Introduction to Tondi

A comprehensive guide to Tondi Chain - the next-generation PoW-based cryptocurrency

Tondi is a high-performance PoW-based cryptocurrency designed to tackle the scalability and privacy limitations of traditional blockchains, inheriting the Kaspa DAG architecture while implementing groundbreaking advancements in throughput, privacy, security, and compliance. With a focus on high-frequency trading, stablecoin settlement, compliant privacy payments, and off-chain state anchoring, Tondi introduces a new framework for the Bitcoin ecosystem.

At its core, Tondi is a next-generation programmable settlement layer that leverages high-speed PoW DAG architecture to offer instant transaction confirmation, efficient asset settlement, and privacy-preserving conditional payments through innovations like Eltoo, Channel Factories, CISA, PTLC, and APO. It is designed to address the shortcomings of existing Layer 2 solutions like RGB and Lightning Network (LN), offering a simplified, more decentralized, and scalable alternative.

Tondi is built to natively support Taproot-based Layer 2 contracts, expanding the capabilities of the RGB protocol and significantly improving upon Bitcoin's performance and privacy limitations.

What Problem Does Tondi Solve?

Tondi is a PoW cryptocurrency with a blockDAG architecture designed to solve the scalability and security trade-offs faced by Bitcoin and other blockchains. The major problems Tondi addresses include:

High Block Confirmation Times

As block rate increases on traditional PoW blockchains, the rate of orphaned blocks also rises, reducing the security of the network. Tondi solves this by using a blockDAG that allows parallel block creation, which eliminates the risk of orphaned blocks while maintaining security.

Complex Layer 2 Solutions

While Lightning Network (LN) has been seen as Bitcoin's scaling solution, it has faced issues such as complex channel management, unstable routing, and poor user experience. Tondi improves upon this with its native Layer 2 solutions like Eltoo and Channel Factories, eliminating the complexity and improving scalability and privacy.

State Synchronization Complexity

The RGB protocol, which extends Bitcoin's asset layer through client-side validation and Taproot commitments, has faced challenges such as complex state synchronization and reliance on centralized indexers. Tondi simplifies this by utilizing native channels and aggregated signatures while providing a simpler, decentralized alternative to RGB.

How Does Tondi Fix This?

Tondi utilizes GHOSTDAG and PoW to achieve high throughput and low confirmation latency while maintaining security. By adopting a blockDAG structure, Tondi avoids the issues of orphaned blocks seen in traditional PoW chains, allowing for instant transaction finality and the efficient processing of multiple blocks in parallel.

Key to Tondi's solution is the integration of Layer 2 technologies, including Eltoo and APO, that simplify the channel update process and reduce on-chain footprint. Additionally, Channel Factories and CISA (cross-input Schnorr aggregation) help improve liquidity and transaction efficiency by supporting multi-party channels and signature aggregation, making conditional payments through PTLC more private and efficient.

Tondi's client-side validation model ensures that all transactions are processed on the wallet side, with only commitments being submitted on-chain. This minimizes the on-chain burden while maintaining the full security and decentralization of the network.

How Do We Know This Is Secure?

Tondi's blockDAG structure and PoW consensus ensure that the network remains secure even under high throughput conditions. The freeloading bound inherent in the GHOSTDAG protocol prevents any attacker from gaining an advantage by reverting transactions, maintaining security across the network.

With Eltoo and APO, Tondi's Layer 2 solutions are also designed to mitigate the vulnerabilities of previous systems like Lightning Network, which exposed payment routing paths. By using PTLC (Privacy-enhanced Conditional Payments), Tondi ensures that payment conditions remain private, further enhancing the security and privacy of transactions.

What About Other DAG-based Blockchains?

Tondi's use of PoW and blockDAG is distinct from other DAG-based blockchains like Nano or IOTA, which do not generalize Nakamoto Consensus and therefore cannot guarantee the same level of security as Bitcoin. Tondi remains fully decentralized, using proof-of-work to secure the network, unlike some DAG-based projects that rely on proof-of-stake or centralized validators.

By combining Kaspa's fast, scalable DAG architecture with Taproot-based Layer 2 contract support and privacy solutions like PTLC and CISA, Tondi offers a provably secure, highly scalable solution for decentralized applications, privacy-preserving payments, and high-frequency trading.

Key Features of Tondi

  • Consensus: GHOSTDAG, supporting parallel blocks with Blue Block weighting for enhanced scalability
  • Hashing: Blake3, offering superior throughput and SIMD support
  • Transaction Processing: Parallel validation with 10k+ TPS and 1–2 seconds confirmation time
  • UTXO Model: BTC-homomorphic, with P2TR support for improved security
  • Signatures: Schnorr batch signatures, enabling parallel verification and reduced transaction size
  • Privacy: Built-in native RGB Layer 2 and PTLC support for privacy-enhanced payments
  • Scalability: Peak throughput of 15,000–25,000 TPS, designed for high-frequency trading and DeFi applications
  • Compliance: Privacy with selective disclosure and support for zero-knowledge auditing for enterprise use cases

Application Scenarios

  • Stablecoin Settlement Networks: Low-cost, high-privacy payment solutions with FATF-compliant interfaces
  • High-Frequency Trading & Micropayments: Achieving ≥20 bps with 15,000–25,000 TPS for DeFi matching and content payments
  • BTC Layer 2 State Anchoring: Ideal for anchoring RGB and Taproot assets
  • Compliant Privacy Payments: Offering selective viewing and zero-knowledge auditing for banks and regulators

Conclusion: The Future of Scalable, Privacy-Preserving Settlement

Tondi is not just a blockchain—it's a next-generation settlement layer designed for the future of money. By leveraging Kaspa's DAG architecture with innovations like Eltoo, APO, and PTLC, Tondi unlocks the performance boundaries of high-frequency trading, privacy, and compliance in the digital economy.

For enterprises, financial institutions, and developers, Tondi offers an efficient, scalable, and secure platform for the next era of blockchain-based applications.