INTER-LINKED@KBW '23 Recap: The Advancement of Blockchain Infrastructure

Introduction

Part 1: Web3 Infrastructure

Part 2: Blockchain Modularity

Closing Thoughts

 

 

 

Introduction

In anticipation of the upcoming Korea Blockchain Week 2023, Xangle organized a side event on September 4, titled Inter-Linked@KBW'23 (Inter-Linked). The event was centered around the advancement of blockchain technology. Inter-Linked provided valuable insights into how various projects, including Chainlink, Cosmostation, Particle Network, Biconomy, Radius, Celestia, Kroma, Espresso System, and Nethermind are actively contributing to the advancement of blockchain infrastructure. In this article, we will delve into the key takeaways from each of these sessions. 

 

Part 1: Web3 Infrastructure

Chainlink: Enabling a truly multi-chain world with CCIP

Chainlink introduced the Cross-Chain Interoperability Protocol (CCIP) as a secure alternative to bridges, aiming to tackle the issue of fragmented liquidity stemming from the proliferation of numerous blockchains. CCIP distributes trust across three distinct networks rather than relying on a single entity. It also incorporates the Risk Management Network solely for security purposes. This achieves greater decentralization and efficient security. Chainlink’s collaborative efforts with traditional financial institutions are geared towards offering a secure pathway for connecting their private chains to public chains via CCIP as they venture into the Web3 market. Their ultimate aim is to catalyze industry-side growth and transform the financial system. Having launched on the mainnet this July, there is undoubtedly a significant journey ahead. We eagerly anticipate CCIP's potential to democratize blockchain, establishing itself as an essential infrastructure for a truly interconnected multi-chain world. To learn more about CCIP, you can explore the Xangle Original article, "Can Chainlink’s CCIP Become a Standard Over LayerZero?"

Source: Chainlink

Biconomy: Enhancing blockchain services user experience with Account Abstraction

Biconomy aims to improve the poor user experience (UX) of current blockchain services through the introduction of Account Abstraction (AA). Biconomy’s modular smart account wallet is designed to offer modularity, enabling users to design distinct wallets tailored to diverse applications. This wallet is stateless, simplifying the upgrade process, and programmable, granting users the flexibility to program transactions the way they want. Taking a closer look at Biconomy's modular SDK stack, it comprises an ERC4337 infrastructure layer, including Paymaster and Bundler, as well as a smart account layer featuring a modular smart contract wallet, social login module, passkey module, and more. Biconomy’s future plan involves standardizing these modules to be compatible with ERC6900, enhance security, and develop an SDK suitable for mobile environments. We are eager to see whether Bionomy can significantly enhance the user experience, addressing one of the biggest pain points in the blockchain space. For further insights on AA, you can refer to the Xangle Original article, "ERC4337, the Epicenter of UX Innovation." 

Source: Biconomy

Xangle: Facilitating Web2 companies’ entry into the Web3 market and fostering Web3 market growth

The Web3 infrastructure has a 15-year history, marked by significant milestones like the emergence of Bitcoin in 2009, Ethereum in 2015, Oracle in 2019, L1 and Optimistic Rollup in 2021, and Modular Blockchain and zkEVM in 2023. Nevertheless, the Web3 ecosystem continues to experience high levels of volatility. Xangle attributed this volatility to the substantial influence of the financial sector within the Web3 ecosystem, which closely tracks market conditions. To address this issue and achieve greater stability, Xangle emphasized the importance of not only involving the finance sector but also integrating traditional industries into the Web3 market. In its commitment to facilitate the entry of traditional companies into the Web3 space, Xangle devised a strategy aimed at fostering the growth of the blockchain market by offering a Web3-specific accounting solution that complies with regulatory standards, implementing a distribution monitoring system, and providing performance analysis metrics for efficient internal operations management. For a more in-depth understanding of Xangle’s new service launch and the background behind it, please refer to the Xangle Original article, "ADOPTION 2023 Part 1: Insight."

Source: Xangle

 

Part 2: Blockchain Modularity

Radius: Solving the Unsolved Challenges of Current Rollups (1)

Radius aims to solve all the open challenges of existing rollups: centralization, unsustainable revenue structure, and low interoperability. It aims to address i) centralization by encrypting the mempool to prevent sequencers from extracting MEVs; 2) unsustainable revenue structure by splitting the blockspace into encrypted and public mempools and introducing a fee mechanism for each mempool to ensure user protection and revenue for rollup operators; and 3) low interoperability by allowing different rollups to communicate and agree on state through a shared sequencer. Radius envisions a truly decentralized rollup that combines user protection, sustainable revenue structure, and interoperability between rollups. Radius' testnet launch is scheduled for Q4 of this year, with a mainnet alpha phase planned for Q1 of next year. For more information on Radius and shared sequencing network, read the Xangle Original article, "Shared Sequencing Network: A Middleware Blockchain for Decentralizing Rollups."

Source: Radius

Espresso Systems: Solving the Unsolved Challenges of Current Rollups (2)

Like Radius, Espresso Systems also aims to address the problems facing rollups. Espresso Systems identifies these challenges as disparities in computations among rollups, as well as the low censorship resistance and MEV monopoly that stem from rollups’ centralized servers. To overcome these hurdles, Espresso Systems has separated the sequencing and availability layers from L1 and introduced a shared sequencer network. This aims to simplify the bridging process between rollups, mitigate the systemic security risks of bridges, and improve interoperability between rollups. Another notable feature of Espresso systems is that it leverages Eigenlayer validators, allowing them to validate the L1 and sequencing layers simultaneously. It will be interesting to see how it progresses ahead in solving these challenges, along with other solutions like Radius. To learn more about Espresso systems and shared sequencing network, read the Xangle Original article, "Shared Sequencing Network: A Middleware Blockchain for Decentralizing Rollups."

Source: Espresso Systems

Kroma: Solving the Challenges of Optimistic and ZK Rollups Simultaneously

Kroma, being built by Lightscale, is an unconventional rollup that combines an optimistic bridge with zkEVM. Kroma adopts this structure to solve problems, such as conventional optimistic rollups’ slow finality and ZK rollup’s EVM incompatibility and high dApp development costs. To this end, Kroma is designed based on the OP Stack and has been developed with a ZK-friendly data structure to ease the transition to ZK rollup in the future. Kroma plans to launch an optimistic rollup mainnet utilizing ZK proofs this month. Other highlights include the onboarding of WeMade's hit game Night Crows in Q4 and the launch of an EVM-compatible ZK rollup testnet around the same time. The mainnet launch is slated for Q2 of next year. For more information on optimistic and ZK rollups, check out the Xangle Original article, " Would Optimistic Rollup Remain as a Viable Candidate Even After ZK Rollup Is Fully Developed?”

Source: Kroma

 

Closing Thoughts

The blockchain industry is facing a bit of a chicken-and-egg situation at the moment. The dilemma lies in determining which aspect should take precedence in driving blockchain’s mass adoption: the development of the infrastructure or the emergence of a killer dApp. While it is true that the focus on infrastructure development has somewhat steered attention away from the development of dApp services, there remains a question as to whether it is the right direction to tilt towards dApp development instead of infrastructure development. Though opinions may vary regarding the prioritization of infrastructure versus dApps, one thing remains undisputed: a killer dApp cannot be created without an advanced infrastructure. With this in mind, this year’s INTER_LINKED@KBW focused on helping Web3 market participants understand the direction of blockchain infrastructure development by presenting various attempts to improve the infrastructure. In wrapping up this article, we hope this has been of some use to you.