Blockchain Infrastructure: Annchain.OG Product Documentation

Introduction

Blockchain technology is revolutionary and transformative. Our team has always harbored faith in its potential. However, its inherent economic attributes have led to a turbulent development path. To date, we have yet to see a blockchain capable of supporting large-scale commercial applications. While we acknowledge the contributions of pioneering projects like Bitcoin, Ethereum, IOTA, and EOS, we aim to build upon their foundations to explore a truly efficient, stable, and secure blockchain for real-world applications. This document introduces a distributed ledger technology based on Directed Acyclic Graph (DAG) architecture, addressing the trilemma of decentralization, scalability, and security that has constrained blockchain progress.

From Ethereum to EOS, we observe compromises in balancing these three critical aspects. Numerous consensus algorithms have emerged to achieve efficient decentralized consensus, but mere optimizations or modifications cannot bring qualitative leaps. It’s time to break free from existing blockchain architectural constraints and explore methods that achieve trust networks while solving current challenges. DAG holds immense potential in this regard, as evidenced by projects like IOTA and Byteball. Our platform advances this further by proposing a DAG + Smart Contract solution, enabling mass adoption of decentralized applications (DApps) while resolving cost inefficiencies in existing blockchains.

Table of Contents

1. Background
2. OG Overview

3. DAG Structure

   • 3.1 DAG Fundamentals
   • 3.2 Sequencer Mechanism
   • 3.3 State Finality (Fanality)

4. Ivy: The Ledger Protocol

   • 4.1 Network Construction
   • 4.2 Randomized Selection Principle

5. Smart Contracts

   • 5.1 Sequencer Generation
   • 5.2 Contract Execution

6. Security

   • 6.1 DAG Attack Vectors
   • 6.2 Secure Virtual Machine
7. Conclusion

8. Appendix A: Oracle Mechanisms

   • 8.1 Passive Oracles
   • 8.2 Active Oracles
9. Appendix B: Smart Contract Sharding
10. References

1. Background

Linear blockchain structures (e.g., Bitcoin, Ethereum) ensure transaction order and consensus but impose scalability bottlenecks by requiring sequential block validation. DAG-based architectures enable parallel transaction processing, transforming the "greater hash power, greater competition" model into "greater hash power, greater efficiency." Unlike blockchains that require global consensus for each state transition, DAG networks achieve consensus through transaction validation—eliminating traditional bottlenecks while ensuring security.

2. OG Overview

OG is a high-performance DAG-based blockchain supporting smart contracts. Key features include:

• Efficiency: Throughput scales with network participation.
• Fairness: No privileged nodes; all participants validate transactions.
• Security: Each transaction validates predecessors, making double-spending costly.
• Smart Contracts: Sequencers enforce ordered execution for consensus.
• Sharding: Application-based partitioning for horizontal scalability.
• Oracles: Bridges between on-chain and off-chain data.

👉 Explore OG’s architecture

3. DAG Structure

3.1 DAG Fundamentals

DAG’s asynchronous transaction validation enables high concurrency without global consensus. Each transaction (Tx) unit references prior units, forming a graph without blocks.

3.2 Sequencer

Sequencers are PoS-generated units that order smart contract transactions. They ensure:

• Consensus Order: Tx sequences are immutable once validated.
• Finality: Sequencer-confirmed transactions achieve irreversible states.

3.3 State Finality

Sequencers periodically "finalize" network states, preventing parasitic chain attacks.

4. Ivy Protocol

4.1 Network Construction

OG enforces rules to prevent double-spending:

• Random Tip Selection: Units validate two prior tips (optimal for convergence).
• Anti-Laziness: Proof-of-work requirements deter nodes from repeatedly validating old units.

4.2 Randomized Selection

Unlike weight-based DAGs (e.g., IOTA), OG randomly selects tips to ensure fairness and scalability.

5. Smart Contracts

5.1 Sequencer Generation

Senator nodes stake assets to earn Sequencer-packaging rights. Each Sequencer:

• Orders contract-related Txs by weight.
• Undergoes validation by other Senators.

5.2 Contract Execution

Nodes execute Txs in Sequencer-defined order, ensuring state consistency.

👉 Learn about OG’s smart contracts

6. Security

6.1 Attack Mitigation

• Parasitic Chains: Sequencers finalize states, preventing rollbacks.
• Lazy Nodes: PoW rules enforce diverse tip validation.
• DoS: PoW requirements deter spam attacks.

6.2 Secure Virtual Machine

OG’s VM enforces:

• Numerical Safety: No unchecked overflows.
• Type Safety: Native Coin type for secure token operations.
• Permission Safety: Explicit function access controls.

7. Conclusion

OG’s DAG architecture resolves blockchain’s trilemma while enabling scalable smart contracts. Future work includes enhancing security and finality guarantees.

8. Appendix A: Oracles

• Passive Oracles: On-demand data fetching via callbacks.
• Active Oracles: Continuous off-chain data updates.

9. Appendix B: Smart Contract Sharding

Independent contracts are partitioned across shards for parallel Sequencer processing.

10. References

[1] Nakamoto, S. (2008). Bitcoin Whitepaper.
[2] Buterin, V. (2017). Ethereum Whitepaper.
[3] Liu, C.M. (2018). Vite Whitepaper.

FAQ

Q: How does OG prevent double-spending?
A: Sequential validation and Sequencer finality ensure irreversible transactions.

Q: Can OG support Ethereum-style smart contracts?
A: Yes, with enhanced security and deterministic execution via Sequencers.

Q: What’s the role of Senators?
A: They stake assets to propose and validate Sequencers, earning rewards.

Q: How does sharding improve performance?
A: Independent contracts are processed in parallel across shards.