Project Tockchain: Extending Qubic’s Capabilities

Project Tockchain is a research project exploring blockchain architecture for next-generation stablecoins and DeFi services, featuring one-second block creation, hybrid trading mechanisms, quantum resistance, and native Qubic integration.

Spelunker, Jan 6, 2025.

Introduction

We are excited to introduce “Project Tockchain”, our research on a new blockchain designed from the ground up to serve as the foundation for next-generation stablecoins and DeFi services.

The system processes transactions every second through two specialized networks operating in Layer 1: one for consensus and another for validation. This architecture includes a hybrid trading system that combines orderbook and liquidity pool trading directly at the protocol level.

This approach allows Project Tockchain to achieve optimal network price-performance ratio through efficient network design and optimized resource utilization. Even when running on low-spec nodes, Project Tockchain achieves sustained performance of 10,000 transactions per second while maintaining 99.9% reliability.

High-Level System Architecture Overview

The following sections describe the key architectural decisions and capabilities that define Project Tockchain, presented in a format accessible to non-technical readers:

One-second Block Creation with High Reliability

Like other blockchain systems, Project Tockchain records transactions in sequential blocks that are cryptographically linked. Therefore, Project Tockchain can be considered a blockchain.

Unlike traditional blockchains which have variable block times (Bitcoin: ~10 minutes, Post-merge Ethereum: ~12 seconds), Project Tockchain creates one block every second in units called "tocks" with 99.9% reliability in tock generation. This predictable and efficient one-second block creation is why we prefer to designate the project as a "tockchain".

Two Specialized Networks in Layer 1

Like other DLT systems, Project Tockchain operates in Layer 1—the base protocol layer responsible for consensus and transaction execution. This layer forms a network of interconnected nodes.

Unlike most DLT systems that use a single node type, Project Tockchain implements two distinct node types: consensus and validator nodes. This separation creates two specialized networks within Layer 1:

• Consensus nodes form the Consensus Network, focusing on reaching rapid agreement on both transaction selection and ordering, ensuring synchronized network state updates across nodes.
• Validator nodes form the Validation Network, processing transactions serially and validating the chain state, maintaining the ledger 100% reliable through comprehensive data verification.

Although both node types currently operate on the same physical hardware, future development will separate them into distinct physical nodes. This separation of concerns allows each network to optimize for its specific task, improving both performance and reliability.

Leaderless Quorum-based Consensus

Like other quorum-based systems, Project Tockchain uses consensus where agreement is achieved when two-thirds of nodes (approximately 66.7%) receive and validate transaction data. This mathematically proven optimal threshold provides Byzantine Fault Tolerance (BFT) against up to one-third of malicious nodes (33.3%).

Unlike traditional DLT systems that rely on leader nodes to coordinate block creation—which can result in empty blocks during leader outages—Project Tockchain eliminates these potential points of failure by distributing consensus responsibilities across the network.

Built-in Quantum Resistance through Cold Addresses

Like other DLT systems, Project Tockchain uses addresses derived from cryptographic keys to secure funds and recognizes the threat of quantum computing to cryptographic security.

Unlike traditional systems that rely on external solutions for quantum resistance, Project Tockchain implements two distinct types of addresses at the protocol level, each optimized for different security models:

• Hot Addresses expose their public key with every transaction. Users can create either individual hot addresses or a set of 64 derived addresses from the same hidden root key. Hot addresses prioritize convenience over security, making them ideal for frequent transactions and short-term trading.
• Cold Addresses never expose their public key except during spending operations. Project Tockchain implements the COLDSPEND method to ensure continuous quantum resistance. Cold addresses prioritize security over convenience, making them ideal for long-term storage.

One Chain per Stablecoin with Cross-chain Trading

Like other DLT ecosystems, Project Tockchain enables trading of multiple stablecoins and their associated assets.

Unlike traditional systems that mix different stablecoins per chain but support multiple chains for increased reach, Project Tockchain implements a dedicated chain for each stablecoin (VUSD, VEUR, etc.). Within each chain, all assets maintain protocol-enforced 50/50 liquidity pools with the chain's native stablecoin. This enables direct two-step trading between any assets (Asset A → Native Stablecoin → Asset B), ensures concentrated liquidity in single pairs, and provides efficient price discovery through unified routing.

This creates a network of specialized chains, each optimized for its native stablecoin while maintaining interoperability through cross-chain trading capabilities.

Built-in Trading with Market Efficiency

Like other DLT systems, Project Tockchain supports trading between different assets.

Unlike traditional DLT systems that require external exchanges (centralized or decentralized) to enable trading, Project Tockchain implements trading directly at the protocol level through a hybrid approach:

• Liquidity Pool Trading for guaranteed fills at any time through automatic pool matching, ideal for small orders (the more common case).
• Orderbook Trading for efficient price discovery and optimal execution through protocol-level orderbooks matching, ideal for large orders.

This protocol-level implementation eliminates external exchange overhead, achieves minimal slippage (0.000005% on average), protects against sandwich attacks, and maintains market stability through the combination of both trading mechanisms.

Extending Qubic with Native Integration

Like other DLT systems, Project Tockchain recognizes the importance of cross-chain interoperability for growing the DeFi ecosystem.

Unlike traditional systems that operate in isolation, Project Tockchain extends Qubic's capabilities through native integration at multiple levels:

• Seamless Asset Bridge: Users can transfer assets between networks through an automated bridging system.
• Technical Compatibility: Project Tockchain shares fundamental structures with Qubic, using the same format conventions for seeds, addresses, and transaction IDs.
• Unified Experience: The integration appears as a natural extension of Qubic to users while providing enhanced performance and functionality.

This approach allows Project Tockchain to complement and enhance Qubic's ecosystem rather than competing with it, creating a unified environment where both chains can leverage their respective strengths.

Conclusion

Project Tockchain represents our ongoing work to explore alternative approaches in three key areas where we see a need for improvement:

1. Performance and reliability optimizations for high-frequency 1-to-1 transfer scenarios.
2. Protocol-level features that replace Smart Contracts while better aligning stakeholder interests.
3. Governance models that encourage and embrace open dialogue and diverse perspectives.

By focusing on these specific areas, Project Tockchain aims to contribute to the broader DLT ecosystem while maintaining seamless integration with Qubic.

We look forward to sharing more detailed information about our progress as development continues. Your feedback and perspectives are valuable to us. Please feel free to reach out with questions or suggestions as we move forward with this project.

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On this Page

• Project Tockchain: Extending Qubic’s Capabilities
• Introduction
• High-Level System Architecture Overview
• One-second Block Creation with High Reliability
• Two Specialized Networks in Layer 1
• Leaderless Quorum-based Consensus
• Built-in Quantum Resistance through Cold Addresses
• One Chain per Stablecoin with Cross-chain Trading
• Built-in Trading with Market Efficiency
• Extending Qubic with Native Integration
• Conclusion

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