|Exam Name||:||Technology Standards and Protocol for Converged Networks|
|Questions and Answers||:||73 Q & A|
|Updated On||:||February 15, 2019|
|PDF Download Mirror||:||Pass4sure 920-804 Dump|
|Get Full Version||:||Pass4sure 920-804 Full Version|
920-804 exam Dumps Source : Technology Standards and Protocol for Converged Networks
Test Code : 920-804
Test Name : Technology Standards and Protocol for Converged Networks
Vendor Name : Nortel
Q&A : 73 Real Questions
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March 31, 2005 14:00 ET
news unencumber TRANSMITTED by using CCNMatthews
NYSE, TSX image: NT
MARCH 31, 2005 - 14:00 ET
Nortel Names Gary Kunis as Chief know-how Officer;Brian McFadden to guide superior know-how, Researchand specifications company
TORONTO--(CCNMatthews - Mar 31, 2005) -
Nortel Networks business enterprise (NYSE:NT) (TSX:NT) nowadays announced theappointment of Gary Kunis as Chief know-how Officer (CTO). As CTO,Kunis will lead the strategic imaginative and prescient for the company's product andtechnology portfolio.
until 2002, Kunis become the executive Science Officer at Cisco systems. One ofthe pioneers of the internet in the Nineteen Eighties, Kunis has led numerousdevelopment and engineering breakthroughs concerning cyber web Protocol(IP) specifications and routing expertise used to connect the worldwide webof networks that make up the web.
Kunis will document to Gary Daichendt, president and chief operatingofficer (COO), beneficial April four, 2005.
"We're extremely joyful to have Gary be a part of our crew. he's an acknowledgedInternet pioneer with a solid listing of accomplishment and that i recognize hewill give an outstanding contribution to Nortel's technologyleadership," said Gary Daichendt, president and chief working officer,Nortel. "His music listing in main the building, servicing and sellingof community technologies globally can be a robust addition. he is anexcellent senior leader who during his career has consistentlydemonstrated his capacity to link know-how innovation with businesssuccess each internally and externally."
apart from the Kunis appointment, Nortel announced that BrianMcFadden, a 26-year Nortel veteran and the current CTO, has beenappointed to the position of Chief analysis Officer (CRO), valuable April4, 2005. In his new role, McFadden will oversee the superior know-how,research and requirements corporation and will proceed to record to thepresident and COO. He could be liable for surroundings Nortel's researchpriorities to be sure they help the enterprise's enterprise thoughts,which encompass preserving an trade management position in conclusion-to-endbroadband, Voice over IP, multimedia functions and applications, andwireless broadband solutions. McFadden will also be sure that Nortelcontinues to play a lead position in industry necessities and regulatoryorganizations.
"we're absolutely dedicated to transforming into our business and a key componentof it really is our persevered technology management," talked about invoice Owens, vicechairman and chief executive officer, Nortel. "cutting-edge announcementreaffirms the profound magnitude of research and building toNortel's future and our commitment to making certain our technology decisionsare extremely built-in with our general company approach and thedynamics of a very aggressive world market. developing twodistinct know-how and analysis and construction organizations withspecific mandates and led through two very completed senior executivescertainly reflects our 'enjoying to win' commitment to enhancingshareholder value."
past in his profession, Kunis turned into worried in the design, implementationand operation of enormous scale statistics and telecommunications networks forseveral U.S. govt company programs, together with the department ofDefense, U.S. Navy, U.S. Air force, country wide Aeronautics and SpaceAdministration (NASA), as well as for civilian organizations whereas workingfor the Boeing enterprise. Kunis additionally held a few senior engineeringpositions with Boeing's business and defense-connected agencies.
A graduate of the State university of big apple (SUNY) at Binghamton witha Bachelor of Arts diploma in Economics, Kunis additionally holds a grasp'sDegree in Economics from Tufts tuition.
Kunis and McFadden have also been appointed CTO and CRO, respectively,of Nortel Networks constrained, the company's essential operating subsidiary.
Nortel is a diagnosed leader in offering communications capabilitiesthat enhance the human adventure, ignite and energy international commerce, andsecure and offer protection to the realm's most important information. Serving bothservice provider and commercial enterprise shoppers, Nortel gives you innovativetechnology options encompassing end-to-end broadband, Voice over IP,multimedia capabilities and functions, and wireless broadband designed tohelp people remedy the world's top of the line challenges. Nortel does businessin more than one hundred fifty nations. For more information, discuss with Nortel on theWeb at www.nortel.com. For the latest Nortel news, visitwww.nortel.com/news.
definite suggestions blanketed during this press free up is forward-lookingand is discipline to important dangers and uncertainties. The consequences orevents predicted in these statements can also range materially from actualresults or movements.
components which may trigger results or movements to vary from currentexpectations consist of, amongst different issues: the influence of regulatory andcriminal investigations and civil litigation moves concerning Nortel'srestatements and the influence any ensuing legal judgments, settlements,penalties and expenses could have on Nortel's effects of operations,financial situation and liquidity; the findings of Nortel's independentreview and implementation of advised remedial measures; the outcomeof the independent evaluate with recognize to revenues for specificidentified transactions, which evaluate may have a selected emphasis onthe underlying habits that led to the initial attention of theserevenues; the restatement or revisions of Nortel's previously announcedor filed economic results and resulting negative publicity; theexistence of fabric weaknesses in Nortel's internal controls overfinancial reporting; the have an impact on of Nortel's and NNL's failure to timelyfile their fiscal statements and connected periodic studies, includingbreach of its support facility and public debt tasks and Nortel'sinability to entry its shelf registration observation filed with theUnited States Securities and exchange fee ("SEC"); ongoing SECreviews, which can result in adjustments to our public filings; thepotential delisting or suspension of Nortel's and NNL's publicly tradedsecurities; the influence of management changes, including the terminationfor explanation for Nortel's former CEO, CFO and Controller in April 2004; thesufficiency of Nortel's restructuring activities, including the workplan introduced on August 19, 2004 as up-to-date on September 30, 2004,together with the abilities for bigger specific expenses to be incurred inconnection with restructuring moves in comparison to the estimated costs ofsuch movements;
cautious or decreased spending by way of Nortel's consumers; fluctuations inNortel's operating outcomes and time-honored business, economic and marketconditions and increase fees; fluctuations in Nortel's cash move, levelof fantastic debt and existing debt ratings; Nortel's capacity torecruit and keep certified employees; using money collateral tosupport Nortel's normal course business actions; the dependence onNortel's subsidiaries for funding; the impact of Nortel's definedbenefit plans and deferred tax assets on results of operations andNortel's cash circulation; the hostile resolution of class actions, litigationin the common course of business, intellectual property disputes andsimilar matters; Nortel's dependence on new product development and itsability to predict market demand for selected products; Nortel'sability to combine the operations and applied sciences of acquiredbusinesses in an excellent method; the have an impact on of quick technological andmarket change; the influence of expense and product competitors; boundaries tointernational increase and global economic circumstances, above all inemerging markets and together with interest rate and currency trade ratefluctuations; the have an effect on of clarification and consolidation in thetelecommunications business; adjustments in legislation of the internet; theimpact of the credit dangers of Nortel's purchasers and the affect ofcustomer financing and commitments; inventory market volatility generallyand as a result of acceleration of the settlement date or earlysettlement, which is at present not available, of Nortel's forwardpurchase contracts; the impact of Nortel's deliver and outsourcingcontracts that include beginning and installation provisions, which, ifnot met, may outcomes within the fee of substantial penalties orliquidated damages; and the longer term success of Nortel's strategicalliances.
For additional info with admire to definite of those and otherfactors, see essentially the most fresh Annual document on kind 10-okay and QuarterlyReport on form 10-Q filed by using Nortel with the SEC. unless otherwiserequired by means of applicable securities legal guidelines, Nortel disclaims any intentionor duty to replace or revise any ahead-searching statements,no matter if on account of new information, future movements or in any other case.
Nortel, the Nortel logo and the Globemark are logos of NortelNetworks.
desktop community know-how (CNT) and Nortel Networks have brought plans to simplify storage area network (SAN) integration into enterprise IP and optical networks. This cooperative effort is in accordance with existing, demonstrated applied sciences, together with Nortel Networks' metropolitan and lengthy-haul optical items, and CNT's protocol adaptation technologies and centered requisites work corporations.
both organizations will collaborate on the design and construction of applied sciences and solutions that integrate SAN functions and infrastructure with the Optical internet, each metro and long haul. The collaboration will take vicinity in two stages.
within the near term, the collaboration will encompass the deployment of service provider-based SAN solutions so as to equipment products and functions from each agencies, together with Nortel Networks' OPTera Metro multi-service platforms (CNT's UltraNet Director, CNT SAN Integration services, and many others.) into a single client offering.
In coaching for the long run, work will start immediately on the specification of latest, vertically built-in options combining IP, Optics, FC, SCSI, Escon and different technologies, with a focus on optimization of these applied sciences for networked storage applications over carrier company networks. CNT and Nortel Networks will work carefully with the service company neighborhood on the construction of this specification.
moreover, the groups will collectively market and support SAN/IP and SAN/optical options to carrier suppliers and key companions, and work with network suppliers to strengthen a collection of storage applications and features. utility labs will even be created to qualify storage solutions to function beneath the brand new environments. both companies will also participate in joint consumer trials to establish the value of the technology in true networks.
previously, IP networks had been inadequate to deal with the best of service, the information protection wants or the bandwidth-on-demand wants of storage applications. CNT has developed a transport protocol that provides stronger storage application reliability on a common IP spine, together with data compression, alternate routing, load balancing and stronger circulate manage. This storage transport protocol is at present being used to facilitate SAN extensions over long distances, enabling key purposes such as distance mirroring, tape backup and storage distribution.
CNT and Nortel Networks will work toward the standardization of these improvements through submissions to the acceptable requisites committees, including the information superhighway Engineering assignment drive (IETF), and the American countrywide specifications Institute (ANSI) T11 working group for consideration as an extension to the FCBB (Fibre Channel again-Bone) standard.
The items and know-how to help the collaboration between CNT and Nortel Networks exist today, including the Fibre Channel products from Brocade, which were proven in each enterprise's lab. CNT and Nortel Networks expect to begin customer trials in 3rd quarter 2000.
For greater advice, talk over with www.nortelnetworks.com, or www.cnt.com.
Tuesday, February 5, 2019
government businesses, companies, hospitals, and universities are the general targets of stunning data breaches that can affect millions of individuals. however okay-12 schools are additionally at risk for cyber attacks as they rely more on know-how for day-to-day operations and usually hold a wealth of delicate information about their college students, teachers, directors, and other team of workers.
information reports of cyber attacks on colleges surface always. A phishing attack on San Diego Unified college District in California enabled hackers to steal Social safety numbers and addresses of greater than 500,000 students and district staff. discovered in October 2018, this far-achieving incident occurred between January 2001 and November 2018. and usually, facts breaches are on the upward thrust – a recent report found that essentially half one billion client information containing delicate own suggestions were hacked in 2018, in assessment to 198 million sensitive statistics in 2017.
To tackle these gathering cyber threats in opposition t faculties, the ny State branch of training (“SED”) lately proposed new rules in order to, as soon as adopted, require school districts and state-supported faculties to enhance and put in force powerful statistics protection and privateness courses to give protection to any individually identifiable suggestions (“PII”) concerning students, teachers and principals.The SED’s law is constructed from a couple of key sections, including:
parent’s invoice of Rights. each faculty ought to submit a dad or mum’s invoice of rights on its web page. colleges need to additionally include the bill of rights in each third-birthday celebration contract the place a third celebration contractor will obtain PII. colleges will be required to set up a transparent direction for fogeys to speak and file complaints about breaches or unauthorized releases of scholar facts, including a problem to the accuracy of the scholar records.
information protection and privateness typical and Plan. The national Institute for requisites and know-how Cybersecurity Framework (“NIST CSF”) is the regular for faculty protection policies. moreover, each and every time a college enters into a third party contract with an entity to be able to receive PII, an information safety and privacy plan should be provided. The plan need to outline, amongst other things, how the third-party contractor will defend PII in keeping with the school’s records safety and privateness software. All officers or personnel of the third-party contractor who have direct entry to PII need to receive practising on relevant federal and state law.
practicing for educational company employees. guidance privacy and safety consciousness practicing, online or in grownup, have to be provided yearly by faculties to their officers and employees that have entry to PII.
statistics insurance plan Officer Appointment. each school is required to nominate a knowledge protection Officer (“DPO”), filled by way of a brand new or present worker, that's liable for enforcing all required safety and privateness guidelines and methods. The DPO will serve because the point of contact within the college on all information safety and privateness matters.
stories and Notifications of Breach and Unauthorized unlock. concerning any breach or unauthorized unlock of PII, third-birthday party contractors need to report to all affected faculties with out unreasonable delay however in no case no more than seven calendar days from the date of discovery. After a 3rd-birthday party breach notification, or after independent discovery by the school itself, the affected school should notify SED inside 10 calendar days. inspite of the place the breach or unauthorized release become found, the college must notify affected people devoid of unreasonable delay but in no case no more than 14 calendar days from the date of discovery. If, besides the fact that children, notification would expose an ongoing vulnerability or interfere with a legislation enforcement investigation, the notification may be delayed except no later than seven calendar days after the vulnerability has been remedied or the investigation has concluded.
Chief privacy Officer’s Powers and responsibility. the chief privacy Officer (“CPO”) of SED can have entry to all data, audits, and documents within a college regarding the PII of people. moreover, the CPO will have the authority to require faculties to function privacy and protection risk assessments at any given time.
Third birthday party Contractor Civil Penalties. After each and every breach or unauthorized release of PII through a 3rd-birthday party contractor, the civil penalty could be up to $10 per affected scholar, teacher, and main. It might be the CPO’s responsibility to investigate each breach or unauthorized release from a 3rd celebration entity.
After the mandatory 60-day public remark duration for the proposed legislation, it is generally introduced for permanent adoption to the Board of Regents all the way through its may 2019 assembly. If adopted through the Board of Regents, the legislation may be effective July 1, 2019.
Co-creator: Gabrielle Bruno
Jackson Lewis P.C. © 2019
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With all major mobile carriers expected to offer 5G this year, enterprises that want to take advantage of this next-gen mobile data service need to start thinking about how to support it on site.
Anticipation is keen for 5G, given that it promises to deliver faster speeds and lower latency than the current premium wireless technology, 4G LTE. Ideally, 5G networks could deliver fast internet to areas of the country where wired broadband is unavailable, and more reliable connections to a variety of devices including not only computers and smartphones but also appliances, automobiles and security systems. But to use these services as a WAN option, businesses need hardware that can connect it to their existing wired and wireless LANs.
Here's a rundown of the device makers that are known or rumored to be providing networking gear to pipe 5G to your office.D-Link 5G gateway
D-Link revealed its DWR-2010 5G NR Enhanced Gateway in January. The device accepts a SIM card to receive 5G and 4G LTE signals from a carrier and routes them to devices connected to it by Wi-Fi or Ethernet. It has AC2600 dual band Wi-Fi (which transmits up to 800 Mbps and 1732 Mbps for each band) with MU-MIMO, and 5 Ethernet ports.D-Link
D-Link’s 5G NR Enhanced Gateway will be available in the second half of 2019.
It supports D-Link's own Wi-Fi Mesh Technology (which allows for it to be networked with other D-Link routers) and Voice over LTE to let you make voice calls on your carrier's LTE network.
The DWR-2010 is scheduled for release sometime in the second half of 2019. Many D-Link devices are sold to the general public. It remains to be seen if this will be true with the DWR-2010. For now the company lists its price as "varied" depending on which 5G carrier will provide it for its customers.HTC 5G hub
HTC and Sprint announced in November that they're working together to develop a mobile 5G "smart hub" to support the carrier's 5G network. (Sprint's 5G network is set to launch sometime in the first half of this year.) The intial announcement revealed only that the device will run Qualcomm's Snapdragon x50 5G modem chipset.
More details emerged in December, when a 5G hub device developed by HTC was revealed for use on Australian carrier Telstra's 5G network. The HTC 5G Hub for Telstra has a display about the size of a small smartphone to show status information for 5G and Wi-Fi signals, and the devices connected to it. It's speculated that the display – larger than usual for a hotspot – could also be used to show pictures and video. As of this writing, it hasn't been confirmed if the HTC 5G Hub is the same smart hub device that Sprint will sell to customers to use on its 5G network.Huawei's 5G devices
In February of last year, Huawei announced devices that would run its own 5G chipset, the Balong 5G01. The company claimed it would be the first to support the final 5G specifications sanctioned by 3GPP, the trade group that governs cellular standards. Huawei also revealed two 5G router devices: A large unit that comes in both indoor and outdoor models, and a smaller unit for indoor use. At the time, the larger 5G models were being tested on a major Canadian carrier, Telus.
But ongoing controversy is impeding the Chinese company's plans. The U.S. government accuses Huawei of enabling spying through its devices, perhaps at the behest of the Chinese government. So Huawei has been banned from supplying its equipment to the U.S.'s emerging 5G networks. Australia and New Zealand have also decided to fully ban Huawei from their nations' 5G infrastructure.Inseego 5G mobile hotspot
Inseego has two 5G routers, both for the Verizon's 5G network that launched in October. The first, the R1000, is a white cylinder that takes the 5G signal from Verizon’s towers and forwards it to devices connected to it. It supports Wi-Fi with 4x4 MIMO technology and Voice over LTE, has power-over-Ethernet capability and can run on a battery that is replaceable.Inseego
Inseego’s MiFi 5G NR mobile hotspot device supports the new Wi-Fi 6 protocol, 802.11 ax.
Inseego's other model, the MiFi 5G NR, was revealed in December; its shipping date has yet to be determined. The MiFi 5G NR runs Qualcomm's new Snapdragon 855 processor and Snapdragon X50 5G modem chipsets, and it supports the new Wi-Fi 6 protocol (AKA 802.11 ax). It has a display to show connection status and data usage.Netgear Nighthawk 5G mobile hotspot
Netgear claims its Nighthawk 5G Mobile Hotspot is the first 5G standards-compliant networking device. Due for release in the U.S. sometime this Spring, the Nighthawk will be for exclusive use on AT&T's 5G network, which was turned on in 12 U.S. cities in December. The list price for the Nighthawk is $500.Netgear
Netgear's Nighthawk 5G Mobile Hotspot will be available on AT&T's 5G network
It runs Qualcomm's Snapdragon X50 5G modem chipset, and it includes a display to show stats. The display will show information such as how much data from your allotted plan with AT&T has been used, days remaining before your plan resets, devices connected to it, and signal strength.
That's the extent of the device features that have been revealed as of this writing. It's possible the Nighthawk 5G will include features similar to Netgear’s Nighthawk LTE Mobile Hotspot Router, which is also for AT&T networks. The LTE version supports the ability to have up to 20 devices connected to the hotspot through Wi-Fi. It also offers parental controls that could be useful in an office setting, such as the ability to block types of content and websites.Nokia merges mobile and network divisions
This is one company to watch, even though it hasn't announced any consumer-end 5G devices. Over the last several years, Nokia has been at the forefront of developing and testing 5G hardware for carrier networks that include 5G base stations in partnership with Qualcomm. T-Mobile has bought $3.5 billion worth of Nokia 5G hardware to build its 5G network.
Nokia formed an Access Networks Division to expand its business further into the global 5G market. Internally, the company merged its separate mobile and network business divisions to create this single entity at the start of 2019. It's possible that from this division, Nokia will develop and release a 5G router or other device for customers of U.S. 5G carriers.Samsung indoor and outdoor 5G routers
Samsung worked with Verizon throughout 2018 to develop a 5G network setup for business and home use. Last February, the company announced that its 5G FWA (fixed wireless access) unit was the first to gain approval by the FCC.
This device is an antenna base enclosed inside a white, rectangular box with rounded corners and edges. It's meant to be installed outdoors on your premises or close by to receive a 5G signal from Verizon's towers. This unit then re-transmits the signal to a 5G router, which your computer or other device connects to through Wi-Fi or Ethernet.Samsung
Samsung’s lineup of 5G commercial routers includes indoor and outdoor devices.
Samsung developed separate indoor- and outdoor-use 5G routers. The indoor model looks like a typical, square-shaped router propped up vertically, which Samsung specifies should be positioned by a window to better receive the 5G signal being transmitted by the 5G FWA. The outdoor version resembles a speaker.
These devices were provided to customers of Verizon’s 5G Home service. The carrier’s 5G network launched in October in Houston, Indianapolis, Los Angeles and Sacramento.Join the Network World communities on Facebook and LinkedIn to comment on topics that are top of mind.
As the number of devices coming onto the IIoT scene continues to expand at a rate akin to a Cambrian explosion...
of growth -- thanks to input from early adopters and test beds -- IIoT standards are just now developing to guide those seeking industrial IoT.
"Very few standards originally designed for IoT exist so far," said Richard Soley, who is both executive director of the Industrial Internet Consortium (IIC) and CEO of the Object Management Group (OMG). "Low-level middleware is available -- including our data distribution service -- but it's just the beginning. The difficult part isn't the protocols; it's the semantics. Every vertical market within IoT has different semantics that must be supported."
By working with industrial test bed ecosystems, the IIC is developing and testing out scenarios to determine how IIoT standards can make building specific test beds easier. "One of these test beds -- Track and Trace, led by Bosch in Germany -- has put out a set of semantics requirements," Soley said. "Based on this, OMG has begun developing standards for logistics inside and outside of factories."IIoT hills to climb
What are the biggest challenges in developing IIoT standards? "Ensuring seamless interoperability across the vast range and diversity of current and new IoT applications is no easy feat," said Peter Niblett, an IoT platform architect at IBM and a member of the OneM2M marketing and communications subcommittee, which develops standards for machine-to-machine communications and IoT.
The challenge of integrating legacy applications already in place -- such as SCADA systems and closed proprietary systems that weren't designed to communicate across production lines and functional areas -- with new-to-market devices and technologies "is presenting a number of hurdles on the road to enabling a harmonious IIoT ecosystem," Niblett added.
Several protocols for data transfer do exist and "are suited for different kinds of communication networks found in IIoT applications," Niblett said. Examples of IoT protocols for field-area networks include the Constrained Application Protocol, MQ Telemetry Transport (MQTT) and more industry-specific ones, such as Modbus. Wide area networks tend to rely on MQTT and HTTP, and data transfer to back-end applications uses HTTP or messaging protocols like Apache Kafka.
The OneM2M global industrial IoT standard is designed to hide technology complexities for IoT application developers through an abstraction layer. "It enables a horizontal linking of data through a universal standards-based approach," Niblett said. "This allows different systems and devices within an industrial setting to integrate, while enhancing industrial operations within this area and improving the IIoT ecosystem as a whole."Standard benefits
How exactly can connected applications benefit from IoT and IIoT standards? "By adopting an interoperable horizontal approach, fragmentation within the IoT ecosystem can be prevented," Niblett explained. "This provides great benefits for suppliers because they won't get locked in to solutions. It also allows them to easily integrate with other suppliers within the ecosystem, which means consumers' demands are met through a wider choice of providers."
Federating standardized IoT platforms and operating systems across multiple production lines and subsystems "improves ease of application and data sharing, which will be key if the industry is to truly enhance the industrial chain," Niblett pointed out. "OneM2M's platform provides a security architecture to ensure the trustworthy, safe and secure handling of the data collected or processed by these IIoT devices -- which is particularly important within industrial environments, where security glitches could present safety concerns that have never been contemplated before, with a breach potentially resulting in a life-threatening situation."
A more difficult question, according to Soley, is: What industrial IoT standards will make application development more useful? "Everywhere I go, people ask what standards exist, and I reply that semantics standards are what's really necessary," he said. "Then they ask about protocols. We've been publishing protocols since 1990 and, while they're painful, it's a solved problem. The real issue is that you need guidance in choosing the right protocol and then getting the semantics on top of it -- essentially the metadata that sits above the numbers that pass around the network."
In the near future, don't expect to see many broad-based IIoT standards emerge. Rather, watch for "semantic technology requirements and standards within specific markets," Soley said. "Lots of those requirements will be coming out of test beds soon -- for energy grids, healthcare, agriculture, energy production, etc. OMG is working on some of these standards, but other standards organizations are too."
Over the past decade, we have witnessed the emergence of revolutionary innovation, of which the evolutionary significance is yet to be fully recognized. Of course, we’re referring to the blockchain, cryptocurrencies, and, more generally, the phenomenon that we describe as the Internet of Value. Blockchain and related technologies have the opportunity to transform the world of finance and other value systems, in exactly the manner by which the Internet has transformed the way we exchange information.
There have been some key milestones leading up to this point: the launch of Bitcoin in 2008; the emergence of altcoins from 2011 onwards; the launch of Ethereum in 2015. We call this Layer 1 — the foundational level — with the economic function of value creation and the technical one of ensuring the basic functionality of accounting and transfer of crypto assets. All of this is implemented on the basis of distributed registries and with the conditions of interaction strictly regulated at the code level.
It would seem that, finally, technology appeared that would enable us to create, digitize, and transmit value, just as we create and transmit information on the classic Internet, without the mediation and restrictions of a third party. But mass adoption remains unrealized. And the challenge is not only that of inertia; very few people in the world have yet realized the significance of this innovation. The problem lies primarily in limitations of a purely technological nature, chief among them being:
1. Limited scalability and effectiveness of basic crypto-ecosystems, and as a result:
low network throughput
low transaction speed
2. Constantly growing need for memory, for local storage of copies of distributed registries.
3. High transfer fees (the price of consensus will always be higher than the cost of confirmation in non-distributed databases).
Of course, some blockchain systems are trying to solve these problems. Some even do. But their efforts rest mainly with reducing decentralization and lowering resistance to censorship (which is more suitable for enterprise solutions than for the universal Internet of Value). Furthermore, these efforts are isolated to individual projects, without providing an answer to the shared problems of the main ecosystems: Bitcoin, Ethereum, and others.
So here, we face at least one additional challenge, namely:
4. The absence or extreme limitation of interoperability — the impossibility of interaction between different blockchain-ecosystems.
All four of these restrictions relate to the problems of Layer 1. The problems of the first group (1–3) are already being addressed both by the developers of individual blockchains and ecosystems, as well as by special projects; the broad goal is to create some kind of overlay over popular blockchain systems. Examples might include projects such as Lightning for the Bitcoin ecosystem or Raiden for Ethereum. Therefore, solutions that address the problems of the first group are referred to as the so-called Layer 2.
Layer 2 is actually an off-chain superstructure above the baseline (Layer 1), designed primarily to solve problem number 1 — scalability. Most proposed solutions involve state channels or side chains. The major benefits include increased productivity and reliability.
Layer 2 projects such as Lightning Network, Raiden Network, Trinity Network (payment channels), as well as the Celer Network and Counterfactual (generalized state channels), which belong to state channel projects. Meanwhile, Plasma, RSK, and Liquid use side chains to solve the problem of scalability for basic blockchain systems.
But, as we discussed above, none of them solves our problem number 4 — the problem of interoperability. And although projects such as LN and Raiden state that they will in the future, that’s quite a challenge for any project focused on a specific DLT. The fact is that the provision of atomic untrusted transactions between two different blockchains is an extremely difficult task due to differences in technological approaches and the misalignment between project schedules.But Why Is This Such a Serious Problem?
Let’s try to imagine a physical world without interoperability, using some historical examples. In the 19th century, the United States experienced a boom in railway construction. Several large companies were engaged in the construction and development of a network of railways. But imagine the consequences if each of these companies had built a railroad to their own standards that was incompatible with the others? Different track gauges, different rail shapes, etc. Perhaps one of these hypothetical widths or shapes would be more optimal than that used today, or some of these standards would be better suited for specific tasks. However, each company would have to forge its own line to each point, while producing separate cars and locomotives compatible with its proprietary standards and so on. Instead of one universal railway station in each village, we would have to build several different ones for each of the incompatible railway networks.
What do you think would happen in this case? Would the railroad still have become an essential conduit for the development of new territories, the improvement of economic ties between regions, etc.?
In other words, how would a lack of interoperability have affected the adoption of this technology?
Some developers of Layer 2 solutions state that they plan to solve the problem of interoperability in the future. But today, nevertheless, they continue to improve their projects by focusing on a particular blockchain; at best, this would be on compatible blockchains (for example, Bitcoin forks, or smart contract projects similar to Ethereum, etc.)
On the other hand, should Layer 2 projects even try to solve the problem of interoperability? In our opinion, this problem belongs to a different level; namely, Layer 3. And this means that it’s better to solve it separately and with the help of more specialized approaches.
It might be appropriate to draw an analogy here with the development of the Internet itself. The Internet has its own technological layers, each of which performs a specific function:
Link layer: various technologies and data transfer protocols between devices on the local network, for example, Ethernet, Wi-Fi, PPP, HDLC, etc.
Network layer: protocols that transfer data over a wide area network.
Transport layer: protocols responsible for the complete delivery of data, etc.
The peculiarity of the Network layer is that it is as abstract as possible from lower-level protocol technologies. Its task is to ensure the possibility of global data transmission, or, in our terms, to ensure interoperability for various devices and local area networks (LANs), binding all of them into a single global network (the Internet).
A similar main task, in our opinion, should be accomplished by projects of the Layer 3 level: ensuring interoperability and functioning of separate blockchain-ecosystems in a single global Internet of Value. The main characteristics that should be inherent to projects of the Layer 3 level are:
Should be based on off-chain technologies.
To be blockchain-agnostic, i.e. not be tied to a particular blockchain-ecosystem.
To provide the possibility of trustless multi-asset transactions, i.e. allow easy exchange of one crypto-asset for another in the process of making a payment.
To ensure payments’ atomicity.
As for atomicity, we should return to the analogy using the conventional Internet. It transpires that the Transport layer is in charge of the analog of atomicity: it’s rendered into a separate technological layer there. A similar state of affairs will eventuate in the case of the Internet of Value and will only be known with time. Meanwhile, this problem should be tackled one way or another.
In general, precisely because of the characteristics discussed above, Layer 3 technologies are not restricted to ensuring interoperability and combining individual blockchain systems into a single global network. They can also connect traditional financial systems and physical assets, or other non-blockchain value carriers. Just as the Network layer in the conventional Internet abstracts from specific low-level data transfer technologies and ensures their global interaction, Layer 3 technologies on the Internet of Value can provide interoperability and global value transfer, regardless of where this value comes from or what its basic carrier is.
Furthermore, Layer 3 technologies on the Internet of Value can become the basis for the functioning of the following practical solutions and services:
Decentralized cross-chain exchanges (Cross-chain DEX)
Cross-border Payments (“Crypto VISA”)
Solutions in the field of Internet of Things (IoT), and others.
However, the most significant benefits will flow from the network effect of the Internet of Values. Each new service and each new participant attracted by this service will increase the value of the entire Internet of Value network for all participants, including the various DLT projects.
Imagine if someone in the 1970s, exposed to only a few local area networks, were asked to describe a global Internet of the future — one that would allow half of the world’s population to instantly share any information. Imagine if they were asked to predict how this would affect the economic, professional, and social life of people. In the 1970s, it would be very difficult to predict what is now commonplace to us.
Similarly, at our present stage of evolution, it is very difficult to imagine where a similar development — what we call the Internet of Value — will lead us.
It’s likely that, at some point in the future, the basic DLT technologies (Layer 1) will perform the main function of the carrier of value, a kind of custodianship of specialized value. Developers will focus primarily on the thorough implementation of these basic and natural functions.
Meanwhile, the logistical functions for value transfer will be folded into the superstructures of the technological levels — Layer 2, 3, 4. Their task will be to solve a particular level of problems such as scalability, interoperability, and atomicity. Being separated into distinct levels of technology, they will be able to act beyond the limitations of lower-level technologies.
This is especially true for interoperability. After all, a given blockchain-ecosystem, whatever it may be, is unlikely in itself to become what we could call the Internet of Value, just as Wi-Fi could not become the internet. But all of them working together can. However, this will happen only in the event of the emergence of a Layer 3 technology, which can ensure their interoperability.
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