​The Rollup - Why Chain Abstraction is Inevitable ft. Particle - Revelo Intel

​The Rollup – Why Chain Abstraction is Inevitable ft. Particle

In this episode of The Rollup, which took place on June 25, 2024, Robbie and Andy hosted Ethan from Particle Network to discuss the transformative potential of chain abstraction, how it improves user experience (UX), the future of multi-chain interactions in the crypto ecosystem, and more! Read our notes below to learn more.

Background

Robbie (Host) – Merkle Tree Maxi, Co-Founder of The Rollup

Andy (Host) – zkProof Maxi, Co-Founder of The Rollup

Ethan (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

Enhancing Crypto UX with Chain Abstraction: Insights from Ethan

  • Andy talks about chain abstraction, comparing it to a modular cookbook that combines various elements to improve user experience (UX) in crypto. He highlights that UX is a significant challenge in onboarding users to crypto and sets the focus of the discussion with Ethan, also known as Tabasco from Particle Network.
  • Robbie says that modularity and unbundling could lead to fragmentation, which chain abstraction could address by integrating these elements into a cohesive UX.
  • Ethan believes it’s a crucial narrative with practical implications for sustainable modular expansion in crypto.
  • Andy notes that the term “chain abstraction” can be confusing and proposes starting with its definition. Ethan provides a simple explanation, noting that Web3 is moving towards a future with many rollups and blockchains rather than a single dominant one. This shift is seen as necessary for scaling, especially within the Ethereum ecosystem.
  • Ethan explains that the idea of a few dominant blockchains is outdated. Instead, the ecosystem is moving towards multiple blockchains and rollups, leading to potential fragmentation issues. Fragmentation refers to liquidity and balances being siloed across different blockchains, complicating user experience as users must manage and bridge their funds across multiple chains.
  • Ethan highlights the challenges of this fragmentation, such as the complexity and cognitive burden on users and the inefficiency and security risks associated with bridging funds. He says that requiring users to manage and bridge their balances across numerous chains is unsustainable and not feasible for scaling Web3.

Achieving Seamless Multi-Chain Interactions

  • Andy mentions his experience with Rabby, an app that simplifies interactions across different chains by automatically switching networks and locating funds. He notes the significant improvement over Metamask and hints at an even more streamlined approach to chain abstraction.
  • Ethan acknowledges the advancements in reducing friction and explains that chain abstraction aims to let users interact with multiple chains without manual processes like bridging and managing balances. Users should simply use applications without worrying about the underlying chains.
  • Ethan elaborates that in an ideal chain abstraction model, users would not need to know or care about the specific chains they are using. Chains would become a developer-facing concern, focused on efficiency and resilience, while users enjoy a seamless experience across different applications.
  • Ethan defines chain abstraction as creating a user experience free from the manual processes required to interact with multiple chains. This definition highlights the goal of making multi-chain interactions as straightforward as interacting with a single chain.
  • Robbie notes that while we know what this experience should feel like, the implementation details are complex and involve many moving parts.
  • Ethan explains that chain abstraction doesn’t eliminate bridges but abstracts them from the user experience. He outlines the three core components of chain abstraction: blockchain level, account level, and application level.
    • Blockchain Level Chain Abstraction: This involves structurally connecting blockchains with shared security and liquidity, exemplified by projects like Polygon’s Avail and the Superchain. This approach unifies blockchains beyond the surface level.
    • Account Level Chain Abstraction: This focuses on user accounts, allowing users to manage their balances seamlessly across multiple chains. Particle Network’s universal accounts exemplify this approach, enabling users to interact with applications without worrying about specific chains.
    • Application Level Chain Abstraction: This is more developer-oriented, allowing the creation of chain-agnostic applications. Solutions like Socket’s MoFA protocol and Gox’s orchestration API enable developers to build cross-chain workflows and transactions.
  • Ethan highlights various approaches within these levels, such as signature aggregation and intent-based models, which help achieve the goal of chain abstraction. He concludes that these different implementations collectively contribute to realizing a seamless, user-friendly multi-chain experience.

Advancing Chain Abstraction: Lumio’s Approach to Seamless Cross-Chain Integration

  • Robbie discusses Lumio, noting its ability to deploy a VM onto a new settlement network, allowing Solana applications to stay on Solana while also deploying onto the Optimism Superchain. He sees this as part of a progression where applications interact with multiple rollups or L1s for settlement, with orchestration protocols and chain abstraction handling the backend complexity, making it seamless for users.
  • Ethan agrees and clarifies the different levels of the stack involved in chain abstraction. He mentions the blockchain level, which includes smart contracts on different networks; the account level, with universal accounts aggregating assets across chains; and the application level, which involves orchestration and intents to facilitate cross-chain workflows.
  • Ethan explains that their research has involved deep dives into the entire stack, collaborating with major players like Polygon Avail, Particle, Socket, and Agoric. They created a framework with Agoric to articulate the collaborative nature of chain abstraction, highlighting that it requires multiple complementary solutions rather than a single monopolistic approach.
  • Ethan stresses that while there is collaboration, competition exists horizontally within each layer of the stack. Different solutions are competing to be the most adopted within their respective levels, such as account level or application level. He highlights the various approaches being taken, like intents and orchestration for application level, and aggregation and account abstraction for account level.
  • Ethan notes that chain abstraction solutions are at the forefront of innovation in Web3, with technologies now advanced enough to address the problem effectively. He envisions a modular stack of solutions where developers and users can choose different components, leading to a dynamic and quickly evolving ecosystem.

Achieving Seamless Integration: Vertical Collaboration in Blockchain Stacks

  • Andy compares the stack to a modular hamburger where different parts (like the beef and tomato) work together without competing. He asks about the practical collaboration between different layers like Ag layer, particle, and intent-based designs. He wonders about the technical work required and the ideal end-user experience.
  • Ethan explains that vertical collaboration within the stack is essential for achieving seamless user experience. He elaborates that without vertical integration, issues like fragmentation and inconsistent UX persist. For instance, if only the application level has intent systems, users still face fragmentation when switching applications or chains.
  • Ethan outlines that account-level solutions provide a unified balance and single address, enabling smooth interactions across applications. Application-level solutions enhance UX by enabling complex cross-chain workflows. Blockchain-level solutions can add further unification, addressing security and speed issues by leveraging shared security and architectural equivalence.
  • Ethan envisions a future where a collective of unified rollups operates with account and application-level chain abstraction, creating a seamless and secure user experience. He highlights that each layer of the stack plays a vital role in reducing friction and enhancing UX, especially when implemented together.
  • Robbie highlights the importance of cooperation and competition within the stack. Vertically, applications must work with solvers, accounts, and blockchains. Horizontally, projects compete within their layer to provide the best solutions. He asks Ethan to illustrate how Particle could integrate with projects at different layers to build a comprehensive experience.
  • Ethan shares an example from a recent article featuring a collaboration between Agoric, Avail, and Particle. The stack includes:
  • Ethan explains that this collaboration creates a seamless UX where users interact with applications without worrying about underlying chains, managing balances, or bridging manually. This modular approach ensures that each layer complements the others, delivering an integrated and user-friendly experience.

Enhancing Chain Abstraction: The Role of Solvers and Universal Accounts in Blockchain Ecosystems

  • Robbie asks about the need for a solver layer in the chain abstraction stack and how it fits with the three layers already discussed.
  • Ethan explains that the solver layer can be seen as a component within the application or account layers, rather than a standalone layer. For instance, an intent system at the application level might use a solver layer. He notes that while some solutions use intense systems, others, like Particle, leverage mechanisms adjacent to intents. He mentions that not all chain abstraction solutions rely on intents or solver systems, highlighting that the landscape includes various approaches like NEAR’s signature aggregation.
  • Andy highlights the importance of account and application layers, noting that they bring significant improvements to UX. He asks Ethan to clarify the relationship between smart accounts, universal accounts, and how they contribute to chain abstraction.
  • Ethan provides context on account abstraction, explaining that it transitions from externally owned accounts (EOAs) to smart contract wallets, which are more flexible and programmable. He notes the challenge of fragmentation across chains with smart accounts and introduces Particle’s universal accounts. Universal accounts allow for a single balance across all chains, one address for all chains, and the ability to pay gas fees in any token. They also solve the issue of fragmented smart account states across chains using a coordination layer on a Cosmos chain.
  • Robbie asks about Particle’s approach to managing liquidity and whether they aim to become a universal liquidity layer.
  • Ethan describes Particle’s universal liquidity mechanism, which uses a network of fillers to move liquidity between chains. This system involves swapping tokens to an intermediary, transferring them, and swapping back to the desired token on the target chain. While Particle facilitates liquidity management, the goal is to remain decentralized and compatible with other bridges and liquidity sources.
  • Andy asks about the incentive structure and the role of Particle’s Cosmos chain and token in their setup.
  • Ethan explains that the Cosmos chain acts as a backend component, ensuring decentralization and coordination for universal accounts. The Particle token is used for transaction fees and validator incentives on the chain. The dual staking mechanism ensures the chain’s security and resilience. He highlights that the chain abstraction must be decentralized to be sustainable, with credible on-chain actors managing transactions and account states. The goal is to provide users with one balance and one address across any chain, creating a seamless experience.

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Show Information

  • Medium: Youtube
  • Show: The Rollup 
  • Show Title: Why Chain Abstraction is Inevitable
  • Show Date: June 25, 2024