As an experienced analyst in the blockchain industry, I believe this collaboration between dWallet Network and Espresso holds significant potential to enhance trust and expand the economy of Zk-rollups. The proposed marketplace for rollup sequencing is a groundbreaking approach that could lead to more decentralization and flexibility in L2 networks.
DWallet Network and Espresso, two pioneering blockchain infrastructure startups, have joined forces on a project aimed at enhancing confidence in and broadening the application scope of Zk-rollups. This collaboration could lead to significant advancements in the scalability solutions for decentralized networks such as Ethereum.
Partnership Announced Between Companies: Creating a Marketplace for Rollup Sequencing, Allowing Operators to Sell or Outsource Time Slots for Maximized Decentralization
Rapidly developing off-chain networks like Arbitrum, Base, and Optimism have gained significant attention as effective scalability options for Ethereum’s heavily congested main network. These systems group multiple transactions processed offline into a solitary, consolidated transaction that is periodically uploaded to the Ethereum primary chain.
In simpler terms, rollup systems utilize “batch processors” or “sequencers” to consolidate transactions for transmission to Ethereum. These sequencers determine the arrangement of transactions on the blockchain and authenticate their validity before compressing them into a single package. Upon approval from Ethereum network, these packages are forwarded, earning rewards from the transaction fees paid by L2 network users.
The primary issue is that these sequencers are operated by one entity, frequently the rollup operator itself. This setup raises concerns as it signifies a sole vulnerability in L2 networks. It also amplifies the possibility of transactions being suppressed, and there’s a risk that they could be suspended entirely by regulatory bodies should they choose to disconnect the network from operation.
As a researcher examining the financial landscape of cryptocurrency networks, I’ve come across an intriguing observation regarding Coinbase and their involvement with the Base L2 network. They currently manage the sequencer for this platform, which brings in an estimated annual revenue of approximately $30 million. Given the lucrative nature of this business, it raises the question of potential outsourcing opportunities.
The collaboration between dWallet and Espresso holds potential for an intriguing outcome. At present, they are merely suggesting a possible approach. In this scenario, dWallet intends to employ Zero Trust Protocols secured by cryptographic signatures to transfer the smart contract address that governs rollup sequencing to external parties.
A new and innovative method emerges for establishing a decentralized marketplace where the right to sequence rollups is up for auction. Rollup operators possess the freedom to choose their preferred bidders for specific time slots or relinquish the entire sequencing rights permanently.
“Espresso’s marketplace allows rollups to offer their sequencing rights for sale,” stated Benedikt Bünz, Espresso’s Chief Scientist. “dWallet’s Zero-Trust Protocol (ZTP) could expand this concept further, enabling the entire rollup to be valued and transferred. We look forward to working with dWallet to develop our collective vision of building a safer and more intricate modular blockchain system.”
Espresso serves as a bridge between rollup buyers, seeking to arrange transaction sequences and generate income, and sellers, who are rollup operators. The demand for this service is anticipated due to the confidence rollup operators gain by delegating part of their transaction processing tasks. Furthermore, given its potential profitability, there will likely be numerous investors, including institutions and decentralized autonomous organizations (DAOs), eager to engage in transaction sequencing on their behalf.
According to dWallet’s co-founder Omer Sadika, the establishment of the proposed marketplace will eventually empower market forces to determine the worth of the rollup economy, thereby facilitating a more streamlined market in the realm of modular blockchain.
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2024-06-16 14:08