Neutron Network: The Superior Chain for DeFi within the Cosmos Ecosystem

In early November 2023, the NTRN token witnessed a significant surge, reaching a 97% increase in price. NTRN serves as the designated platform token for Neutron, a blockchain-powered by the Cosmos SDK and Tendermint BFT consensus mechanism. What sets Neutron apart is its unique capability to establish connections between the Cosmos ecosystem and external networks, providing a pathway for seamless interchain interactions. This article delves further into the intricacies of the Neutron and explores its functionalities within the Cosmos ecosystem.

Article Summary

• ⛓️ Neutron is a smart contract L1 blockchain for building Interchain DeFi applications within Cosmos.
• 🌉 Neutron enables developers to launch scalable smart contracts-based applications across a network of 50+ blockchains connected via IBC.
• 🌟 Neutron introduces the concept of Interchain Accounts (ICA) and Interchain Queries (ICQ) as crucial elements in its ecosystem.
• 🪙 NTRN is Neutron’s platform token used as a payment, governance, and DeFi application development instrument.

What is Neutron Network (NTRN)?

Neutron is a smart contracts blockchain for building Interchain DeFi application development powered by Cosmos Hub. This platform allows developers to launch smart contracts-based applications that connect to the entire Interchain ecosystem through IBC.

Learn more about Cosmos and its ecosystem in this article.

One of the exciting things about this platform is its ability to execute transactions across different zones (blockchains) of Cosmos without the need to redeploy code. It makes it useful for developing decentralized applications (dApps) in the Cosmos ecosystem.

Cross-chain applications require Interchain Query to get data from different blockchains. Neutron developed this technology to give DeFi applications a wide range. The platform focuses on developing Interchain Accounts (ICA) and Interchain Queries (ICQ).

Neutron was created in early 2023 by a team consisting of former Lido DAO community manager, Avril Duthiel. Lido DAO is a decentralized organization that aims to build a staking infrastructure on the Ethereum blockchain.

Read also: What is Lido DAO (LDO)?

How Does Neutron Network (NTRN) Work

Neutron is a blockchain project that uses the concepts of ICA and ICQ to enable the execution of transactions in the remote zone and manage accounts on various blockchains. It aims to improve interoperability between chains in the blockchain ecosystem.

Interchain Accounts (ICA)

Interchain Accounts (ICA) allow modules and smart contracts to execute and track transactions across interchain zones without the need to deploy additional code. With this in place, Neutron can provide solutions for transaction execution in the interchain ecosystem and manage accounts (wallets) hassle-free across multiple blockchains.

ICA enables account creation and control through Inter-Blockchain Communication (IBC) without using local private keys.

This platform becomes a Host chain and Controller for various functions. The Host chain stores Interchain Accounts from other zones and executes IBC instructions. The Controller uses the Authorization Module to create and manage Interchain Accounts in the Host chain.

The following is the transaction execution process in Neutron:

• In Neutron, smart contracts send ICA transactions. The ICT module sends it to the ICA module, which builds an IBC packet.
• A relayer picks up the packet and takes it to the ICA module in the Host chain.
• The packet is unpacked and executed in the Host chain as a local transaction.
• The relayer obtains the execution results (confirmed, failed, or timed out) and passes them through the ICA and ICT modules on Neutron to the original smart contract.
• In this way, ICA enables the execution of transactions in other zone and the receipt of status data.

Interchain Queries (ICQ)

Neutron brings customizable Interchain Queries (ICQ) to smart contract developers. Interchain Queries are an important building block that allows developers to retrieve data from other blockchains securely.

So, what are Queries, and how does Neutron bring them to Interchain?

Queries are a way to retrieve data from blockchain storage. For many use cases, developers tend to use more complex queries. Such queries allow developers to ask more concrete ‘questions’, for example, “What is the token balance of X in wallet Y”?

Queries are essential to the DeFi protocol. dApps can get data to calculate asset exchange rates, determine loan ratios, and more. But the problem is queries only work within the same blockchain. To retrieve data from other blockchains, a specialized system must be built over the IBC: Interchain Queries.

Neutron makes Interchain Queries work in the following way:

• The ICQ module collects query requests and makes them available to relayers.
• Relayers go to the queried zone (blockchain), find a “value” for each “key”, and package them with cryptographic proofs.
• Relayers bring the packaged result back to the ICQ module that verifies it.
• Specific smart contracts get the verified results from that module and process the raw results into a neat data structure for the query’s author.

This platform makes it easy for developers to create ICQs using smart contracts rather than ICQ modules to process results. Upgrading a module is hard: validators have to agree on a patch, download it & restart their nodes synchronously.

Advantages of Neutron (NTRN)

• Neutron is the leading smart contract chain in the IBC ecosystem and the gateway for Cosmos to connect to external ecosystems.
• With the implementation of the Replicated Security framework, Neutron has achieved the highest level of security in the Cosmos ecosystem since its launch.
• Neutron has prominent investors such as Binance and CoinFund. Teams from P2P Validator and Lido also support neutron.
• Smart contract applications and rollups built on Neutron can be deployed across a growing network of over 50+ networks connected via IBC (Cosmos chain and EVM).
• Being both a Host chain and Controller, Neutron drives connectivity and enables the creation of cross-chain DeFi products.

Read also: DeFi Adoption 2023: Trends, Potential, and Challenges.

NTRN Token as an Investment

NTRN is the native token of Neutron. This token functions as a utility and governance token in its ecosystem. Some examples of NTRN uses are as follows:

• NTRN is a payment instrument to power dApps within the Neutron network.
• Participation in governance through voting vaults.
• NTRN will be the underlying DeFi asset used to pair with tokens in liquidity pools and yield vaults. NTRN can also be used as collateral for money markets and as a payment instrument for DAOs.

NTRN has a maximum supply of 1 billion tokens. Of these, the team has allocated NTRN tokens to several sectors, which you can see in the image above.

As of November 29, 2023, Neutron has a market cap of over 100 million US dollars with a daily trading volume of nearly 20 million US dollars. This amount puts this platform in 287th place on CoinMarketCap based on the market capitalization amount.

Currently, the NTRN price is 0.48 US dollars, up 66% from the early November price of 0.28 US dollars. One of the factors is the launch of Nexus by Hyperlane in early November 2023. Nexus is a new cross-chain bridge platform powered by Neutron, initially focusing on Cosmos and Celestia.

Read also: Celestia: The First Modular Blockchain in The World.

Earlier in October, staking holders in Astroport decided to migrate from Terra to Neutron. It brought the value locked in Astroport’s Neutron liquidity pool to over 30 million US dollars on November 15, 2023.

Conclusion

Founded in 2023 by a team led by Avril Duthiel, Neutron is a smart contracts blockchain focusing on the security of the Cosmos Hub. Its strengths include high interoperability, Replicated Security support, and host chain and controller for various use cases.

The NTRN token becomes a key asset in the Neutron ecosystem with roles as a payment instrument, participation in governance, and a foundational asset in DeFi. Although NTRN is a new token, it has shown consistency in price and has utility in its ecosystem.

How to Buy NTRN Token on Pintu?

You can start investing in NTRN by buying it on the Pintu app. Here is how to buy crypto on the Pintu application:

1. Create a Pintu account and follow the process of verifying your identity to start trading.
2. On the homepage, click the deposit button and top up the Pintu balance using your preferred payment method.
3. Go to the market page and look for NTRN.
4. Click buy and fill in the amount you want.
5. Now you have NTRN as an asset!

In addition, the Pintu application is compatible with various popular digital wallets such as Metamask to facilitate your transactions. Download the Pintu cryptocurrency app on the Play Store and App Store! Pintu is regulated and supervised by Bappebti and Kominfo.

You can also learn more crypto through the various Pintu Academy articles which are updated every week! All Pintu Academy articles are for educational purposes, not financial advice.

References

1. Neutron Team, Overview of Neutron, Neutron Network, accessed 28 November 2023.
2. Rpatel, Neutron: The Premiere Controller Chain, Medium, accessed 28 November 2023.
3. Peter Henn, Neutron Price Prediction 2023: What is Neutron (NTRN)? CCN, accessed 28 November 2023.
4. Eloise, What is NTRN? Details about the Neutron project, Coinbay, accessed 29 November 2023.