Architecture and Infrastructure: The Namazu Upgrade
The Namazu Upgrade represents a transformative milestone for the Kaspa ecosystem, introducing all the potentiality of DeFi and hybrid smart contracts, while seamlessly connecting Kaspa to the Ethereum ecosystem and the broader Web3 landscape. In Japanese mythology, Namazu is the creator of earthquakes under the sea which symbolize disruptive transformation, leading to new opportunities and prosperity. The Namazu Upgrade embodies these qualities, signalling a seismic leap forward for the Kaspa ecosystem and its inhabitants.
Inspired by the impressive technology behind ZetaChain, The Namazu Upgrade builds upon the success of its predecessor, offering enhanced scalability, security, and functionality. This next-generation upgrade introduces a hybrid solution combining the XODEX Network and Kaspa inscriptions, enabling EVM-compatible smart contract functionality on top of Kaspa. By leveraging the Namazu Upgrade, users gain access to a seamless, deterministic solution that theoretically brings all of EVM's cutting-edge DeFi capabilities into the Kaspa ecosystem. This innovative solution will empower the Kaspa community, attract new projects, and unlock the potential of decentralized finance across both ecosystems.
Namazu Upgrade
The Namazu Upgrade addresses limitations in the first version to deliver a seamless and robust platform that meets the demands of today’s decentralized trading environment. This upgrade is more than just a friendly fork of ZetaChain; it is a carefully reimagined and enhanced version, drawing inspiration from ZetaChain’s technology while introducing unique innovations tailored for Kaspa and its ecosystem. The migration to Namazu will be seamless for users and node operators, ensuring a smooth transition while maintaining continuity in operations. The upgrade is targeted for completion in Q1 2025, setting the stage for the XODEX decentralized exchange (DEX) launch, and more, thereafter.
Hybrid Smart Contract Solution for Kaspa
Namazu introduces a hybrid solution that brings EVM smart contracts to the Kaspa ecosystem, unlocking the full potential of the Ethereum ecosystem within Kaspa. This deterministic system operates using observer signer functionality and Kaspa inscriptions to execute and settle transactions securely.
Observer Signer Functionality
Namazu observes transactions on the Kaspa network via inscriptions. These inscriptions include the necessary data for smart contract execution, which XODEX processes on its network before settling back onto Kaspa using Multi-Party Computation (MPC) technology based on the GG18 (Gennaro-Goldfeder) algorithm. This algorithm ensures secure and distributed key generation and signing without revealing private keys, leveraging threshold cryptography for decentralized execution integrity and fault tolerance.
P2SH for Data Embedding
The Namazu Upgrade uses P2SH (Pay-to-Script-Hash) to embed custom data and track transactions. While Kasplex indexer will not be used in favour of our own observers, it will facilitate the sending of KRC-20 tokens.
Kaspa-Powered Transactions
Transactions that originate and settle on Kaspa are routed entirely through the Kaspa network, ensuring miners are compensated for their role in the ecosystem.
Expanded DeFi Capabilities
Namazu brings the full suite of DeFi possibilities to Kaspa, from lending and launchpads to omnichain swaps and perpetual markets. This transformative functionality enables:
Uniswap-Style Liquidity Pools
Initial support for KRC-20 tokens with plans to expand to other token standards.
Cross-Chain Transactions and Visibility
A revamped blockchain explorer will provide users with full visibility of cross-chain transactions, inscriptions on Kaspa, and the hybrid EVM solution in action.
Seamless Integration of Ethereum Ecosystem
Whatever is possible within Ethereum’s DeFi ecosystem becomes theoretically achievable for Kaspa, unlocking unparalleled functionality and opportunities.
Decentralized Node Infrastructure
The Namazu Upgrade operates using a decentralized node infrastructure designed to balance security, functionality, and community involvement:
Validator Nodes
Token holders can secure the network and earn emissions-based rewards.
Community Nodes
These nodes help secure and operate the network, while node license sales avoid reliance on venture capital for development, aligning the network’s growth with community interests.
Future Node-as-a-Service (NaaS)
As the network matures, XODEX plans to transition to professional NaaS providers for infrastructure support.
Seamless Cross-Chain Interactions
Namazu employs a deterministic hybrid model to achieve seamless cross-chain interactions:
Cross-Chain Smart Contracts
Enables smart contracts to operate across multiple chains, providing advanced functionality even on networks without native smart contract capabilities, like Kaspa.
Ultra-Secure Asset Transfers
Multi-Party Computation (MPC) ensures that cross-chain transactions are trustless, secure, and efficient.
Enhanced Liquidity and Market Reach
Unified management of liquidity and assets across chains simplifies user experiences and expands opportunities for the Kaspa ecosystem.
Vision and Timeline
The Namazu Upgrade is leading the charge to bring smart contract capability to the Kaspa ecosystem with an expected delivery in Q1 2025. By combining the advantages of Ethereum’s ecosystem with the speed and security of Kaspa, the Namazu Upgrade aims to:
- Enhance Kaspa’s functionality and attract new blockchain projects.
- Increase the audience and market share for Kaspa through superior DeFi tools.
- Build a platform that seamlessly connects Kaspa to the broader blockchain ecosystem.
The Namazu Upgrade represents a significant milestone in achieving these goals, ensuring that XODEX remains a pioneer of decentralized innovation in the Kaspa ecosystem and beyond.