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Blockdaemon Blog
Blockdaemon Ethereum Newsletter || July 2024
Ethereum Newsletter
Jul 11, 2024
By:
Freddy
Zwanzger
&
This month's Blockdaemon Ethereum newsletter discusses trade-offs in the rollup space, the topic of removing centralized sequencers on L2s, and answers the question, "when does exited validator collateral become liquid?"
Trade-offs in the Rollup space
Taking a modular approach allows for different trade-offs regarding security, costs and interoperability for rollups:
Data Availability - Ensuring tx data is broadly available.
Consensus - Determining the sequencing of txs.
Settlement - Enforcing the global state.
Execution - Applying individual state transitions.
With EIP-4844 blobs, the costs for L2s and its users have gone down by 10x. A shared settlement layer (e.g. also L3s settling on their L2) helps with interoperability. For security, you need to consider re-org resistance, censorship resistance, data availability and validity in the context of the use-case, e.g. MyChain native assets vs. bridging from respective L1 vs. bridging to other chains.
Blockdaemon is happy to support your L2 endeavors - institutional or retail oriented, public or private networks!
Inspired by these tweets/threads 1, 2, 3, 4, 5 and L2BEAT
Removing centralized sequencers on L2s
Ethereum’s scaling roadmap is based on roll-ups. These L2 (and L3) blockchains currently generally use a centralized sequencer that sorts the user transactions and submits them to the Ethereum L1. To remove this single point of failure, the general goal is to decentralize this role.
Decentralized Sequencing mainly increases liveliness by having redundant infrastructure. Shared Sequencing furthermore enables cross-chain interactions between L2s opted into the same set. And Based Sequencing actually uses L1 validators to achieve big simplifications of roll-up stacks and maximize decentralization.
The image below lists some topics around this quickly evolving design space - contact us to learn more!
When does exited validator collateral become liquid?
Ethereum validators are most likely ‘unbonded’ in order to do something else with their 32 ETH collateral. But how long does it take to reach the withdrawal address?
It takes “usually < 7 days”. But how does that work, if it currently takes ~9 days for the withdrawal sweep to go around all active validators? For exits, there is statistically only half the time of the withdrawal sweep to account for! Hence when you use half of ~9 days plus a good day protocol delay plus usually hardly any exit queue, we can say it’s usually less than 7 days in total.
The image below is obviously a simplification of these complex processes and formulas, but makes the main points tangible in one chart. Another trade-off in the crypto space - we are happy to help you navigate it!
