As a seasoned crypto investor with over a decade of experience navigating the volatile and rapidly evolving digital asset landscape, I find Martin Köppelmann’s proposal for native rollups on Ethereum both intriguing and potentially transformative. Having seen the rise and fall of numerous projects that promised scalability without maintaining the core values of decentralization, I can appreciate the need for a more balanced approach.
According to Gnosis founder Martin Köppelmann, utilizing a network consisting of 128 “home-grown rollups” could prevent Ethereum from falling under control of large corporations and becoming irrelevant.
Rollup solutions constructed alongside Ethereum’s inherent security principles are referred to as “Native Rollups”. These systems operate on Ethereum’s established security model, making them compatible, unsuppressible, and consistent with Ethereum’s initial philosophical foundations.
In contrast to “centralized” rollup systems such as those developed by firms like Coinbase (Base) or projects like Taiko, which are considered “off-chain solutions,” native rollups provide the same level of built-in security and compatibility that comes with using Ethereum itself.
In simpler terms, “Native Rollups” are developed and managed by the Ethereum core team, sharing real-time updates with the main network. All data is accessible, and transaction fees for Maximal Extractable Value (MEV) and congestion are returned to the primary network.
According to Köppelmann, employing numerous native rollup solutions might be crucial for addressing the ongoing issues of liquidity and fragmentation among developers that are presently affecting the network. This move could potentially lead us back to the initial sharding concept, which was set aside in favor of rollups.
The proposal received a warm response from the Bankless podcasters Ryan Adams and David Hoffman who praised the approach for “only adding to Ethereum, rebalancing power and making ETH stronger.”
Instead, the Uniswap CEO, Hayden Adams, expressed his preference for a “balanced” approach involving an established proof system. This would resemble a level 2 (L2) verifying system that is not dependent on any specific sequencer.
In contrast, Adrian Brink, a co-founder at Anoma – an “intent-centric” blockchain company, stated to CryptoMoon that the main distinction between ‘native’ and ‘based’ rollups in the blockchain space is largely considered as more of a marketing construct rather than a substantial technical difference.
“There is no defined computer science terminology for a ‘native’, ‘based’, or ‘vanilla’ rollup. Based just means the rollup is sequenced by the base layer. Native just means there is a native opcode to verify the rollup’s execution,” he said.
The risks of “centralized” rollups
Koppelmann serves as the founder of Gnosis, a significant Ethereum-based infrastructure company with a strong focus on decentralization. Notably, Gnosis is responsible for both Safe Global and Gnosis Chain, which collectively provide the foundational infrastructure that supports a substantial portion of the Ethereum ecosystem.
At DevCon Thailand last week, Köppelmann, wearing a Tornado Cash T-shirt, emphasized that Ethereum should move away from centralized layer-2 rollups and instead develop its own network of zero-knowledge proof (zk-proof) networks, adhering to the same quality standards as Ethereum’s L1.
“I have absolutely the highest respect for Jesse [Pollack] and for what Base and Coinbase are doing but I do think saying ‘we’re bringing the next billion people to Ethereum’ is wrong.”
“You’re bringing the next billion people to Base.”
Köppelmann cautioned that platforms like Base and other decentralized layer-2 networks have control over their own profits, influencing their motivations differently.
Köppelmann stated that the number of transaction fees charged by Apple can be determined entirely by them and they have the ability to implement a system where they take 30% as their cut,” translates to a more natural and easy-to-read paraphrase.
Why does Ethereum need “native” L2s?
Koppelman mentioned that roll-up developers are usually offered two primary options: either centralized roll-ups, which depend on a centralized sequencer, or decentralized “base” roll-ups.
A centralized sequencing approach facilitates optimal user experience and swift transactions, whereas “based” rollups prioritize a stronger connection with L1 at the expense of being relatively slower.
If the majority of assets aren’t transferred from Ethereum and the process of sequencing isn’t managed by Ethereum, the link to Ethereum will primarily be for occasional updates or verification.
Unfortunately, according to Köppelmann, neither a centralized approach nor the current state provide significant long-term advantages to the Ethereum ecosystem.
His proposed approach involves establishing and launching 128 identical and compatible native rollups within the Ethereum network. This method does not necessitate the use of multi-signatures, instead relying on two separate verification systems, and subjecting the underlying code to thorough examination during development.
Köppelmann stated that these Layer 2 solutions (L2s) would seamlessly work alongside Layer 1 (L1), thereby realizing Ethereum’s initial vision of implementing sharding through L2 technology.
According to Brink, there’s some agreement with Köppelmann regarding Ethereum. In essence, he suggests Ethereum might need to transition away from relying on private ecosystems over the long haul.
In principle, it is technically possible to maintain decentralized rollups using centralized sequencers, though this interpretation may vary. However, it’s undeniable that native rollups represent a significant advancement over the traditionally more centralized Layer 2 solutions.
“Many rollups today are glorified multisigs. Native rollups would have much better censorship resistance and improved composability.”
According to Köppelmann, Base and other L2s (Layer 2 scaling solutions) assert that their networks possess an “innate security” similar to Ethereum. However, he contested this claim, pointing out that funds can be pilfered in numerous ways on L2s that are not feasible on the mainnet or sufficiently decentralized L2s.
He also made a nod to an earlier Devcon talk by Ethereum developer James Prestwich, who provided several examples of how centralized sequencers can censor and manipulate DeFi protocols like Aave.
As a crypto investor, I’ve come to understand that native rollups, in theory, could make it significantly simpler for developers to launch new rollups and incorporate additional programming capabilities. However, these rollups, according to my perspective, don’t quite qualify as a genuine scaling solution yet.
This issue arises due to the fact that as more data needs to be published on the blockchain, so does its usage grow. Currently, the only effective scaling solutions available are similar to Plasma structures, enabling a fixed amount of data to be posted on the blockchain regardless of the level of activity.
“This is an old idea that fell by the wayside because we didn’t have advanced ZK tech back then, but now we do and Plasma needs to be explored again.”
The primary objective for enhancing Ethereum’s scalability should revolve around a unified “intent standard,” which can be universally grasped by every user, application, and solution in the network. This will help eliminate the current fragmentation within Ethereum.
Instead of continually refining minor aspects, let’s focus on creating captivating user experiences and fostering a fresh surge of application development that resonates with users, sparking their interest and affection.
Read More
- EUR JPY PREDICTION
- DF PREDICTION. DF cryptocurrency
- ASTR PREDICTION. ASTR cryptocurrency
- Doctor Strange’s Shocking Return in Marvel’s Avengers: Doomsday Revealed!
- TRB PREDICTION. TRB cryptocurrency
- South of Midnight PC Requirements Revealed
- COW PREDICTION. COW cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- YFI PREDICTION. YFI cryptocurrency
- POL PREDICTION. POL cryptocurrency
2024-11-22 17:42