What is Atomic Composability? | The Radix Knowledge Base (2024)

Atomicity

Atomicity is the idea that a single transaction may contain many actions (such as transfers of tokens or calls to DeFi dApps). All of those actions must be correct and possible for the transaction to be accepted.

If any part of the transaction is incorrect or conflicting, the entire transaction should fail. Atomicity is necessary to create complex, safe DeFi transactions instantly, such as a trade of two different tokens between two people or a transaction using multiple DeFi dApps.

Composability

Composability in DeFi is the ability for decentralized applications running on a DLT to interoperate seamlessly with each other on a transaction-by-transaction basis.

DeFi applications are often called “money lego” – a direct reference to their composability. Each individual DeFi app, or “lego brick,” is a specific financial product or service that can be freely combined with others. A new DeFi app may incorporate many of these specific-purpose lego brick products and services into a more complex offering that is even more powerful or customized to specific user needs.

Importantly, these lego bricks are clicked together for each individual transaction on the fly. This enables a level of flexibility and innovation that is unthinkable with traditional financial systems that are locked up behind the (fire)walls of banks.

Atomic Composability

Atomic Composability is the joining of both atomicity and composability. It’s the feature that makes it possible to combine any number of applications together in any shape or form and for all these parts to be combined atomically as a single transaction that either succeeds all together, or fails all together.

Atomic Composability is vital for DeFi to truly shine, as many different DeFi products and services combine multiple different dApps to create novel products, services, and features. An example of a brand new type of feature enabled by atomic composability is that of a “flash loan”, which is when a user borrows an asset and pays it back all in the same transaction. This allows for hyper-efficient arbitrage to take place without any credit risk.

Further reading:

What is Atomic Composability? | The Radix Knowledge Base (2024)

FAQs

What is Atomic Composability? | The Radix Knowledge Base? ›

Atomicity is the idea that a single transaction may contain many actions (such as transfers of tokens or calls to DeFi dApps). All of those actions must be correct and possible for the transaction to be accepted. If any part of the transaction is incorrect or conflicting, the entire transaction should fail.

What is atomic composability? ›

Atomic composability is the combination of atomicity and composability — a single transaction involves calls to multiple smart contracts and the transaction goes through only if all of its parts succeed.

What does composability mean in blockchain? ›

A blockchain is composable if it allows developers to easily build innovative decentralized applications (dApps) and cross-chain protocols. In other words, a composable blockchain's open-source nature allows developers to create new financial products or improve existing ones.

What is the difference between composability and interoperability? ›

Composability is different from interoperability. Composability is the consistent representation of truth in all participating systems [1]. It extends the ideas of interoperability by adding the pragmatic level to cover what happens within the receiving system based on the received information.

What is an example of composability? ›

An example of composability is a web application built using microservices. Each service handles a specific function, helping you develop, deploy and scale it independently.

What is the meaning of composable? ›

: capable of being composed. … music expressive of a feeling is clearly composable by one who is not experiencing that feeling and has perhaps never experienced it …

What is atomic composability ethereum? ›

Atomic composability is predicated on the principle that a transaction (A) can only be finalized if another transaction (B) is likewise finalized [8].

What is composability in Solidity? ›

Composability: Solidity also allows you to interact with any contract already deployed on the blockchain. This is arguably its most powerful feature, allowing you to build on top of what is already available.

Is Bitcoin composable? ›

In this work we put forth a universally composable treatment of the Bitcoin protocol. We specify the goal that Bitcoin aims to achieve as an instance of a parameterizable ledger functionality, and present a UC abstraction of the Bitcoin blockchain protocol.

What is composability function? ›

Composable functions have different limitations and capabilities than standard functions. They have a different type, and model a very specific concern. This differentiation can be understood as a form of “function coloring”, since somehow they represent a separate category of functions.

Which three key characteristics form the idea of composability? ›

There are three key characteristics of composable business:
  • Composable business architecture.
  • Composable thinking.
  • Composable technologies.
Sep 19, 2023

What are the 4 levels of interoperability? ›

What are the four levels of interoperability in healthcare?
  • Foundational interoperability. In this layer, interoperability lets the data transmitted by one HIT system be received by another. ...
  • Structural interoperability. ...
  • Semantic interoperability. ...
  • Organizational Interoperability.
Sep 22, 2023

What is an example of interoperability blockchain? ›

There are currently a lot of chains that focus on interoperability, but the most prominent example of blockchain interoperability is the collaboration between Ethereum and Polkadot. Ethereum, a pioneer in smart contract technology, has its limitations, including scalability and transaction speed.

What is composability in machine learning? ›

Composability in machine learning

In machine learning, it emphasizes modularity and flexibility in building systems. Instead of creating large applications, a composable approach divides AI, ML, and deep learning models into smaller, reusable components.

Is composability a property of cloud computing? ›

One property that differentiates cloud computing is referred to as composability, which is the ability to build applications from component parts. A platform is a cloud computing service that is both hardware and software.

What is the introduction of composability? ›

Composability is the art of building systems in a modular and flexible way. It emphasizes creating components that are not only reusable but can seamlessly fit together, forming a cohesive and adaptable architecture.

What is the difference between composability and modularity? ›

The what. The principles of composability and modularity are often interlinked. Modular systems consist of subcomponents with well-defined interfaces and functions that can be consumed independently of each other. Composability is the degree to which these subcomponents can be combined to form more complex systems.

What is a composable approach? ›

A composable approach utilizes various vendors who offer robust, comprehensive functionality for the one thing they do, rather than relying on one vendor to produce standard functionality as a one-size-fits-all offering.

What does it mean for a transaction to be atomic? ›

An atomic transaction is an indivisible and irreducible series of database operations such that either all occur, or none occur. A guarantee of atomicity prevents partial database updates from occurring, because they can cause greater problems than rejecting the whole series outright.

What is an example of an atomic transaction in database? ›

Atomic Transactions are associated with Database operations where a set of actions must ALL complete or else NONE of them complete. For example, if someone is booking a flight, you want to both get payment AND reserve the seat OR do neither.

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