Blockworks: As Ethereum recovers, what opportunities and challenges will Based Rollup bring?

Autor original: Donovan Choy

Traducción original: TechFlow

Ethereum loves Rollup. Recently, “based” Rollup has attracted much attention.

What is special about Rollup based on ? The core lies in its sequencer.

Traditional Layer-2 uses a centralized sorter to process user transactions and submit them to Layer-1 for settlement, while the based Rollup leaves the sorting task to the validators of Ethereum Layer-1. This mechanism is called based sequencing.

This design has two major advantages: censorship resistance and enhanced interoperability.

By allowing Layer-1 to act as a sorter, Rollup based on Ethereum can provide the same liveness guarantees as the Ethereum mainnet while avoiding the censorship issues that may arise from a centralized sorter.

Leer más: MagicBlock open-sources a16z-backed “ephemeral rollup” technology

Another important advantage is a significant increase in interoperability. Enrollar supporters (such as Justin Drake) call it synchronous composability , that is, transactions on Ethereum can be synchronously ordered or bridged between different Layer-2.

Simply put, smart contracts on a Rollup based on Ethereum can call other contracts on Layer-1 almost instantly within the same block, as if they were all on the same chain.

This synchronicity and idea of “money legos” is not new; it has always been an important part of Ethereum’s original vision.

Leer más: Rethinking Ethereum Consensus with Beam Chain

However, the current decentralized state of Rollup results in asynchronous transactions between Arbitrum and Optimism, which introduces uncertainty in fees. This uncertainty is further exacerbated by the fact that Gas fees are calculated at different points in time, rather than uniformly within the 12-second time slot of an Ethereum block.

In addition to making Etereum more interoperable, this mechanism also brings significant cost savings. Ahmad Mazen Bitar, technical lead at Nethermind, explained:

“A user can initiate a transaction on Layer-1, use the deep liquidity pool of Layer-2 to complete the operation, and then return to Layer-1. This synchronous composability makes the whole process more efficient.”

Currently, the largest based Rollup is Taiko, which has seen significant growth in both TVL and daily transaction volume this month.

Fuente: DefiLlama

Other early Rollup-based projects are also under development, such as Surge by the Nethermind team and UniFi by the Puffer Finance team. These projects are all based on the Taiko fork.

Despite this, Rollup also faces some challenges. Since the sorting task is completed by Layer-1 validators, its performance is limited by the 12-second block time of Layer-1.

Therefore, the advantages of Rollup (such as synchronous composability) may be difficult to fully realize in practice. It requires real-time zero-knowledge proof to be completed within a 12-second time slot, otherwise composable transactions cannot be executed quickly.

To this end, Taiko introduced a variety of technologies, including zk proofs from Risc Zero and Succinct Labs, and a trusted execution environment (TEE) based on Intel SGX. This makes Taiko the first based Rollup that implements multiple proofs in a production environment without relying on a single trusted party.

“Proverb performance is improving rapidly. We are seeing more trusted execution environments (TEEs), more efficient and cheaper zero-knowledge virtual machines (zkVMs), and verifiable state machines (AVSs) being introduced. We believe that zk technology is progressing very well and the goal of generating proofs with sub-timeslot latency is not far away,” said Brecht Devos, co-founder of Taiko, in an interview with Blockworks.

However, Rollup based on Ethereum also faces some challenges. For example, due to the lack of a centralized sorter, an important source of income, MEV (maximum extractable value), may be lost. However, Devos said that this problem can be solved in some innovative ways.

In the Taiko Network, “MEV can be captured by auctioning ‘execution tickets’ to Layer-1 block proposers,” Devos explained to Blockworks.

Therefore, although the based Rollup gives the ordering rights to the Layer-1 validators by default, this is not the only solution.

Matthew Edelen, co-founder of Spire Labs, a company focused on Rollup infrastructure, shared a similar sentiment in a recent Bell Curve podcast: “Auctions are not the only way to allocate sequencing rights. We can allocate 99% of sequencing rights through auctions while allocating the remaining 1% to friends or independent stakers to have a better image on L2 Beat.”

In the long run, MEV (maximum extractable value) may not be a major problem. This view comes from a simple cost-benefit analysis: currently, most of the blockchains revenue comes from congestion fees, which far exceeds MEV revenue. Moreover, as more efficient MEV solutions continue to emerge, the proportion of MEV revenue is gradually decreasing.

Therefore, for Rollup, a better revenue model is to rely on the network effect brought by synchronous composability and benefit from congestion charges rather than relying on MEV charges.

As Justin Drake said on The Rollup podcast:

“Currently, the ratio of congestion fees to contention fees is about 80:20. 80% of Ethereum mainnet (Layer-1) revenue comes from congestion fees – about 3,200 ETH per day since EIP-1559 was implemented. Since the merger, MEV revenue has been about 800 ETH per day. I think this ratio will become more disparate, possibly from 80:20 to 99:1.”

To sum up, the advantages of Based Rollup bring Ethereums user experience back to its original state.

Interestingly, this regression is actually reminiscent of the characteristics of blockchain from its inception. Synchronous composability and Layer-1 transaction ordering have been core features of blockchain since the birth of the Bitcoin network.

This divergence of executive layer responsibilities is largely a result of the centralized development path of Rollup in recent years (as well as the multi-chain architectures of Polkadot, Cosmos, and Avalanche). Today, Rollup-based solutions are ready to recapture this original intention.

This article is sourced from the internet: Blockworks: As Ethereum recovers, what opportunities and challenges will Based Rollup bring?

Related: Grayscales latest report: Investment markets look forward to Trumps victory, ETP inflows hit a record high, and crypto A

Original article from Grayscale Research Compiled by Odaily Planet Daily Golem ( @web3_golem ) Summary of key points: Bitcoin has rallied in October as markets have focused on the U.S. election. Polls show a tight race for the White House, but changes in financial assets and implied odds in prediction markets suggest investors now see a better chance of Trump winning. Bitcoin exchange-traded products (ETPs) have seen significant net inflows this month, although some of the new demand may reflect basis trades by hedge funds (who may be long Bitcoin ETPs and short Bitcoin futures). The intersection of crypto and AI technologies continues to have far-reaching implications, including autonomous chatbots promoting their own meme coins. While it’s easy to overlook the significance of these projects because they’re fun, they show…