DEVELOPMENT
Key findings
- The prevalence of Level 2 (“L2”) implementations is on the rise, reaching unprecedented levels of activity. Numerous emerging L2 accumulation packages are opting for the development prowess of the OP Stack (Optimism Stack).
- The OP Stack stands as an open-source software development stack designed to bolster the OP Mainnet, enabling the creation of novel L2 solutions. Comprising various modules, this stack offers the flexibility to tailor and configure individual L2 tiers.
- Optimism envisions a decentralized future with a network of L2s that share security and a communication layer, all constructed using the OP Stack. This visionary concept is aptly named Superchain.
- Among the recent additions to the OP Stack L2 landscape, Base has emerged as one of the most popular. Examining the metrics reveals that Base outshines other OP Stack blockchains (excluding OP Mainnet) in terms of aggregate unique addresses and transactions.
- Zora, a dedicated NFT-focused L2, and the Public Goods Network, backed by Gitcoin and oriented towards general-purpose L2 for public goods, operate seamlessly on the core network. Meanwhile, Mode (general purpose), DeBank Chain (SocialFi), and Ancient8 Chain (gaming) are presently active OP Stack blockchains in the test network.
- Conduit’s innovative “savings packages as a service” (“RaaS”) platform plays a pivotal role in this unfolding narrative, forming partnerships with Zora, Public Goods Network, Mode, Ancient8, and others. Notably, Conduit’s recent integration with AltLayer OP Stack is poised to make substantial contributions in the forthcoming months.
Introduction
We find ourselves in the epoch of Layer-2 (“L2”) accumulation bundles, witnessing unprecedented activity within Ethereum’s L2 ecosystem.
Amidst a recent surge of L2 revelations, it’s noteworthy that a significant number of them have leveraged Optimism’s open-source software development stack, known as OP Stack. This versatile stack not only supports the well-established Ethereum L2, OP Mainnet, but also serves as the foundation for newcomers like Base and Zora. Optimism paints a future where these accumulation bundles, in conjunction with countless others, coalesce to construct a decentralized L2 blockchain network—the envisioned Superchain.
Within this document, we delve into the intricacies of the OP Stack and the Superchain hypothesis. Subsequently, we scrutinize the expanding OP Stack ecosystem, featuring entities such as Base, Zora Network, DeBank, and others. Additionally, we examine the infrastructure solutions that democratize access to this wave of OP Stack blockchains, making them accessible to developers of varied backgrounds.
Figure 1: The average number of transactions per second (“TPS”) of L2 has surpassed that of Ethereum since the end of 2022.
Source: l2beat.com, Binance Research, as of September 16, 2023.
Optimism Refresher Course
Optimism stands as the driving force behind OP Mainnet, the Ethereum Virtual Machine (“EVM”), representing an optimistic accumulation solution that has been in existence since 2021 and stands as a prominent Ethereum L2 offering.
At the time of this composition, the Total Value Locked (“TVL”) on OP Mainnet surpasses an impressive $2.6 billion, securing its position as the second-largest Ethereum L2 solution in terms of market capitalization, commanding over 25% of the market share.
In a pivotal move in October 2022, Optimism introduced OP Stack, characterizing it as “a modular open-source project for scalable and interoperable blockchains of all kinds.” This release marked a transformative shift in their design philosophy and vision for Ethereum scalability, extending beyond the confines of their initial optimistic accumulation solution. It also introduced the concept of the Superchain, a collective of highly integrated and unified L2 blockchains constructed on the OP Stack framework. The subsequent milestone in Optimism’s progressive vision involved migrating their flagship L2 accumulation suite to Bedrock, the inaugural official release of the OP Stack. This transition brought about numerous operational and user-centric improvements to the product.
Figure 2: OP Mainnet is the leading Ethereum L2 solution.
Source: l2beat.com, Binance Research, as of September 19, 2023.
Figure 3: An abbreviated timeline of Optimism’s journey to date.
OP Stack
OP Stack stands as a standardized and openly accessible development stack, constituting a software suite that provides support for OP Mainnet. This comprehensive stack comprises various software components, or modules, forming the foundation for the L2 Optimism accumulation package. Its purpose extends to facilitating the creation of a network consisting of shared, interoperable, and coordinated sets of L2 blockchains.
Crucially, OP Stack is a dynamic concept, evolving in tandem with the growth of Optimism itself. Essentially, it functions as a Build-an-L2 Supermarket, streamlining the process of L2 blockchain creation.
The OP Stack’s architecture encompasses distinct conceptual layers, each housing modules tailored to fit within. Noteworthy layers include the Data Availability (“DA”) layer, determining the publication destination for raw input data in OP Stack blockchains. The Ethereum DA module, a widely employed choice in OP Mainnet, is complemented by Celestia’s alternative DA layer, currently in beta testing.
Additional layers within the OP Stack include the sequence layer, derivation layer, execution layer, settlement layer, and management layer. A comprehensive breakdown of each layer is available in our recent report, “The Evolution of Layer 2: Superchain, L3, and More.”
Crucially, builders can effortlessly modify existing modules or create new ones to suit their specific requirements. OP Stack essentially deconstructs the various components essential for L2 construction, packaging them as individual modules. Builders can then amalgamate the most fitting modules to craft their unique L2 solutions. Optimism envisions a surge in highly interoperable L2 layers, referred to as OP blockchains, culminating in the eventual emergence of Superchain, as elaborated in the detailed discussion below.
Advantages of OP Stack
Optimism has consistently directed its efforts towards harmonizing with Ethereum, and in this vein, the OP Stack stands as an inclusive development toolkit equivalent to the Ethereum Virtual Machine (EVM). This approach offers a range of pivotal benefits crucial for realizing the potential of a future Superchain.
Extensibility: The OP Stack code is meticulously crafted with the anticipation that other developers will leverage and build upon it. Embracing an open-source and modular approach, their code facilitates easy utilization by other developers, ensuring that Ethereum Improvement Proposals (“EIPs”) and forthcoming updates can be seamlessly implemented.
Simplicity: Rooted in the belief that complex code hampers scalability, Optimism prioritizes simplicity in their coding practices. They opt for battle-tested, existing code, exemplified by their decision to utilize the Geth fork as the default OP Stack runtime client—a codebase with years of testing on the Ethereum platform. This commitment to simplicity serves as a safeguard, minimizing vulnerability to potential bugs and attacks.
Familiarity: Leveraging the familiarity of existing Ethereum developers with the OP stack, Optimism aims to ensure a relatively straightforward transition for developers accustomed to Ethereum and its codebase.
Client Diversity: The OP stack supports multiple client implementations, fostering security and agility benefits. Notable instances include the network launch of OP-Erigon, an alternative execution client for the OP stack, and the announcement of Magi, an alternative minimization client for the OP stack.
Superchain Thesis
Optimism’s forward-looking vision revolves around elevating its ecosystem to the realm of Superchain. Conceptualized as a decentralized network of L2 blockchains, termed OP Chains, the Superchain is designed to share a unified security infrastructure, communication layer, and an open-source technology stack (OP Stack).
These standardized blockchains are intended to function interchangeably, fostering full interoperability. This standardization empowers developers to create applications targeting the Superchain as a cohesive entity, transcending the confines of individual blockchains. It’s crucial to recognize that the Superchain is currently in the conceptual stage and is actively under development, with the Optimism team acknowledging it as a journey spanning several years, if not a decade.
Figure 4: Visual representation of Superchain.
Unlocking the Potential of Superchain
- Fortified and Secure Code Base: The proliferation of blockchains within Superchain, each actively contributing to the modular and standardized code base, fortifies the entire system. Through successive iterations and developments of this shared code, the framework becomes more streamlined and resilient against potential attacks and bugs. In an era marked by frequent hacker attacks and security breaches, this intrinsic strength stands out as a significant advantage of the Superchain framework.
- Atomic Cross Composability: Superchain introduces the concept of seamless transactions across different OP blockchains simultaneously, eliminating the need for bridges or intermediaries. Despite being composed of multiple blockchains, end-users experience a unified blockchain interface. This innovation could lead to practical enhancements such as universal blockchain observers (replacing the need for distinct explorers for each blockchain) and the elimination of network switching when utilizing applications, streamlining user experiences within platforms like MetaMask.
- Ethereum Common Infrastructure: Superchain simplifies the developer experience by providing a common infrastructure aligned with Ethereum standards. This seamless alignment enables existing Ethereum developers to transition effortlessly to building OP Chains, ensuring continuity and ease of adaptation.
OP Stack Hacks
In the OP realm, blockchains contemplating the replacement of standardized modules with experimental alternatives are labeled as “Hacks.” While these endeavors may deviate from OP Stack compliance, potentially introducing security vulnerabilities or disqualifying them from joining the Superchain, they offer a valuable opportunity for developers to experiment and innovate. One noteworthy experiment is OPCraft, employing a modified EVM at the runtime level to craft a 3D voxel game entirely on the blockchain. Another example is the Optimistic Game Boy, where developers substituted the runtime engine with a Game Boy emulator, showcasing the creative potential inherent in these experimental ventures.
Optimism Collective, Retroactive Funding for Public Goods and More
Optimism envisions the Optimism Collective as a dynamic alliance comprising companies, communities, and individuals collaborating to both reward public goods and foster a sustainable future for Ethereum. Embedded in Optimism’s governance model is the “impact = profit” axiom, a foundational element of their vision. This principle posits that individual profit should be derived from positive contributions to the collective.
The Optimism Collective specifically addresses the misconception that public goods cannot be profitable, a belief that often dissuades builders from engaging in such projects due to challenges in securing payment. Public goods, defined as non-excludable and non-competitive goods or services, present funding difficulties as their use cannot be restricted, and individual use does not diminish others’ access. Typically underfunded, public goods, like roads and public parks, are often left to governments rather than private businesses. Optimism aims to shift this paradigm and expedite the development of public goods for Optimism and Ethereum through a unique model—retroactive public goods funding (RetroPGF).
RetroPGF operates on the premise that recognizing the utility and creators of past contributions is simpler than predicting future usefulness and identifying the best team to create it. This approach not only facilitates agreement on value but also provides an incentive for initial investors to support public goods development, analogous to the way an Initial Public Offering (“IPO”) motivates investors to fund startups. To date, two rounds of RetroPGF have been successfully completed, allocating $1 million to 58 projects in the first round and $10 million in $OP tokens to 195 unique projects in the second. The third round, currently underway, is set to allocate $OP 30 million tokens.
Optimism’s governance structure involves a collaboration between the Optimism Foundation and the Optimism Collective. The Foundation serves as the custodian of the Collective, supporting its establishment, ecosystem development, and technological foundations. Management of the Collective is shared between the Civic House and the Token House. The Token House, formed post the initial $OP token distribution, comprises token holders empowered to vote on diverse proposals, including management grants and protocol updates. Meanwhile, the Civic House, composed of token holders defined by the Optimism Foundation, plays a pivotal role in voting on the RetroPGF distribution, with its responsibilities expected to evolve over time.
Figure 5. The RetroPGF utility cycle
Blockchain Governance Framework
The Governance Framework for Blockchains, abbreviated as LoC, serves as a pivotal document outlining the foundational principles governing both Optimism and Superchain. As Optimism’s governance evolves from overseeing a singular blockchain to managing a standard shared by multiple blockchains, the LoC establishes a comprehensive framework for effective and impartial governance.
This document categorizes stakeholders within Superchain and delineates the protections and expectations applicable to each category. Importantly, the LoC exclusively pertains to OP Stack blockchains that have willingly joined Superchain, aiming to ensure ongoing interoperability among participating entities.
It’s crucial to emphasize that the LoC functions as a social contract rather than a legal one. The current version, V0, is open for community discussion [link to discussion]. This approach underlines the participatory and collaborative nature of the governance model.
The Expanding OP Stack Ecosystem
Since the introduction of Bedrock in June 2023, the landscape has witnessed the emergence of several OP Stack-based accumulation packages. This section delves into some of the noteworthy projects within this expanding ecosystem, shedding light on their significance. Additionally, we explore key infrastructure projects contributing to this evolution.
Analyzing the metrics for the top OP Stack blockchains, Base stands out with remarkably high numbers, surpassing even OP Mainnet in cumulative unique addresses. The success of Base can be attributed in part to its summer event on Base Onchain, coupled with its integration with Coinbase and access to its substantial user base.
It’s worth noting that among the projects discussed, OP Mainnet, Base, Zora Network, and Public Goods Network have transitioned to the mainnet, while the remaining projects are still in the test network phase. This dichotomy reflects the diverse stages of development within the dynamic OP Stack ecosystem.
Figure 6: Key metrics for the most prominent blockchains in the OP stack.
Famous Projects
Blockchain Governance Blueprint
The Blockchain Governance Blueprint, commonly known as LoC, serves as a cornerstone document elucidating the fundamental principles steering both Optimism and Superchain. As Optimism’s governance transforms from overseeing a single blockchain to orchestrating a standard embraced by multiple blockchains, the LoC lays the groundwork for a comprehensive framework fostering effective and unbiased governance.
Within this document, stakeholders in Superchain are meticulously categorized, with clear delineation of the protections and expectations allocated to each group. It’s paramount to recognize that the LoC exclusively applies to OP Stack blockchains that voluntarily join Superchain, with the primary objective of ensuring ongoing interoperability among participating entities.
Crucially, the LoC functions as a social contract, distinct from a legal agreement. The present version, V0, is actively open for community discussion, underscoring the inclusive and collaborative nature of the governance model.
The Expanding Horizon of the OP Stack Ecosystem
Since the unveiling of Bedrock in June 2023, the landscape has borne witness to the emergence of numerous OP Stack-based accumulation packages. This section navigates through some standout projects within this burgeoning ecosystem, offering insights into their significance. Additionally, we delve into pivotal infrastructure projects instrumental in propelling this evolutionary phase.
Upon scrutinizing the metrics for top OP Stack blockchains, Base emerges prominently with remarkable figures, surpassing even OP Mainnet in cumulative unique addresses. The triumph of Base can be attributed, in part, to its engaging summer event on Base Onchain and strategic integration with Coinbase, tapping into its substantial user base.
It’s noteworthy that among the projects discussed, OP Mainnet, Base, Zora Network, and Public Goods Network have successfully transitioned to the mainnet. In contrast, the remaining projects are currently navigating the intricacies of the test network phase. This juxtaposition encapsulates the diverse stages of development inherent in the dynamic OP Stack ecosystem.
Figure 7: After the initial excitement in mid-August, daily transactions on friends.tech slowed significantly before interest picked up in the last couple weeks.
Source: Dune Analytics (@cryptokoryo), Binance Research, as of September 17, 2023.
Figure 8. Since the launch of the core network in early August, Base’s user numbers have grown significantly in September.
Source: Base blockchain observer, Binance Research, as of September 19, 2023.
Zora Network Unveiled
Zora stands as an open and decentralized protocol empowering individuals to engage in the buying, selling, and creation of NFTs. At the heart of this decentralized landscape is Zora Network, a distinctive OP Stack L2 meticulously crafted to enhance user support and minimize platform costs. In stark contrast to many L2s predominantly tailored for decentralized finance (“DeFi”), Zora Network positions itself as an L2 prioritizing NFTs. This unique platform officially launched on June 21, 2023.
Overview
The cost of creating an NFT on Zora Network is economically efficient, clocking in at less than $0.50 USD, and users can avail themselves of free mints on the platform.
One standout feature of Zora Network is the significant reduction in block time, with Ethereum blocks taking 12 seconds and OP Stack blocks, post-Bedrock release, taking only 2 seconds. This accelerated block time translates to transactions on the Zora network being confirmed within seconds, delivering an enhanced user experience for NFT traders.
Key Feature
A noteworthy addition to Zora Network is its Rewards protocol, a mechanism enabling creators and developers to earn rewards on the network. The per-mint fee, originally charged solely to collectors ($0.000777 ETH), is now divided among Zora, creators, and developers. Users can earn rewards for each minter of their NFT collection and receive incentives for recommending others to monetize or create their collections. The first minter of each NFT collection also stands to gain a small reward.
Token Standards Support
Zora extends support for both the ERC-721 and ERC-1155 token standards. ERC-721, renowned as the most popular NFT standard, designates each token as unique and one-of-a-kind, making it ideal for one-off and distinctive 1-of-1 NFT collections, such as the unique features and rarity of each CryptoPunk.
In contrast, ERC-1155 introduces greater flexibility and versatility, amalgamating the non-interchangeable ERC-721 and the interchangeable ERC-20 standards. This standard accommodates interchangeable, semi-interchangeable, and non-interchangeable tokens, suitable for representing a diverse range of assets. Additionally, ERC-1155 facilitates batch transfers, reducing network congestion and lowering gas costs, making it a preferred choice for issuing NFT-related works like music albums, cover art, and lyrics.
Funding
Zora has successfully secured $60 million in three funding rounds, including a noteworthy $50 million round in 2022 led by Haun Ventures. This funding round, valuing the company at $600 million, attests to the substantial support and confidence garnered by Zora in its journey.
Figure 9. Zora Network’s user numbers have been growing steadily since late July.
Source: Zora Network blockchain reviewer, Binance Research, as of September 19, 2023.
Public Goods Network
The Open Goods Nexus (“OGN”) stands out as an L2 network meticulously tailored to champion public goods.
Public goods, as delineated earlier, are characterized by their non-excludable and non-competitive nature, where usage by one individual does not impede access for others. Analogous to everyday examples like public parks, libraries, and road infrastructure, in the digital realm, public goods encompass open-source software, permission-less data, artificial intelligence models, and open standards.
The dynamic development of OGN has been spearheaded by Gitcoin and SuperModular, with active collaboration from prominent public goods advocates like Public Nouns, Clr.fund, Hypercerts, among others. This collective effort coalesces into the Public Goods Alliance, serving as the governing and organizational body for OGN.
Following the test network rollout in early July 2023, OGN officially launched its network on July 25. Gitcoin has intriguingly positioned this venture as a minimum two-year experiment.
Operational Mechanism:
According to OGN’s documentation, the majority of net sequencer fees will be directed towards the Public Goods Network. This means that increased activity on OGN’s L2 will result in a proportional accumulation of funds for public good projects.
PGN aspires to be a hub for various dApps to deploy on its L2, extending beyond public goods projects. An example of this inclusivity is the integration of the Zora NFT trading platform into the PGN ecosystem.
Six months post-network launch, in January 2024, PGN plans to assess the commissions received and allocate them to public goods projects based on cumulative data. Further details on this evaluation process are anticipated in the upcoming weeks.
PGN also has strategic plans to leverage Contract Secured Revenue (“CSR”) post-October 2023. CSR allows developers to claim a percentage of the transaction fees their contracts generate, fostering the creation of sustainable business models.
Noteworthy is the potential expansion of CSR across the broader L2 landscape, with an Ethereum Improvement Proposal (“EIP”) draft proposing an EVM-based implementation of CSR on L2.
Gitcoin’s Impact:
Gitcoin has been a prominent player in the public goods arena since 2017, dispersing over $50 million to support related projects.
Their Gitcoin Grants Program, initiated in 2019 and conducted quarterly, remains a flagship initiative. Implementing the Quadratic Funding (“QF”) crowdfunding distribution mechanism introduced by Vitalik Buterin in 2018, Gitcoin Grants facilitates community contributions to projects deemed worthy of funding, with matching funds from partners like 1inch, Coin Center, and Optimism, providing essential financial backing.
Figure 10. PGN user numbers grew steadily in August. While the number of new accounts slowed in September, the number of transactions continues to grow.
Source: PGN Blockchain Observer, Binance Research, as of September 19, 2023.
Approach
Positioning itself as the catalyst for swift expansion, Mode declares, “L2 is built for rapid growth,” with a primary focus on directly acknowledging the contributions of users and developers. Their strategy involves incentivizing revenue sharing, an integral element in fostering a thriving ecosystem.
The operation of an L2 entails running a sequencer responsible for sequencing transactions, processing them, and transmitting them to the parent L1. Users pay a transaction fee to the L2 for this service, usually directed towards the DAO or the company utilizing the sequencer as revenue. However, Mode’s distinctive approach involves redistributing these sequencing fees to developers and users actively contributing to the network’s growth.
To delve deeper into the intricacies of sequencers and L2 pooling, refer to our recent analysis: “Ethereum’s Accumulative Packets are Centralized – A glance at decentralized sequencers.”
Contract-Secured Revenue (“CSR”):
Mode’s developers stand to receive a share of sequencer revenue tied to transaction fees resulting from contract deployments, paid out in $ETH every two weeks.
On September 12, 2023, Mode introduced version V0.1 of the Sequencer Fee Sharing Module (“SFS”). In this version, an offline module is employed to ascertain the allocation and distribution of fees. Anticipated for release in the fourth quarter of 2023, version V1 will incorporate smart contracts, establishing a fully blockchain-based process.
Developers have the option to create an NFT during the smart contract registration process with Mode, ensuring sequencer rewards are attributed to that specific NFT. This allows for the accumulation of rewards from multiple smart contracts under the same NFT.
The overarching aim is to instill predictability and scalability into Mode’s development process, catering to developers seeking to establish sustainable Web3 business models.
This approach directly rewards developers for their contributions, fostering active engagement in network development.
“The goal is to make the creation of Mode predictable and scalable, which is great for developers who want to create sustainable Web3 business models.”
Referral Revenue:
Mode extends revenue-sharing opportunities to any user, developer, or protocol that refers new members to the platform. This incentivizes the organic growth of the network through referral-generated transaction fees.
Developer Support:
Committed to aiding developers in application development, Mode aims to integrate growth tools within its protocol. Drawing inspiration from successful Web2 platforms like Shopify, Mode seeks to empower developers to build thriving businesses through its ecosystem.
Mode adopts a platform-oriented approach, currently developing a developer dashboard. This dashboard will furnish crucial metrics, such as deployed contracts, generated transaction fees, and the percentage of commissions achievable through CSRs. Grants ranging from $10k to $100k, along with broader startup support in Mode or via Superchain, will also be provided.
Integration of external tools and services into the dashboard will facilitate developers in scaling efficiently. Examples include Spindl (Web3 analytics), Guild (community management), Galxe (community building), Addressable (Web3 advertising), among others.
Mode DAO:
To streamline governance, Mode is minimizing the DAO’s involvement, limiting its voting scope to key issues. Decisions include determining the allocation of revenue from sequencer commissions for online referrals between users and developers.
Next Steps:
Currently in a public test network phase until the end of September, Mode is gearing up for the Mainnet launch in the fourth quarter of 2023.
Figure 11. The number of Mode transactions is approaching 4 million and the number of unique accounts exceeds 36,000.
Source: Mode Blockchain Observer, Binance Research, as of September 19, 2023.
DeBank Unveils Pioneering Web3 Portfolio Tracking
DeBank, an innovative Web3 portfolio tracking protocol, recently revealed its OP Stack-based L2 blockchain’s test network launch. Anticipated for a full-scale debut in 2024, the DeBank network introduces a range of products, with its primary offering being a comprehensive portfolio tracker. DeBank distinguishes itself by monitoring user tokens, DeFi assets, and NFT holdings across major EVM-compliant blockchains and wallets, offering invaluable analytics to streamline portfolio management.
Embracing a social dimension, DeBank incorporates the DeBank Hi Web3 messaging service and the DeBank Stream social interface. The platform introduces an NFT “Web3 Badge” as a reward for blockchain activities, along with features like “Web3 Social rating,” community polls, votes, and advanced tracking tools for significant transactions, popularly known as “whale” tracking.
DeBank’s Blockchain Initiative
A core objective of DeBank’s blockchain initiative is to curtail transaction costs within its ecosystem. Specifically, the focus is on reducing expenses related to actions like NFT minting and interactions through the social media interface. The development team highlights a substantial reduction in gas costs for individual transactions, achieving a remarkable 100-400 times improvement after tweaking the consensus mechanism. This exemplifies the flexibility afforded to developers when crafting their L2 blockchain, a freedom not readily available at the L1 level.
The team underscores that the consensus-level modification is a prime illustration of the latitude developers enjoy in tailoring their L2 blockchain for specific products. In contrast, deploying at the L1 level would not permit such protocol-level adjustments.
DeBank Chain’s Innovative Features
DeBank Chain incorporates account abstraction (“AA”) features directly into its protocol. A detailed exploration of AA can be found in a recent report dedicated to the concept.
As an L2 protocol, DeBank Chain, steering the sequencer, becomes a revenue generator for the platform. Noteworthy examples include Base, amassing over $2,900 in $ETH since its launch, and the Zora network, securing approximately $371 in $ETH.
User Statistics Showcase Growth
Since the test network’s inception on August 11, 2023, DeBank Chain has recorded a substantial surge, witnessing over 2.1 million transactions spanning more than 50 thousand unique wallet addresses. This user engagement underscores the platform’s growing prominence and the appeal of its multifaceted offerings within the Web3 landscape.
DeBank has over 250 thousand registered users.
Figure 12. The DeBank Stream product has a traditional social networking look and feel.
Ancient8 Unveils a New Horizon in Web3 Gaming
Since its establishment in 2021, Ancient8 has evolved into a prominent gaming guild, forging partnerships with over 100 games and guiding more than 200,000 gamers on their Web3 gaming odyssey. Notably, Ancient8 holds the distinction of being the largest gaming guild in Vietnam, a testament to its widespread influence in the gaming community.
Positioning itself as a GameFi infrastructure developer, Ancient8 places a strong emphasis on community and software development. The guild’s notable initiative, boasting over 3,500 “scholars,” has become a cornerstone of their success.
In their commitment to promoting Web3 gaming, Ancient8 has collaborated with popular titles like Axie Infinity and Phantom Galaxies. The guild consistently reveals new partnerships, contests, and events through its official blog, fostering an ever-expanding network of gamers.
Ancient8 goes beyond mere collaboration; it actively assists gamers in discovering high-quality Web3 games, providing access to guild scholarships, imparting blockchain knowledge, and supporting them on their Web3 gaming journey. The recent announcement from Ancient8 marks a strategic move to offer game developers a scalable, EVM-compatible, and interoperable platform, paving the way for the creation of next-generation Web3 games.
The Ancient8 Ecosystem
At the core of Ancient8’s vision is the creation of a comprehensive gaming ecosystem that covers all facets of game development and marketing, from inception to promotion. The existing Ancient8 ecosystem already integrates with five key partners, providing valuable support for game developers:
1. Dojo: A platform facilitating NFT sales launches for Web3 game projects within Ancient8.
2. PlayNation: A gaming community hosting online and live events, contributing to game localization efforts.
3. EKO ID: Enabling the creation of game identities and credentials in the Ancient8 ecosystem.
4. Space3: An online gaming community and loyalty platform, enhancing user customization.
5. Gosu Network: A DAO for content creators, offering marketing support for projects.
6. Ancient8 Collective and Foundation
The Ancient8 Collective comprises eight core partners, distinguished leaders in the Web3 gaming sphere. This collective effort contributes to the co-creation of the Ancient8 ecosystem. The Ancient8 Foundation plays a pivotal role in facilitating the implementation of the Ancient8 network and its decentralized governance. Currently, the Foundation is extending grants ranging from $50,000 to $500,000 for projects within the Ancient8 ecosystem that contribute to its development.
Funding and User Engagement
Having successfully secured a total of $10 million in funding across two rounds in 2022, Ancient8 stands well-positioned for its ambitious endeavors. Despite the test network’s recent launch, Ancient8 has already witnessed remarkable engagement, with over 2 million transactions recorded across nearly 5,000 unique accounts in just a few days. This early traction underscores the enthusiasm and potential of the Ancient8 community within the evolving landscape of Web3 gaming.
Figure 13: Ancient8 Chain’s test network is just getting started.
Source: Ancient8 Chain blockchain observer, Binance Research, as of September 19, 2023.
Infrastructure
Conduit Unleashes a Revolutionary “Federation as a Service” Platform
Enter Conduit, a groundbreaking “federation as a service” (“RaaS”) platform designed to empower developers in effortlessly running their own OP Stack. The Conduit team takes charge of managing and maintaining the federation, liberating developers to channel their energy into building innovative products rather than grappling with infrastructure intricacies.
Since its core network’s inception in March 2023, Conduit has formed strategic partnerships with various OP Stack blockchains, including notable entities like Zora Network, Public Goods Network, Ancient8, and Mode, all choosing Conduit as the launchpad for their accumulation suites.
What Can Conduit Facilitate?
Conduit serves as a comprehensive solution for launching and maintaining OP Stack L2 accumulation packages. Traditionally, crafting an application-specific accumulation package demands weeks or months of development and engineering effort. However, with Conduit’s pioneering solutions, developers can deploy L2 within mere minutes, streamlining the entire process.
Conduit deployments come equipped with essential features such as a block browser, transaction tracers, autoscalable RPCs (critical for dApp development), logs, and blockchain monitoring, ensuring a seamless operational experience.
Additionally, the Conduit team undertakes the responsibility of automatically updating each L2 partner with the latest OP Stack codebase, seamlessly integrating them into the Optimism Superchain whenever feasible.
Incentives for L2 Launches with Conduit
Teams opting for Conduit enjoy the added benefit of earning a share of sequencer and MEV fees. Furthermore, a portion of these fees contributes to supporting community benefits, as Conduit allocates donations to the Optimism Collective.
Conduit’s Integrations
The platform’s integrations play a pivotal role in connecting partners to other vital infrastructure projects. Noteworthy examples include Token Terminal, Zora, Axelar, Snapshot, and more. These integrations significantly enhance Conduit’s versatile infrastructure, facilitating post-launch expansion of user bases effortlessly.
Securing Support and Investment
In a testament to its promising potential, Conduit has successfully raised a seed round of $7 million, with Paradigm leading the investment charge. This financial backing underscores the industry’s recognition of Conduit’s transformative approach and its significant role in reshaping the landscape of OP Stack deployment and management.
Figure 14: Conduit works hand-in-hand with OP Stack.
AltLayer Emerges as a Dynamic RaaS Protocol for Web3 Accumulation
In the realm of Web3 accumulation, AltLayer takes the spotlight as a robust RaaS protocol, providing developers with the means to launch optimistic accumulation packages. Uniquely tailored for a multi-blockchain and multi-VM environment, AltLayer goes beyond conventional support, accommodating both EVM and WASM (utilized by platforms like Cosmos and Polkadot). Future plans for AltLayer include extending support to the Solana virtual machine (Sealevel) and the Move virtual machine.
Distinguishing itself from Conduit, AltLayer stands out by offering compatibility with various software development platforms. While Conduit concentrates on the OP stack, AltLayer widens its scope to encompass support for Arbitrum Orbit, Polygon zkEVM, and other platforms adjacent to the OP stack.
As AltLayer currently undergoes testing on its network, its product offering unfolds across three pivotal components:
No-Code Control Panel: A user-friendly interface empowering developers, or even those with limited programming experience, to swiftly deploy customized L2 layer storage packages. This customization spans network-level parameters (e.g., sequencer count) and blockchain-level features (e.g., gas limits), along with middleware such as bridges and RPCs.
Rollup SDK: Catering to developers who prefer a code-centric approach, AltLayer offers a Rollup SDK as an alternative to the no-code control panel. This SDK allows seamless integration of the service directly into developers’ offerings.
Common Sequencer Set: AltLayer employs a common network of nodes known as the Beacon Layer, serving as a shared set of sequencers for deploying L2 packets. This facilitates inter-blockchain atomic transactions and messaging with other L2s leveraging AltLayer.
Beacon Layer:
The Beacon Layer operates as an intermediary between the L2 execution layer and the data availability layer. Providing various services, including a common consistency layer, verification layer, rate/cutting layer, and interaction layer, the Beacon Layer ensures each AltLayer rollup can be verified and connected through a minimum trust level bridge.
Flash Layer Rollups:
Introducing Flash Layer rollups, AltLayer innovates with single-use rollup packs designed for specific applications. These ephemeral rollup packs are ideal for scenarios anticipating a surge in traffic, such as NFT mini-events, mini-games, or ticket sales. By swiftly creating and disposing of temporary accumulation packs, Flash Layers prevent L1 congestion during peak traffic periods, mitigating the impact of significant fluctuations in gas charges.
In the dynamic landscape of Web3 accumulation, AltLayer’s comprehensive and flexible approach positions it as a key player, offering innovative solutions to the challenges faced by developers in the rapidly evolving blockchain space.
Funding
AltLayer has raised a seed round of $7.2 million in 2022 (led by Polychain Capital).
Figure 15: AltLayer’s universal stack supports multiple protocols.
Outlook and Final Thoughts
Exciting developents unfold as multiple OP Stack blockchains take the stage, showcasing the expanding landscape of Web3 technology. The launch extends beyond universal L2 networks like Base and Mode, encompassing specialized networks such as Zora Network, DeBank, and Ancient8, adding a layer of diversity and sophistication to the ecosystem.
Innovations like the integration of Conduit introduce new dimensions by simplifying the deployment and subsequent scaling of OP Stack cumulative packets. This not only increases the likelihood of witnessing a surge in L2 cumulative packets leveraging the stack but also marks a significant step toward expanding the network’s reach. Conduit’s role in streamlining the OP Stack cumulative packet deployment process, with its exclusive focus on OP Stack, raises intriguing questions about whether competing L2/L3 platforms like Arbitrum’s Orbit or zkSync’s ZK Stack will explore dedicated RaaS providers to catalyze growth in their ecosystems.
As Ethereum’s accumulative packet rates consistently set new weekly records and a growing number of decentralized applications opt for deployment on L2 instead of L1, the imminent arrival of the L2 era becomes evident. Anticipation surrounds EIP-4844, or Proto-Danksharding, poised to bring about a substantial reduction in L2 fees, potentially reaching orders of magnitude lower, thereby intensifying their competitiveness.
The convergence of soaring L2 utilization rates, the streamlined deployment of L2 through the OP stack and infrastructure tools like Conduit, coupled with the optimistic outlook presented by EIP-4844, suggests a trajectory of continued expansion for the L2 narrative. The unfolding events hold promise, and we eagerly await the evolution of this transformative narrative within the dynamic realm of Web3 technology.
Figure 16. Four of the eight largest Ethereum gas users are L2. What will this look like in 2024?
