Namada: What it is and how it enhances blockchain privacy

The recent launch of Namada's mainnet has marked a milestone in blockchain, prioritizing privacy and interoperability. At Stakely, as a validator committed to the network's future, we’ll explain everything you need to know about its technology, phases, and how to participate in its ecosystem by staking NAM.

Namada isn’t just another blockchain. Built on a Proof-of-Stake (PoS) model, this Layer 1 network has a clear mission: to provide privacy for all assets, across any chain. Thanks to its advanced technology, such as the Multi-Asset Shielded Pool (MASP) and support for fungible and non-fungible tokens, Namada ensures your transactions are protected regardless of the network you’re operating on.

And the best part? You don’t have to sacrifice speed or pay high fees for transfers. Known as a "Protected Asset Hub," Namada offers not only anonymity but also speed, with transaction latencies of just a few seconds and near-zero fees.

Interoperability that transforms the ecosystem

With its integration of the IBC protocol and custom bridges, Namada enables seamless connections with other chains. Currently, it operates with a reliable bidirectional bridge to Ethereum, allowing the transfer of not just ETH but also a wide range of assets like DAI, ATOM, OSMO, and Ethereum NFTs. In short, any IBC-compatible asset can be transferred quickly and securely.

Transparent and efficient governance

Namada brings an innovative solution to governance: an off-chain mechanism that coordinates validators in the event of a hard fork, coupled with an on-chain voting system based on text validity predicates. This ensures proposals are voted on clearly and in a decentralized manner.

The lack of privacy in blockchain is a pressing issue, and Namada addresses it head-on. Its groundbreaking system enables shielded transfers across chains, minimizing the risk of personal data exposure and maximizing security. Additionally, it enhances interoperability among blockchain networks and reduces the risk of data exploitation, making it an ideal choice for those seeking privacy and security.ç

Namada’s PoS mechanism, known as Cubic Proof-of-Stake (CPoS), introduces several innovations benefiting both validators and delegators:

• Automatic rewards: Staking rewards accumulate without requiring transactions to claim them.
• Cubic slashing: Validators that commit security breaches face more severe penalties, encouraging more robust setups. The penalties are calculated using a cubic slashing algorithm.
• Multi-asset transaction fees: Transaction fees can be paid in multiple tokens, a feature manageable through governance.

Here’s a quick look at what makes Namada unique:

• Shielded transfers: Enables private transfers of any token type, fungible or non-fungible.
• Low latency and near-zero fees: Provides rapid proof generation and advanced BFT consensus.
• Interoperability with Ethereum and IBC: Facilitates seamless connections with IBC-compatible chains and improves transfer security with Ethereum through a custom bridge.

The NAM token is Namada’s backbone. It’s used for staking, paying network fees, driving governance, and funding the ecosystem through public goods. By holding NAM, you’re contributing to the future of blockchain privacy!

On December 3, 2024, Namada launched phase 1 of its mainnet. The rollout is designed to be progressive, divided into five phases, each testing key features and preparing the network for full functionality.

Here’s what you can and can’t do during each phase:

Phase 1: Block Party

• You can test key features like delegation and governance.
• You cannot earn rewards or transfer NAM.

Phase 2: Staking Party

• You can receive staking rewards and PGF.
• You cannot transfer NAM.

Phase 3: Shielding Party

• You can make IBC deposits into MASP, with increased rate limits for assets like ATOM, OSMO, and USDC.
• You cannot transfer NAM.

Phase 4: Shielding Party Overdrive

• You can earn rewards for selected shielded assets.
• You cannot transfer NAM.

Phase 5: NAM NAM NAM

• You can transfer NAM as the network will be stable and ready.

At Stakely, we’re passionate about simplifying your blockchain experience. By following our NAM staking tutorial, you can securely delegate your NAM hassle-free. Maximize your rewards with us while supporting a network that’s changing the game!