Published on: 21 Aug 2023Last edit: 05 Nov 2023
A New Bitcoin Sidechain, A DeepDive into Microvision
Microvisionchain is a layer 1 blockchain, that emphasizes on scalability, user-centricity, and cross-chain operability.
Microvisionchain (website) is a new blockchain with the goal of becoming the premier side chain to Bitcoin. It operates on the UTXO & POW model, a combination that has empowered it with remarkable performance, efficiency, and cost-effectiveness. Notably, the total supply of MVC is capped at 21,000,000 SPACE coins.
MVC wants to stand out as the best side chain to Bitcoin and its foundation on the UTXO & POW model. This foundation not only ensures optimal performance but also drives efficiency and cost savings. MVC has positioned itself to address the blockchain trilemma and is crafted for the evolving Web3 Era. The project was created by nine different teams hailing from various countries. MVC represents the collective dedication of numerous individuals who collaborated seamlessly over nearly three years. Impressively, many of the central figures behind MVC have previously contributed to Bitcoin and are advocates of the UTXO model.
We are writing this article to provide our readers with an understanding of MVC. Our aim was to understand its unique features, the dedication of its team, its technical prowess, and its tokenomics.
At its core, MVC operates on the Layer 1 UTXO model, mirroring Bitcoin's structure. This positions MVC with the ambitious goal of becoming the premier side-chain for Bitcoin, essentially serving as Bitcoin's external and scalable hard drive.
Most of the core players have worked on Bitcoin and believe that the UTXO model is the best. MVC aims to establish a highly scalable POW public chain as a second layer to Bitcoin, enhancing efficiency and reducing costs. The protocol focuses on three improvements: 1) Smart contracts based on UTXO accounts for application development; 2) Built-in decentralized identity protocol supporting cross-chain, with all chain data belonging to one ID; 3) To attract new users, no purchase or holding of cryptocurrency is required to use Web3 applications.
Moreover, MVC offers the convenience of using the same wallet address as a Bitcoin wallet, an option that Bitcoin holders can choose. MVC plays on the BTCfi narrative, enabling Bitcoin to be used both as an asset and a transaction unit. Adding to its versatility, MVC introduces a viable smart contract system, aptly termed the "Bitcoin operation system."
In terms of performance, MVC boasts an impressive transaction speed with a TPS exceeding 10,000. One of its standout features is the zero-confirmation technology, ensuring that both FT & NFT transactions are processed instantly, enhancing the on-chain application user experience by reducing latency.
Lastly, MVC's cross-chain modular infrastructure is open-source, with an application library soon to be available. It promises customizable applications with ready-to-use features. Notably, its native cross-chain DID protocol currently supports transactions for Ethereum & Polygon's NFT and payments on the same platform. Plans are underway to integrate more protocols and public chains, with the Ordinal protocol being a prime example.
The team behind MVC consists of scholars from the Chinese Academy of Sciences, Tsinghua University, and the National University of Singapore. The initial contributor team was built by 9 different teams from multiple countries and is a culmination of effort from dozens of people working together for almost three years. Most of the core players have worked on Bitcoin and believe that the UTXO model is the best. One of the co-founders of MVC is known as Jason Kwon or @Jason_K0001 on Twitter.
As for partnerships, MVC has collaborated with several entities. These include MVCSwap, Supercomputing Turing for scaling theory research, and VisionBox for bot services across platforms like WeChat, Telegram, and Slack. Additionally, they've partnered with Show as a MetalID service for Web3 applications.
At the heart of MVC's (website) innovation is the alteration of the Layer 1 TXID generation method. This change is crucial as it enhances the system's ability to handle a high volume of transactions simultaneously, which is a key factor in achieving scalability without sacrificing decentralization. MVC's architecture is designed to support a parallel computing supernode that can process up to one million transactions per second (TPS), a figure that far exceeds the capabilities of most existing blockchains.
Another cornerstone of MVC's design is the integration of Layer-1 smart contracts and a decentralized identity protocol (DID) directly into the UTXO model. This integration is groundbreaking because traditional UTXO-based blockchains have struggled to support complex business needs and lacked the ability to build complex applications due to their limited smart contract capabilities. MVC's Layer-1 smart contracts, known as MetaContracts, are Turing-complete, meaning they can perform any computational task given enough resources, similar to the Ethereum Virtual Machine (EVM) but with the added benefits of the UTXO model's high performance and low transaction fees.
The MVC platform also introduces MetaID, a distributed identity protocol that empowers users with true ownership and interoperability of their data across different applications. This protocol is a key enabler for high-performance Web3 applications, simplifying procedures and reducing costs while ensuring that each piece of data is linked to a specific user.
MVC's design goals are ambitious, aiming to meet the demands of the future Metaverse where blockchain technology must support massive user bases efficiently and economically. To this end, MVC incorporates several features to satisfy the needs of potentially billions of users:
- Proof of Work (POW) consensus and the UTXO data model for security and scalability.
- A mechanism for unlimited scaling to accommodate a growing user base.
- A fee decrease mechanism that adjusts as the number of users grows.
- Zero-confirmation transactions for instant settlement.
- A unified system for data storage, smart contract execution, and transactions on a single chain.
- A new MetaTXID solution that addresses the tracking issues associated with the UTXO model.
- The built-in distributed identity protocol MetaID for user-centric data management.
- Layer-1 smart contracts MetaContract for complex and efficient decentralized applications.
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MVC has a distinct tokenomics structure that sets it apart in the blockchain space. The token native token is known as "Space," and its launch date was January 2023. The total supply of Space is capped at 21 million tokens. Initial contributors to the project have their tokens subjected to a three-month cliff, followed by a 30-month vesting period. The first release of these tokens was scheduled for April 26, 2023, with full vesting concluding on September 1, 2025. Interestingly, 210,000 tokens allocated for voting will not be available for sale until July 1, 2025. The allocation of Space is divided as follows: 55% for DAO, 35% for POW, and 10% for early builders. The Proof of Build (POB) portion requires a 60% approval from Space holders through a non-constitutional proposal.
MVC's funding approach is unique, opting for a fair launch instead of traditional methods like ICO or IDO. All establishment, node operation, and executive functions were financed by the initial contributors.
The tokenomics are designed to benefit various stakeholders:
Space-Holders: Space serves as a value carrier, governance token for MVC, and a medium for transaction costs. As more BTCfi projects are built on MVC, more BTC holders are expected to join the MVC community.
Bitcoin-Holders: MVC offers an external operating system for Bitcoin through smart contracts. It aims to provide services to Bitcoin holders similar to what Polygon offers to Ethereum. Soon, MVC will facilitate seamless NFT transfers between the Bitcoin Chain and MVC Chain.
Contributors and Builders: They benefit directly from retroactive public goods funding and the markets it enables. The ecosystem is designed to reward builders, especially in an environment with well-structured allocation tools, education, apps, and infrastructure.
Users and Community Members: They gain from MVC's native cross-chain infrastructure to other public blockchains, ongoing Space airdrops, project incentives from the Space ecosystem, and the benefits of public goods.
The MVC DAO (Decentralized Autonomous Organization) empowers Space token holders to propose and vote on protocol changes. It has a built-in treasury system that promotes the ongoing development of MVC. The Proof of Building model positions MVC as a business incubator for Web3, allowing unrestricted development of Web3, metaverse, and BTCfi applications. Through its native cross-chain DID system, MetaID, MVC aims to create a robust TCP/IP protocol by connecting Bitcoin and other multi-chain architectures, such as Polygon and Ethereum. This connection facilitates resource and information sharing between public blockchains, enabling each Web 3 project to focus on its development.
MVC is showcasing a blend of innovative features and a robust foundation. Its alignment with Bitcoin's UTXO model, combined with its vision of becoming the premier side-chain for Bitcoin, sets it apart. The dedication of its diverse team, the unique tokenomics, and the forward-thinking technical solutions position MVC as with potential upside.
The project's emphasis on scalability, user-centricity, and cross-chain operability underscores its commitment to fostering a more inclusive and efficient blockchain ecosystem. MVC's approach to decentralization, combined with its focus on user empowerment through the MetaID protocol, reflects a vision of a decentralized future where data ownership and interoperability reign supreme.
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