EigenLayer: The Evolution of Web Services
As we navigate the shift from the centralized, platform-dependent landscapes of Web 2.0 to the decentralized, user-empowered ethos of Web 3.0, a new architectural layer emerges on the horizon — EigenLayer. You may have heard of restaking, but it’s so much more than that.
What is EigenLayer?
Quoting @13yearoldvc: “EigenLayer is a platform to help launch decentralized networks and PoS systems at 10x speed, ease, security, and distribution”.
While Ethereum provides economic security for smart contract protocols, infrastructures like bridges or sequencers require their own economic security to enable a distributed network of nodes to reach consensus. They can bootstrap their network but it will be super centralized (at least to start) and will cost a lot of money/tokens to onboard external node operators.
This is where EigenLayer steps in; it provides a security layer derived from Ethereum, which infrastructure services can plug into and leverage.
The transition from Web 2.0 to Web 3.0 is similar to moving from traditional web development, where everything had to be built from scratch to modern practices that leverage specialized cloud services like AWS, OAuth, MongoDB, and Stripe. This evolution represents a shift toward open innovation and modular design, where developers can utilize specific, pre-built services to enhance functionality and user experience.
Developer experience will improve significantly when the EigenLayer ecosystem is established
EigenLayer embodies this shift in the blockchain realm, offering a platform where developers can create specialized Actively Validated Services (AVSs) that cater to unique needs. This super modular approach, supports a vast array of hyper-specialized services, mirroring the diverse and interoperable nature of modern cloud-based web development, leading to a rich ecosystem of decentralized applications.
Through providing this platform EigenLayer enables infinite sum games for the Ethereum ecosystem.
Credit to @13yearoldvc for this fantastic thread.
How is it Structured?
The EigenLayer ecosystem comprises three key players, each contributing to the system's integrity and functionality.
Restakers: These are the capital providers who contribute to the ecosystem's security. They use their natively staked Ethereum (ETH) or liquid staked tokens (LSTs) such as stETH, rETH, or cbETH to provide cryptoeconomic security for new protocols built on top of Ethereum. In return for their services, restakers receive protocol fees and rewards, incentivizing the provision of security.
Operators: (Meow, that’s us! 😸) They are responsible for providing validation services, complementing the existing validation mechanisms of the Ethereum network. Operators extend their services to validate transactions and state changes in new protocols under the EigenLayer ecosystem, thus enhancing the network's overall validation capabilities and maximizing the efficiency of capital utilization. This role is vital in ensuring the integrity and reliability of the services built on EigenLayer.
Developers: These individuals or teams leverage the EigenLayer platform to build innovative infrastructure services. By integrating with EigenLayer, developers can harness Ethereum's cryptographic security and decentralized validator set, ensuring their services are robust, secure, and decentralized. This empowers developers to innovate freely while maintaining high standards of security and trustworthiness.
With these in mind, we can see the evolution of the Ethereum blockchain with EigenLayer involved:
Source: EigenLayer Whitepaper
The Core of EigenLayer: Actively Validated Services (AVS)
These services can be broadly split into these categories:
Rollup Services: Ethereum's chosen path to scalability is rollups; rollup services facilitate faster and cheaper transactions. EigenDA the first AVS, and is developed by the EigenLayer team, it’s a data availability service. Its goal is to hyperscale Ethereum by massively decreasing the costs of transactions on rollups while increasing throughput.
Other services under this category include bridges, decentralized sequencing, watch towers, and services addressing Maximum Extractable Value (MEV).Coprocessors: Extending beyond traditional blockchain capabilities, coprocessors within EigenLayer allow for the off-chain execution of complex computations with on-chain trust levels. This includes AI inferences, database queries, and more, marking a significant evolution from rigid smart contracts to more dynamic and intelligent systems, thereby broadening the horizon of blockchain applications. Examples include Ritual and Lagrange.
Cryptography services involve integrating advanced cryptographic technologies to ensure privacy while maintaining verifiability within blockchain operations. Techniques like secure multi-party computation and trusted execution environments elevate the security and privacy standards of blockchain applications. An example is Oasis Protocol.
Proofs: Moving beyond zero-knowledge proofs to include various types of verifiable assertions, such as proof of location (e.g. Witness Chain) and proof of machinehood. These expand the blockchain's capability to interact with real-world data and conditions while ensuring decentralization and privacy.
Ethereum Inclusion Guarantees: A unique offering within EigenLayer's suite, Ethereum Inclusion Guarantees provide predictability and reliability, ensuring transactions and operations achieve finality within the Ethereum network with greater assurance, reflecting a blend of economic and reputational credibility.
Our Support for EigenLayer: A Vision for the Future
Our team's advocacy for EigenLayer is rooted in its potential to redefine the landscape of Ethereum and Web 3.0 services. By embracing EigenLayer, we support a vision of the internet that prioritizes decentralization, user autonomy, and innovation. As solo stakers, these are values we hold close to our hearts.
We believe in the transformative power of EigenLayer and its alignment with the future we aspire to create within the digital realm.
Conclusion: A New Dawn for Web Services
EigenLayer represents a significant milestone in the journey towards a more decentralized, secure, and user-centric web. It offers a framework that not only enhances the Ethereum ecosystem but also sets new standards for developing and deploying web services. As we continue to support and integrate EigenLayer's innovations, we pave the way for a future where digital services are more accessible, equitable, and aligned with the values of Web 3.0.
Through the lens of EigenLayer, we witness the maturation of the digital world, transitioning from the restrictive and centralized models of Web 2.0 to the open and collaborative horizons of Web 3.0. Our commitment to EigenLayer is a testament to our dedication to this new digital age, where technology serves as a bridge to a more connected, empowered, and innovative global community.