Yellow Network, a peer-to-peer Layer3 network, has recently introduced its beta testnet along with an exclusive incentive program. This program aims to select eligible testers who will participate in network activities and receive rewards in return. By launching a closed beta followed by an open testnet, Yellow Network plans to eventually implement the mainnet version of its counterparty settlement network.
The primary objective of Yellow Network is to facilitate institutional adoption of digital assets by providing a blockchain infrastructure for finance. It aims to address the challenges associated with digital asset transactions, such as counterparty risk, fragmented liquidity, and poor user experience. As a Layer3 network, Yellow utilizes off-chain state channels to enable order book trading, clearing, settlement, and compliance activities on a single platform.
To enhance liquidity, Yellow Network connects to multiple exchanges and has established integration points with major blockchains for cross-chain collateral and settlements. Additionally, the network ensures the security of user funds by employing secure multi-signature contracts and wallets. By conducting trading off the main chain, Yellow relies on ClearSync, a protocol that verifies sufficient capital for each trading party, effectively eliminating counterparty risk.
The primary vision of Yellow Network is to create a transparent financial system by combining the most appealing elements of decentralized finance (DeFi) and traditional finance (TradFi). This all-in-one, purpose-built protocol for trading aims to revolutionize the industry and cater to a broad range of users.
Yellow Network plans to launch its beta testnet on Duckies, its canary network designed for live test deployments and rapid experimental innovation. The network has already extended an invitation to testers and will begin reviewing and evaluating submissions from December 13. Successful applicants will have the opportunity to participate in testing Yellow Network’s core features, including depositing collateral, executing orders, and converting assets on the testnet.
In exchange for their contributions, testers will receive rewards in the form of $DUCKIES. The feedback and issue reporting from the beta testers will play a crucial role in resolving any potential issues and improving the overall functionality and user experience of Yellow Network.
Yellow Network’s move to the mainnet comes at an opportune time, considering the increasing investment appetite for digital assets among institutional market participants. According to a recent survey by Coinbase, nearly two-thirds of institutional investors currently holding cryptocurrencies plan to increase their allocations in the coming years. Additionally, 45% of those who are not yet invested have expressed their intention to enter the sector.
Furthermore, over half of the respondents in the survey anticipate a price increase for digital assets in 2024, highlighting the growing optimism and potential for the industry. Yellow Network’s mainnet launch aims to capture the attention and meet the demands of this burgeoning market by offering innovative solutions and a streamlined user experience.
The launch of Yellow Network’s beta testnet marks a significant milestone in the journey towards widespread institutional adoption of digital assets. By addressing the challenges of counterparty risk, liquidity, and user experience, Yellow Network strives to create a robust and transparent financial ecosystem that encompasses the best aspects of both DeFi and TradFi.
As Yellow Network progresses from its closed beta to the open testnet and eventually the mainnet launch, it will continue to refine and enhance its protocol based on the invaluable feedback from testers. With the increasing interest in digital assets among institutional investors, Yellow Network is poised to play a pivotal role in shaping the future of finance.
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