staked on a validator, the higher frequency of being chosen to produce a block.
Below are a few relevant staking metrics:
- Public commission – can be set 5% – 100%
- Validators take commission before distributing reward on-chain to delegators
- Minimum Bond – 1 Hash
- Unbonding period – 21 days
- Active validator Set – 20 validators
- At the time of writing, the initial active set is 20 validators and can be changed by governance.
Provenance also incorporates Cosmos SDK. This provides a customizable, modular approach to support APIs for financial services. Cosmos SDK inherited modules will define the logic for Provenance based applications.
This gives rise to exciting use cases powered by the Proof-of-Stake blockchain. We will look at one of these in section 4 below.
Why You Should Use Blockdaemon for Provenance Support
Blockdaemon are delighted to offer full-node and staking support for Provenance.
Our Blockdaemon validator will soon be in the Active Set of operators and support delegation. Provenance recognises our industry-leading node infrastructure experience. Blockdaemon brings unique advantages to the Provenance network, including:
Blockdaemon provides 24/7 Provenance Validator Node Monitoring
3 out of 4 Blockdaemon employees are engineers. This means no problem goes unnoticed. We monitor our Provenance validator nodes around the clock for issues. This means 24/7 monitoring every day of the year. Our engineers trigger manual failover in the unlikely event of a node fault.
This manual intervention mitigates the risk of double-signing associated with automated failovers. Manual failover ensures double-signing cannot occur with our Provenance validators.
You are 100% Insured against Blockdaemon Incurred Slashing
To disincentivise validator misbehaviour and ensure network security, slashing is implemented in Provenance. Slashing takes away part of the principle staked and is applicable to both validators and their delegators. Below are the slashable misbehaviors on Provenance:
- Double signing – 5% slashed
- Downtime (miss more than 95% the last 10,000 blocks) – 0.01% slashed
If one of the above occurred, the validator is removed from the active set.
Blockdaemon provides 100% slashing insurance on slashed funds where we are responsible. This is a testament to our commitment to the Provenance delegator community.
We will always deliver a high-quality, reliable validator service.
Provenance Use Cases
Provenance supports many exciting use cases as a financial services blockchain. Below are two sample use cases built by Figure, the first and primary user of the Provenance blockchain
- Digital Fund Services on the network allows fund managers to digitally raise, and manage private funds in the primary marketplace and trade fund interests in the secondary marketplace.
- Figure Loan Origination System allows loan originators to onboard loans to Provenance with a temper-proof record.
How Blockdaemon can help you with Provenance
Today, Blockdaemon joins Provenance in helping bring its ambitious vision to reality. Our Provenance validator nodes will be available for public delegation. This means that public holders of Provenance’s native token, Hash, will be able to delegate their assets to our dedicated Provenance nodes.
We here at Blockdaemon utilize fully dedicated resources and only use enterprise grade hardware on all our Provenance nodes in order to provide the most productive nodes possible to our customers. Our high-availability node architecture allows for seamless scaling and a failure resilient infrastructure. All of our nodes are fault-tolerant, and high-traffic nodes include redundancies to handle high amounts of traffic, which ensures a node failure does not result in a drop in service.
Furthermore, we are ready to support institutional clients who would like to get started with Provenance staking. Our dedicated validator support for institutional clients benefits from our wealth of experience across other industry-leading staking protocols. Blockdaemon guarantees an end-to-end staking solution, from physical node infrastructure set-up to providing staking yield reports on Provenance validators. All of this saves our clients time and generates strong yield.
Together, we support the decentralization and future success of the Provenance network. We want you to be part of that success.
If you’d like to get started running a Provenance node or using our staking services, please feel free to reach out to us! GET IN TOUCH