Empowering Anyone to Become a Node Operator – Over Protocol’s Ambitions Go Far Beyond

As a decentralized distributed ledger, blockchain technology promises greater freedom, autonomy, and user participation. Yet, in practice, resource centralization, technical barriers, and closed ecosystems have led many protocols to become overly centralized. This centralization often forces regular users to rely on specific entities for data access and transactions, undermining the core principles of decentralization.

Over Protocol has crafted a comprehensive blockchain ecosystem to restore decentralization and realign with its foundational principles. This system includes the innovative Ethanos data layering technology, an adaptation of Ethereum’s Gasper consensus algorithm, and the development of essential tools such as wallets, node clients, and an NFT marketplace. With these tools, Over Protocol strives to make blockchain accessible to all, enabling everyone to leverage the network and earn rewards.

What is Over Protocol?

Over Protocol is a Layer 1 blockchain that offers lightweight full nodes. It enables anyone to run a node and become a validator using their personal computer. The team’s vision is to create a global peer-to-peer network that enhances network security and stability through collective collaboration. This will ensure users can easily access data and services, ultimately promoting widespread adoption.

Source: Over Protocol

To achieve this vision, Over Protocol is building a genuinely decentralized ecosystem. On the technical side, Over Protocol is based on the Ethanos protocol, a Proof-of-Stake (PoS) consensus mechanism, and an innovative front-end embedding system. This architecture allows anyone to become a node operator, supporting solo staking (Home Staking). Users can directly manage and verify blockchain data while enjoying a more stable and secure service experience.

In addition, Over Protocol focuses on the usability of decentralized technology by providing tools such as the mobile crypto wallet OverFlex (formerly OverWallet), the node client OverScape (formerly OverNode), and the real-world asset marketplace OverFlex Market (formerly OverSpace). These tools empower more users to own and create value within the ecosystem.

Team Background and Funding

Founded in 2022, Over Protocol was created by Ben (Jae-Yun) Kim, a PhD candidate at Seoul National University. Further details about the other team members have not yet been disclosed.

In July 2023, Over Protocol raised $8 million from prominent South Korean companies and venture capital firms, including SK Group, Netmarble, DSC, E&Investment, Schmidt, NaverZ, and SpringCamp. Regarding this funding round, founder Ben (Jae-Yun) Kim stated that they aim to deepen their partnership within the Korean market and accelerate project development globally.

Core Technical Architecture

Over Protocol is built on principles that prioritize maximum freedom within its blockchain framework, with three main goals guiding its design:

1. Enabling anyone to operate a blockchain node;
2. Allowing open participation in the consensus process;
3. Ensuring blockchain dApps are accessible without risk or cost.

Over Protocol introduces a data-layered structure to accomplish these goals, using the Ethanos protocol to efficiently partition data across multiple layers. By managing active accounts (5%) separately from dormant accounts (95%), nodes can discard outdated data and operate with reduced storage needs. This significantly lowers the blockchain’s storage requirements, curbing uncontrolled state growth to maintain a high level of efficiency and sustainability.

Most blockchain setups require a full node with an SSD that provides 1-2TB, or even more, of storage. However, Over Protocol redefines data layering and management, enabling users to build a full node on a personal computer with a more modest 128GB to 256GB of storage.

Over Protocol employs Proof-of-Stake (PoS) at its core and integrates an adaptation of Ethereum’s Gasper consensus algorithm. The team’s choice to leverage Gasper aligns with the founding goal of creating a blockchain not dependent on a small, centralized group. In the view of Over Protocol, Delegated Proof-of-Stake (DPoS) introduces high barriers to entry for ordinary users, while Gasper encourages more validators, including those with less advanced node-operating environments. By broadening the pool of participants and implementing an accountability mechanism, Over Protocol fosters a more democratic consensus process. This inclusive approach reduces power centralization as more participants engage in block validation.

Beyond lightweight node services, Over Protocol also serves as a secure asset management platform. Its innovative front-end embedding system seamlessly integrates front-end data with smart contracts, allowing users to engage directly with blockchain services for a safer and more stable experience.

In essence, Over Protocol’s front-end embedding system uses blockchain infrastructure to host front-end services, directly storing web application data on the blockchain and managing it according to predefined rules. This direct interaction removes the need for traditional service architectures to search for front ends, reducing the risk of users inadvertently clicking on phishing sites. In addition to improved security, users can independently verify transactions and data by directly operating nodes, protecting personal data and privacy while lowering the risk of malicious nodes. As more node servers join, the network becomes more decentralized, and gains enhanced stability.

Token Economics and Distribution Model

Although the Over Protocol mainnet briefly went live before being taken offline, the team has disclosed some details about the tokenomics. Over Protocol’s native token is OVER, which can be used to pay for Gas fees and participate in node staking.

The total supply of OVER is capped at 1 billion tokens, with plans to complete full circulation within 10 years. The distribution breakdown for OVER is as follows:

Source: Over Protocol

• Staking Rewards (30%): Of this, 200 million OVER is allocated as a guaranteed minimum reward, distributed equally to stakers over 10 years, with an additional 100 million reserved for adjustments.
• DAO Treasury (10%): To support DeFi, Layer 2 solutions, and other ecosystem initiatives.
• Community Access Program (OCAP) (15%): Primarily aimed at incentivizing early community members and contributors, as well as providing liquidity.
• Core Contributors (15%)
• Investors (10%)
• Over Technologies (10%)
• Over Foundation (10%)

Ecosystem Development in Over Protocol

Over Protocol aims to drive mass adoption of decentralized technology, and the team has already launched a suite of products and services to support this goal. These include the OverFlex mobile crypto wallet, the OverScape node client, the OverFlex Market for NFT credentials, and the OverDrive project to enhance liquidity.

OverFlex

Serving as the gateway to Over Protocol, the OverFlex wallet boasts over 6.2 million registered accounts and more than 1 million daily active users. With OverFlex, users can securely manage their digital assets, monitor and safeguard their nodes anytime, and easily track transaction history, ensuring a seamless and secure user experience.

Source: Over Protocol

OverScape

OverScape is one of the most comprehensive node clients available, with users from 127 countries and regions worldwide participating in the beta version. Featuring an intuitive UX/UI, OverScape enables users to seamlessly operate nodes on their personal computers, become validators within the Over Protocol network, and earn OVER token rewards.

OverFlex Market

Launched this month, OverFlex Market is a platform for buying and selling various NFT coupons, catering to lifestyle scenarios like K-Pop, K-Beauty, K-Stay, and K-Food.

Source: Over Protocol

Currently, users can purchase goods on the platform using fiat currency and earn FLEX points based on their spending amounts.

OverDrive

To facilitate the mainnet launch, the Over Protocol team introduced the OverDrive project in late March this year. OverDrive leverages EigenLayer to enhance security and liquidity, allowing participants to earn OverDrive points by depositing ETH.

Project Roadmap and Challenges

Over Protocol conducted Open Beta tests in December of last year and March of this year, drawing in tens of thousands of users worldwide. However, the team has faced significant criticism from the community due to repeated delays in the mainnet launch.

Originally, Over Protocol planned to launch its mainnet in June this year. As the date approached, they announced a postponement, rescheduling the launch for August 27. Although the mainnet briefly went live on that date, it was subsequently taken offline, with the team citing efforts to optimize the network and reduce operational costs. Additionally, the team delayed the Token Generation Event (TGE) and community airdrops, pushing these to late this year or early next year. These repeated delays have led to substantial community backlash. In response, the team has mentioned it is considering additional incentives to compensate and motivate loyal users.

Once the mainnet is fully operational, Over Protocol plans to enhance the OverFlex Market with new features. For example, users can resell digital tickets they no longer need or use these tickets as collateral to borrow funds and earn returns. Looking further ahead, the team also intends to introduce micro-lending services, unlocking more financial possibilities within the ecosystem.

Conclusion

Over Protocol is a blockchain protocol specifically designed for Home Staking, allowing anyone to participate in the blockchain network and earn rewards directly from their personal computers and devices.

From the team’s current product developments, it is clear that Over Protocol’s ambitions extend far beyond this initial goal. Their vision is to create a truly decentralized blockchain infrastructure that redefines how users interact with blockchain technology. However, with the mainnet launch still pending, Over Protocol’s potential in enabling Home Staking and exploring new peer-to-peer financial models remains to be seen.