chandanCrypto Applications Product Market Fit Analysis
In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably Here I will just explain my thoughts on which applications have Product-Market-Fit. Storage of Value (an asset that maintains or increases its value rather than depreciating)Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks...
chandanHow to Protect Your Crypto Wallet 95% of the Time
Always keep your private key and seed phrase offline, such as by writing them down on paper and storing them in a secure location that only you have access to. Do not save them on any device or cloud storage, as these can potentially be hacked and your wallet compromised.To further increase security, you can consider leaving out a few words from your seed phrase when writing it down, and memorizing or securely storing these words separately. This way, even if someone gets hold of the paper wi...
chandanAre Layer 2s Superior to Alt-1 for Scaling Capabilities?
Traditional monolithic execution layers rely on 1000s of block producers and non-producing full nodes, requiring a majority of them to act honestly. In contrast, layer 2s only require a single honest "Sequencer" to guarantee network integrity. This asymmetric trade-off suggests that layer 2s will consistently deliver high throughput and significant performance advantages, even when the same hardware is employed by both layer 1 and layer 2. This is due to the inefficiencies of synchronization ...
Researching Layer 1/2s, DeFi, and modular ecosystems.
chandanCrypto Applications Product Market Fit Analysis
In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably Here I will just explain my thoughts on which applications have Product-Market-Fit. Storage of Value (an asset that maintains or increases its value rather than depreciating)Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks...
chandanHow to Protect Your Crypto Wallet 95% of the Time
Always keep your private key and seed phrase offline, such as by writing them down on paper and storing them in a secure location that only you have access to. Do not save them on any device or cloud storage, as these can potentially be hacked and your wallet compromised.To further increase security, you can consider leaving out a few words from your seed phrase when writing it down, and memorizing or securely storing these words separately. This way, even if someone gets hold of the paper wi...
chandanAre Layer 2s Superior to Alt-1 for Scaling Capabilities?
Traditional monolithic execution layers rely on 1000s of block producers and non-producing full nodes, requiring a majority of them to act honestly. In contrast, layer 2s only require a single honest "Sequencer" to guarantee network integrity. This asymmetric trade-off suggests that layer 2s will consistently deliver high throughput and significant performance advantages, even when the same hardware is employed by both layer 1 and layer 2. This is due to the inefficiencies of synchronization ...
Researching Layer 1/2s, DeFi, and modular ecosystems.
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On Mar 30 sassal.eth tweeted that “AggLayer + shared sequencers If you're not paying attention to these things, you should be - this tech will further supercharge the already dominant Ethereum layer 2 ecosystem”
In this article, let's look at what AggLayer and shared sequencers are individually, and then let's explore what we can achieve if we combine them.
what is a Sequencer:
Read transactions from the Layer 2 mempool and execute them
Batch transactions together and send the batches to Layer 1
Today, all sequencers are isolated and run by the Layer 2 team, as shown in the image below.
We need to strive for decentralized sequencers, but they still don't solve the interoperability between Layer 2s.
Enter Shared Sequencers: Shared sequencers operate a separate blockchain to perform the role of a decentralized sequencer for multiple rollups, introducing interoperability advantages.
Decentralized sequencers = serve one chain
Shared sequencers = serve multiple chains
Benefits of Shared Sequencers (SS):
Performing cross-chain transfers
Performing cross-chain DEX arbitrage
Censorship resistance
Economies of scale
Cons for Developers:
Not as performant as centralized sequencers
Loss of sovereignty (Layer 2 developers give up control of their sequencer)
AggLayer:
How it Works:
Each chain's sequencers execute transactions as usual (centralized or decentralized)
Each chain's sequencer generates a ZK proof of its updated state
Each chain sends the proof to the AggLayer rather than the Ethereum
The AggLayer aggregates all the proofs and generates a single, aggregated ZK proof, guaranteeing the validity of proofs for all chains
The AggLayer posts that aggregated proof to Ethereum
The AggLayer (aggregation layer) enables the same atomic transactions and cross-rollup interoperability as shared sequencers without forcing rollup developers to give up control of their sequencers and sovereignty.
Now, the most important part: let's see how AggLayer and shared sequencers can help each other?
Currently, building a shared sequencer with cross-chain transactions is complex. However, even without cross-chain transactions, shared sequencers make sense because they bring censorship resistance and economies of scale to the rollup. Additionally, shared sequencers can let the AggLayer solve the cross-chain transaction problem, decreasing the time to market for shared sequencers.
Most of the info is taken from:
https://gateway.pinata.cloud/ipfs/QmbvZY784N8fBcQz9NAC1STB2AUvpaQuHPMzR7e6nN24p3
On Mar 30 sassal.eth tweeted that “AggLayer + shared sequencers If you're not paying attention to these things, you should be - this tech will further supercharge the already dominant Ethereum layer 2 ecosystem”
In this article, let's look at what AggLayer and shared sequencers are individually, and then let's explore what we can achieve if we combine them.
what is a Sequencer:
Read transactions from the Layer 2 mempool and execute them
Batch transactions together and send the batches to Layer 1
Today, all sequencers are isolated and run by the Layer 2 team, as shown in the image below.
We need to strive for decentralized sequencers, but they still don't solve the interoperability between Layer 2s.
Enter Shared Sequencers: Shared sequencers operate a separate blockchain to perform the role of a decentralized sequencer for multiple rollups, introducing interoperability advantages.
Decentralized sequencers = serve one chain
Shared sequencers = serve multiple chains
Benefits of Shared Sequencers (SS):
Performing cross-chain transfers
Performing cross-chain DEX arbitrage
Censorship resistance
Economies of scale
Cons for Developers:
Not as performant as centralized sequencers
Loss of sovereignty (Layer 2 developers give up control of their sequencer)
AggLayer:
How it Works:
Each chain's sequencers execute transactions as usual (centralized or decentralized)
Each chain's sequencer generates a ZK proof of its updated state
Each chain sends the proof to the AggLayer rather than the Ethereum
The AggLayer aggregates all the proofs and generates a single, aggregated ZK proof, guaranteeing the validity of proofs for all chains
The AggLayer posts that aggregated proof to Ethereum
The AggLayer (aggregation layer) enables the same atomic transactions and cross-rollup interoperability as shared sequencers without forcing rollup developers to give up control of their sequencers and sovereignty.
Now, the most important part: let's see how AggLayer and shared sequencers can help each other?
Currently, building a shared sequencer with cross-chain transactions is complex. However, even without cross-chain transactions, shared sequencers make sense because they bring censorship resistance and economies of scale to the rollup. Additionally, shared sequencers can let the AggLayer solve the cross-chain transaction problem, decreasing the time to market for shared sequencers.
Most of the info is taken from:
https://gateway.pinata.cloud/ipfs/QmbvZY784N8fBcQz9NAC1STB2AUvpaQuHPMzR7e6nN24p3
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