From PRQ to REACT: Exploring PARSIQ’s Evolution to Reactive Network
The siloed nature of blockchain networks continues to hamper broader adoption of the technology. Many cross-chain bridging solutions have flooded the market in a rush to address this infamously well-known limitation of decentralized networks. However, manual bridging of assets from one network to another is still highly inefficient and costly.
Another drawback of modern blockchains is the functional limitation of smart contracts residing on them. Although smart contracts are capable of fairly sophisticated functionality, they need direct input from users in order for their code to execute. In other words, true automated reactivity isn’t part of their default behavior.
Reactive Network (REACT) is a blockchain initiative that aims to address both of these fundamental limitations. Acting as an Ethereum virtual machine (EVM) – compatible execution layer, Reactive Network can support reactive smart contracts (RSCs) — bits of programming code on blockchain that can listen to on-chain events and execute actions as a response to them. Importantly, Reactive's RSCs can do so across multiple blockchains, delivering true automated cross-chain responsiveness.
In its testnet mode as of early January 2025, Reactive Network traces its origins to an earlier blockchain project, PARSIQ (PRQ), founded in 2018 as a provider of web3 data monitoring and intelligence solutions. In early 2024, the PARSIQ team redirected its efforts to develop the Reactive Network platform, shifting focus from blockchain data solutions to cross-chain RSCs.
Reactive isn’t just an EVM-based cross-chain project: it’s the first platform to widely implement RSCs, truly automated and responsive smart contracts. As such, the potential impact of this new project is nothing short of revolutionary for the entire blockchain industry.
Key Takeaways:
Reactive Network (REACT) is an EVM-compatible, cross-chain execution layer that supports RSCs, smart contracts capable of automatically executing programming code in response to on-chain events.
Its platform is an evolution of an earlier blockchain project, PARSIQ (PRQ), and is in testnet mode as of January 2025.
Reactive Network’s utility token, REACT (to be launched along with its mainnet), will be used for payments for event log processing and gas fees, as well as for staking to secure the network.
What Is PARSIQ Crypto?
In 2018, three blockchain entrepreneurs — Tom Tirman, Andre Kalinowski and Martin Best — founded the PARSIQ (PRQ) project to address the increasingly complex data management and analytics needs of web3 platforms. PARSIQ’s team launched the project’s first full-scale version in 2020, and in June 2021, its mainnet version went live.
PARSIQ’s data primarily targets web3 developers, providing a set of fundamental and advanced APIs to help web3 businesses integrate data monitoring and analytics services. The platform’s fundamentals include APIs for data logs, transaction blocks, individual transactions, smart contracts and intra-blockchain transfers. There are also advanced APIs for data on non-fungible tokens (NFTs), address balances and real-time event notifications.
PARSIQ's customers are charged for accessing and querying data via the project's APIs in a standardized way via so-called computational units (CUs). These CUs are calculated based on the complexity of data queries and the blockchain network being accessed.
The platform's native token, PRQ, was launched with three key functions: payment for access to PARSIQ's data services, on-chain governance and staking.
In early 2024, the PARSIQ team announced Reactive Network, a platform featuring a truly groundbreaking innovation: RSCs. The PRQ token would eventually be migrated to Reactive Network's REACT token, marking a complete shift to the new initiative and indicating a possible retirement of the PARSIQ project.
Introduction to Reactive Network
Reactive Network (REACT) is a decentralized protocol that powers RSCs across multiple EVM-compatible blockchains. The project's testnet was launched in April 2024, and as of mid-January 2025, its mainnet has yet to be launched.
Reactive’s execution layer hosts reactive smart contracts (RSCs), a variation of smart contract technology with one important distinction: RSCs are capable of listening to on-chain events across different networks and reacting to these events by executing predefined actions. This is a significant improvement over standard blockchain smart contracts, which require user input in order for the contracts’ code to execute.
Reactive Network and its RSCs create a plethora of innovative use cases across different web3 verticals. One area is decentralized finance (DeFi), in which these contracts can support automated trading strategies and real-time asset monitoring. Dynamic NFTs — particularly within gaming environments — are another promising application of the technology. For instance, gaming NFTs’ properties could be modified, e.g., upgraded to new levels, in real time in unison with the players’ achievements.
On-chain governance voting and implementation can also benefit from the integration of RSCs. As a platform’s governance community casts their votes and the number of votes achieves certain quotas, predefined platform rule changes built into RSCs can be executed automatically. Further application areas may also include supply chain management and fraud detection. In essence, RSCs might be applicable in any environment in which standard smart contracts operate, but with the added benefit of better automation and autonomous execution.
A key advantage of RSCs is that they’re not limited to a single blockchain environment. Reactive’s RSCs can trigger automated actions across different blockchains, something that’s painfully difficult with standard smart contracts: just ask any blockchain programmer who’s worked on a typical project that required interoperability between two or more platforms.
Thanks to Reactive’s RSCs, developers can now build and launch self-adapting decentralized apps (DApps), complete solutions and protocols that adjust their behavior and execution patterns based on real-time monitoring of on-chain events.
How Does Reactive Work?
Reactive Network’s EVM-compatible execution layer employs parallelized processing to achieve high throughput and lower the computation load required to execute RSCs. Reactive's RSCs operate in two kinds of blockchain environments: origin chains and destination chains. An origin chain is where a certain event that RSCs listen to occurs, while a destination chain is a blockchain where RSCs make the necessary state changes based on an event. As such, Reactive Network supports the execution of actions on a chain different from the one on which the event trigger originated.
The table below indicates which platforms can act as origins and destinations for Reactive Network’s RSCs, and the Ethereum Sepolia entry at the top is one of the most popular testnets of the Ethereum (ETH) blockchain.
Source: dev.reactive.network
Inversion of Control
Reactive’s RSC technology is based on a software design principle called inversion of control (IoC). In its essence, IoC transfers the control of a program’s execution flow to an external environment or system. Instead of executing functions based on internal specifications, the program calls external objects or functions and executes code based on the inputs from these external sources.
With standard smart contracts, the programming code is executed when users — such as individuals controlling their wallets or bots — interact with the contract, triggering some action specified in the code. Unlike traditional smart contracts, RSCs invert this control flow and automatically execute their code based on external events occurring on blockchains. Instead of being driven by users and blockchain bots, RSCs drive actions autonomously.
Relayer Network
As noted above, Reactive Network’s RSCs can process and execute actions across different origin and destination chains. Relayer Network, a decentralized network of relayer nodes responsible for transmitting event data across blockchains, supports the platform's ability to process these cross-chain activities.
Reactive Network Key Features
Reactive Smart Contracts
RSCs, the core innovative feature of Reactive Network’s platform, possess the unique ability to react to on-chain events and execute programming code automatically, without input from a user, bot or DApp. They can also operate seamlessly across multiple chains, which enables sophisticated cross-chain executions.
Reactive Network can be described as the pioneer of this kind of blockchain technology. While Chainlink (LINK) is often considered the first project to implement a high degree of smart contract automation via its Chainlink Keepers network, Keepers rely on a mix of off-chain and on-chain infrastructure to support blockchain oracles. In contrast, Reactive Network's fully on-chain RSCs have a much broader spectrum of use cases in the web3 industry. Some of these include automated trading strategies that respond to market changes in real time, and dynamic NFTs that evolve as a player progresses within games.
Reactive's partnership with QuickSwap (QUICK), the leading Polygon (POL)–based decentralized exchange (DEX), in November 2024 is a prime example of how its RSC feature can be used. QuickSwap can integrate the Reactive Network’s RSCs to automate cross-chain liquidity pool workflows.
ReactVM
ReactVM is an EVM-compatible self-contained execution engine designed to power RSCs. Unlike the EVM, ReactVM is capable of parallelized transaction processing. It’s a virtual, machine-like entity in the sense that many of these ReactVMs can be launched by a platform user. Normally, Reactive Network recommends that each RSC be powered by its own instance of ReactVM. Although developers can host multiple RSCs within the same ReactVM instance, this practice is explicitly discouraged by the project's documentation.
Reactive Bridge
Reactive Bridge is a cross-chain bridging solution that’s designed to facilitate the bidirectional transfer of tokens across chains. The bridge, just like the overall platform, uses RSCs to enable efficient asset transfers.
What Is the REACT Token?
Reactive Network plans to issue its native utility token along with the introduction of its mainnet. REACT is envisioned to support several functions. First, it will be used for the payment of event log processing fees. Reactive Network continually monitors different blockchain events via event logs, which serve as triggers for RSCs. As such, event log processing fees paid by developers, charged in REACT tokens, are a critical revenue source and one element of a sustainable token economy for the project.
Transaction gas fees will also be paid in REACT. Additionally, validators will stake REACT to participate in securing the platform’s consensus mechanism. REACT will have a total supply of 500 million. Its initial supply upon launch will be 310,256,872 (to match the current circulating supply of PARSIQ’s PRQ token). The project will support the seamless migration of PRQ tokens to REACT at a fixed ratio of 1:1.
Closing Thoughts
Reactive Network is the first major initiative to deliver true automation to blockchain smart contracts. Additionally, its cross-chain nature will allow more networks to adopt this innovative feature. Popular networks like Ethereum (ETH), Avalanche (AVAX), Polygon (POL) and Arbitrum (ARB) (along with a number of smaller platforms) are already within Reactive Network's reach. As the project develops, we can expect the expansion of RSC functionality to more blockchain networks. However all eyes are now set on Reactive Network's much-anticipated mainnet launch that will herald the arrival of a new generation of DApps — self-adapting, proactive and responsive at levels we haven't yet witnessed.
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