# Weekly Rollup #5 *For the week ending March 10th* By [Modular Media 🧱🎬](https://paragraph.com/@modularmedia) · 2023-03-14 weekly rollup --- Welcome to Modular Media, a weekly newsletter covering news, updates, educational content, and more within the modular ecosystem. Subscribe to get issues sent directly to your email every Tuesday, and also, make sure to follow us on [Twitter](https://twitter.com/modularmedia_) for modular-related updates! You can check out our previous newsletter issue below: [ ![](https://paragraph.xyz/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2Fbae63a690204b8f747a036462fb3b181.png&w=640&q=75) https://paragraph.xyz Weekly Rollup #4 ---------------- Welcome to Modular Media, a weekly newsletter covering news, updates, educational content, and more within the modular ecosystem. Subscribe to get issues sent directly to your email every Tuesday, and also, make sure to follow us on Twitter for daily modular updates! You can check out our previous newsletter issue here. ](https://paragraph.xyz/@modularmedia/weekly-rollup-4) * * * 📣 News & Announcements ======================= Celestia Kicks-Off the BlockSpace Race -------------------------------------- [![User Avatar](https://pbs.twimg.com/profile_images/1404854187721203715/zZp1s7c3_normal.jpg)](https://twitter.com/CelestiaOrg) [Celestia](https://twitter.com/CelestiaOrg) [@CelestiaOrg](https://twitter.com/CelestiaOrg) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/CelestiaOrg/status/1633135451640061952) Today officially marks the beginning of the Blockspace Race, Celestia’s incentivized testnet program ![🏁](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f3c1.png) Validators have now entered into phase 1: liftoff. ![](https://pbs.twimg.com/media/FqoQCCEaQAEyS3n.jpg) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 471](https://twitter.com/CelestiaOrg/status/1633135451640061952)[ 11:00 AM • Mar 7, 2023 ](https://twitter.com/CelestiaOrg/status/1633135451640061952) March 7th marked the official launch of Celestia’s “Blockspace Race”, the network’s first incentivized testnet. **Why is this a big deal** Although we are now starting to see the rise of more and more modular blockchains, this was not always the case. In fact, modular blockchains are a relatively new concept, as it wasn’t until 2019 that Celestia (or Lazy Ledger as it was known then) first introduced us to the “modular” thesis, following the launch of their first [whitepaper](https://arxiv.org/abs/1905.09274). Traditionally, we were accustomed to seeing monolithic blockchains, which take care of all blockchain duties within the same environment (execution, settlement, data availability, and consensus), however, Celestia introduced the idea of splitting the workload into multiple layers. More specifically, this whitepaper explained the idea of separating data availability & consensus into its own layer, thereby removing the need to perform execution and settlement altogether, and instead outsourcing these other tasks from other networks. Considering its been four years now since the release of that first whitepaper, it’s no surprise why a huge portion of the modular blockchain community is filled with anticipation. Aside from that, there are projects that have to wait until Celestia launches before they themselves launch. One example is Eclipse, which is a sovereign rollup built on top of Celestia. **Details of the Blockspace Race** Altogether, about 20K applicants registered to take part in this event, however, only 1K were chosen to participate, which still makes this one of the largest, if not the largest, incentivized testnet launches to date. The testnet will be broken down into two phases: * **Phase 1:** This phase kicked off the Blockspace Race (testnet) and is dedicated strictly to Celestia validators. * **Phase 2:** This phase is expected to happen a week from Phase 1 launch (probably by the time you’re reading this) and allows node operators to start entering the network (this includes light nodes & bridge nodes). This is huge, as it’ll be the first time we’ll see DA sampling take place in a large-scale network. According to the team, during this phase there will be several tasks and projects that the participants will be able to contribute to, such as working on developer tooling. **Highlights from Blockspace Race Twitter space** Following the kick-off of the Blockspace Race, the Celestia team held a Twitter space to go over the event details, as well as answer any questions from the community. Here were some of our favorite highlights. IBC will be integrated into the Celestia testnet at launch, allowing users to start experimenting with bridging to and from the network. In fact, during their recent Twitter Space, they challenged anyone to try and bridge to Osmosis (do not try using real tokens!). Aside from IBC connectivity, another exciting aspect that was mentioned during the Twitter Space was when one of the core Celestia engineers mentioned the development of a new “transaction type”. In short, this new transaction type will help pave the way for someone to build & launch a modular sequencer. This doesn’t do this feature enough justice, so if you’re interested in learning more about this, feel free to listen to the [original recording](https://twitter.com/CelestiaOrg/status/1632833834579542016) (skip 28 minutes in). **What is Celestia** Celestia is a modular blockchain whose sole task is to receive, order, and store transaction data. Aside from introducing us to the modular world, Celestia was also popular for solving the “Data Availability problem”, which asked, how can nodes be sure that all the transaction data was published correctly whenever a new block is produced. Specifically, Celestia uses “data sampling” to accomplish this, but we’ll save the details about this for a future date. Congrats to the entire Celestia team! We’re excited to see the continued growth from one of the leaders in the modular space. You can read the entire [article](https://blog.celestia.org/the-blockspace-race/) to learn more about the Blockspace Race. * * * Coinbase Launches Wallet as a Service ------------------------------------- [![User Avatar](https://pbs.twimg.com/profile_images/1516832438818770944/n77EwnKU_normal.png)](https://twitter.com/brian_armstrong) [Brian Armstrong](https://twitter.com/brian_armstrong) [@brian\_armstrong](https://twitter.com/brian_armstrong) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/brian_armstrong/status/1633535359631110144) 1/ Today, Coinbase is launching Wallet as a Service, a scalable and secure set of wallet infrastructure APIs, enabling companies to easily create fully customizable onchain wallets for their users and apps. [ ![](https://pbs.twimg.com/card_img/1633531898092982272/FdDqYIHO?format=jpg&name=600x600) coinbase.com Coinbase announces Wallet as a Service. Now any company can seamlessly onboard their users to web3.... ------------------------------------------------------------------------------------------------------ Coinbase announces Wallet as a Service. Now any company can seamlessly onboard their users to web3. ](https://t.co/Vm53pNuyNS) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 1,305](https://twitter.com/brian_armstrong/status/1633535359631110144)[ 1:29 PM • Mar 8, 2023 ](https://twitter.com/brian_armstrong/status/1633535359631110144) Coinbase once again proved why they’re one of the best at onboarding new users to web3, as this past week the company announced “Wallet as a Service”, which comes just a couple of weeks after announcing “[Base](https://modularmedia.substack.com/p/weekly-rollup-3)”, their own L2 chain. **What is WaaS?** Coinbase’s WaaS “is a scalable and secure set of wallet infrastructure APIs, enabling companies to create and deploy fully customizable on-chain wallets to their end users”. This will allow traditional web2 companies (& even web3 ones) to create and integrate their own custom wallets directly on their website, using the team’s own branding, as well as its own set of custom features, such as an added loyalty program. However, unlike the traditional loyalty system that you see today, users will be able to sell/trade these loyalty points to others, thanks to the power of web3. **Seamless Onboarding** As mentioned earlier, Coinbase has been one of the best at onboarding new users into the space, and that doesn’t change with WaaS. WaaS is meant to abstract away the concept of crypto altogether for the end user (they shouldn’t know they’re using a crypto wallet). One of the ways they are doing this is by removing the need for a seed phrase, and instead using a simple username and password log-in. They’re able to offer this feature because of their use of Multi-Party Computation (MPC). MPC essentially splits a single key into multiple pieces. These pieces are then distributed to multiple parties so that even if one piece of the key is compromised or lost, the user won’t lose access to his/her funds. So in this case, the key is split between the end user and Coinbase. If the end user loses his/her account, Coinbase can still retrieve access. That said, the end user will also have the option of retrieving his/her assets under their own account, and removing it from the possession of Coinbase entirely. **Potential Use Cases** * **digital storefronts**: any existing store would be able to integrate its own custom wallet within its website. Whenever a new user signs up for an account with that particular online store, they’ll be assigned a web3 wallet. As mentioned, each company can add its own custom features, like a loyalty program. Whenever the user buys something from that online shop, they’ll be assigned loyalty points, which can then be used to access exclusive benefits, or can be sold or traded to others. * **Games**: any existing web2 or web3 game can launch its own wallet using WaaS. Again, this wallet can be customized to the branding of each specific game, and will enable players to actually take ownership of their in-game assets. Meaning they’ll be able to sell or trade any character skins, in-game “credits”, and everything else. To learn all about Coinbase’s new Wallet as a Service, you can check out the complete [article.](https://www.coinbase.com/blog/coinbase-announces-wallet-as-a-service-now-any-company-can-seamlessly) * * * Scroll Raises at a $1.8 Billion Valuation ----------------------------------------- [![User Avatar](https://pbs.twimg.com/profile_images/1523593944386326528/rVjsezsD_normal.jpg)](https://twitter.com/Scroll_ZKP) [Scroll 📜](https://twitter.com/Scroll_ZKP) [@Scroll\_ZKP](https://twitter.com/Scroll_ZKP) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/Scroll_ZKP/status/1632813697251803140) An update: To accelerate plans for developing our zkEVM, pursue cutting-edge research, and continue building with a broader community, we've raised capital from a global set of participants. [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 1,655](https://twitter.com/Scroll_ZKP/status/1632813697251803140)[ 1:41 PM • Mar 6, 2023 ](https://twitter.com/Scroll_ZKP/status/1632813697251803140) On March 6th, Scroll announced a $50M funding round that valued the company at $1.8B. This round included some huge names in the VC space, such as Polychain, Variantfund, The Spartan Group, Sequoia, Bain Capital, and others. According to “The Block”, Scroll had previously only raised $33M in funding across two rounds, making this most recent one the compani’s biggest raise yet. As a reminder, Scroll is an Ethereum L2 network based on the use of zk-technology. The funds will be used to: * progress the companies development into mainnet launch * introduce a public goods and grants program * continue further research on decentralized provers and sequencing networks This announcement came just a week after the company announced its testnet launch (you can check out [our post](https://substack.com/inbox/post/106816615) from last week to learn more about that), where already they have [managed to reach](https://blockscout.scroll.io/) over 790K unique wallet addresses, and over 3.3M transactions. The crypto industry has had a rough past couple of months, but even in this type of environment, it’s amazing to see Scroll raise at such a high valuation. Congrats to the entire Scroll team! * * * Proven Raises $15.8 Million --------------------------- [![User Avatar](https://pbs.twimg.com/profile_images/1118270039742767105/asxKa7-a_normal.png)](https://twitter.com/AgustinLebron3) [Agustin Lebron](https://twitter.com/AgustinLebron3) [@AgustinLebron3](https://twitter.com/AgustinLebron3) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/AgustinLebron3/status/1633934250620891136) Well this is it! I’m excited (and a bit terrified) to announce what I’ve been working on for the last year and a half. It’s been a wild ride so far, and I’m sure it’s about to get wilder. 1/n ![🧵](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f9f5.png)![👉](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f449.png)![👉](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f449.png)![👉](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f449.png)[ ![](https://pbs.twimg.com/card_img/1631894811296014337/of2RTT2p?format=jpg&name=800x320_1) coindesk.com Zero-Knowledge Crypto Startup Proven Raises $15.8M in Seed Round ---------------------------------------------------------------- Framework Ventures led the seed round for the firm, which was founded by former employees of market maker Jane Street. ](https://t.co/4uBaA2Xaid) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 366](https://twitter.com/AgustinLebron3/status/1633934250620891136)[ 3:54 PM • Mar 9, 2023 ](https://twitter.com/AgustinLebron3/status/1633934250620891136) On March 9th, Proven announced its $15.8 funding, in a round led by Framework Ventures. According to official reports, the funds will be used “to further expand its development team and scale its world-class zero-knowledge-based technological infrastructure”. Proven is a team working on zero knowledge (zk) solutions to help provide services like “proof of solvency” for exchanges. To be more specific, Proven specializes in producing zk-proofs, which are a special type of cryptography that proves something is true, without actually disclosing the contents within the proof. So for example, exchanges will be able to prove to the world that they own enough assets to cover liabilities (there’s enough money in the bank), without actually having to disclose the assets themselves or who owns what. While most projects today are using zk-proofs for scaling purposes (StarkWare, Polygon, zkSync, etc.), zk-proofs can also be used to provide privacy-enhancing features. Popular examples of such projects include Aztec, who are working on private peer-to-peer (P2P) transactions, and PolygonID, which is allowing users to prove their personal statements/documents without actually disclosing the content within those statements. When we think back to all the crypto exchange collapses over the past year, we can see that the reason for their collapse was due to essentially not having the correct amount of customer deposits. However, a lot of these collapsed exchanges ran out of money long before we users actually found out, and this is the problem Proven is trying to help tackle. Whether it’s an exchange like FTX, an investment firm like 3AC, a stablecoin like USDC, or even a traditional bank like SVB, there are tons of use cases for Proven’s solutions. Congrats to the Proven team! * * * **More News & Updates** ======================= * [The Ethereum Foundation published](https://blog.ethereum.org/2023/03/08/goerli-shapella-announcement) the official date and time for the launch of the Shapella upgrade on Goerli testnet, in what “is expected to be the last testnet upgrade before scheduling Shapella for the Ethereum mainnet.” This of course brings us one step closer t beacon chain withdrawals. * [Stackr joins the latest cohort](https://twitter.com/0xStacked/status/1632925434093670400) of a16z’s crypto startup school, which featured over 8K applicants! * [Covalent announced their integration](https://twitter.com/Covalent_HQ/status/1633157332850053121) of the Arbitrum Network, allowing users to start accessing historical data for both Arbitrum One (Defi & NFTs), and Arbitrum Nova (Gaming & Social). * [For any web3 gamers,](https://twitter.com/Sagaxyz__/status/1632816091193020416) Saga will be unveiling the “Saga Multiverse” on March 22nd during a special event. You can sign up today to catch it live. * [Aztec and Aragon co-author a proposal](https://twitter.com/aztecnetwork/status/1633505423734231041) to enable private voting for NounsDAO governance moving forward. * In a mission to be more transparent, Sovereign will now start publishing regular progress updates. You can catch the [first update post here](https://twitter.com/sovereign_labs/status/1630994000038744064). * [Mintify](https://mintify.xyz/), a modular trading terminal for NFTs, [is now live on Polygon](https://twitter.com/0xPolygon/status/1633497952109965319) * Acentrik, which is the enterprise data marketplace platform (decentralized data exchange) built by Mercedes-Benz, just [deployed](https://twitter.com/0xPolygon/status/1633379221190877192) on Polygon * Compound v3 [has been deployed](https://twitter.com/compgovernance/status/1633164583111360512) on Polygon * [Reddit Avatars](https://twitter.com/NFTgators/status/1632731684478103552) surpass $50M in market cap * [Uniswap drops](https://twitter.com/Uniswap/status/1631691330031169537) a limited, early-release version of its new mobile app during ETHDenver * A couple of weeks ago, we mentioned that Arbitrum was the leading Ethereum L2 in terms of monthly transaction settlement volume, however, it looks like S[tarkEx was actually the network to hold this title](https://twitter.com/odin_free/status/1633366901354119168) * [Users can now join the waitlist](https://twitter.com/0xHashstack/status/1632437594452639748) for Hashtack’s upcoming mainnet launch (expected this month) * Celer Network, a cross-layer communications protocol, announced their [upcoming launch on zkSync Era](https://twitter.com/CelerNetwork/status/1631475038888030211) * [Rhino Fi will be integrating zkSync Era](https://twitter.com/rhinofi/status/1628729110108291074), allowing users to bridge to the network via BNB, Polygon, Arbitrum, and Ethereum * [Instadapp introduces Avocado wallet,](https://twitter.com/Instadapp/status/1633497978894798850) an Account Abstraction wallet that’ll enable users a seamless multi-chain experience, without having to think of what network gas token to use * [Starknet <> Rollkit <> Celestia](https://twitter.com/ammarif_/status/1632680324290453506): Last week, @ammarif\_ used Rollkit to launch a sovereign rollup on top of Celestia using the Cairo VM (the virtual machine used in the StarkWare) * [Arbitrum adds a new bridge feature](https://twitter.com/arbitrum/status/1633854564947599362), giving users the ability to view their transaction history going back over a year ago * [The Coinbase wallet now offers](https://twitter.com/optimismFND/status/1633879549447667712) Optimism-focused quests. This is a good way for those new to Optimism to explore its ecosystem while getting rewarded with OP. The first quest involves simply swapping ETH. * Taiko, who are building their own zkEVM-powered rollup, [shares its new roadmap](https://twitter.com/taikoxyz/status/1633841615994519558) as they approach mainnet launch * [“On March 15th](https://twitter.com/cosmoshub/status/1634243144274329641), the Lambda upgrade will take place on Cosmos Hub”, which will activate the replicated security feature and introduce interchain security. In short, this will allow other app-chains to bond ATOM tokens in order to borrow security from the hub * [Rollkit announces “Let’s Roll”](https://twitter.com/RollkitDev/status/1633909192296910848), a community-driven meeting meant to share knowledge, explore ideas, and discuss the latest updates. The first community call takes place on March 21st * [Convex Finance expands](https://twitter.com/ConvexFinance/status/1633789488584327171) to Polygon * [Lido expands](https://twitter.com/LidoFinance/status/1633888779801903129) its wstETH token to the Polygon network * [Users can now start bridging](https://twitter.com/Orbiter_Finance/status/1633740674892959744) their testnet ETH from Goerli to Polygon’s zkEVM, using Orbiter Finance * * * 📚 Discussions & Education ========================== What are sovereign rollups on Bitcoin? -------------------------------------- [![User Avatar](https://pbs.twimg.com/profile_images/1633923105394507779/zAiXXFPv_normal.jpg)](https://twitter.com/RollkitDev) [Rollkit](https://twitter.com/RollkitDev) [@RollkitDev](https://twitter.com/RollkitDev) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/RollkitDev/status/1632438374513676288) You can now run a sovereign rollup on Bitcoin. Announcing the first research integration of Bitcoin as a data availability layer for sovereign rollups. ![🧵](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f9f5.png) [ ![](https://pbs.twimg.com/card_img/1634975110103977984/UXk2XqlN?format=jpg&name=600x600) rollkit.dev Sovereign rollups on Bitcoin with Rollkit | Rollkit --------------------------------------------------- Last week, we introduced Rollkit, a modular framework for rollups. Today, we are proud to announce that Rollkit is the first rollup framework to support sovereign rollups on Bitcoin. This allows... ](https://t.co/HpebxIz3fE) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 1,467](https://twitter.com/RollkitDev/status/1632438374513676288)[ 12:50 PM • Mar 5, 2023 ](https://twitter.com/RollkitDev/status/1632438374513676288) Last week [we covered](https://modularmedia.substack.com/i/106816615/rollkit-adds-bitcoin-da-to-its-modular-stack) Rollkit (a rollup SDK developed by the Celestia team) enabling Bitcoin as a DA layer option. The announcement post blew up on Twitter, [garnering over 1 million views](https://twitter.com/lightcoin/status/1633213548288438272?s=20) and sparking hundreds of discussions 🤯 Let’s start with the basics. What’s a sovereign rollup and what does it mean to be sovereign rollup on Bitcoin? [Celestia walks through the basics](https://twitter.com/CelestiaOrg/status/1633533585159495681?s=20) of sovereign rollups and does a good job contrasting them with the “classic” rollups you might be used to. They also have a [more in depth post](https://blog.celestia.org/sovereign-rollup-chains/) on the concept. ![](https://storage.googleapis.com/papyrus_images/112dd8bd4319628b5fbc3c00f5c9c5dc.jpg) Wait a minute - sovereign rollups on Bitcoin? Doesn’t the Bitcoin community frown upon “alt” assets and other blockchain use cases? How’d rollups come into the picture? We actually [touched on it](https://modularmedia.substack.com/i/102509098/bitcoin-as-a-da-layer) a few weeks ago, but as a refresher: * Inscriptions AKA Bitcoin NFTs brought attention to Bitcoin “blobspace” * [Eric Wall gave a talk](https://twitter.com/lightcoin/status/1630301424167931904?s=20) on how Bitcoin blobspace can be used to build sovereign rollups * This unlocks Bitcoin as a data availability layer Without getting too technical, here’s how it’d work: [![User Avatar](https://pbs.twimg.com/profile_images/1502542771164483587/-du81yIg_normal.jpg)](https://twitter.com/lightcoin) [light.btc](https://twitter.com/lightcoin) [@lightcoin](https://twitter.com/lightcoin) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/lightcoin/status/1630301424167931904) Rollup full nodes would then scan bitcoin blocks looking for transactions that contain block data relevant to them, and if the attached proof validates, then they will add that block to their chain, apply the state diff to the state, and proceed to the next block. [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 24](https://twitter.com/lightcoin/status/1630301424167931904)[ 3:18 PM • Feb 27, 2023 ](https://twitter.com/lightcoin/status/1630301424167931904) So are Bitcoiners on board with this idea? TBD - they are [now open to discussion](https://twitter.com/lightcoin/status/1632484053298429953?s=20) about sovereign rollups, but it’s unclear whether the community will embrace or reject them. What is clear, however, is that Rollkit has made implementing them much easier. * * * Do Bitcoin sovereign rollups inherit Bitcoin security? ------------------------------------------------------ [![User Avatar](https://pbs.twimg.com/profile_images/1627864849081372674/8glMlGdL_normal.jpg)](https://twitter.com/DZack23) [Daniel "e1c04d99" Goldman (Sybil account)](https://twitter.com/DZack23) [@DZack23](https://twitter.com/DZack23) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/DZack23/status/1632462546123776001) "...that inherit Bitcoin’s data availability guarantees" yep! ![👍](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f44d.png) ![✅](https://twemoji.maxcdn.com/v/14.0.2/72x72/2705.png) ![🧡](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f9e1.png) "and security guarantees" nope! ![👎](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f44e.png) ![❌](https://twemoji.maxcdn.com/v/14.0.2/72x72/274c.png) ![☠️](https://twemoji.maxcdn.com/v/14.0.2/72x72/2620.png) ![](https://pbs.twimg.com/media/FqerSlPXwAUtIZT.jpg) [![User Avatar](https://pbs.twimg.com/profile_images/1633923105394507779/zAiXXFPv_normal.jpg)](https://twitter.com/RollkitDev) [Rollkit](https://twitter.com/RollkitDev) [@RollkitDev](https://twitter.com/RollkitDev) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/RollkitDev/status/1632438374513676288) You can now run a sovereign rollup on Bitcoin. Announcing the first research integration of Bitcoin as a data availability layer for sovereign rollups. ![🧵](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f9f5.png) [rollkit.dev/blog/sovereign…](https://t.co/HpebxIz3fE) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 84](https://twitter.com/DZack23/status/1632462546123776001)[ 2:26 PM • Mar 5, 2023 ](https://twitter.com/DZack23/status/1632462546123776001) Daniel from Arbitrum makes a strong statement - sovereign rollups inherit L1 DA guarantees but do not inherit L1 security. But what exactly does this mean? Other builders weigh in too, with takes spanning the full range of “no-kinda-yes”: * [Ryan Berckmans says](https://twitter.com/ryanberckmans/status/1632481886147584001?s=20) sovereign rollups sound like L1s and aren’t “real” rollups or L2s * [Nick from Celestia says](https://twitter.com/nickwh8te/status/1632846536853028864?s=20) sovereign rollups are not trying to be L2s or scale the underlying L1 * [Toghrul from Scroll says](https://twitter.com/toghrulmaharram/status/1632839784866390020?s=20) sovereign rollups at most inherit some L1 security * [Sreeram from EigenLayer says](https://twitter.com/sreeramkannan/status/1632622108822962178?s=20) sovereign rollups can inherit up to all 4 security properties of L1 So which is it? What do sovereign rollups inherit? Sreeram Kannan offers an excellent framework to think through the question: [![User Avatar](https://pbs.twimg.com/profile_images/1495986099092480001/qsziBZQS_normal.jpg)](https://twitter.com/sreeramkannan) [Sreeram Kannan](https://twitter.com/sreeramkannan) [@sreeramkannan](https://twitter.com/sreeramkannan) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/sreeramkannan/status/1632622114762297344) (ii) There are four properties that together determine the security of a chain: (a) re-org resistance, (b) censorship resistance, (c) data availability and (d) validity. [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 58](https://twitter.com/sreeramkannan/status/1632622114762297344)[ 1:00 AM • Mar 6, 2023 ](https://twitter.com/sreeramkannan/status/1632622114762297344) We highly recommend reading his thread, but here are our takeaways: * Blockchain security has 4 properties (listed in the above tweet). It’s a more nuanced topic than many people make it seem. * An attacker [would need to corrupt Bitcoin](https://twitter.com/sreeramkannan/status/1632622115789897728?s=46&t=Sa-kQ8xUY_X1giqluqQhAA) to mess with the order (a) and availability (c) of transactions. This security is achieved by simply posting transaction data on Bitcoin - pretty straight forward. * Censorship resistance (b) is rock solid [if the sovereign rollup users can submit transactions directly](https://twitter.com/sreeramkannan/status/1632625239724265472?s=46&t=Sa-kQ8xUY_X1giqluqQhAA) to Bitcoin. As made clear above, once the transaction hits L1 it’s safe and there are ways to make sure it gets executed. * Validity (d) is inherited in some scenarios, but not others. If you are running a rollup node, you get state transition security for assets on the rollup. However, [you don’t get state transition security](https://twitter.com/sreeramkannan/status/1632622118897848320?s=46&t=Sa-kQ8xUY_X1giqluqQhAA) when bridging assets between the rollup and Bitcoin. * * * What does Bitcoin look like as a DA layer? ------------------------------------------ [![User Avatar](https://pbs.twimg.com/profile_images/1293884789515329537/bPLEJr8s_normal.png)](https://twitter.com/musalbas) [Mustafa Al-Bassam](https://twitter.com/musalbas) [@musalbas](https://twitter.com/musalbas) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/musalbas/status/1632784924708044824) The correct take. I don't actually think Bitcoin is interesting as a DA layer (long block times, low throughput), but hopefully this will redpill more Bitcoiners into rollups. Who knows, maybe we'll get an zk verification op code in Bitcoin in the future... [![User Avatar](https://pbs.twimg.com/profile_images/1613325776962867200/SjFcQ84B_normal.jpg)](https://twitter.com/jb0x_) [𝚓𝚋𝟶𝚡](https://twitter.com/jb0x_) [@jb0x\_](https://twitter.com/jb0x_) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/jb0x_/status/1632507954887811074) it's like a shitpost, but implemented as infrastructure. bullish [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 60](https://twitter.com/musalbas/status/1632784924708044824)[ 11:47 AM • Mar 6, 2023 ](https://twitter.com/musalbas/status/1632784924708044824) Since Bitcoin can technically serve as a DA layer, let’s consider a couple of other questions: * Would it make a “good” DA layer? * If it becomes one, are there drawbacks? The above tweet by Mustafa (whose team built Rollkit!) hints at the answer “no” to the first question, but let’s consider the pros and cons. Pros: * High economic security * Easy to verify Cons: * Long block times (translates to slower rollup finality) * Slow data throughput (again, slower rollup finality) * Doesn’t support smart contract rollups (can’t verify proofs) What else is there to consider? Other community members (from both Bitcoin and Ethereum) point to drawbacks, even if Bitcoin rollups were to success: * [Ryan Berckmans says](https://twitter.com/ryanberckmans/status/1633302819490136066?s=20) Bitcoin rollups will actually discredit the Bitcoin meme * [Eric Wall says](https://twitter.com/ercwl/status/1633166395922939913?s=20) rollups might introduce MEV challenges to Bitcoin The drawbacks are clearly speculative ([and controversial](https://twitter.com/ObadiaAlex/status/1633431874352578560?s=20)) but worth thinking about in advance. Either way, Bitcoin is getting more exciting ⚡️ [![User Avatar](https://pbs.twimg.com/profile_images/1632628371480772608/AbaKniMi_normal.jpg)](https://twitter.com/jon_charb) [Jon Charbonneau](https://twitter.com/jon_charb) [@jon\_charb](https://twitter.com/jon_charb) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/jon_charb/status/1632870895562752000) Seeing people do interesting things on Bitcoin for the first time in a long time is cool to see Even as someone not close to development there, just appreciate that Yes we all understand it’s not an optimized DA layer, needs changes to verify validity, etc etc [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 45](https://twitter.com/jon_charb/status/1632870895562752000)[ 5:28 PM • Mar 6, 2023 ](https://twitter.com/jon_charb/status/1632870895562752000) * * * ETHDenver content ----------------- Just a handful of the many awesome panels and presentations from the week * [“Shared Security Summit” presented](https://youtu.be/yFY7CU2DLaw) by Babylon and EigenLayer * Here are a couple of threads that include ETHDenver presentations that featured members of the zkSync team. Here are the talks regarding [hyperscalability](https://twitter.com/zksync/status/1633526442960236547), [security](https://twitter.com/zksync/status/1634242097476947968), and [account abstraction](https://twitter.com/zksync/status/1633884829287849986) * [“Data availability in blockchain uncloak” panel](https://youtu.be/jAxekQ8FlkM) with builders from Celestia, EigenLayer, StarkWare, Sui and Liberty Gaming Kit * [“Zero Knowledge Virtual Machine” presentation](https://youtu.be/EPsS10r0xEY) by Jeremy Bruestle from RiscZero * [“Commitments and Privacy in the MEV Supply Chain” presentation](https://youtu.be/BxTbQlXaMGk) by Robert Miller from Flashbots * [“Account Abstraction” presentation](https://youtu.be/lDDXd5jTwpU) by Yoav Weiss from the Ethereum Foundation * [“Scaling Ethereum for Global Adoption” panel](https://youtu.be/bBNmPNM8U_c) with builders from Optimism, Filecoin, Coinbase and Lens * [“Fully on-chain games” presentation](https://youtu.be/xBGt38W0u8E) with Nicolas Laurent * [“Enter the Modular Playground” presentation](https://youtu.be/ogipP_FoYLo) by Yaz Khoury from Celestia * [“Polygon zkEVM Mainnet” presentation](https://youtu.be/3pGQywZ-YQQ) by Jordi Baylina from Polygon ZK * [“Scaling Ethereum with Rollups and Zero-Knowledge Proofs” presentation](https://youtu.be/KSaKmYHH_9o) by Orest Tarasiuk from Scroll * [“App-Specific Rollups” presentation](https://youtu.be/n7YrSYYJ8O4) by Matt Katz from Caldera * [“Cartesi Agnostic Modular Execution Layer” presentation](https://youtu.be/0Asmz0EW2PE) with Abdelrahman Omran from Cartesi * [“Bringing Linux to the Ethereum Ecosystem” presentation](https://youtu.be/dbz79rhXjko) by Max Hatesuer from Cartesi * [“Doing Decentralized Identity Right” presentation](https://youtu.be/o0N1Z9AyrEM) by Kelvin Fitcher from OP Labs * [“Babylon: Bitcoin Security for All” presentation](https://youtu.be/BGtx74rqmiM) by David Tse from Babylon * [“The Limits of L2” presentation](https://youtu.be/dimUOYzhkmk) by Martin Koppelmann from Gnosis * [Series of Bankless interviews](https://twitter.com/BanklessHQ/status/1633559479588454401?s=20), including “[Cosmos Ecosystem](https://twitter.com/BanklessHQ/status/1633587921277054977?s=20)” with Sunny from Osmosis, “[Polygon’s zkEVM](https://twitter.com/BanklessHQ/status/1633626578813853697?s=20)” with Jordi from Polygon ZK, “[The State of EigenLayer](https://twitter.com/BanklessHQ/status/1633895541607153682?s=20)” with Sreeram from EigenLayer, and the “[L2 Wars](https://twitter.com/BanklessHQ/status/1633971249729740803?s=20)” with Steven from Arbitrum * * * More Discussions & Education ---------------------------- * [@lemniscate says](https://twitter.com/lemiscate/status/1631974198754131969?s=20) that L2s need more than one entity operating sequencers to be decentralized and [@dankrad disagrees](https://twitter.com/dankrad/status/1632436189180440577?s=20), saying [L1 can act as the decentralized sequencer](https://twitter.com/dankrad/status/1632481153235005441?s=20) if anyone can submit transaction bundles * [@sreeramkannan explains](https://twitter.com/sreeramkannan/status/1632047566539079685?s=20) how L2 finality can be faster than Ethereum finality using a “pre-settlement” layer built on EigenLayer * [@jon\_charb](https://twitter.com/jon_charb/status/1632531674667061249?s=20) responds to [@koeppelmann's "Limits to L2s" talk](https://twitter.com/koeppelmann/status/1631875843751542791?s=20), explaining how many of the problems can be addressed * [@koeppelmann illustrates](https://twitter.com/koeppelmann/status/1632257610455089154?s=20) how EIP-4337 offers another way to include “meta transactions” on chain * [@0xJim explains](https://twitter.com/0xJim/status/1632802955224309760?s=20) “modular interoperability”, framing [the three components](https://twitter.com/0xJim/status/1632802965294841857?s=20) and [where individual solutions fit](https://twitter.com/0xJim/status/1632802969078083585?s=20) * [@kinaumov breaks down](https://twitter.com/kinaumov/status/1633125299083784193?s=20) the EigenLayer protocol and example use cases * [@arjunbhuptani explains](https://twitter.com/arjunbhuptani/status/1633135495445372928?s=20) “the messaging bridge stack”, including [bridge basics](https://twitter.com/arjunbhuptani/status/1633135499383808000?s=20) and [takeaways for better bridge security](https://twitter.com/arjunbhuptani/status/1633135555633623040?s=20) * [OP Labs walks through](https://twitter.com/OPLabsPBC/status/1632186148578811904?s=20) the technical vision for the Superchain * [@bertcmiller says](https://twitter.com/bertcmiller/status/1632491157845585920?s=20) the FCFS approach to transaction ordering is bad for censorship resistance * [@sanjaypshah explains](https://twitter.com/sanjaypshah/status/1633173132985917440?s=20) why sovereign rollups have underrated security benefits * [Optimism explains](https://twitter.com/optimismFND/status/1632100633464672256) how the OP Stack fits in the crypto ecosystem * [Sovereign Labs explains](https://twitter.com/sovereign_labs/status/1633185993481392129?s=20) how sovereign ZK rollups can achieve fast finality [by creating and distributing proofs to light clients](https://twitter.com/sovereign_labs/status/1633186003837140992?s=20) before the batch proof is generated * [@CannnGurel highlights](https://twitter.com/CannnGurel/status/1633460780279689219?s=20) how L1 smart contracts are not needed to enforce a rollup’s fork choice rule, referencing the Sovereign Labs thread 👆 * [@colludingnode explains](https://twitter.com/colludingnode/status/1633202584528859137?s=20) how the experience might work for users interacting with numerous sovereign rollups * [@toghrulmaharram clarifies](https://twitter.com/toghrulmaharram/status/1633173618153717764?s=20) that L2s can implement fee markets (e.g. Fuel can do this easily) and [Ethereum can increase DA capacity](https://twitter.com/toghrulmaharram/status/1633176048765399042?s=20) * [@looksrare\_eth explains](https://twitter.com/looksrare_eth/status/1633204560977342464?s=20) RiscZero, its [benefits](https://twitter.com/looksrare_eth/status/1633204563439423489?s=20) and example use cases * [@0xDinoEggs (👋) writes](https://twitter.com/0xDinoEggs/status/1633498248680808449?s=20) an article about “Light nodes and their benefits” * [0xResearch releases](https://open.spotify.com/episode/5a1W9dAp3hMtJIfXGtzLtv?si=DCfvHLiVSRqYBTPPU568-g) an episode on “How zkSync and Argent 10x Ethereum’s UX” * [Bell Curve releases](https://open.spotify.com/episode/2BLVoiNavtNJgQSTYjThGv?si=9KLC2gcOSH2v2rh8YygDOw) an episode on “How Bitcoin Will Secure The Appchain Future” with builders from Rollkit, Babylon and Stride * [zkSync clarifies](https://twitter.com/zksync/status/1633526451973799937?s=20) that Optimism’s Superchain vision is very similar to their own Hyperchain vision * [Arbitrum writes](https://twitter.com/terencechain/status/1633494590581014529?s=20) a post on the ETH research forum, analyzing how optimistic rollups could safely reduce the 7 day challenge period * [L2Beat explains](https://twitter.com/l2beat/status/1633525963496587265?s=20) how the forced withdrawal mechanism works on dYdX’s StarkEx instance * [@BigBrainKasey writes](https://twitter.com/BigBrainKasey/status/1633923053556998145?s=20) an article on Dymension, discussing the protocol, use cases, competitive solutions and more * [@drakefjustin writes](https://twitter.com/drakefjustin/status/1634181085260050432?s=20) a post on the ETH forum, highlighting a special subset of rollups called “based” or “L1-sequenced” * [Taiko explains](https://twitter.com/taikoxyz/status/1634289071324557313?s=20) how they think about and are implementing “based rollups”, referencing Justin’s post 👆 * [The Defiant releases](https://open.spotify.com/episode/4mXR2Io0AY4BGrmsvlA9vn?si=kbjuPvBtTTu67Gs47olOjw&app_destination=copy-link) an episode “Everything You Need to Know About EigenLayer” with Sreeram Kannan * [Celestia releases](https://twitter.com/CelestiaOrg/status/1633875346968973313?s=20) an episode discussing Modular Cloud and their block explorer for modular blockchains * [@0xSalazar explains](https://twitter.com/0xSalazar/status/1632786556204326912?s=20) how the zkEVM underlying tech works in depth * [Starknet hosts](https://twitter.com/Starknet/status/1633460976048807945?s=20) a community call discussing the SHARP proving system * * * That's all for this week! Thanks for reading 🧱🎬 If you found this useful, please like and retweet so more people can see it 👇 [![User Avatar](https://pbs.twimg.com/profile_images/1622811392297340930/z2Zal39e_normal.jpg)](https://twitter.com/modularmedia_) [Modular Media 🧱🎬](https://twitter.com/modularmedia_) [@modularmedia\_](https://twitter.com/modularmedia_) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/modularmedia_/status/1635672958407700485) ![✨](https://twemoji.maxcdn.com/v/14.0.2/72x72/2728.png) Excited to share another week of updates from the modular blockchain ecosystem! Check out Weekly Rollup #5 ![👇](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f447.png) [ ![](https://pbs.twimg.com/card_img/1635672962119651329/32JrZ0sl?format=jpg&name=800x320_1) modularmedia.substack.com Weekly Rollup #5 ---------------- For the week ending March 10th ](https://t.co/hDnyLhjh9H) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 28](https://twitter.com/modularmedia_/status/1635672958407700485)[ 12:03 PM • Mar 14, 2023 ](https://twitter.com/modularmedia_/status/1635672958407700485) --- *Originally published on [Modular Media 🧱🎬](https://paragraph.com/@modularmedia/weekly-rollup-5)*