Upcoming Blockchains: Etherlink
Etherlink is an EVM compatible, enshrined smart rollup on Tezos with a decentralised sequencer bridging EVM projects into Tezos.
Fundamental Problems with Existing Rollups
Ethereum scaling wars has been hot and we have seen the dominance of Arbitrum and Optimism, with many more currently in testnet about to spring up towards Q1 2024. However, most of which, in compromise for speed of development and launch, have forgone the security and principles of decentralisation.
Arbitrum, Optimism and many other L2s are built with a centralised sequencer, a single entity elected by the foundation. What risks does that pose to users you might wonder. Well, it is plenty and it is fundamental problems that have arise and will arise in time to come if they do not work on decentralising it soon.
These risks are also stated on Arbitrum’s documents but are not elaborated. With a centralised sequencer, having the ability to delay the inclusion of a user’s transaction and reordering them can allow for Arbitrum or other entities they have bias towards to frontrun transactions and extract MEV.
Besides that, being a single entity comes single point of failure risk which can result in the entire rollup not operating, which we experienced briefly last week.
Link: https://x.com/arbitrum/status/1735754732990267881?s=20
A blockchain having downtime goes against everything we stand for and should not happen. The risks of centralisation are not appreciated enough and general users care more about making money and digesting the various narratives on crypto twitter than to understand the tech behind what they are using.
This is fine until black swan events occur. We should be ensuring that the foundation of what we build on and use are safe from the above issues.
Hence, we arrive at Etherlink.
Etherlink: Tezos-Based EVM-Compatible Layer 2
Tezos has been building towards higher TPS and they will be achieving it by scaling Tezos with multiple rollups. One key way they are doing so is with enshrined rollups which they mentioned in their earlier articles.
Etherlink is here to scale Tezos and bring XTZ to the rest of the EVM realm and beyond.
Etherlink is being developed as a Layer 2 solution compatible with Ethereum Virtual Machine (EVM) on the Tezos blockchain which aims to attract a wider range of developers and decentralized applications (dApps) from the EVM ecosystem.
Enshrined Rollup on Tezos
Etherlink offers an experience for users and developers similar to existing EVM chains but with improved fundamentals, thanks to its construction on Tezos. Differing from Ethereum's rollups based on smart contracts, Etherlink integrates directly into Tezos' first layer as an "enshrined" rollup. This integration offers heightened security by bypassing typical smart contract vulnerabilities and is treated as a core component of the Tezos mainnet.
Instead of deploying rollups as smart contracts like what is done on Ethereum.
Enshrined rollups are officially recognised by the Tezos protocol as special entities with particular privileges & features.
Complex Feature Implementation: Enshrined rollups allow for complex features that are hard or impossible to implement in smart contract-based rollups.
Efficient Layer 1 Activity: Activities related to rollups are more efficient in terms of computation and gas usage on Layer 1.
Standardized Communication: There's a common infrastructure for standardized and efficient communication between Layer 1 and different rollups, despite varying execution environments.
Data Solutions: Special data solutions for enshrined rollups ensure that rollup-related data does not excessively use storage and bandwidth on Layer 1.
Learn more about Enshrined Rollups here:
Nomadic Labs: https://research-development.nomadic-labs.com/smart-rollups-are-coming.html#enshrined-what
AltLayer, Yao Qi: https://mirror.xyz/ohotties.eth/P1qSCcwj2FZ9cqo3_6kYI4S2chW5K5tmEgogk6io1GE
Full Decentralization and Community-Led Evolution
This Layer 2 solution ensures complete decentralization, eliminating the need for administrative keys or centralized bridges, thus reducing censorship risks. Its upgradability is governed by Tezos' on-chain governance XTZ, fostering community-driven progress.
Advanced Censorship Resistance and MEV Protection
Etherlink is implementing a decentralized sequencer to combat censorship and Mean Extractable Value (MEV) issues. This system involves electing multiple sequencer operators from various locations, democratizing transaction ordering and enhancing overall security. This is a stark difference from the current rollups available to users.
Cheaper Transactions and Higher Throughput
Targeting fast transaction processing, Etherlink aims for sub-second block times and minimal costs (around 0.01$ per transaction). It batches transactions and updates them to Tezos layer 1 every two minutes, leveraging the security of Tezos' "enshrined" smart rollups.
Testing Tools: Faucet and Explorer
Etherlink's website now features a faucet, distributing testnet tokens for development and testing purposes. Additionally, a new block explorer provides detailed insights into the network's transactions and contracts.
Etherlink’s Roadmap
The updated Etherlink roadmap lays out the project's future steps, from its initial testnet phase to the anticipated mainnet launch. It sets clear expectations for the community regarding upcoming features and developments. Check it out and stay tuned for more announcements that we can expect to come soon with regards to infrastructure partnerships and dapps building on Etherlink.
Projects that we know are building on Etherlink
1: GET Protocol
Recently GET Protocol announced their $4.5 million seed round which includes notable investors like Tezos and Animoca Brands to tackle the giants in the traditional ticketing industry with their intuitive NFT ticketing solution which is already implemented on a larger scale at some of the largest concerts and artists like Ne-Yo, Gucci Mane and Lewis Capaldi.
They specifically provided a few paragraphs on how GET Protocol will build on Tezos partners & their EVM network upgrade, Etherlink.
Along with a contribution to the seed round, the Tezos Foundation and GET Protocol are committing to bringing scalable NFT Ticketing to both existing and new Tezos partners. This will be made possible through full integration of GET Protocol’s NFT Ticketing facilities on Tezos’ upcoming EVM network upgrade.
With a diverse array of partnerships and a robust infrastructure, Tezos’ network and GET Protocol’s track record of development for ticketing solutions will form a formidable collaboration - bringing millions of new users into Web3 through the Tezos ecosystem.
Read the full article here: https://www.get-protocol.io/content/nft-ticketing-leader-get-protocol-raises-dollar45m-from-web3-giants-in-strategic-seed-round
2: DOGAMI
Dogami is a multi-chain web3 game that allows you to raise your doggos much like tamagotchi. They already have NFTs available on both Tezos and Polygon, with their token $DOGA listed on 2 CEXes. More to come. Their game was recently also released on Apple’s App Store providing even more accessibility.
They also announced in the tweet shown below that they will be launching their staking program and building on Etherlink in the near term.
Link:
https://twitter.com/dogami/status/1730588560359600223?s=46
Check out their recent updates here: https://dogami.medium.com/dogam%C3%AD-community-update-15-495818da673c
Community Engagement and Future Developments
Etherlink's progress underscores its commitment to creating a decentralized EVM Layer 2 solution. Developers and users are encouraged to explore Etherlink's documentation and contribute to its growth. For further interaction and queries, Etherlink’s Discord server offers a platform for community engagement and collaboration in shaping the future of decentralization.
Join the community today:
Discord: https://discord.gg/etherlink
Telegram: https://t.me/etherlinkcom