The Future of Rollups - Interoperable, Performant and Sovereign

Transcript

for attorning my [Applause] talk my name is Alysia and I'm a sta engineer at espresso systems and today I'll be talking to you about the future of rups they will be interoperable performance and Sovereign So currently we have over three rollups that are scaling ethereum and over 30 billion TBL across these rollups and over 30 Bridges trying to

connect us together but that means we can also say that they're over 30 sequences so what exactly is the job of a rollup sequencer so the sequencer takes the transactions that the user submits it selects them and orders them and sends them in a block on the rollup as well as the ethereum network so in order to understand how sequences work and why we just started talking about sequences in Le twos let's walk through the transaction life cycle on leer one so a user submits a transaction it enters the mempool and then the validator will select the transactions from this meol in such a way to optimize Revenue as well so selecting the higher gas fees and priority fees and then submits that block and then the other validators in the network will then

verify this block based on the protocol rules finally the validators agree and we can say that the blockchain state is final so finality is a state that all blockchains try to get to and this is very important so if we to compare the transaction life cycle in L2 versus L1 we' see that the sequencer is doing what the validator does so the validator selects an ERS transactions and so there's a sequencer the sequencer also submits a batch of transactions to the layer two and also to the layer one but the thing is with the sequencer even though we have the transaction submitted to the layer 2 we still have to wait for final in L1 we still have to wait for those transactions to be confirmed in L1 so then you're thinking okay so layer 2 finality depends on layer one finality

but Layer Two is meant to make transactions faster so how does this work so we have to now distinguish between pre-c confirmations and finality how many of you have heard about a pre-confirmation before okay cool good I'm glad it's not many of you because even for me before working at espresso I never heard about it but yet still we all interact with pre confirmations when we submit a block to the blockchain it takes about 15 minutes 12 to 15 minutes on ethereum for that block to be finalized however when we're interacting with apps and metamask we see that the transaction is confirmed within about 2 minutes so therefore what we get is not actual a final transaction but a pre-confirmation that this will definitely or eventually be finalized so similarly in layer 2os when

you're interacting with the layer two when the sequencer submits the block to the layer two you have a pre-confirmation that this will eventually be finalized L1 this is very important for the rest of the talk so that's why I had to different distinguish between the two so today layer 2s are isolated chains and it makes sense in a way like the first time I had to use a layer two I had to bridge my assets from ethereum to the ROP and that was really confusing to me because I'm like why is it a separate Network I'm thought I'm just meant to be using ethereum but faster so layer twos actually have a completely isolated chain which mean they have a separate m a separate sequencer and at least to some drawbacks such as interoperability we know that it's hard for us to

communicate across these rups and we have slow bridging and centralized Bridges as a result and that is because the layer 2 Chain like if we have two rups that want to communicate with each other they can't do directly first the transaction has to be submitted to L1 we have to wait for finality in L1 which takes about 12 to 15 minutes and then the second rup can read L1 and then see okay I see now it's finalized and then do some other action so let's imagine that we now have a shared sequencer now we'll have one party that is able to verify transactions from multiple chains at the same time so now we can say that I have a pre-confirmation that something that happened in rule up one is also going to now affect something that happens in Ru up to so this can be very advantageous

and we can start dealing with problems that we have around bridging and interoperability and if you you guys were here for the sequencer talk earlier normally if you have a shared sequencer it tends to be a decentralized network it tends to be your blockchain so therefore you can have more cryptoeconomic security guarantees the issue that we had however is that when we spoke to rollups and layer 3es they actually had an issue with sovereignity they would still like to maintain sovereignity over their sequencer so the solution that we came up with is the espresso marketplace where essentially rups have the opportunity to sell sequencing rights on this Marketplace so it's a two-sided Marketplace we have rollups on one side on the other side we have proposal or we like to call some sequencers and they're

able to bid to sequence for one or many rollups at the same time which means these rups will get many benefits such as now they have value creation and capture so essentially we have a bunch of sequencers that are bidding to sequence for one or many rops at the same time these bids will now be given to the rollups and now they have a new Revenue stream and now they're able to attain sovereignity they can choose when they would like their blocks to be sequenced they may not want it to be sequenced by external parties every single time sometimes they may sell sequence sometimes they may not they can also set a reserve price based on how much revenue they normally generate they can decide you know what I'm okay with having external sequences sequence for my chain but I know how much money I

normally make when I sequence for myself so if you are bidding to sequence for my chain for the very least give me this much and we have interoperability increase um enhancements as well like I described previously because it is still a shared sequencer Network and due to decentralization we now have this pre pre confirmations cuz you remember I said the sequence that gives you a pre-confirmation that you can now trust with a higher guarantee because it's part it came from a decentralized network versus a centralized sequence of pre-confirmation which is what we're dealing with today and fast finality is another concept you start hearing many blockchains or not blockchains but many protocols talk about as well and that's essentially the idea that we can now trust these pre-confirmation that we are getting from these sequences because it

comes from a decentralized network and this can be very useful for things like making bridging better and faster so for example at East Denver this year we had our CEO Ben he showed a POC between a cross protocol and espresso systems showing that we were able to bridge in just 7 seconds and two of those seconds was the fast finality achieved on the espresso hot shot finaly layer so three things I want you to know about the future of rups using espresso the espresso Marketplace will help rups not only maximize value but improve user experience because they will not be able to attain things like atomic inclusion and atomic execution now this enhanced interoperability will become a non-negotiable as users we will get used to this concept and we will have more

you know better bridging and faster bridging using the express the fast finality Gadget and then finally developers as well will want to build with rollups who are interoperable or who make interoperable more easy and you know they can take advantage of things like the fragmented liquidity Atomic execution Etc so thank you so much for watching this lightning toour work and if you'd like to learn more about sequencers and the espresso Marketplace check out espresso systems on Twitter myself and melissia Tech and also Varity she's ah head of partnership so if you're a rule up or a bridging foral definitely reach out thank [Applause] you I don't know if I have time for questions

but yeah maybe one question and uh yes and then uh you'll definitely I'm I'm sure you'll be here to uh answer some Curious questions later I think someone is saying no no questions hey um uh