🧞Why you should learn about based rollups
🔥Book your calendars for EthCC!
GM and happy Monday frens🖖
What a week, huh: Stripe is now supporting stablecoins, Renzo Protocol got laughed at for their distribution pie chart and Polymarket apologised because their socials team used name of the memecoin "Retardio". Real fun, innit?
Now let's get to the serious business:
🤝 Once in a lifetime chance to partner with the best event
🗿 New type of the rollups
📰 This week's news
🔥Book your calendars for EthCC!
We organise L2con - the biggest conference dedicated to Eth Scaling solutions and Infra. Brussels, July 9th.
Aim to gather 800+ participants, mainly developers, engineers, technical founders, researchers. All major L2 projects will be present!
Interested in participating as a partner?
Contact olly@epicweb3.com or dl@epicweb3.com!
🛠️Deep-dive: How based rollups will help Ethereum
Insights from keynote "Based Rollups: The Backbone of the Ethereum Network Effect" by Saniya More, Research & Writing @ Taiko, from Restaking & Infra Day in Dubai. Full version is here.
What are based rollups
A rollup is considered L1-sequenced or based when its sequence is driven by the base L1. Specifically, the next L1 proposer can collaborate with L1 searchers and builders to include the next rollup block in the upcoming L1 block without needing permission.
Essentially, this means that there are no sequencers that are deciding the order of blocks.
So a rollup block can be created at any time, at any rollup time, ensuring the system is decentralized. So anybody can propose any rollup block at any rollup time
The benefits of based rollups
There are 3 main benefits:
They're decentralized as layer-one validators. This means there's no sequencer, no external consensus, no escape hatch, and no single point of failure.
There's liveness. They're as live as the Ethereum beacon chain.
There's credible neutrality: no doubt about decentralization, censoring power, or MEV extraction. Based rollups allow building custom sequenced apps like order books, and they're the most Ethereum-aligned.
The economics of based rollups
So in general, when it comes to MEV, there are three types. There are congestion fees, which currently on Ethereum account for 80% of fees, and these happen on layer two. There's front running or toxic MEV, what a lot of you may know as sandwich attacks.
And then there's arbitrage, which refers to a difference in price, for example, between ETH and USDC. So essentially, you're accumulating fewer fees, but you're keeping the congestion fees. So the economic security of based rollups depends on ETH and not on the rollup token.
The future
Taiko believes that it's the most Ethereum-aligned way forward for scaling. So what is the way forward?
The endgame is to build something called based booster rollups. Essentially, based-booster rollups will shard the execution of transactions and the storage.
Thus, any rollup, whether it's optimistic or ZK, can be boosted.
This adds Ethereum scaling by allowing layer one validators to propose blocks for the whole boosted network. With based rollups, you don't risk losing the network effects that you've already built.
⚡Blitz News
👨🏻💻Cybersecurity Vulnerabilities Threaten Web3 Project Owners As Twitter Account Compromised
🤖NEAR Protocol preps for AI announcements to boost web3
🌱PayPal research proposes greener bitcoin mining
🕹️TikTok parent company explores on-chain possibilities for Web3 gaming
All right, that’s it for today! 👋 But wait…
You didn’t say “gm” on Twitter! Let’s catch up there for daily insights.
Sending growth your way,
Epic Web3