The Edge Podcast - Avail

In this episode of The Edge Podcast, which took place on July 23, 2024, DeFi Dad and Nomatic hosted Anurag Arjun from Avail to discuss the platform’s role in the future of Web3, including its focus on data availability, roll-up technology, the integration of modular blockchain solutions, and more! Read our notes below to learn more.

Background

DeFi Dad (Host) – Host of Edge Podcast

Nomatic (Host) – Co-Host of Edge Podcast

Anurag Arjun (Guest) – Founder at Avail

Avail – a unification layer for web3

Avail’s Spin-Out Journey: Independence from Polygon and the Vision for Web3 Unification

DeFi Dad highlights the Avail platform’s focus on Web3 unification through three core products: Avail DA, Avail Nexus, and Avail Fusion.
Anurag shares his background, noting his extensive experience in FinTech and regulatory technology before entering the crypto space in 2017. He co-founded Polygon (initially Matic Network), contributing significantly to its development, including the Polygon PoS stack, bridging infrastructure, and ZK strategy. He began the Avail project within Polygon in late 2020, eventually spinning it out as a separate entity in March 2023.
Anurag explains that the decision to spin out Avail was influenced by the challenge of managing multiple products under the Polygon umbrella, which included various projects like Polygon PoS, Hermez, and Avail itself.
He notes that Polygon’s branding had become very Ethereum-centric, while Avail aimed to serve as a more neutral infrastructure for various rollup technologies beyond just those related to Polygon. This need for a neutral stance and the logistical challenges of managing numerous products led to the decision to spin Avail into its own organization, maintaining a positive relationship with Polygon.

Avail: Unifying Web3 Infrastructure with a Focus on Roll-Ups and Data Availability

Nomatic asks Anurag to elaborate on Avail’s goal as a unification layer for Web3 and the problems it aims to solve.
Anurag explains that Avail provides infrastructure for roll-ups, which are crucial for the future construction of blockchains. He notes that while blockchains like Ethereum have evolved, many newer blockchains experiment with different execution models or scaling techniques. However, creating a new blockchain requires significant effort in terms of setting up validators and establishing crypto-economic security, which can be challenging and resource-intensive.
Anurag highlights that roll-ups offer a solution by allowing developers to focus on the execution layer while leveraging the security of a base layer like Ethereum. Avail aims to be one of these foundational layers, supporting various roll-up technologies and allowing developers to prioritize user acquisition and user experience without worrying about security infrastructure.
DeFi Dad acknowledges Anurag’s perspective, noting that his experience with Polygon’s development resonates with Avail’s mission. He draws a parallel to the modularization seen in software development, where individual components can be developed independently and integrated into a larger system.
Anurag expands on the concept of data availability within the context of blockchains, emphasizing that it involves ordering transactions and ensuring they are publicly accessible and verifiable. He explains that traditional systems, like Amazon, can arbitrarily order transactions because they are centralized. In contrast, blockchains require a decentralized mechanism to order transactions and ensure transparency.
He says that data availability, often misunderstood as data storage, primarily concerns the sequencing and availability of transaction data. This is crucial for the proper functioning of roll-ups, which rely on a base layer like Avail for ordering while handling execution separately. Anurag mentions that breaking down these functions allows for more experimentation with different execution environments, such as EVM, SVM, and more, without the overhead of managing security.
Anurag describes Avail’s role as providing a decentralized ordering service that supports a wide range of roll-ups, enabling greater flexibility and innovation in blockchain development.

Avail DA’s Role in Enhancing Blockchain Security and Connectivity

DeFi Dad asks Anurag how Avail DA integrates with existing blockchain networks and whether the focus is on new roll-ups or legacy blockchains.
Anurag explains that Avail DA is particularly attractive for blockchains that cannot sustain their own crypto-economic security. Many Layer 1 blockchains may pivot to becoming Layer 2 roll-ups due to the high costs of maintaining sufficient validator security. Avail DA serves these transitioning blockchains and new roll-ups, offering them an easier path to leverage existing infrastructure without building from scratch. He notes that while Avail is focused on new roll-ups, there is potential for existing blockchains to transition and benefit from Avail’s services.
Nomatic inquires about partnerships and integrations Avail has established, especially as they approach their mainnet launch.
Anurag shares that Avail has integrated with major Ethereum Layer 2 stacks, including those from Arbitrum, Optimism, zkSync, and Polygon. He mentions that several roll-ups are set to launch using Avail once it goes live on the mainnet. Avail is also working with other developing roll-up stacks, such as Scroll.
Nomatic asks about the implications of services like Avail DA, Celestia, and Eigen DA on Ethereum’s ecosystem, particularly concerning fee revenue and network dynamics.
Anurag acknowledges that while these DA solutions offer cost-efficient alternatives, Ethereum remains a cornerstone of the blockchain ecosystem due to its extensive assets and security. He explains that the Ethereum roadmap, focusing on a roll-up-centric future, has led to the development of services like Avail DA, which align closely with Ethereum’s goals for data availability and security.
He emphasizes that Avail DA is not just a cost-saving measure but also addresses UX challenges arising from a fragmented ecosystem of multiple roll-ups. Avail’s Nexus component aims to manage interoperability and message passing between roll-ups, facilitating a more seamless experience for users and making it possible for roll-ups to operate as part of a unified network.
Anurag highlights Avail’s unique position in implementing advanced data availability sampling with validity proofs, setting it apart in the market. He envisions Avail as playing a crucial role in enhancing the connectivity and functionality of Ethereum’s diverse Layer 2 solutions, contributing to a more cohesive and efficient ecosystem.

Nexus and Avail Fusion: Development Timelines and Token Roles

Nomatic asks Anurag about the development and release timeline for Nexus, noting that Avail DA is expected to launch first.
Anurag responds that Nexus is actively being developed, with plans to release an initial version on the testnet by the end of Q3, 2024. The first integration focuses on connecting the Polygon zkEVM ecosystem with the zkSync ecosystem. He anticipates a production release of Nexus by the end of the year or early next year.
Anurag explains that Avail Fusion aims to enhance the crypto-economic security of the Avail Layer 1 by allowing staking of various assets, including $ETH and $BTC, in addition to Avail’s native token. This design seeks to bootstrap security more robustly, benefiting all roll-ups on the Avail network by providing shared security. He contrasts Avail Fusion with models like EigenLayer, emphasizing that Fusion integrates more natively within Avail’s staking module.
Nomatic asks about the timeline for staking and when users can get involved with Fusion.
Anurag indicates that while Fusion is targeted for a production launch in early 2025, they are considering starting deposit campaigns as early as Q3 or Q4 of 2024, allowing users to participate ahead of the full launch.
Nomatic asks about the Avail token and its role within the ecosystem.
Anurag describes the Avail token as integral to the ecosystem, serving multiple functions. It acts as a fee token and a staking token within Avail DA. Additionally, it plays a role in Nexus, where participants like relayers and roll-up sequencers engage in the interoperability and bridging processes. The token’s design aims to ensure value accrual across Avail’s modular infrastructure, not just at the data availability layer but also in the execution and interoperability components.

Navigating Token Launch Complexities: Community Expectations and Airdrops

Nomatic asks Anurag about the challenges of launching tokens, especially concerning community expectations and the complexities of token allocations and airdrops.
Anurag acknowledges the increased complexity and scrutiny in token launches compared to earlier days, citing the example of Matic’s launch in 2019. He notes that today’s environment requires careful balancing of allocations, particularly to avoid giving too much to early investors at the expense of future participants.
Anurag mentions that airdrops, while popular, are challenging due to the risk of sybil attacks and unrealistic expectations. He highlights the difficulty of satisfying all stakeholders and the pressures from communities during token launches.
DeFi Dad agrees, pointing out that unexpected airdrops, like the Uniswap airdrop, tend to be well-received. He also notes the importance of running token distribution programs over shorter periods to manage expectations and data more effectively, using Ethena’s approach as an example. He expresses optimism about Avail’s upcoming mainnet launch and token strategy, based on Anurag’s insights.
Anurag outlines key upcoming milestones for Avail, including the mainnet launch of Avail DA in the next few weeks, the initiation of Fusion deposits in Q3 of 2024, and the release of a prototype for Nexus connecting Polygon zkEVM and zkSync in early Q4 of 2024.

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Show Information

Medium: YouTube (Video)
Show: The Edge Podcast
Show Title: Avail: The Next Evolution of Modular Blockchains
Show Date: July 23, 2024