Frens Validator - Particle Network

In this episode of Frens Validator which took place on July 23, 2024, Juri hosted Tabasco from Particle Network to discuss the innovative developments in blockchain technology, focusing on universal accounts, chain abstraction, the future of cross-chain interactions, and more! Read our notes below to learn more.

Background

Juri Maibaum (Host) – Co-Founder at Frens Validator

Ethan aka TABASCOweb3 (Guest) – Contributor at Particle Network

Particle Network – a comprehensive development platform that aims to make the transition from Web2 to Web3 smoother and more efficient for developers

Exploring Universal Accounts and Chain Abstraction with Tabasco from Particle Network

Juri welcomes Tabasco from Particle Network to the show, introducing the discussion on the highly anticipated launch of Particle Network, focusing on topics like universal accounts, chain abstractions, and the upcoming mainnet launch.
Tabasco shares his role at Particle Network, where he leads developer relations, handling developer-facing activities, events, and narratives. He recounts his journey from working at ChainStack, an RPC node provider, to joining Particle in September 2023 attracted by the vision of making Web3 more consumer-friendly and bridging the gap between the user experience of Web3 and Web2.
Tabasco explains how Particle started with social logins to simplify onboarding into Web3, evolving into account abstraction, and eventually chain abstraction. He describes universal accounts as a key innovation, allowing users to manage assets across multiple chains as if they had one balance. This enables a seamless experience where users can interact with applications on different chains without worrying about bridging or the underlying blockchain.
Juri dives deeper into the concept of universal accounts, highlighting the potential to revolutionize the user experience in crypto by eliminating the need for users to think about which blockchain they’re interacting with.
Tabasco explains that universal accounts, built on smart contract wallets (ERC-4337), leverage intent-based bridging. This approach allows users to interact with applications on any chain by automatically handling the movement of funds across chains in the background.
He provides an example where a user wants to buy an NFT on Arbitrum using funds spread across Polygon and Ethereum. Instead of manually bridging assets, the system fronts the necessary funds, completes the transaction, and then reimburses itself by automatically moving and swapping the user’s assets across chains. This approach simplifies the user experience by reducing the need to manually manage assets across multiple blockchains.
Tabasco highlights that this technology works with various wallets, not locking users into a specific interface. He envisions a future where users interact directly with applications using a single balance across chains, fundamentally changing the relationship between users, their assets, and the blockchain.

Exploring Chain Abstraction and Modularity: Future of Blockchain Ecosystems

Juri asks about the current trend of chain abstraction and the role of modularity in the blockchain ecosystem. He points out that while abstraction is becoming more prevalent, it’s essential to understand how modularity supports this development.
Tobasco explains that chain abstraction is becoming crucial as the ecosystem moves away from the idea of a few dominant base layers like Ethereum or Solana. Instead, the industry is transitioning toward a modular approach where hundreds or thousands of application-specific or use-case-specific blockchains (Appchains) operate independently. This modularity allows applications to have their dedicated block space, which prevents the competition for resources that occurs on generalized blockchains. However, this shift also necessitates solving the problem of balance and account fragmentation across chains, which is where chain abstraction comes into play. Chain abstraction aims to provide users with a seamless experience across these multiple chains, maintaining a single balance that can be used across all Appchains.
Juri then raises a question about the practicality and necessity of having so many blockchains, considering the costs and operational challenges.
Tobasco acknowledges that not every application needs its own Appchain, and in many cases, using a generalized layer 2 might suffice. However, for applications that require more control over their environment or need specialized block space, Appchains offer significant benefits.
He suggests that while we may not see tens of thousands of Appchains, it’s realistic to expect around 500 or so, as the ecosystem grows and more applications find value in having dedicated blockchains.
Tobasco also highlights the concept of chain-agnostic applications, where developers build apps that operate across multiple chains without being confined to just one, further enhancing scalability and flexibility in the ecosystem.
He notes that while some believe all applications will eventually have their own Appchains, a balanced approach is more likely. Some applications will benefit from Appchains, while others will thrive on generalized blockchains, depending on their specific needs and the resources they require.

Exploring Particle Network: Architecture and Value Accrual in Cross-Chain Transactions

Juri asks about the role of the Particle Network and its architecture, particularly how it interacts with universal accounts and facilitates cross-chain transactions. Tobasco explains that Particle Network operates as a coordination layer using a Cosmos SDK-based Appchain, which manages, verifies, and settles cross-chain transactions. The network’s design avoids reliance on centralized servers, instead leveraging a blockchain to ensure decentralization and security.
Tobasco highlights the unique architecture of the Particle Network, which includes two key innovations: aggregated data availability (Agg DA) and dual staking. The network externalizes data availability to multiple layers like Avail, Celestia, and NEAR, allowing for load balancing based on network conditions. This reduces the risk of a single point of failure. The dual staking mechanism involves two sets of validators: one secured by the native token and another by Bitcoin via Babylon, providing enhanced security by mitigating the risks associated with token volatility.
Juri then asks about the value accrual of the Particle Network, comparing it to a settlement layer for cross-chain transactions.
Tobasco agrees with this description, explaining that every transaction executed through universal accounts eventually settles on the Particle Network, consuming the network’s native token. This model allows for value accrual as the adoption of universal accounts grows across various ecosystems, leading to increased token consumption and a decrease in circulating supply. Additionally, the network’s staking system rewards users for participating in its operations, further supporting token value.

Particle Network’s Rapid Growth and Innovation Drive

Juri highlights the significant adoption Particle Network has achieved, with over 17 million users and asks Tobasco about the strong demand and the recent $25 million funding round.
Tobasco explains that Particle Network operates as an invisible component, allowing developers to integrate universal accounts with minimal effort through their SDKs. He notes that the network already supports around 900 applications, all of which will eventually upgrade to universal accounts, making adoption straightforward and widespread.
Tobasco highlights that the fragmented user experience and broken incentives in the ecosystem are major issues that chain abstraction, including Particle’s solutions, aims to solve. He discusses how chain abstraction can lead to increased competition and innovation by removing barriers tied to specific chains, ultimately benefiting the entire ecosystem.
Juri agrees with Tobasco’s points and mentions the common industry sentiment about needing more consumer-facing applications despite the focus on infrastructure projects. He sees the future of application development becoming easier and more accessible as chain abstraction progresses.
Tobasco adds that Particle Network is already live on Testnet with a project called Particle Pioneer, where users can test universal accounts. He hints at a Mainnet launch targeted for Q3 or early Q4, stressing that chain abstraction solutions like theirs are closer to wide-scale influence than many might think.

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Show Information

Medium: YouTube (Video)

Show: Frens Validator

Show Title: Particle Network: Most Under the Radar Crypto Project! ($25 Million Raise)

Show Date: July 23, 2024