Interaction with other layers and Packet 2.

GRACE NET operates on top of existing layers and protocols, adapting to different networking requirements:

• On top of the transport layer (L4) - namely, UDP (User Datagram Protocol) - for NAT (network address translation) and firewall traversal;

• On top of the IP network protocol (L3) for internet data transmission;

• Directly on top of the channel layer (L2) and physical communication lines (L1), indicating its flexibility and broad applicability.

GRACE NET targets the transport layer (so-called Layer 4) for speed optimization and can transport any volume of data without any restriction on speed. This is because the protocol operates in the kernel space, avoiding context switching between the user and kernel spaces, so the regular 100 MB/s UDP core limit doesn’t apply.

Another notable innovation within GRACE NET is Packet 2.0, an advanced mechanism for shaping and handling data packets. Its features include:

• Flow control and multi-session support for better management of multiple data streams;

• Data compression for reduced bandwidth usage without loss of quality;

• Regular packet structure optimized for latency considerations;

• Guaranteed traffic integrity;

• Transmission rate management.

GRACE Chain (in development)

After GRACE NET is fully implemented and we launch the first set of live integrations, we will move on to the next phase: launching our own EVM blockchain. It will offer processing capacity and low fees on par with leading chains like Optimism and Arbitrum, while having the advantage of being fully integrated with GRACE NET out of the box.

All GRACE Chain validators will use GRACE NET to maximize the speed of consensus and transaction finalization; moreover, we expect that most GRACE Chain nodes will also act as GRACE NET server operators. Once the new chain is live, the $GRACE token will be migrated and all future staking and reward payments to server operators will take place on GRACE Chain.

AI implementation

We have already mentioned AI as one of the main use cases for GRACE NET, as the protocol can speed up the training of ML models. However, GRACE will also use AI as a tool, primarily to detect anomalies within the future GRACE blockchain network. A special extension will be deployed for this purpose, with each of the GRACE blockchain nodes running an advanced ML model.