The COVAL Platform is being developed with a primary purpose of moving value using “off-chain” methods. In other words, native crypto assets and tokens from other public and private blockchains (including ₡OVAL itself) enter the COVAL Network of distributed ledgers (COVAL Sidechains) where they can be flexibly and securely transacted using trustless p2p models. Transactions consist of both individual tokens and wallets (containers of tokens) which are represented by sidechain assets called Emblems.
emblem is defined as…
Something which represents a larger whole.
It is also synonymous with “token”.
Emblems can contain multiple types and amounts of tokens bundled into a single sendable asset.
This off-chain network is intended for apps and services built on the COVAL Platform and is considered to be a permissioned blockchain network. Though the platform is capable of reaching out and into other networks to bring interoperability features to users, the primary use is for transacting among nodes and users within the COVAL Network and adhering to the LAW Protocol.
New users are introduced and invited to the COVAL Network when they receive a claim notice (a code and/or special URL) on an out-of-band channel such as email, Twitter, Slack etc. The user would be guided to an onboarding page where they can learn how to redeem what was sent to them by either setting up and installing Emblem or as an external temporal user that requires a simple Proof of ID process that the COVAL I/Oracle monitors and validates.
The COVAL Platform and LAW Protocol involves the following general components:
- Distributed Ledger Environment (DLE)
- Secure COVAL API Endpoints and P2P secret sharing (DAT Protocol)
- HD Wallet Creation Service
- Multi-Factor Authentication/Authorization (MFA)
- User devices running apps such as Emblem (mobile, desktop, web)
The COVAL Platform and the Emblem app effectively provides users with a crypto token management system and integration paths into the wider token-aware ecosystem of protocols and services that power exchange markets and social networks.
The COVAL Platform uses a network of blockchain ledgers. We refer to these ledgers as Sidechains since the COVAL Platform base cryptocurrency is on the Bitcoin Blockchain (Counterparty Platform) but leverages purposeful ledgers that enable core platform functionality and service integrations.
All COVAL Sidechains interoperate with each other and can also interface with other public and private blockchain networks using various methods including a continuation of the work described here.
These blockchain nodes make up a Distributed Ledger Environment where other tightly integrated services are also running.
To understand the purpose of each type of COVAL Sidechain, it helps to view them in their domain name format with descriptions.
LAW Node Runners
The COVAL Network model also involves incentives for running nodes. The most critical and core node type is the LAW Sidechain. This is where the fee and incentive model is introduced. A percentage of fees are directed to all LAW Node Runners.
The LAW protocol describes off-chain wallet assignment transactions where a distributed ledger network (COVAL Sidechains) is used to log the assignment of wallets to users and the status of those wallets as Owned or Unowned. This simple concept is the basis for a secure and trusted wallet transport system and is at the core of the COVAL platform. See the LAW Protocol section.
The COVAL Platform enables value transfer by facilitating the assignment of wallets to users. The wallet’s contents are effectively sent to another user who would also inherit the capability to send the wallet to yet another user and so on and so forth. MFA is leveraged in this user-to-user system and no single entity or user has full control and access to the funds in these sendable wallets. The intended benefits of the COVAL Platform are:
- Fast transactions
- No native blockchain miner fees
- Privacy via encrypted off-chain p2p transactions
- Transfer multiple types and amounts of assets and tokens in a single transaction
- Uses trustless models
- Enables COVAL products and services to function efficiently