What is Coreum?

In the world of cryptocurrencies and blockchain technology, innovations are constantly emerging that promise to transform the way companies and institutions interact digitally. One of these emerging projects is Coreum, a top-notch blockchain platform designed specifically to meet the needs of businesses. Below, we explore in detail what Coreum is, how it works, and what smart tokens it offers.

What is Coreum?

coreum is a Layer 1 Blockchain focused on the business field, offering a robust infrastructure for applications such as digital assets, issuance of stablecoins, tokenization of traditional assets, CBDCs (Central Bank Digital Currencies), smart tokens and NFTs (Non-Fungible Tokens).

What sets Coreum apart from other blockchains is its ability to provide high performance, low latency, and advanced security – essential features for business and government operations.

How does Coreum work?

Coreum is built on the Cosmos SDK, allowing you to benefit from Byzantine fault tolerance and employ the consensus engine Tendermint, a Delegated Proof-of-Stake consensus mechanism. The network can handle up to 7000 transactions per second with a block time of only 1,5 seconds, ensuring scalability and efficiency.

To address the need for interoperability, Coreum uses the Inter-Blockchain Communication (IBC) Protocol, allowing seamless interactions with other Cosmos-SDK-based chains. In addition, Coreum focuses on serving financial institutions by aligning with the ISO20022 standard for communications between financial institutions, and offers facilities for the development of dApps in various languages ​​through WebAssembly (WASM).

This is important because smart contract development at Coreum uses WebAssembly (WASM). Not only to have great compatibility with the Web world (and, therefore, with Web3), but at the same time it provides enormous speed and development capabilities, since WASM is much more powerful than most programming languages. of current smart contracts (e.g.: Solidity de Ethereum).

Consensus Mechanism

Of course, everything is supported by the technology that allows Coreum to function, the main basis for this being the consensus technology that allows the Coreum network to function. Coreum employs a consensus mechanism of Bonded Proof of Stake (BPoS) that we have within the Cosmos ecosystem, thanks to the fact that Coreum is built using Cosmos-SDK technology. Added to this is the use of Tendermint, which is responsible for making the Coreum consensus protocol work as expected.

Let's remember that Tendermint is software to safely and consistently replicate an application on many machines. Tendermint is able to operate securely that even if up to 1/3 of the machines fail arbitrarily, the network will maintain its operation and provide security to its users.

But the use of these two tools (BPoS and Tendermint) is what allows participants to block their participation to generate blocks or contribute to the security and maintenance of the network without operating a node. Additionally, it uses a variable inflation model to incentivize block creation, where tokens are minted and added to a pool of rewards for delegators and validators.

Coreum blockchain interoperability

Another important part of Coreum's operation lies in interoperability with other blockchains. Coreum is designed to facilitate interaction between different blockchains, allowing users to move tokens between external chains and Coreum in both directions.

This interoperability is achieved by locking or destroying tokens on the original chain and creating or releasing them on the destination chain. Thus, when returning a token from the destination chain to its original chain, it is registered in the first and released in the second.

For those chains that are based on Cosmos-SDK, Coreum will make use of the IBC protocol, an open source component. The IBC protocol, designed for the exchange of arbitrary data between different registration systems, is structured in two levels:

• Data transfer layer: It is responsible for establishing communication channels through the creation of connections and the transmission of data between chains.
• Application layer: defines how messages should be encoded, decoded, and interpreted at each end of the channel.

Expanding Coreum's reach

Furthermore, the use of the IBC protocol (via Cosmos-SDK) is not limited and can cover different applications, including token transfers, cross-chain accounts (allowing call delegation between two chains), and the use of oracles as data sources . To this end, Coreum plans to implement communication solutions either through the IBC protocol or through bridges, to facilitate interaction with the following blockchains, with plans to expand to more in the future:

• Bitcoin
• Ethereum
• Ripple
• Solana
• Binance SmartChain
• Cosmos Hub (ATOM)

Smart Tokens on Coreum

The smart tokens are Coreum's solution for heavy smart contract transactions. These tokens can execute actions without the need to call a smart contract function, since their characteristics are recognized by the blockchain, resulting in faster, safer and more reliable transactions. Thus, we can refer to smart tokens as objects and classes that inherit a set of characteristics and functions from the global definition of a token.

Regardless of their type, all Smarts Tokens on Coreum share common functions such as minting, sending, burning, etc. The list of default features is selected from real use cases of current DeFi systems and as the chain progresses, this list will expand.

Currently, the following set of features is available for all Smart Tokens:

• Issuance (Minting)
• Access Control List (ACL)
• Burning
• Asset freezing
• White list
• Black list
• Combustion rate
• Shipping fee
• IBC (Cosmos Inter-Blockchain Communication) Support
• Smart contract integration

Sidechains and their impact on Coreum

Another important part behind how Coreum works is its ability to create Sidechains. At this point, Coreum is engaging in intense research and development around the use of sidechains for exponential scalability and producing higher performance when needed.

This is thanks to the fact that a single Coreum chain is capable of carrying out up to 7000 simple transactions per second; Consequently, by adding a single sidechain, the performance increases to 14000. Not only that, but Coreum has the ability to connect multiple sidechains, which significantly amplifies its final processing capacity.

Of course, there are applications that cannot run on multiple sidechains, for example a DEX. For such use cases, a dedicated chain will be executed individually. The image below provides an overview of what the sidechains will look like.

Project governance

Coreum's Linked Proof-of-Stake (BPoS) consensus mechanism enables an innovative on-chain governance ecosystem that allows stakeholders to vote on important decisions aimed at updating and improving the chain over time. This governance approach distinguishes Coreum from blockchains like Ethereum, which do not offer any form of on-chain governance.

By involving the community in key decisions, Coreum ensures that its chain is always evolving to meet the needs of its users. A wide range of proposals can be submitted for voting through the on-chain governance system, including fee model parameters, reduction, staking, delegation, number of validators, block times, grants, and more.

The following is a lifecycle of proposals on the Coreum blockchain:

1. Presentation of proposals. Interested parties submit proposals for a fee. Once a proposal reaches a certain deposit, the proposal enters a voting period.
2. Vote. Participants can vote on proposals that have met the minimum fee requirements and are active for voting.
3. Inheritance and sanctions. Delegates inherit their validator's vote if they do not vote themselves.
4. Claim deposit. Users who deposited proposals can recover their deposits if the proposal was accepted. Or, if the proposal never entered the voting period.

$CORE Native Token

Coreum's native token, $CORE, plays a crucial role in the security and operation of the network through the Linked Proof-of-Stake (BPoS) consensus mechanism.

The main objective of this token is to serve the following uses:

• Liquidity providers (LPs) and market makers
• Cross-border payments, banking and remittances (e.g. Swift)
• Stablecoin ecosystems (e.g. USDC, USDT,…)
• Lending platforms (e.g. Block, Nexo)
• Wrapped Cryptocurrencies (e.g. ERC20, BEP20)
• Decentralized exchanges (e.g. Sologenic.org, UniSwap,…)
• Metaverse Apps (e.g. Decentraland, The Sandbox, Meta)
• NFT marketplaces (e.g. Sologenic.org, Oopensea.io,…)
• Gaming and play-to-earn apps (e.g. Axie Infinity)
• EGB compatibility layer (Enterprise Graded Blockchain – ISO 20022)

In addition to all this, the $CORE token has an infinite issuance, with a genesis in which 500 million tokens were created, and which have been distributed as follows:

Future of Coreum

The Coreum platform introduces advanced smart token technology, enabling higher-level tokenization with unparalleled controllability and customization. This applies to a wide range of projects, from the tokenization of real estate assets to private equity and central bank-issued digital currencies (CBDCs). The specific features offered by Coreum, such as permissioned mining, limitations on token issuance, and role-differentiated access control, demonstrate its flexibility and the effectiveness of its blockchain-based solutions.

With the continued advancement of blockchain technology, Coreum establishes itself as a leader in the sector, standing out for its unique combination of customization, security and efficiency, along with its dedication to interoperability. This platform is set to open new avenues for decentralized applications and for the implementation of solutions in real scenarios, thus encouraging greater adoption and demand at a global level. Coreum, more than a simple platform, is a reference for the future of blockchain, promoting innovation and the expansion of the use of this technology worldwide.