Table of Contents
Gnosis Chain: All you Need to Know
Despite the current slow adoption rate caused by the extended bear market, Gnosis Chain is a case of how ingenuity can contribute to enhancing market adoption. The team understood the need for institutional investment in the sector and has made a substantial impact in the DeFi space, thereby fostering the growth of the Ethereum ecosystem and defining the future of blockchain technology.
The native token GNO, with use cases such as the governance token for the GnosisDAO and for staking on the Gnosis Beacon Chain, has been in a sideways trend for the past three months, trading between $102 and $117, with a current price of $102.45, as at the time of writing this. Gnosis Chain was designed to facilitate high-frequency, low-costEVM-compatibletransactions. Its high activity has enabled it to facilitate between 103,000 and 132,000 daily transactions in September.
This piece will go into the origins and technology of the Gnosis Chain including several notable GNO ecosystem applications, such as the CoW protocol. In addition, we’ll go through how Atato’s Bring Your Own Chain (BYOC) functionality now supports Gnosis Chain, an EVM-compatible sidechain, making it even simpler for users to manage their assets.
Gnosis Chain: A Brief Introduction
Martin Köppelmann and Stefan George, 2015
Gnosis was founded by the duo of Martin Köppelmann and Stefan George in 2015 as a decentralized prediction market on the Ethereum blockchain. Initially, the team was inspired by Augur to provide a blockchain betting platform; however, they quickly pivoted to developing infrastructure tools to enhance the Ethereum ecosystem. Tools such as CoW Protocol (Confidence of Wants), Gnosis incubated Safe (decentralised custody protocol and asset management platform), Conditional Tokens (prediction markets), Zodiac (standard and tools for composable DAOs), and Gnosis Auction were developed.
By 2020, Gnosis announced plans to become a DAO (Decentralised Autonomous Organization). A year later, the GnosisDAO and xDAI communities voted to merge both ecosystems to create the Gnosis Chain – an execution-layer EVM (Ethereum Virtual Machine) sidechain notable for stable transactions leveraging the xDAI token. The Gnosis Beacon Chain (GBC) consensus layer ensures the protocol’s security.
The community-driven approach of the Gnosis Chain lies at the core of its success as one of the first Ethereum sidechains. Gnosis Chain has established a completely decentralized and secure network by allowing people all over the globe to operate network nodes simply.
Gnosis Chain’s Technology
Central to the Gnosis chain (post-merge) is the composite layer architecture that is created by interacting two layers: An Execution Layer (EL) network and a Consensus Layer (CL) network. Basically, the Gnosis chain uses the same architecture as Ethereum. Unlike many sidechains, on Ethereum, the Gnosis Chain was the first Ethereum sidechain solution with a U.S. dollar-pegged stablecoin (xDAI) as a transactional token. This provides stable, low-cost and optimized transactions for Ethereum-based projects, offering developers 100% uptime, $0.0001 per 100K gas, and 5 seconds of block time.
Unlike Polygon, the Gnosis chain’s geographically diverse set of validators and the community governance ensure Gnosis Beacon Chain remains credibly neutral at a muchlower price than mainnet. Gnosis Chain is a reliable and lean network created for performance with proven tailor-made technologies. Because of its much faster block and epoch timings, transactions can be processed significantly more efficiently, reducing overall network congestion.
This feature is an important addition to any Web3 developer’s toolset, offering more solutions to manage large transaction volumes. And now, with atato’s custody solution services, accessing the Gnosis Chain network resources as a trader, developer, or institution is secured by an MPC-based wallet tailored for web3 businesses.
Gnosis Chain Popular Applications
The Gnosis ecosystem relies on numerous components and applications designed to improve the utility of the Ethereum blockchain, with the Gnosis Chain functioning as an open framework, providing dApps to third-party platforms. The ecosystem has progressed, allowing web3 developers to integrate with various traditional payment services, like Visa and Monerium. Without a doubt, Gnosis Chain has formed partnerships with several important web3 initiatives and fintech businesses, demonstrating its broadening applications in the web3 and fintech space. These includes:
Integration of Gnosis Pay with Visa:
Gnosis Pay is the first decentralized payment network that allows the integration of web3 and a variety of traditional payment systems, including Visa. This collaboration resulted in the Gnosis Card, the world’s first fully Visa-certified self-custodied consumer debit card directly linked to an on-chain self-custodial wallet rather than a regular bank account, and built on the Gnosis Pay decentralized payment network.
Backed Finance Partnership:
Backed Finance joined forces with Gnosis Chain early in the year to bring real-world assets on-chain. The integration marked a significant milestone in seamlessly integrating traditional assets into the DeFi landscape. This partnership opens up DeFi reach and community engagement to Swiss DeFi users.
MetaMask & MetaMask Institutional (MMI):
MetaMask’s web browser/mobile app and institution-required custody teamed up with Gnosis Chain to provide a browser extension/mobile app that lets users manage their Gnosis private keys. It also provides users with several signature-based crypto self-custody options, including institutional investors, DeFi, DAOs, and NFT collectives.
Gnosis Chain teamed with Monerium, a licensed Electronic Money Institution in the EU, in April to bring EURe to Gnosis Chain. The EURe is a Euro-stable coin backed by bank deposits and qualifying high-quality liquid assets in the Monerium. EURe is redeemable for Euros 1:1 and is 102% overcollateralized to preserve its peg.
atato's Support for Gnosis Chain
We’re thrilled to support Gnosis Chain on the atato custody platform. Within atato custody, users can securely store, manage and transact their treasury on the Gnosis Chain.
Our drive for expanding our supported assets matches with our vision of providing a complete digital asset management solution. As new blockchains and tokens emerge, atato aspires to empower users with unprecedented flexibility and ease.
Gnosis Chain on atato Custody
With the continuous evolution of the crypto ecosystem, concerns about cryptocurrency security are also always top of mind. Whilst cyber criminals use cryptocurrency to remain anonymous, they also seek to take advantage of the vulnerabilities and weak areas of emerging technologies in the blockchain space.
As a proactive effort to enhance the industry’s growth and user trust, atato custody presents an unparalleled solution—a web3 business-centric MPC-based wallet. In light of this, atato has launched the Bring Your Own Chain (BYOC), a significant step toward increasing user freedom. This breakthrough allows users to secure their treasury on any EVM and non-EVM compatible network inside the safe confines of atato custody.
This revolutionary technology eliminates the limits commonly imposed by many custodians, greatly simplifying the process of adding public or private networks with only a few easy clicks. Furthermore, the Bring Your Own Token (BYOT) capability allows users to easily integrate their unique tokens into their private networks. This integration simplifies tasks like deposits, withdrawals, and smart contract transactions, ensuring a pleasant experience for every user.
Security is critical as the crypto ecosystem evolves. The development of an MPC-based wallet optimised for web3 businesses by atato Custody ensures asset safety in an ever-volatile crypto landscape. The BYOC feature for GNO brings flexibility to the forefront, simplifying network integration and asset management. The collaboration of atato and Gnosis Chain ushers in a new age of cryptocurrency security and simplicity.