Modular Blockchain Report (September, 2023)

1. Researcher Comment

In September 2023, many projects shifted their focus from L1 to L2. With the launch of various RaaS (Rollup-as-a-Service) projects that assist in easily constructing rollups based on rollup frameworks like OP-Stack, Arbitrum Orbit, and Polygon CDK, numerous projects could effortlessly launch L2 networks. Projects that have announced the launch of L2 networks include Astar, BNB chain, Manta Network, Injective, Ancient8, Pocket Network, Canto, Synapse, and more.

Why are various projects choosing to expand from dApps and L1 to L2? There are three main reasons:

Advancement of Modular Infrastructure: Previously, there was a lack of projects like rollup frameworks, RaaS, and DA layers, making it challenging to launch rollup networks. However, with the recent surge in such infrastructure services, the era where anyone can easily launch a rollup network has arrived.
Improved Scalability: When there's high usage, and the block space of the existing L1 network becomes congested, launching an L2 network can vertically enhance scalability.
Ecosystem Development: Operating one's own network comes with security, liquidity, and ecosystem development challenges. Launching a rollup network in an already established ecosystem can easily address these issues.

With the continuous advancement of modular infrastructure and the growth of ecosystems like Ethereum and Celestia, it's anticipated that more projects will adopt a modular approach in the future.

2. Major Updates

2.1 Eclipse Mainnet Launched & MakerDAO Proposal

Source: Eclipse

Eclipse has unveiled the Eclipse Mainnet, which uses Ethereum as its settlement layer, Celestia as its DA (Data Availability) layer, and SolanaVM as its virtual machine. By combining modular components from three distinct ecosystems, Eclipse has garnered significant attention. The Eclipse Mainnet consolidates the strengths of each system: it verifies proofs on the Ethereum network, stores transaction data affordably on Celestia, and utilizes the highly scalable SolanaVM as its execution environment.

Recently, MakerDAO proposed developing a network called NewChain using Solana's codebase as the final step in their roadmap. However, after facing some criticisms due to insufficient justification, Neel, the founder of Eclipse, suggested on the MakerDAO forum to use Eclipse, which is based on Ethereum and provides an SVM environment. Here's the proposal link.

2.2 Astar zkEVM

Source: Astar

Astar, a successful blockchain in Japan and one of the parachains in the Polkadot ecosystem, has announced the launch of Astar zkEVM based on Polygon CDK. Astar is not migrating from Polkadot's parachain to Ethereum's rollup ecosystem; they plan to operate both chains. Astar zkEVM is developed based on Gelato's zk-RaaS, which is built upon the Polygon CDK. It supports various features of Gelato, including native account abstraction and smart contract automation.

3. Fundraising

The data was collected from DefiLlama's raises page.

3.1 Layer N (Source)

Layer N is a network of L2s designed for financial applications in the Ethereum ecosystem. By using a shared sequencer, Layer N improves interoperability and composability between rollups. It employs the Zero-Knowledge based Fraud Proving (ZKFP) system, which combines the advantages of both fraud proof and validity proof systems, addressing the UX issues that traditional proof systems had. Layer N consists of the EVM rollup called N-EVM, the orderbook rollup named Nord, and a rollup for enterprises named NordX.

3.2 Restake Finance (Source)

Restake Finance is a Liquid Restaked Token (LRT) protocol, offering a service to unlock the liquidity of ETH that has been restaked on EigenLayer. EigenLayer provides a restaking service that allows already staked ETH to be utilized for validating in other protocols. The LRT protocol further utilize this, enabling it to be used in other DeFi protocols to gain additional profits. When users deposit stETH in Restake Finance, they can receive rstETH, a rebase token with a 1:1 value with stETH. The governance token of Restake Finance is $ReFi, and users who stake it can receive a yield boost and a portion of the protocol's profits.

4. More Reads

4.1 Projects Updates

4.2 Suggested Reads

ZK-EVM types: Ethereum-equivalent, EVM-equivalent, Type 1, Type 4, and other cryptic buzzwords by Taiko Labs

This article explains the differences between the zkEVM classifications Type-1, 2, 2.5, 3, 4 zkEVM as proposed by Vitalik.

One of the emerging approaches to on-chain scalability by Mohamed Fouda

It discusses an interesting concept where multiple app rollups are connected to a single frontend as backends. In fact, in the case of AltLayer, they have placed multiple rollups that can be connected depending on the region in the on-chain game they launched as a PoC. This structure has various advantages but drawbacks, such as network switching and the need to move the states of users.

**: A New Narrative to EVM and zkEVM

So far, there have been various VMs in the blockchain, such as EVM, WASM, SVM, etc. There are also many attempts to use various VMs in the zk technology field. This article covers various VMs and zkVMs.

Complete Guide to Polygon: Tech & Business Insights

Polygon is developing various zk technologies from a technical perspective and is collaborating with big companies in various ways from a business perspective. This article covers all of Polygon's technical stacks and how they are actually used in business.

Thanks to Kate for designing the graphics for this article.

1. Researcher Comment

2. Major Updates