Genfinity recently conducted an in-depth interview with Scott Chamberlain, Co-founder of Evernode, uncovering his journey from law to blockchain innovation. Scott’s introduction to blockchain and smart contracts began during his transition from legal practice to academia, where he explored emerging technologies’ legal implications. His pivotal role at Ripple Labs’ UBI University Blockchain Research Initiative further deepened his expertise in decentralized smart contracts within the XRPL ecosystem.
This interview delves into Evernode’s architecture, its transformative impact, and Scott’s reflections on the blockchain’s evolving role in legal and economic frameworks.
Scott’s Journey: Exploring Blockchain and Smart Contracts
Scott’s journey into the world of blockchain and smart contracts began during his transition from practicing law to academia. His focus on innovative legal services and emerging technologies like blockchain naturally led him to explore its implications in the legal domain. “Blockchain smart contracts,” Scott explained, “became a significant aspect of my research.”
In 2018, Scott achieved a pivotal milestone when he secured a position with Ripple Labs’ UBI University Blockchain Research Initiative. This opportunity marked a turning point in his career, allowing him to delve deeper into researching smart contracts within the XRPL ecosystem. “I was particularly interested in exploring the potential of smart contracts within XRPL,” he noted. He had previously ventured into cryptocurrencies, including purchasing XRP, which further fueled his interest in blockchain technology.
The announcement of the beta version of Codius in 2018 was a crucial moment for the Evernode Co-Founder. He saw it as a groundbreaking development that promised highly adaptable smart contracts within the XRP ecosystem. “Codius offered the prospect of incredibly flexible smart contracts, which could potentially expand the scope of smart contract applications,” he noted.
Blockchain Transparency and Traceability
We asked Scott for his insights on the transparency and trackability of blockchains from a legal perspective. Specifically, we were curious whether he believed blockchains could streamline legal matters or if he anticipated them adding complexity.
From a legal perspective, Scott observed that blockchains have notably improved transparency and traceability. They have proven effective in combating fraud within smart contract environments, making it increasingly challenging for wrongdoers to evade detection. However, he noted that the implications are not simply a matter of solving problems or creating benefits.
Fundamentally, he sees institutions as mechanisms for scaling trust, enabling interactions among individuals who are not personally acquainted. Blockchain, in this context, represents a modern tool in this ongoing evolution. Scott pointed out that while blockchain holds promise in enhancing trust on a larger scale, its implementation can vary in efficacy.
“It’s essentially a new potential institution,” he mused, “offering the possibility of streamlining trust-building processes among strangers.” He recognized that blockchain’s impact can be both seamless and cumbersome depending on its application, highlighting its evolving role within legal and societal frameworks.
Contrasting Blockchain with Traditional Scams
Notably, Scott drew a comparison between blockchain and traditional scams like the “Nigerian prince email” scheme. He pointed out that in such scams, once money is sent, it often becomes untraceable through conventional means like email providers or banks. This lack of traceability has been a longstanding challenge in combating fraud.
However, Chamberlain highlighted that cryptocurrency offers a significant advantage in traceability compared to traditional methods. “With crypto,” he explained, “there’s a stronger likelihood of tracking transactions and limiting fraudulent activities, particularly when funds are exchanged for fiat currency at centralized points.” He emphasized that while cryptocurrencies facilitate swift value transfers within networks, the process of converting crypto to fiat currency provides a critical opportunity for identifying and mitigating fraudulent transactions.
Scott’s perspective underscores that while crypto transactions may initially appear similar to traditional scams in terms of movement, the ability to track and control these transactions at key points distinguishes cryptocurrencies as a potentially more secure option.
Evernode: Empowering Decentralized Application Development
Scott described Evernode as a DePIN with an innovative architecture conceptualized by Richard Holland, as a multifaceted solution structured into three distinct layers. Initially, the concept revolves around creating highly flexible smart contracts capable of diverse functionalities. “The insight,” Scott elaborated, “was to transform the XRP Ledger, primarily a payments application built on the Ripple Consensus Protocol, into a versatile platform for any application.”
The first layer, facilitated by a software called HotPocket, ensures consensus across multiple instances of an application through UNL consensus. He explained how this setup allows for decentralized operation but pointed out a limitation: all machines historically had to be set up by the same developer, reducing decentralization’s effectiveness. Subsequently, this led to the development of the second layer, decentralized hosting via Sashimono, which divides Linux hosts into purchasable slots. This approach enables developers to upload HotPocket instances across a network of machines they don’t necessarily own, enhancing decentralization.
The final layer addresses network coordination and identification through a layer-one blockchain, initially planned on the XRP Ledger but implemented using Xahau due to community decisions. Scott detailed the functionality of four smart contract hooks on Xahau: a registry for network membership, a heartbeat hook for token distribution within Evernode, a governance tool for community voting, and a reputation hook to ensure hosting quality.
“All these hooks,” he emphasized, “are open-source and decentralized, anchoring the Evernode network to the Xahau ledger.” This setup creates a decentralized network of Linux hosts capable of supporting highly adaptable and powerful dApps. Evernode’s flexibility allows dApps to operate in any POSIX-compliant language, perform complex computations, connect with external services, and scale according to security and cost considerations. Moreover, developers can specify geographic locations for hosting, potentially avoiding regulatory issues like GDPR compliance.
The Evers Token
Furthermore, within the Evernode ecosystem, the Evers token (EVR) plays a crucial role in facilitating transactions and incentivizing network participation. The Co-Founder explained that Evers is an issued asset on the Xahau ledger, serving as the native currency for conducting transactions within the Evernode network. The distribution of Evers tokens is governed by a smart contract hook on Xahau, ensuring fair allocation to network participants, primarily the hosts who provide computing resources for dApps.
Moreover, Evers tokens are integral to the governance and sustainability of the network. They are used for rewarding hosts for their contribution to the network’s operation and growth. This incentivization mechanism not only encourages robust participation but also aligns the interests of stakeholders towards the network’s long-term viability.
Overall, the integration of the Evers token within Evernode underscores its role in fostering a self-sustaining and decentralized ecosystem where value exchange and network governance are seamlessly integrated into the architecture.
Economic Mechanisms, Host Incentives, and dApps in the Evernode Ecosystem
Moving on in the interview, we inquired about whether there exists an economic mechanism where app developers within the Evernode ecosystem can compete by offering incentives to node providers to prioritize their applications or perform more resource-intensive computations.
The Co-Founder described how the market operates, emphasizing that when a host is created using Sashimono software, it generates a Lease NFT for each slot. These Lease NFTs are then listed on the Xahau decentralized exchange (DEX) for purchase, setting the rent in Evers tokens per hour that must be paid to maintain the slot.
“Essentially,” Scott explained, “the lease grants exclusive rights to upload code to that particular slot, contingent upon continuous payment of rent in Evers tokens.” This setup allows developers to acquire leases based on their budget and project requirements, with hosts setting competitive rents to attract tenants.
Furthermore, he highlighted the network rewards system, where all hosts receive a share of Evers tokens every hour. This distribution, currently totaling over 1200 Evers, is divided equally among reliable hosts meeting certain reputation criteria. “To qualify for these rewards,” he clarified, “hosts must set rents within a specified cap, ensuring fairness and affordability across the network.”
He noted the diversity of hosts on the network, ranging from exceptionally powerful machines to smaller, more cost-effective options. This diversity forms the basis of an emerging economy within Evernode, where developers tend to favor larger and more dependable hosts for uploading their applications.
“In essence, there’s already a dynamic economy in place with a variety of hosts to choose from. Developers typically opt for reliable hosts capable of supporting their applications effectively within the network,” he concluded. This approach underscores Evernode’s adaptive marketplace, where economic incentives drive collaboration and resource allocation among participants.
Decentralized dApps and Network Resilience
Chamberlain elaborated on the architecture of Evernode, emphasizing that each dApp functions as its own mini blockchain at layer zero within the system. This setup allows dApps to maintain a time canonical state and create their own tokens and assets specific to their operations. “Effectively,” he explained, “each dApp acts as a decentralized entity capable of interfacing with other layer-one networks such as Xahau or the XRP Ledger, facilitating consensus-based asset movements.”
Notably, the rationale behind this approach is to maximize flexibility and decentralization while harnessing the computing power inherent in Linux machines. By integrating decentralized capabilities into dApps, Scott highlighted that Evernode aims to enhance reliability and resilience. He noted that decentralization not only enhances reliability but it also redistributes power, effectively reducing the role of intermediaries.
He illustrated this with practical examples like Digital Cows, a project exploring the tokenization of Australian cattle. Without a decentralized system, he pointed out the risk of centralizing control over critical databases, potentially creating new middlemen in industries. “In contrast,” he emphasized, “Evernode ensures that data ownership is distributed among all participants. Each network member runs an instance of the database, ensuring transparency and preventing any single entity from monopolizing control.”
Evernode: Managing dApp Privacy and Access Control
Next, we explored dApp privacy features, specifically inquiring about the functionality of toggleable privacy mechanisms.
In discussing access control within dApps on Evernode, Scott highlighted the developer’s authority to manage who can view and interact with the data stored within their applications. “Access to my dApp,” he clarified, “is entirely under my control. I can program permissions so that only specific individuals or members can access certain data, while others may have limited or no visibility.”
Regarding data visibility on the ledger, he emphasized that developers have full discretion. They can determine what information is publicly accessible or restricted based on their application’s requirements. However, he acknowledged a potential security concern when running dApps on third-party infrastructure, where the system administrator with root access could potentially access the data.
“To address this,” Scott explained, “developers can choose to deploy their dApps on trusted infrastructure, such as nodes operated by trusted parties within their ecosystem. For instance, in the case of Digital Cows, the dApp might selectively run on nodes managed by participants within the cattle industry network, ensuring data privacy and security aligned with specific use cases.”
Alternatively, the Co-Founder noted another approach where developers retain control by running instances on machines they manage. In this scenario, the distribution of cryptographic keys ensures that all controlled machines must concur to enforce any significant changes, granting veto-like control rather than full operational oversight.
Overall, Scott emphasized that Evernode provides developers with robust mechanisms to manage data privacy and security according to their specific needs and preferences, whether by leveraging trusted nodes or maintaining direct control over infrastructure. This flexibility enables developers to tailor deployment strategies that best align with their application’s requirements and security considerations.
XRPL Integration and Interoperability in Evernode Governance
Emphasizing Evernode’s inherent interoperability, Scott explained how users can import XRPL accounts onto Xahau, maintaining consistent addresses and keys across both chains. This dual-chain capability allows for unified management of assets and decentralized control for accounts across XRP-forked ledgers. Notably, Evernode could act as a bridge, enabling actions triggered on one chain (like XRP Ledger) to influence operations on another (such as Xahau), leveraging smart contract hooks for seamless interaction. Additionally, Scott highlighted the potential for expanding Evernode’s governance hooks to the XRP Ledger, if they are available, envisioning a multi-chain strategy that ensures equitable treatment and token alignment across platforms.
Furthermore, if hooks were to be introduced on the XRP Ledger, he envisioned integrating Evernode’s governance hooks to align functionality across chains. This potential integration would involve establishing a multi-chain strategy to replicate Evernode’s decentralized registry and smart contract capabilities. Crucially, this would require issuing Evers tokens on the XRP Ledger in parallel with those on Xahau, ensuring consistency and interoperability between platforms. Moreover, he emphasized the importance of maintaining parity in token distribution and community engagement across all integrated chains, emphasizing a fair approach to token issuance and governance to sustain trust and usability within the broader Evernode ecosystem.
Reflecting on the Past and Envisioning the Future
He expressed immense pride in the vibrant community that has flourished around Evernode. The Evernode Discord community, comprising over 2400 members, has played a crucial role in supporting newcomers, aiding in node setup, guiding network management processes, and even developing scripts to enhance functionality. Significantly, this community-driven support has proven essential, as managing such a decentralized network would be impractical without their collective efforts.
Early challenges, such as overwhelming public infrastructure due to the sheer number of Evernode nodes, prompted the community to innovate. There were initial concerns about infrastructure overload, which led to the necessity for hosts to manage their own submission nodes to regulate network traffic effectively. Despite these obstacles, what emerged was an organic economy within Evernode, where hosts began offering services such as whitelisting for transaction submissions in exchange for Evers tokens.
In Scott’s opinion, this stands in contrast to the traditional ethos in the XRP space, where community services are often provided free of charge. However, in Evernode, the introduction of incentives resulted in a robust economy where services are valued and compensated, fostering a sustainable ecosystem. This shift highlighted the effectiveness of Evernode’s structure in incentivizing community participation and ensuring the network’s resilience and growth.
Available Hosting Slots: Readiness for Growth
Furthermore, when Evernode launched, they faced two strategic challenges: attracting hosts to the network and encouraging developers to build on it. Surprisingly, attracting hosts proved easier than expected, with 11,700 hosts and 70,000 available hosting slots, of which only 360 are currently occupied. This abundance of capacity highlights the network’s readiness for growth and underscores the current focus on attracting developers. The next strategic hurdle lies in fostering developer engagement and innovation through the Evernode SDK. They encourage developers interested in exploring these opportunities to reach out for support via the Evernode website or Discord to receive guidance in getting started on the platform.
*Disclaimer: News content provided by Genfinity is intended solely for informational purposes. While we strive to deliver accurate and up-to-date information, we do not offer financial or legal advice of any kind. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial or legal decisions. Genfinity disclaims any responsibility for actions taken based on the information presented in our articles. Our commitment is to share knowledge, foster discussion, and contribute to a better understanding of the topics covered in our articles. We advise our readers to exercise caution and diligence when seeking information or making decisions based on the content we provide.
