Muon is a decentralized Nodes-as-a-Service network that enables running Web2 and Web3 applications, off-chain, on-chain, and cross-chain. The network acts as a base layer that bridges the division between blockchains, creating a fluid DeFi ecosystem. It exists between blockchains, connects different protocols and allows them to communicate with each other. According to Muon, its elementary node layer allows external smart contracts to securely perform complex computations at zero gas cost through off-chain computation.
The protocol consists of a large number of nodes that process and sign valuable data upon request and push sensitive data to smart contracts on blockchains. Muon itself is not a blockchain, but rather a stateless protocol that leverages smart contracts to reach consensus. Nodes are required to deposit collateral in a Muon smart contract upfront, making sure that malicious behaviour is punished by slashing it.
Muon token covers both the insurance and the infrastructure cost of the nodes. The transaction fee is used primarily to pay for the insurance of the node’s stake, which is used to verify the transaction, and also for the actual node infrastructure. The amount sent is divided between the nodes that process the transaction.