A detailed explanation of the interoperable protocolAnalog (ANLOG) and its Token tokenomics

Reprint: Mars Financial, Daisy

Analog is a Layer0 focused on blockchain interoperability, realizing cross-chain communication and event data verification through its Timechain. The core goal is to solve the fragmentation problem of the multi-chain ecosystem, allowing different blockchains to interact seamlessly through the decentralized General Message Passing (GMP) framework.

What is Analog?

Analog is a Layer0 focused on blockchain interoperability, realizing cross-chain communication and event data validation through its time chain (Timechain). The core goal is to solve the fragmentation problem of multi-chain ecology, enabling seamless interaction between different blockchains through a decentralized general message passing framework (GMP). Analog also introduces an innovative PoT (Prove of Time) consensus, which creates verifiable event data on the time chain, allowing DApp developers to build next-generation event-based applications.

The foundation work of Analog began with the first version of Timepaper released in early 2022 and went through four iterations. Analog's mainnet was launched on December 23, 2024, and block production began under the authoritative proof of (PoA) framework.

Why do we need Analog?

In order to enable users to interact with Web3 products across different domains, the inherent requirement is to provide mechanisms to interact with these chains. Due to the lack of seamless interoperability between different chains, DApp developers must choose which blockchain platform to build their innovative applications on. Similarly, users must choose which chain to deploy their assets on to maximize utility and capital efficiency. Some proposals and projects have emerged to address this interoperability challenge. However, most of them are only applicable to specific chains, often standardizing their protocols within their own ecosystems. This interoperability approach requires other blockchains to adopt standardized frameworks, usually through complex, limited, and less secure bridging networks.

Analog uses Timechain as the 'accountability layer' for cross-chain communication, ensuring traceability and clear rights and responsibilities of participants (such as nodes, validators, and users) in a multi-chain or cross-chain ecosystem, allowing seamless interaction between any blockchain networks. Developers can invoke smart contracts or transfer assets on different chains through General Message Passing (GMP) without relying on centralized bridges, reducing development costs;

On the other hand, in response to the problem that traditional cross-chain bridges are vulnerable to hacker attacks, Analog uses a solution based on Threshold Signature Scheme (TSS) and Multi-Party Computation (MPC) to eliminate single points of failure and ensure transaction tamper resistance. At the same time, its Proof-of-Time (PoT) consensus requires validators to stake ANLOG and run time nodes, with their rewards directly tied to network security, incentivizing them to provide more comprehensive long-term maintenance.

Timechain

The core of Analog is Timechain, which is a sovereign blockchain designed to serve as the accountability layer for the entire network. Timechain is built for interoperability, acting as a central hub for all protocol events (whether on-chain or cross-chain) to record, validate, and execute. Timechain is built on top of the Substrate SDK and has extended its functionality for interoperability.

Validator and Shard Management: Track and register validators, while assigning Chronicle nodes to shards for efficient cross-chain monitoring.

State Machine Replication (SMR): Ensures that validated event data is accurately recorded and processed in the connected chain.

Governance and Upgrades: On-chain governance mechanism to achieve protocol updates and parameter adjustments.

Resource optimization: Using transaction batch processing and automation to handle a large number of requests without sacrificing performance.

Analog Watch

Analog Watch is a blockchain data analysis tool designed to simplify access to multi-chain data. It provides developers with a unified API - the Watch API, which allows easy querying of real-time and historical on-chain data.

This API reduces complex integration requirements, enabling decentralized applications (dApps), traders, and analysts to quickly obtain cross-chain data insights.

By aggregating data from different blockchains, Analog Watch provides greater visibility and transparency, helping developers build smarter and more efficient applications.

Analog GMP (General Message Passing Protocol)

Analog GMP is a secure, decentralized protocol designed specifically for cross-chain smart contract execution.

The protocol enables developers to deploy and manage dApps that can run across multiple blockchains without the need to manually build cross-chain bridges or rely on centralized intermediaries.

It ensures that smart contracts on different blockchains can interact in a trust-minimized manner, bringing new possibilities to DeFi, NFT, games, and other Web3 applications.

Proof of Time (PoT) consensus protocol

Timechain adopts the Proof of Time (PoT) consensus protocol as one of its innovations, specifically designed to address scalability and fairness challenges in cross-chain interoperability. Unlike traditional consensus mechanisms such as Proof of Work (PoW) or Proof of Stake (PoS), PoT aims to adopt a more inclusive and secure blockchain validation method.

Key Components

PoT combines three key components to maintain the fairness and integrity of the entire network:

Ranking score (RS): The score determined by the validator's tenure in the network, past accuracy of validation, and their relationship with other nodes for ranking the validator. The system rewards ongoing honest participation while preventing malicious behavior.

Verifiable Delay Function (VDF): VDF ensures that transactions are processed in a specific order. This can prevent any node from manipulating the transaction order or unfairly influencing block proposals. The use of VDF ensures that all event data is processed in order, eliminating the opportunity for nodes to manipulate transactions or gain unfair advantages during block proposal.

Choice based on equity: Validators must stake $ANLOG tokens to participate in the network. This ensures that they have invested funds in maintaining the integrity of the system and are protected from being punished for malicious behavior. By combining ranking scores, VDF, and staking, PoT ensures that every validator has a fair chance to participate in the network, regardless of how many tokens they hold.

Two-factor authentication process

The PoT protocol uses a two-step process to verify transactions and add blocks to the time chain:

Soft Voting: designated node verifies and processes event data, generates cryptographic proof using VDF, and shares the result with the network.

Hard Voting: A random group of 1,000 nodes reviews the data. If at least two-thirds of the nodes agree, the block will be added to the timeline.

This dual-layer system ensures that transactions are processed securely, efficiently, and fairly.

Currently, Analog adopts the nominated proof of stake (NPoS) consensus mechanism and plans to transition to the proof of time (PoT) protocol in future upgrades.

Financing Background

2024-02-13: Analog completes $16 million seed and strategic financing, led by Tribe Capital, with participation from NGC Ventures, Wintermute, GSR, NEAR, Orange DAO, etc.

2025-01-28: Analog announced the completion of a $5 million financing, with gate Ventures, Foresight Ventures, Backerdao, and Black Label Ventures among the participants.

Analog Token Economics

Token Utility

The native token of Analog Network is ANLOG, which plays multiple important roles in the Analog ecosystem:

Pledge: Node operators (i.e., time nodes) must pledge ANLOG tokens to participate as validators on the timeline;

Reward: Timechain provides fixed block rewards/staking rewards for verifying the time nodes of blocks on the network. These incentive measures form the basis of the NPoS protocol;

Gas fee: All transactions on TimeChain, such as balance transfers, staking/unstaking, voting in governance proposals, etc., require the payer to pay fees in ANLOG.

Protocol fee: ANLOG token can be used as collateral for certain DApps built on Timechain, such as Analog Watch;

Governance: ANLOG is the main token that determines the voting protocol and the future direction of ecosystem development.

Token Distribution

ANLOG's total supply is 9,057,971,000 coins, distributed as follows:

Community: 40.00%;

Team and Advisors: 18.93%;

Seed round: 23.37%;

Private Placement: 10.10%

Strategic round: 4.16%

Opportunity Round: 3.44%