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Katal Chain: A Template for Blockchain-Based Finance

Blockchain technology is believed by many to reshape the way we perform real-life transactions. However, the difficulty in learning the ins and out of cryptocurrency space, as well as knowing the complex codes used in these systems remain a barrier to entry. Katal Chain was developed to address this specific issue.

Katal Chain was designed to make it easy for anyone to automate their business and financial transactions through a blockchain, leveraging its decentralized nature and security. Through Katal Chain, the task of creating decentralized financial applications can be easier, cheaper, and more convenient.

Table of Contents

Background

The team behind the Katal Chain created the platform based on the belief that there is a need to create a sustainable and deterministic financial paradigm conceptualized around crypto economics.

Katal Chain was designed to support developers and businesses in building the blockchain-equivalent of most financial transactions performed in the real world. To ease the process, Katal created a protocol where users can work around a set of templates that already exist in the platform to form decentralized financial applications that meet their needs.

What is the Katal Chain?

Katal Chain is a decentralized blockchain platform aimed to standardize and streamline the process of building and implementing DeFi applications. Katal functions with the help of a high-performance consensus model, validated data feed process, and the necessary contracts and infrastructure to link it with other existing blockchains.

Katal’s main focus is to establish a system where creating new financial services is much simpler and easier while maintaining the platform’s decentralized nature. Furthermore, the system is convenient, fast, non-custodial, and interoperable.

Who can Benefit From Katal?

Developers enjoy a higher transaction throughput on Katal than with other Ethereum-based or Bitcoin-based blockchains. Apart from its low-latency attribute, developers also benefit from the interoperability of Katal chain because its platform is designed to maintain connectivity with other public ledgers.

Access to oracles and stable assets are among the other advantages developers can experience from building on top of Katal. With these features, anyone can build a DeFi app.

Users also get to enjoy a much more user-friendly platform to perform financial transactions. Unlike other high-traffic chains, Katal is built on the Polkadot chain and can operate faster, more securely, with fewer risks, and in a non-custodial manner. This means that users will always have full control over their assets.

Main Components of the Katal Chain

Katal is powered by an infrastructure composed of systems that provide a blockchain development protocol, consensus algorithm, virtual machine, standard algorithmic baseline for contracts, data feed system, and multi-chain ecosystem.

Substrate

Substrate is the blockchain platform built by Parity Technologies. Through it, developers can conveniently make new parachains from its tools and existing templates. Katal uses the Substrate Core, which helps enable its consensus model while maintaining networking functionality.

Using the Substrate system on top of the Polkadot blockchain enables Katal to benefit from its pooled security along with the capability of interacting with other parachains connected to the Polkadot network. All of these benefits help Katal achieve quick transaction finality and interoperability.

Albatross

Albatross is a new consensus algorithm conceptualized around existing speculative Byzantine Fault Tolerance (BFT) models. The same algorithms follow two basic modes, the optimistic and pessimistic mode. In its optimistic mode, the algorithm assumes that nodes are well-behaved, assuring a faster validation process and transaction throughput. In its pessimistic mode, the algorithm assumes that there are nodes that are malicious, focusing instead on a more accurate validation process for block confirmations than faster transaction throughput.

With Albatross, the consensus algorithm follows a ‘trust but verify’ approach. This is where nodes are entrusted to perform updates to the latest state of the blockchain but other nodes on the network can reverse updates if they are not valid.

Albatross has a set of validators elected from the stakers, and they are in charge of producing the blocks. Albatross achieves low-latency and high transaction throughput by not requiring bootstrapping nodes to download all blocks first before achieving consensus. With only the most recent and updated records supporting the consensus model, transactions can easily be confirmed.

Enso

Enso is a virtual machine designed to help develop the Katal blockchain without the need for hard forks. Enso allows for specific updates on the state of its blockchain.

ACTUS

ACTUS stands for the “Algorithmic Contract Types Unified Standards.” Its main purpose is to identify and pattern every possible financial contract into an algorithmic process of cash exchange between multiple parties.

ACTUS functions through the help of “contract types.” These are financial contracts that are replicated on the blockchain in the form of much simpler contracts. Some examples for contract types are credit default swaps, futures, and perpetual bonds, among others.

Town Crier

Town Crier is Katal’s authenticated oracle system for smart contracts. Oracles feed data for the proper functioning of smart contracts.

Polkadot Relay Chain

Polkadot is the main chain where the parachain supporting Katal is built. The relay chain allows Katal to exchange information and interact with other parachains existing in the Polkadot network. Relay chains also allow the transfer of tokens and other assets from Katal to other parachains and vice-versa.

Use Cases

Asset-backed Tokens

Katal can be used to issue new tokens that are backed by real-world assets with the help of trusted entities holding custody over the underlying assets. The same concept is applied to the creation of stablecoins.

Value Transfers

Katal supports the transfer of fiat currencies through the use of asset-backed tokens and cryptocurrencies. And because Albatross can quickly process transactions with its high throughput, users can conveniently perform transfers within the platform.

Token Swaps

Katal features foreign exchange contracts, which enable the token swap function of the platform without much risk for the users. Since swap contracts are atomic, transactions are completely canceled if their conditions aren’t fully met.

Collateralized Loans

Katal also supports complex transactions such as loan collateralization. Smart contracts can create annuity contracts and collateral contracts to facilitate the provision of collateralized loans. Since these services can be automated, users do not have to directly interact with the blockchain to create, monitor, and execute smart contracts.

Conclusion

Today’s emerging trend features digitalization. With many individuals and organizations around the world focusing on finding effective ways to perform business transactions and processes online, there is certainly a need for a platform that can make it easier for them. Leveraging on the power of blockchain is the way to go, and Katal has developed a platform that can achieve the goal of digitalization.

The ability of Katal to standardize and streamline the process of contract settlement, from their creation until the moment of execution, could prove to be a remarkable use case of the blockchain for businesses and developers. 

Source: https://www.asiacryptotoday.com/katal-chain/