[Article] Modular Blockchain Report (August, 2023)

Table of Contents

1. Researcher Comment
2. Major Updates
2.1 Arbitrum Bold
2.2 Four Pillars Unveiled Modular Odyssey
2.3 Astria Development Cluster
2.4 StarkWare’s Open-Sourced the STARK Prover, Stone
2.5 Polygon CDK
2.6 Fluent, zkWASM Layer for Ethereum
3. Fundraising
3.1 Delphinus Labs (Source)
3.2 AltLayer (Source)
4. More Reads
4.1 Projects Updates
4.2 Suggested Reads

Researcher

Four Pillars

100y

1. Researcher Comment

The keywords for August can be summarized as 1) RaaS framework, 2) proof system, and 3) zkWASM.

In the RaaS domain, AltLayer raised additional funds, and Polygon released the upgraded version of Supernets, named Polygon CDK. In my opinion, there are too many RaaS projects compared to current applications, but I anticipate the emergence of various rollup networks as infrastructure for easy deployment of rollups becomes widespread.

The proof system is still a major concern for many rollup networks. At one point, there was debate within the community over whether Optimism and networks based on OP-Stack (e.g., Base, Zora, etc.), which still lack a fraud-proof system, can be deemed rollup networks. This underscores how central the proof system is to the core of rollup networks. There were various updates in August, such as Arbitrum unveiling a new decentralized fraud-proof system named BOLD and StarkWare open-sourcing their STARK Prover.

Lastly, zkWASM projects like Fluent and Delphinus Lab received attention in August. While there have been numerous zkEVM projects that create ZKPs for EVM operations, there weren't many zkWASM projects. Rollup networks using zkWASM can deploy smart contracts in languages other than Solidity/Vyper (like Rust, C/C++, Go, etc.) while leveraging the benefits of zk rollups. Not all zk rollups will use EVM in the future, so paying attention and following up on zkWASM is recommended.

2. Major Updates

2.1 Arbitrum Bold

Offchain Labs unveiled BOLD (Bounded Liquidity Delay), a decentralized fraud-proof system. Optimistic rollups can rely on the Ethereum network for security thanks to the fraud-proof system. Currently, only centralized entities can participate in Arbitrum's fraud-proof system. If these centralized entities behave maliciously in the fraud-proof system, delay attacks are most notably possible. This attack maliciously delays the confirmation of results from the fraud proof system to L1. In contrast, in BOLD, various entities can participate, and the network can operate normally even if only a single honest validator exists.

2.2 Four Pillars Unveiled Modular Odyssey

Four Pillars unveiled 'Modular Odyssey', a wiki that lets users see descriptions of numerous modular blockchain projects on one page. Modular projects are classified into Rollup, RaaS, Sequencing, and Data Availability, and the architecture of each project is covered. Later, sections on economics and interoperability in the modular ecosystem will be added.

Modular Odyssey link: https://modular.4pillars.io/

2.3 Astria Development Cluster

Astria, a sequencing project in the Celestia ecosystem, unveiled the Astria Development Cluster. The Astria Development Cluster helps developers easily deploy rollup networks using the Astira Sequencer. These rollup networks use Celestia as the DA Layer and Geth as the Execution Layer and also provide basic features like faucet and block explorer.

2.4 StarkWare’s Open-Sourced the STARK Prover, Stone

StarkWare plans to open-source the STARK Prover under the Apache 2.0 license, renaming it STONE(Starknet One). The STARK Prover is central to the StarkWare ecosystem, generating zero-knowledge proofs for computations. Products built on the StarkEx engine, such as Immutable X, Sorare, and dYdX, have been using the STARK Prover since 2020. Open-sourcing the STARK Prover is expected to enhance transparency and robustness against vulnerabilities as more developers can access the code.

2.5 Polygon CDK

Polygon announced the upgraded version of Supernets, the Polygon CDK. Polygon Supernets is a framework that allows for easy creation of L1, which companies like Nubank and Nexon have used extensively to build their services. The newly unveiled Polygon CDK facilitates easy construction of L2s using ZK technology. CDK Chains will automatically connect to Polygon 2.0's Interop Layer, achieving atomic-like interoperability with other networks in a trustless manner through ZKP. Many services are expected to be easily built on the Polygon 2.0 ecosystem through the Polygon CDK.

2.6 Fluent, zkWASM Layer for Ethereum

So far, EVM has been the most attention-grabbing virtual machine in zk-rollup networks. Given that blockchain built on WASM has garnered significant attention, it's fitting that zkWASM projects would also capture interest. One of the most representative is Fluent, which is developing a zkWASM execution layer for the Ethereum ecosystem. Developers can write smart contracts in WASM-based languages like Rust, TypeScript, C/C++, and Go, rather than languages like Solidity/Vyper, through Fluent.

3. Fundraising

The data was collected from DefiLlama's raises page.

3.1 Delphinus Labs (Source)

Delphinus Lab is a company that provides an SDK solution for app rollups based on zkWASM. Each app rollup generates a zk-SNARK proof for WASM computations, allowing it to rely on the security of the Ethereum network. They can communicate with the Ethereum network in a trustless manner through the ZK-Relayer. The funding amount was not disclosed.

3.2 AltLayer (Source)

AltLayer is a RaaS (Rollup-as-a-Service) project that allows for easy deployment of rollup networks without coding. AltLayer's architecture features a Beacon Layer, responsible for sequencing, interoperability, etc., between the execution and DA layers. The most distinguishing feature of AltLayer compared to other RaaS projects is the Flash Layer. The Flash Layer refers to a rollup network that can be deployed when needed and disposed once its use is over. The funding amount for this round was not disclosed.

4. More Reads

4.1 Projects Updates

4.2 Suggested Reads

Twelve Early Projects Building on EigenLayer

EigenLayer, the restaking protocol of the Ethereum network, has revealed a list of AVSs (Actively Validated Services) participating in its early ecosystem. AVSs are protocols involved with EigenLayer, using security and validators of restaked ETH tokens. The early ecosystem features a total of 12 AVSs: AltLayer, Blockless, Celo, Drosera, Espresso, EigenDA, Hyperlane, Lagrange, Mantle, Omni, Polyhedra, WitnessChain. This article briefly overviews each AVS and how they leverage EigenLayer.

Modular Summit 2023 Recap

This article by Modular Media covers a recap of the Modular Summit 2023, hosted in Paris by Celestia and Maven11. The article includes notable sessions for each modular component (e.g., DA, RaaS, ZK, Interoperability, Sequencer, etc.) and other interesting topics recommended for those who couldn't attend the Modular Summit 2023.

Blobspace 101 by Domothy

With the upcoming Deneb Cancun upgrade of the Ethereum network, there's growing interest in EIP-4844. EIP-4844 introduces a new data space, Blob, to the Ethereum network for storing data of rollup networks. Following the introduction of EIP-4844, there's an expected significant improvement in scalability for rollup networks. This article covers everything about EIP-4844.

Redefining Sequencers: Understanding the Aggregator and the Header Producer by NashQ

Recently, there have been many attempts to decentralize the role of the sequencer, which orders transactions in rollup networks. In this article, NashQ discusses the need to conceptualize the sequencer's role into two components: the Aggregator and the Header Producer. This provides an interesting mental model of sequencing and is recommended for those interested in the topic of sequencing.

Thanks to Kate for designing the graphics for this article.

The author of this report may have personal holdings or financial interests in assets or tokens discussed herein. However, the author affirms that no transactions have conducted using material non-public information obtained in the course of research or drafting. This report is intended solely for general information purposes and does not constitute legal, business, investment, or tax advice. It should not be used as a basis for making any investment decisions or as guidance for accounting, legal, or tax matters. Any references to specific assets or securities are made for informational purposes only and should not be construed as an offer, solicitation, or recommendation to invest. The opinions expressed herein are those of the author and may not reflect the views of any affiliated institutions, organizations, or individuals. The opinions and analyses expressed herein are subject to change without prior notice. In addition, beyond the individual disclosures included in each report, Four Pillars, may hold existing or prospective investments in some of the assets or protocols discussed herein. Furthermore, FP Validated, a division of Four Pillars, may already be operating as a node in certain networks or protocols discussed herein or may do so in the future. Please see below links in the footer for FP Validated's participating network disclosures and for broader disclosure details.

Modular Blockchain Report (August, 2023)