Mamy Ratsimbazafy - How restaking improves based rollup UX

Transcript

hello next up we have mamy Rim baafi who is going to talk about how reaking improves based rollup user experience hi everyone uh I'm Amir Simi I'm the ZK engineering lead at Tao and uh Tao is uh a based boo rollup uh internally we call that bbr or okay so what the agenda today uh first of all uh we start with the challenges of scaling eum I'll talk then about Babs and based L1 validators uh few people have heard about baps yet uh

it's a blog post uh on E research by Justin Drake and it's about how uh we can skip uh sequencers and have L1 validators directly uh participate in L2 two and also accumulate uh value from what's from the value created on L2 then I'll go over a a refresher about reaking so reaking has has been a big topic um and will be a big Topic at def connect so just a quick refresher and uh I'll go over combining both B rollups and reaking to have uh a superpowered um uh rollup that provides uh all the uh uix from centralized sequencer and the

decentralization as well okay so challenges of scaling ethereum I guess everyone knows about uh the blockchain trilemma uh it's there uh to remind you of what it is uh it's about you cannot combine theoretically secure decentralized or scalable well uh essentially theoretically it's more uh that it's very very hard and so far uh uh eum has been uh in between secure and decentralized and the consequence was uh it's slow uh 12 trans um 12 TPS uh maybe 16 TPS with some

improvement uh and the scalability in I think 2020 or 20 yeah 2020 uh there was this um rollup sric road map to provide uh scalability through uh rollup the issue is that um now we have an issue of rollup decentralization uh there are two things that needs to be decentralized for rollup number one is what's called Data availability uh data availability is uh to allow um anyone to reconstruct the transactions uh that allowed a rollup to uh attain a certain State this will be

solved after EIP 4844 for which is the next uh hardfork uh conun and denb uh one of the uh execution uh side and the over on the um consensus side the last one that's not decentralized yet is uh ordering of transactions uh I assume you heard about me uh this is a very very important component um of uh decentralization and we have had a couple of design uh so far uh at first centralized sequencers now uh people the teams doing

centralized sequencers are having a escape hatch to force transactions on L1 even if the centralized sequencer is uh failing for example and we had a couple of failures uh over uh the years and the last one is decentralized sequencers uh things that teams like Espress so asria uh are researching um the other part of uh the impact that scalability has uh if you want to scale is thinking about liveness so is what what makes your network resilient uh how many validators do you

have uh currently on the consensus chain the Bon chain you have almost 900 validators any rollups that launch um right now I don't think they can reach uh almost uh 900,000 uh fast enough and the thing is uh with staking there is so much value to get from staking uh can uh Layer Two uh also uh reach that point the other thing is economic security so if you do uh sequencer centralized essentialize at one point you likely uh want to have a custom token uh but uh this is a loss uh

because you have less economic security than ethereum so how do you fix that uh you use something called based rollups B rollups so there is uh it comes from uh a research post from Justine Drake from the FM Foundation uh he called that uh superpowers from L1 sequencing so uh I'll highlight the definition a rollup is said to be based or L1 sequenced when its sequencing is driven by the Bas L1 so L1 validators the fum consensus more concretely a Bas rollup

is one where the next L1 proposer May in collaboration with L1 Searchers and builders permissionless includes the next roller block as part of the L1 block what does it mean it means uh no sequencer uh this has been also described by uh vitalik in a blog post um if you uh it's called rollup and you can search for Total Anarchy anyone can propose any roller block at any time full decentralization so what are those superpowers that Justin Drake mentioned uh uh first one decentralization uh as decentralized as L1 validators no sequencers no external consensus no

escape hatch no single point of failures you need if you want to stop the rollup you need to stop 900 uh thousands validators livess as live as the eum Bitcoin chain and you have a lot of people uh at the previous talk that talked about uh monitoring the L1 uh validator Set uh we don't have to redo any of this infrastructure for uh uh Bas rollups uh another point is credible neutrality you have no doubt about decentralization I know I've been saying decentralization I think 10 times in the past 10 seconds uh no sensory power and you know that uh compared to a centralized rollup um we uh like Tao for

example but any other this um base rollup cannot extract me it's in the the me is accumulated by the L1 validators uh but it's not um a world Garden so you can still create a custom sequenc app for example an order book uh for Dex uh and finally it's the most eer line you get uh all the free part um security decentralization uh and uh scalability uh let's focus a bit on uh the the economics of a b rollup so uh in terms of me you have three kind one is

the congestion fees so what's burned uh in EIP 1559 uh this stays on L2 and uh currently on ethereum this is like 80% of the fees uh goes to me uh uh sorry goes to EIP 1559 fees then you have two types of me one is a toxic me uh the thing that's called front running uh sandwi attacks um this is like uh half half with Arbitrage uh when you have a difference between uh Oracle price between if and usdc for example uh front running me I think in the long term it's going down to zero uh why because you

have people uh doing uh Unis swap x uh you have uh encrypted uh transaction pools uh um well uh for the end user removing the toxic m is really really important uh so there is a trade-off when you do a b rollup you accumulate less fees but still you keep the congestion fees now maybe you might ask me but what's the point of a rollup if it's congested um well we hope that the more uh so there is this uh Paradox uh that says if you build a road uh soon uh with the new capacity people will come and uh it will be congested again uh hopefully

we can continue uh building uh because a rollup is way less uh uh expensive to deploy compared and to scale uh compared to New Roads uh and I already mentioned that uh the economic security depends on if and not on the rollup token you have uh a lot more info uh on E research and we did uh with' just Sy Drake uh espresso uh that uh are doing a decentralized sequencer flash buts never mind uh a Twitter space um in October uh that you can check out uh it's on YouTube uh to know more about uh B rollups so gives you everything Shut Up

And Take My Money uh actually it doesn't give you everything but I mention reaking first so reaking a a a very short refresher uh it allows L1 stakers to reuse their stake so um either node Runners uh can reuse their stake by changing the withdrawal address to a Smart contract for example uh igon layer uses igon pod uh or you can use a liquid staking tokens uh like Lio or rocket pool uh or conbase Stak token to uh uh for reaking uh for a base rollup

how so weaking you have additional uh rules uh slashing conditions uh but you get uh in exchange additional rewards what do you secure for best rollup so uh the idea is to combine both reaking and B rollup to give you all uh of what a centralized sequencer can do one of the main issue with B rup is that uh and decentralized sequencer is that you cannot guarantee when a transactions will be included into the L1 block uh so when is my transactions people want to know your transactions

will come in 12 seconds will come uh maybe oh it's delayed uh the gas price went up uh it will come in a minute or more so uh the last uh weapon in uh the B rollup uh Arsenal is called base pre confirmation uh and basically you have L1 proposer commit to include a transaction in a block and they use that by um they commit to that with their restak if and if they don't include uh the block maybe because they went offline they are slashed otherwise they get rewarded uh with more and now the uh

base rollup cannot display an ETA just like centralized sequencer that have full control over the ordering now what what what's next um I think most of you could know M boot uh from flash bot which uh is an implementations of uh proposal Builder separation well with B rups uh and uh reaking we can do a precon boost a pre-confirmation market so that uh validators compete um for providing pre confirmation for all the transactions on the layer two which will be um I guess a key uh Innovation for uh some of the

defi uh things uh the other thing is ssle secret share leader election uh so that you have um privacy for proposer uh but also for preon fumers and uh in terms of me I also mentioned this uh in the past front running uh toxic m is going down anyway so uh uh B up uh will be uh really um line with AUM without giving up too much uh of uh

economics and that's it if you have question uh feel free to [Applause] ask questions okay if there are no questions thank you very much and next speaker is in 10 minutes