EigenLayer restaking protocol’s slashing testnet now live

As a seasoned researcher with a knack for exploring the intricacies of blockchain technology, I find myself deeply fascinated by EigenLayer’s recent developments. The slashing testnet launch and the pending approval of ELIP-002 mark significant strides towards a more secure and decentralized future.

On December 20th, the test network for EigenLayer’s restaking protocol was activated, and we’re eagerly awaiting the approval of ELIP-002 before launching the mainnet.

In the upcoming upgrade, a new feature called Unique Stake Allocation for node operators and Operator Sets for Active Validation Services (AVS) will be implemented within EigenLayer. This means that each operator will have a unique allocation of staking rights, and services that are actively validated will be grouped into Operator Sets.

EigenLayer’s Actively Validated Services refer to projects that utilize the security of the main Ethereum network (layer-1) for the verification of off-chain services.

In simpler terms, when you deposit Ether (ETH) into Ethereum L1 for staking (referred to as stETH), it can serve as a form of collateral in various blockchain networks. This means you don’t have to withdraw your original ETH from the Ethereum L1 to use it as collateral elsewhere.

As a researcher exploring EigenLayer’s mechanics, I found an interesting concept called Unique Stake Allocation. This feature enables restaking operators – who are essentially validators in our system – to assign a specific portion of their staked funds as a “Unique Stake.” This unique stake is only vulnerable to slashing penalties from one Active Validation Service (AVS).

Operator Sets give Actively Validated Services the option to organize operators into groups, assign tasks, and define the parameters for slashing.

In the world of blockchains, reducing trust issues is achieved by imposing penalties on validators and stakeholders who make mistakes, experience downtime, or exhibit untrustworthy actions. This penalty often involves deducting a part of their staked assets.

These penalties, which function like cuts or fines, are put in place to guarantee that validators uphold the on-chain honesty and consistency within the networks they manage.

EigenLayer’s AVS community grows

RedStone pioneered as the initial significant oracle supplier, introducing an AVS (Average Value System) on EigenLayer. This data verification system debuted in testnet phase, aiming to expand and strengthen the EigenLayer network progressively.

Infura, the RPC node supplier, has revealed intentions to debut as an Application Verification System (AVS) on EigenLayer, marking an expansion of their Decentralized Infrastructure Network (DIN). In simpler terms, they are planning to extend their decentralized network by launching a new service (AVS) on EigenLayer.

Infura’s DIN is a decentralized marketplace for APIs for Web3 developers.

On December 6th, EigenLayer revealed plans for an upgrade to their staking rewards system. This update, set to roll out in January 2025, empowers Active Validation Service providers with the ability to distribute rewards to operators according to their performance.

EigenLayer is presently concentrating on integrating Actively Verified Services and user-centric cryptocurrency apps into its staking system at the moment.

According to Sreeram Kannan, founder of EigenLayer, the missing puzzle in their four-segment market strategy is consumer-focused applications. This strategy also encompasses node operators, services validated by Acrively, and asset restakers.

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2024-12-20 22:51