# Core Features

### Peer-to-Peer Security

Canopy Network's architecture features a recursive, self-reinforcing model starting with a **Security Root** chain to solve Layer 1 cold start issues. It utilizes the total staked value of the Security Root to prevent hostile takeovers, enhances decentralization with a diverse validator set, and allows immediate liquidity through token swaps with external chains. Tokens cross-pollinate via block rewards, and these chains eventually mature into new security roots, supporting future networks. This approach merges Ethereum's dApp model simplicity with Layer 0 independence, enhancing security as more blockchains are added.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>P2P Security ↗</strong></td><td>Learn about Canopy's recursive architecture and how it unleashes a new design space for applications.</td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2FNsLfsfqpB9CrBiYtVZbJ%2FWhy%20Canopy%20-Blockchain%20101%20-1%20(2).png?alt=media&#x26;token=db1b7064-092e-4b8b-944b-30f5059419f8">Why Canopy -Blockchain 101 -1 (2).png</a></td></tr></tbody></table>

### Progressive Sovereignty

Sovereignty in Canopy blockchains ensures they operate independently without external dependencies. Key features include censorship resistance, independent scalability, and the ability to join or leave a Security Root without affecting historical finality. Canopy blockchains maintain complete ledger history for full data ownership, avoiding external failures and third-party censorship, distinct from Web2. The transition to sovereignty is facilitated through Canopy's step-by-step process.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>Progressive Sovereignty ↗</strong></td><td>Learn about Canopy's solution to security and sovereignty, ensuring you're application retains the key benefits of blockchains.</td><td><a href="core-features/progressive-sovereignty">progressive-sovereignty</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2FZrbvZeVKzXce8P5fqRp9%2FWhy%20Canopy%20-Seeding%20the%20future%20-%204.png?alt=media&#x26;token=69af7e1f-d3ed-421c-9fe8-d2bbc1c5037f">Why Canopy -Seeding the future - 4.png</a></td></tr></tbody></table>

### Capital Efficient Restaking

Canopy introduces a novel approach to blockchain security, enabling new chains to gain protection through the social consensus of validators powered by restaking rather than requiring them to stake additional tokens. This method allows validators to use their existing locked tokens as collateral to secure multiple chains, creating a highly capital-efficient system. Essentially, new chains can onboard and receive security services based on their community-driven popularity, making it easier and more accessible for them to launch and operate.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-type="content-ref"></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>Restaking ↗</strong></td><td>Learn why Canopy chose restaking as a mechanism to grow and protect its ecosystem.</td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="core-features/capital-efficient-restaking">capital-efficient-restaking</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2FUy10fBXgfg2OpI85LfJC%2FCore%20features%20-Capital%20Efficient%20Restaking%20-%201.png?alt=media&#x26;token=5290c682-7f27-41fa-9f16-2485a9f56c36">Core features -Capital Efficient Restaking - 1.png</a></td></tr></tbody></table>

### Composable Architecture

Canopy chains revolutionize the blockchain upgrade process by eliminating the need for governance actions that often slow down development. They allow for seamless activation of security features and facilitate cloning for various use cases without cumbersome coordination. This enhances workload distribution and reduces reliance on specific validator groups. Canopy's scalability is further boosted by adding interoperable sibling chains and employing sharding techniques to improve performance and capacity.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-type="content-ref"></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>Composable Architecture ↗</strong></td><td>Learn about Canopy's composability.</td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="core-features/composable-architecture">composable-architecture</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2F76Z605WdU4uyBySGOdpg%2FWhy%20Canopy%20-Seeding%20the%20future%20-%203.png?alt=media&#x26;token=790f28e1-fa30-4a9d-a327-52f73bfc712c">Why Canopy -Seeding the future - 3.png</a></td></tr></tbody></table>

### One-way interoperability

Canopy introduces a novel, one-way, permissionless interoperability model. This approach requires only Canopy's governance and code updates, ensuring self-reliant security without trust dependencies. It promotes limitless ecosystem growth, instant liquidity via reusable stablecoin on-ramps, and boosts cross-chain collaboration, enhancing the Canopy ecosystem's adoption.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-type="content-ref"></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>One-way interoperability ↗</strong></td><td>Learn about Canopy's native interoperability.</td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="core-features/one-way-interoperability">one-way-interoperability</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2FJ0QUXD9T82oBtIgGrekB%2FCore%20features%20-Composable%20Architecture-%201.png?alt=media&#x26;token=c703f335-da34-4917-a9bf-9eedd745f858">Core features -Composable Architecture- 1.png</a></td></tr></tbody></table>

{% hint style="info" %}
Want to know the "how"? Checkout [how-does-canopy-work](how-does-canopy-work "mention")
{% endhint %}

### Built-In Liquidity

Chains using the Canopy framework feature trustless token exchanges, enabling seamless swaps between Root, Nested, and external chains like Ethereum, Solana, and Bitcoin without needing permission. This cross-chain interoperability boosts ecosystem liquidity, facilitating asset and user interaction across Web3. Canopy's composable architecture provides reusable liquidity paths, allowing new chains to quickly adopt token exchange plugins for instant liquidity. Each token swap generates fees, creating a sustainable revenue stream, ensuring financial benefit from both core utility and ongoing network activity.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-type="content-ref"></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><strong>Built-In Liquidity ↗</strong></td><td>Learn about how Canopy chains can benefit from liquidity provided by one-way interoperability. </td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="core-features/built-in-liquidity">built-in-liquidity</a></td></tr></tbody></table>

{% hint style="info" %}
You can learn more about token swaps [here](../how-does-canopy-work/state-machine#token-swaps)!
{% endhint %}

### Chain Halt Rescue

Canopy introduces a robust feature to tackle chain halts, offering an innovative security mechanism to quickly recover from non-liveness incidents within its Nested-Chains. This feature ensures that when a chain halt occurs, the Security Root can automatically restore operations, minimizing downtime and maintaining blockchain reliability. By swiftly addressing and resolving such disruptions, Canopy not only preserves confidence among investors and community members but also ensures asset stability. This added reliability provides reassurance to emerging projects, knowing that their operations can swiftly resume in case of emergencies.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-type="content-ref"></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>Chain Halt Rescue ↗</strong></td><td>Learn about the unique Chain Halt Recovery features of Canopy. </td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="core-features/chain-halt-rescue">chain-halt-rescue</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2F0JhRSHDc8exfHLbpAYCT%2FHow%20does%20canopy%20work%20-%20Consensus-7.png?alt=media&#x26;token=0ee3035e-93d0-4827-b778-178c19a51488">How does canopy work - Consensus-7.png</a></td></tr></tbody></table>

{% hint style="info" %}
Understand the 'how' of Chain Halt Rescue in [how-does-canopy-work](how-does-canopy-work "mention")✅
{% endhint %}

### NestBFT

NestBFT leverages a hybrid model of Proof-of-Stake (PoS) and Proof-of-Age to enhance blockchain security and efficiency. Its PoS mechanism ensures energy-efficient consensus, instant finality with 20-second blocks, and economic stability through bonding, protecting against sybil attacks. Meanwhile, Proof-of-Age offers verifiable mitigation of long-range attacks and strengthens Nested Chains through decentralized Checkpointing-As-A-Service. This dual approach results in a more trustless and secure system compared to traditional PoS frameworks.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-type="content-ref"></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>NestBFT ↗</strong></td><td>Learn why NestBFT is a leap forward for PoS. </td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="core-features/nestbft">nestbft</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2FT53LgrMDEYnn5xGyYdHo%2FHow%20does%20canopy%20work%20-%20Consensus-1.png?alt=media&#x26;token=bfd9be42-ad2d-4395-8010-ab979f927f58">How does canopy work - Consensus-1.png</a></td></tr></tbody></table>

### Checkpoints-as-a-Service

Canopy fortifies blockchain security against Long-Range Attacks with its Verifiable Delay Function and decentralized checkpointing service, ensuring secure fork-choice selection and historical integrity. Chains can publish cryptographic proofs via Canopy, supporting independence while preserving history and enabling subjectivity even amidst adversarial threats. With Canopy, chains maintain flexibility, exporting checkpoints as needed without being locked in, ensuring enhanced resilience and reliability.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-type="content-ref"></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>Checkpoints-as-a-Service ↗</strong></td><td>Learn how Canopy's unique Checkpointing service protects against Long-Range Attacks.</td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="core-features/checkpoints-as-a-service">checkpoints-as-a-service</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2FAkTR35g0cqtbMAeeY84A%2FHow%20does%20canopy%20work%20-%20Consensus-10.png?alt=media&#x26;token=a1f1182e-9ec7-4fff-9fe5-2d67be4f5a10">How does canopy work - Consensus-10.png</a></td></tr></tbody></table>

### United Governance

Canopy's nested architecture fosters a multi-chain governance system akin to the United Nations, where Nested Chains maintain sovereignty while collaborating through validator representation. This collaboration is achieved as Nested Chains can cross-pollinate validators in the Security Root, decide their participation in any Security Root system, and work collectively to adopt standards, fund initiatives, and resolve disputes. This decentralized power structure ensures balanced decision-making, enhances network stability, and promotes investor trust by preventing any single chain or validator from dominating the ecosystem.

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th data-hidden data-type="content-ref"></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><strong>United Governance ↗</strong></td><td>Learn about built-in and cross-chain governance in Canopy.</td><td><a href="core-features/peer-to-peer-security">peer-to-peer-security</a></td><td><a href="core-features/united-governance">united-governance</a></td><td><a href="https://2343293880-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLrZDX2RTu3ClIHkvyP7T%2Fuploads%2FNsH08YdVLW1G4oKrgoDy%2FCore%20features%20-United%20Governance-1.png?alt=media&#x26;token=5de335fe-f64e-4013-980c-a4dda6e5a00d">Core features -United Governance-1.png</a></td></tr></tbody></table>

