An Insight Into Nomic
An Insight Into Nomic

An insight into Nomic

Introducing fully-backed IBC Bitcoin.
June 27, 2022 written by 01NODE

Introducing fully-backed IBC Bitcoin.

What is the Nomic

Nomic is a layer-1 blockchain which offers a decentralized, non-custodial Bitcoin bridge.

Nomic’s first product is the Bitcoin Bridge, bringing Bitcoin to Cosmos. The bridge creates a new asset, nBTC, which is IBC-enabled and fully backed by BTC. They have designed a unique, permissionless protocol which allows anyone to easily deposit BTC in exchange for nBTC, or withdraw nBTC in exchange for mainnet BTC.

To power this vision, They have designed a system that is more secure and permissionless than any other existing Bitcoin sidechain, joining proof-of-work and proof-of-stake to get the best of both worlds. By leveraging both Bitcoin’s hashrate and the Tendermint consensus protocol, the Nomic network is able to provide both high security and instant finality. It also creates a unique opportunity for proof-of-stake validators to earn BTC rewards.

nBTC is a token that represents 1:1 ownership of Bitcoin in an IBC-compatible token.
NOM is a token used for securing the network which can be staked to earn Bitcoin rewards.

An Insight Into Nomic

What’s special about the Nomic bridge?

Nomic has been under development since 2018 by early Cosmos employees, and while it may at first seem similar in many ways to other Cosmos chains, it has fundamentally different DNA. Other chains are based on the Cosmos SDK, a standard framework which has many strengths but also its own weaknesses. Nomic uses Tendermint consensus, but is otherwise built on a completely custom stack written in the Rust language with a focus on performance and the ability to develop new features quickly.

Nomic is built on Orga, a custom high-performance blockchain application framework. Orga is written in Rust, and engineered from the ground up for maximum performance and security.

This boosts Nomic’s performance up to 100x higher than other Cosmos-based chains, and lets us execute quickly by building advanced features using 10x less code.

An Insight Into Nomic

👉 Check the Nomic app

The Nomics Process

Nomic makes it easy to use your Bitcoin on any IBC-enabled chain

  • Deposit BTC – Send BTC to your deposit address. nBTC will show up in your wallet.
  • Use nBTC in DeFi Protocols – Earn yield on your nBTC on Osmosis, The Cosmos Hub, and more.
  • Withdraw nBTC for BTC – Transfer your gains back to your Bitcoin wallet.

Tokenomics

The NOM token is used to power the proof-of-stake security of the Nomic network.

The NOM distribution is modelled after the OSMO token. The network will start with a supply of 21,000,000 NOM, and the maximum supply after 9 years of inflation is 210,000,000 NOM (as an homage to Bitcoin’s 21,000,000 BTC).

The Team

The Nomic team has deep expertise with both Bitcoin and Cosmos, serving as early Cosmos engineers and working with Bitcoin since 2011. We have led Bitcoin bridge development since 2018 and are building Nomic with love from Austin, Texas.

Matt Bell and Judd Keppel departed (2018) Tendermint Inc to start Nomic Inc, an Austin-based startup aimed to build a performant Bitcoin sidechain powered by Lotion.js, a JavaScript-based alternative client of Tendermint.

The $NOM mainnet launches this week!

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