Author: BlockSec

Summary

1. EigenLayer's core technology, Stake Restaking, allows Decentralized Services (AVS) to reuse Ethereum's stake pools and enhance trust mechanisms. When the ETH validators's withdrawal credentials are redirected to the EigenLayer contract, AVS can set up a reward and punishment mechanism to attract low-cost verification participation, improve the validators's capital utilization and enhance the overall network security.
2. EigenLayer introduces new micro and macro security challenges in the Consensus Marketplace. The main body of the market: the ETH validators (Operator), the Demand Decentralization PoS Trusted Service Items (AVS), and the EigenLayer platform itself constitute the interactive structure of the ecosystem. Each of these parts may face security threats that affect the stability of the entire ecosystem. Malicious operators may attack long services at a low cost under the restaking mechanism, malicious AVS may use superficial propaganda and seemingly credible return rates to attract unknown operators to join the service system, causing them to suffer slashing and irreversible losses, and the rapidly developing ecosystem puts forward higher requirements for the security of the EigenLayer protocol.
3. Professional audits and reliable dynamic protection measures are the cornerstones of ensuring the safety of the platform and users. In addition to innovation, the EigenLayer ecosystem needs a robust security framework that can meet new challenges. BlockSec continues to build in the field of Blockchain security, providing professional code audit and post-launch dynamic security protection for project parties to support the continuous growth of this ecosystem.

Introduction

The Ethereum-based protocol EigenLayer innovatively proposes a re-stake feature that allows participants to maximize the potential value of their capital by further leveraging their stake ETH to support other protocol while maintaining the original stake and earnings.

Rising from $1 billion in early 2024 to $15.3 billion today, EigenLayer's TVL is second only to Lido in the entire Decentralized Finance ecosystem. The explosive rise not only demonstrates the strong interest of the market, but also validates the practicality and impact of its technology. With this rise, projects based on the EigenLayer ecosystem, such as Puffer Finance and Renzo, have also quickly gained the favor of capital and users. The re-staking track with EigenLayer as the core is undoubtedly one of the most high-profile narratives in the Decentralized Finance ecosystem this year.

As a company focusing on Blockchain security, we will analyze and discuss what new security challenges and tests the operating mechanism of EigenLayer has brought while innovating the Decentralized Finance ecosystem from a macro to micro security perspective.

Top-level design and macro security

Restaking is essentially a foundational means of further solving a specific problem by reusing the trust provided by the Ethereum Proof of Stake (PoS) stake pool. As the founder of Restaking technology, EigenLayer provides a two-way free Ethereum pool trust to an emerging market, that is, a Consensus Selling Market. EigenLayer claims that the current Ethereum ecosystem is suffering from the macro security problem of trust splitting, and EigenLayer can solve this problem well. Next, we will start from the design and motivation of EigenLayer to understand what trust splitting is and how EigenLayer solves trust splitting.

1. Who is the target of the Consensus Market? Who are the two parties involved in two-way freedom?

EigenLayer sells the trust provided Ethereum Ethereum's stake pool, so the Consensus seller is the Ethereum validator Node Validator. Buyers, i.e. Actively Validated Services (AVSs). To put it simply, it can be understood as any service that needs to build a distributed trust network, and AVS, as the buyer, needs to buy distributed trust. **

2. Why does this emerging market segment need to exist and what problem does it solve?

Ethereum only provides the innovative nature of the contract layer. Developers have a deeper need for innovation, such as trying to modify the environment in which the program runs (in Ethereum, the Ethereum Virtual Machine EVM), or going one step further and wanting to modify the Consensus protocol.

Figure1:EthereumTrustFlow,Source:EigenLayerForum

**The founders of EigenLayer regard these developers' desire for underlying innovation as an unmet market demand, as a problem of limited innovation, and try to solve this problem of limited innovation by providing a free marketplace for reuse Ethereum trust, meet the innovation needs of developers, and drop the cost of innovation. **

**EigenLayer also addresses the macro security issue caused by Ethereum's limited innovation, namely the trust split problem. **In the Ethereum PoS mechanism, network security relies on sufficient stake funds and the number of verified Node. New projects try to build their own trust networks, often requiring stake their own Token, which leads to the diversion of stake funds from Ethereum Mainnet, affecting their security. For example, if a Ethereum Mainnet has 10B stake funds and the stake spread across three subservices totals 3B, the actual increase in stake funds does not directly enhance the security of the Mainnet. In addition, split trust can increase the security risk of DApps, as attackers may long wick candle attacks on sub-services with fewer funds, exploiting weaknesses in the system to cause broader security issues. **

Figure2:PooledsecurityofEigenLayer,Source:EigenLayerWhitepaper

In summary, the current Ethereum ecosystem suffers from both limited innovation and trust splitting caused by limited innovation. EigenLayer was born to solve both of these problems.

3. How does EigenLayer solve these problems?

Figure 3：Comparing the eco of actively validated services today and with EigenLayer, Source:EigenLayerWhitepaper

Existing AVSs don't have access to Ethereum stake pools, let alone slashing. The restaking technology is to open a channel for AVS to access the Ethereum stake pool in the form of an interface, which is EigenLayer. In the abstraction layer of EigenLayer, services exist in the form of smart contracts, and the underlying layer of Ethereum guarantees the reliability of the platform. Through this platform, AVS can define its verification requirements and incentives to attract ETH validators to participate at a lower cost, improving the security and efficiency of the entire network. These services include deploying dedicated Slashing and Payment Contracts, allowing validators to choose to participate for profit as needed.

4. Does EigenLayer solve these problems well, and does it come at a cost to solve these two problems?

First, with regard to the limitation of innovation, by reusing the trust provided by the Ethereum stake pool, AVSs can indirectly absorb the trust of the Ethereum, effectively drop the start-up costs of such services, and provide the prerequisites for the ecological prosperity of the Blockchain.

Then there's the more critical issue of Ethereum's trust split. **On the one hand, investors re-stake through EigenLayer to support AVSs is a more profitable choice, which can largely support the return of staked funds diverted to decentralization services to Ethereum's stake pool. On the other hand, the cost of validators participating in verification has become lower. For AVS itself, it can attract more long stake assets at a lower cost, and the more long stake funds reinforces the weakest link in the attack chain and improves overall security. **

From the perspective of design and motivation, there are many long projects that have made more mature attempts to innovate, such as Cosmo, OP Stack, etc. These projects allow emerging project parties to launch a new public chain at a relatively low cost, but none of them solve the macro security problem of trust fragmentation. The macro-security problem of trust splitting solved by EigenLayer, as well as the lower threshold for AVSs and the higher yield (with risk) for ETH Validator, are very attractive and unique.

Security of emerging ecosystems

EigenLayer's trust marketplace can be divided into three entities:

• Operator, which is generally considered to be the ETH Validator, the trusted seller;
• AVS, i.e. a service project that requires decentralization PoS trust, buyer;
• Powered by Operator and AVS's EigenLayer platform, i.e. the marketplace itself.

These three entities make up the ecosystem of EigenLayer, and each part of it may face security threats that affect the stability of the entire ecosystem.

1. Malicious Operator crime cost dropped

ETH Validator only needs to pay one capital in the EigenLayer ecosystem to get longest returns. This greatly improves the utilization rate of staked funds, making the barrier to entry for Operators to enter the AVSs service trust network lower. Correspondingly, the Operator also needs to take on the verification tasks specified by the selected AVS, and bears additional risks. **Increased capital utilizationThe cost of crime is also significantly dropped for malicious operators. **

This risk is mentioned in the White Paper and provides a potential solution, that is, to set up a dashboard that can be accessed arbitrarily, and the AVS with high utilization rate of malicious funds can check whether the operator that provides the restaking stake to itself is in the state of long stake, stake long few times, etc. White Paper stressed that this is a two-way free market, does not care about the utilization of malicious funds, does not allow long to re-stake, and obviously can attract more long restaking stake funds, which is entirely dependent on AVS's own trade-offs.

2. Malicious AVS Attracts Blind Operator

AVS mainly provides long wick candle reward and punishment mechanism for Restaking stake in the EigenLayer market, and the reward and punishment mechanism is determined by AVS itself, and the corresponding contract will be deployed on the Ethereum Mainnet. Operators and EigenLayer can also require AVS projects to open source such contracts, but we cannot guarantee that each operator has the ability and energy to confirm the reliability of the AVS service they want to purchase. The absolute freedom of AVS may appear Malicious AVS lures operators by false or exaggerated information, exploiting contract coding vulnerabilities to trigger slashing through backdoors. The market is always profitable, and malicious AVS may attract relatively blind operators, and eventually suffer from malicious slashing and other behaviors, bringing irreversible losses.

In order to avoid such incidents, audits can be used to ensure the security and reliability of the AVS reward and punishment mechanism. The EigenLayer White Paper hopes that AVS's reward and punishment contracts will be subject to reasonable relevant audits and evaluations. At the same time, the EigenLayer White Paper proposes to set up a committee to oversee the slashing reward and punishment mechanism to help the emerging AVS get on the right track.

3. Platform Security

Finally, there is the security of EigenLayer itself, that is, the security of the platform. If there is a security flaw in the EigenLayer platform itself, it will cause great harm to the entire ecosystem, and even directly threaten the security of Ethereum's PoS consensus. Considering that EigenLayer aims to provide a two-way free trade marketplace for Operators and AVSs, there is a need to provide a more long custom interface for both parties to support richer demand. This abundance of requirements also makes the abstraction layer more complex, which in turn leads to more long potential security threats. **

Since EigenLayer itself is implemented by contracts, its basic security can also be ensured by code audits and post-launch monitoring, but as mentioned earlier, these contracts still need to stand the test of time.

Summary

EigenLayer innovatively proposes the restaking mechanism, which not only optimizes the use of funds, but also improves the scalability of the network while addressing the macro security problem of trust fragmentation. However, in addition to the advantages of long innovation, it also introduces new security challenges and potential risks, such as the drop of the cost of evil caused by the increased utilization of funds. Therefore, it is crucial for Blockchain developers, investors, and security experts to focus on the associated problems and find solutions.

As a company focused on Blockchain security, we recognize that in-depth audits of EigenLayer and its ecosystem code, as well as dynamic monitoring and security protections, are critical to maintaining the security of the entire Decentralized Finance ecosystem. Security should be fully considered in the design and implementation phase of AVS, and professional auditing and dynamic monitoring and security protection are the cornerstones of ensuring the security of the platform and users. As Blockchain technology continues to rise and market demand grows, EigenLayer and its ecosystem need not only innovation, but also a robust security framework that can cope with new challenges. Therefore, we will continue to build on the security frontier, providing granular code audit services for more long projects, as well as post-launch monitoring and dynamic security protection, to support the continued growth of this ecosystem.

Original author: Deep Tide TechFlow

From April 5-26, Ethglobal hosted a Hacker Marathon called Scaling Ethereum 2024.

The event brings together some of the top thinkers and experts in the Ethereum ecosystem to empower teams to do great things in two weeks long a little bit by providing a wealth of Web3 resources such as mentors, partners, and software.

Here are the 8 finalists for the finals.

Monadic DNA: Privacy protection of personal genetic data

Monadic DNA is an illustrative example of what a new paradigm of privacy that respects individual genomic services might look like.

We envision a future where people have their own genomic data without having to disclose it to any provider and still enjoy the benefits of this fast-growing field.

Once someone obtains the original DNA file from the provider, the Monadic DNA portal allows them to upload the data and receive a DNA passport.

Behind the scenes, raw data is processed (and then discarded), and some of that data is stored as secrets on the Nillion network. The actual DNA passport returned to the user contains an identifier, some useful hashes, and Metadata about the secrets stored on the Nillion network.

On-chain proofs based on off-chain computation provide an open, scalable paradigm for medicine that respects anonymity and privacy.

SignKaleidoscope: Visualize the signature path with motion graphics

SignKaleidscope is a Sign Protocol browser with interactive graphical visualization capabilities.

Explore accounts, patterns, and attestations by clicking on Nodes and Edges in the graph, using the search field, or navigating links in the details overlay. Drag to pan the chart and scroll to zoom in and out. Node and edges will automatically appear and connect in the graph when new entities are discovered.

EthereumL10nService: Decentralization translation network with AI and human proof

In order for Ethereum to reach the next billions of users, we need to break down language barriers. Only 16% of the population speaks English, while more than 60% of the content is in English.

As a result, the project is building an incentive network for AI translation agents and human provers.

In the project demo, it translates videos from the Pragama Denver Playlist on Youtube. Leverage OpenAI Whisper for ASR to convert the ASR to the original English transcript, and then prompt OpenAI LLM to provide the final translated (Chinese traditional) file in vtt format.

Vtt subtitle files are uploaded to FIL for decentralization AI processing and execution; Then through the Chrome extension, we can see the translated subtitles, and the end user can give feedback by upvote/downvote like StackOverflow. These votes will use the user's Wallet to create a encryption-based proof and send it back to our server.

This allows us to avoid abuse and further calculate incentive distributions based on contributions.

TxFusion: Execute longest transactions in a single call and signature

TxFusion is a platform designed to simplify and improve the user experience of managing longest DEFI transactions. It leverages the new EIP 5792 standard and introduces a new Wallet method called wallet_sendCalls. This method enables users to create bulk transactions, allowing them to perform longest operations with a single call and signature.

Decentralized Finance users often face the complexity of managing a large number of transactions across various protocols such as Uniswap, Compound, and Aave. This process can be time-consuming and cumbersome, resulting in a less-than-ideal user experience. There is also a long gas fee for users to execute long trades.

The project addresses this challenge by providing a unified platform to streamline the execution of long Decentralized Finance transactions.

forge flamegraphs: Solidity development optimization tool

When we have some solid code and want to optimize it, there are currently limited tools that can help. No open source Solidity Profiler can be actively maintained and used with Foundry or Hardhat. This makes the gas optimization process time-consuming and, of course, requires long skills.

For these reasons, only experienced Solidity developers are good at gas optimization, as they are better at guessing and drilling which part will produce more long gas.

Flamegraphs are used to analyze system software and find performance bottlenecks. We built a minting plugin that drops low-level debug traces to generate collapsed stack traces to generate graphs, showing more clearly what should be optimized, thus lowering the development barrier to entry.

CreateToolBelt : Smoother deployment of smart contracts

CreateToolBelt is a comprehensive toolkit designed to address long challenges developers face when deploying contracts on Ethereum Blockchain.

The kit consists of three main components: Create 2D eployer, Create 2 SafeDeployer, and Create 3D eployer.

Create 2D eployer allows deterministic contract deployment using the CREATE 2 Operation Code, enabling developers to deploy contracts at predictable Addresses. We've enhanced this with Create 2 SafeDeployer, which takes a novel approach to preventing preemption by leveraging the first 20 bytes of salt linked to msg.sender to ensure that only the deployer executes the way expected. Finally, Create 3D eployer extends these capabilities to long Blockchain, allowing only deployer Address and salt to be deployed on the same Address in different on-chain, which is a groundbreaking step for developers working with interdependent contracts across long platforms.

ChainSweep: A full-chain version of the Blockchain "Minesweeper" game

The game is an on-chain implementation similar to the famous "Minesweeper" game.

In the Block Realm, you must validate Blocks and avoid containing wrong Blocks. When you click on a defective square, you lose. When you verify that all Block are error-free, you win.

The game runs entirely on-chain (Arbitrum Stylus Testnet). Every step you make is a separate transaction.

The important information in the game is the exact location of the error (the field that should not be clicked). If smart contracts choose these locations and store them on-chain, it will be trivial to win the game by using a blockchain explorer or other tool to find where the error is. To avoid this, the contract only stores the fields that have been exposed so far. When a player makes a new action, the smart contracts regenerates a potential misallocation on the field consistent with the action made so far. This makes the game still difficult to predict.

BlobFusion: Make blob shorts more affordable for everyone

A month ago, Dencun went live and brought us EIP-4844 and blobs.

Here's the thing: you always have to commit the full 128 KB blob. If you have less data, then you still need to commit 128 KB. This takes up unnecessary shorts and costs a lot of money.

BlobFusion enables you to share blobs with others by packaging smaller blobs into a normal blob. This is to maximize blobspace efficiency (= good for the network) and cost (= good for the user).

How does it work?

• The user sends some ETH to the Arbitrum smart contracts
• The server indexes transactions and allows users to commit blobs
• The user sends a signed blob to the server along with the fee they are willing to pay
• The server saves the blob to the database
• The server periodically tries to build blobs that meet all the criteria (e.g. shared cost of blobs < sum of all bids, etc.)

In federal court in Brooklyn, Jebara Igbara, also known as "Jay Mazini," a Crypto Assets influencer on social media sites such as Instagram, was sentenced to 84 months in prison for wire fraud, wire fraud conspiracy and Money Laundering.

According to the U.S. Attorney's Office for the Eastern District of New York, Igbara's scam caused huge financial losses of millions of dollars to unsuspecting investors.

**Social Media Fraud

The investigation found that Igbara, operating under the popular Instagram account name "Jay Mazini," used his social media influence to create a false image of affluence.

Igbara posted videos of him handing out cash as gifts to women who had lost their wallets at grocery stores, fast food restaurants and even at the airport. Behind this, however, Igbara is operating longest fraudulent accounts that have defrauded investors of at least $8 million.

As part of the verdict, Igbara was ordered to confiscate $10 million. The exact amount of compensation owed to the victim will be determined at a later stage.

U.S. Attorney for the Eastern District of New York, Breon Peace, said:

"The indictment of Igbara reveals his true colors: a fraudster who used his social media influence to scam investors out of millions of dollars. He unashamedly targeted his religious community, using their trust in him to squander and gamble their hard-earned money. Hopefully, today's verdict will serve as a warning to fraudsters like the defendants in this case to think twice and act carefully before harming investors for their own selfish gain. ”

False Promises and Impersonation Crypto Assets Schemes**

According to an investigation by the U.S. Attorney's Office for the Eastern District of New York, from 2019 to 2021, Igbara amassed nearly a million followers on Instagram, forming a significant social media presence. He portrayed himself as a successful investor and businessman and incorporated elements of the Muslim faith into his posts as a way to project himself as both religious and credible.

Igbara posted a series of videos on his Instagram account in which he openly handed out cash in front of various everyday occasions such as grocery stores, fast food restaurants, and a woman he met at the airport who had lost her wallet. The videos are meant to showcase his generosity and financial prowess as part of shaping his social media presence to attract and sustain followers. However, these actions were later revealed to be one of the fraudulent tactics he used to deceive and attract potential investors.

Igbara's fraud was mainly carried out through a company he controlled, called Halal Capital LLC. He used the company to plan and execute an investment scam scheme that targeted members of the Muslim community long wick candle.

Igbara promised members of the Muslim American community in New York that he would use their funds to invest, including stocks, the resale of electronics, and the sale of personal protective equipment. He raised funds in this way, claiming that these investments would bring returns to investors. However, this was actually part of the scam scheme he carried out.

What Igbara runs is actually a typical Ponzi Scheme, where he diverts most of investors' money for personal consumption, luxury car purchases and gambling. In order to maintain the illusion of his supposed legitimate operation and continue to attract investors, he also implemented a second scam scheme: offering encryption asset purchase offers above the market price through his social media accounts to trick victims into selling their crypto assets holdings.

In this scheme, Igbara completes his scam by sending fake wire transfer confirmation images to his victims, making them mistakenly believe that they have received the money, when in fact, the funds are not actually transferred to the investor.

Fattorusso, the head of agents at the Internal Revenue Service's Criminal Investigation Division (IRS-CI), called Igbara a "Crypto Assets scammer." Fattorusso points out that Igbara not only crafted a fake identity on the internet to trick victims into investing in his scam scheme, but also cleverly used his large followers and influence on Instagram as false proof of his "success." In this way, Igbara increases his credibility and thus makes it easier to lure more long people into his investment scams.

Fattorusso stressed that Igbara ruthlessly defrauded millions of dollars from New York's Muslim community and squandered those funds without repentance. His actions show indifference to the victim and a callous calculation of the scam, completely ignoring the fact that the money was hard-earned by community members. Through this description, Fattorusso reveals that Igbara's fraud is not only legally criminal, but also extremely morally irresponsible.

Written by Jerry, founder of ThePrimediaDAO

one

In the logic of thinking, as representatives of the post-80s financial media people, for a long time, our cultural system and ideological cognition have had a strong superiority of the "American spirit": democracy, freedom and human rights. In the reporting of major news events one after another, we have also deliberately compared the superiority of the US mechanism of separation of powers: the legislative, executive, and judicial powers of the state are held by different organs, and they are exercised independently and check and balance each other.

But with Bitcoin and the "spirit of encryption", we have gradually realized that there will be better governance mechanisms and social order in the process of human progress towards digitalization. Especially when the US government, which is controlled by "capital" behind it, tears off the fig leaf of "American civilization" and declares the failure of the "American spirit" by the large-scale suppression of protest college students, it is necessary to re-examine the risks of the "Ethereum POS" path and the essence of the geek spirit of the encryption world.

II

In the past few days, demonstrations have erupted on university campuses in longest places in the United States, including several well-known institutions of higher learning, demanding a permanent ceasefire in the Gaza Strip and an end to US military assistance to Israel. The demands of the university students were not radical, but mainly long wick candle to demarcate the school from Israel, that the school funds should not invest in companies linked to Israel, and that it would completely divest from Israeli companies and companies that supported the Israeli invasion. In addition, the students hope that the university will pressure the U.S. government to contribute to a ceasefire in Gaza.

At about 4 a.m. local time on April 17, in front of the Butler Library of Columbia University in New York City, USA, long students set up tents on the lawn and set up the "Gaza Solidarity Camp". After hundreds of students were arrested by New York City police, longest colleges and universities across the United States launched a massive solidarity campaign, including Harvard, Yale, MIT, New York University, USC, and the University of Texas at Austin.

Like any "justice" in the course of human history, intellectuals have paid a terrible price in the pursuit of justice. Regarding the demonstrations and protests of American college students, the attitude of the top leaders of the United States and Israel is basically the same. Biden called this blatant "anti-Semitism" reprehensible, Speaker of the US House of Representatives Johnson denounced them as "anti-Semitic thugs", and Trump called it a disgrace and all Biden's fault. Israeli Prime Minister Benjamin Netanyahu issued a statement saying that what was happening on American college campuses was terrible, with "anti-Semitic mobs" taking over top universities.

On the morning of the 25th local time, more long schools joined the protests, including the University of Maryland, George Washington University, Cornell University, University of California, Los Angeles, and Princeton University...... Despite the "anti-Semitic" labeling of demonstrators by some US politicians and their vigorous crackdown, the protest movement has intensified.

Three

Since 2020, with the progress of the encryption ecosystem brought about by the Decentralized Finance Bull Market, the basic elements and functions of the NFT, including the governance mechanism of the DAO, including the efficiency improvement of Layer 2...... People are beginning to imagine the arrival of the era of Blockchain applications and the order of digital civilization in the Metaverse.

In the wave of AI is bringing a new revolution to the productivity of human society, we also integrate AI elements into the narrative of "AI and Web3 in the Metaverse" - the best way to get along with AI is the narrative of "AI and Web3 in the Metaverse": AI provides computing power and forms intelligent network application scenarios, and Blockchain/Web3 establishes order for AI (intelligent network). Without this narrative, humanity and AI would end up in a showdown between carbon-based and silicon-based life.

In this narrative, we are also full of longing for the advancement of human digitalization. If Metaverse short the Metaverse short is just a highly immersive digital short, is it worth it to reconstruct the digital society with Blockchain /Web3 Decentralization, Token incentive mechanism and DAO organizational governance, and give human beings a better social system and governance structure to evolve, which is worthy of human beings to gather the power of technology and industry to build a digital short and look forward to Metaverse world. Therefore, this Metaverse scenario will also be grander than the Decentralization Society (DeSoc) of God Vitalik Buterin.

But the failure of the United States is a wake-up call that human governance is far more complex and dangerous than intelligent networks. Even the separation of powers, even democracy and the rule of law, will be eliminated by a government controlled by capital.

The encryption world is facing the same dangers. At the beginning of Ethereum's transformation to POS, ThePrimedia wrote an article "Sticking to the Logic of PoW: Analysis of the Legality and Feasibility of the Ethereum Merge Hard Fork" to remind that if we do not stop it, then more than ten years after the advent of Bitcoin, the Unholy Trinity of the Blockchain world will be "solved" - at the cost of giving up decentralization, it will completely degenerate into a banal financial game that is no different from Wall Street. Since Bitcoin, Satoshi Nakamoto's imagination of "opening a window and revealing a beam of light" for the world will also disappear.

Instead of calculating the gains and losses of moving to POS, think carefully about what is going on - why is the trend towards centralization applauding? Signs of urgency and importance that the idea of decentralization needs to be re-emphasized are already emerging.

Four

We are co-researching and co-creating with a DAO mechanism and incubating Web3 media protocol on this basis, and we have also participated in Blockchain projects of community governance. These practical experiences and reflections will give us a better perspective on the risks of the "Ether Path" through the "failure of the United States".

While we rejoice in the capital brought by Bitcoin ETFs, the encryption world itself is paving the way for "capital control". This is extremely dangerous. Fortunately, the efforts of Bitcoin's layer 2 and the practice of cross-chain interoperability have provided a better option for the encryption world than the "Ether path".

Of course, there are still doubts in the market: Bitcoin faces hurdles in scaling its use cases and scalability, and some EVMs are pseudo-Bitcoin layer 2. How to improve the scalability, security and cross-chain capability of Bitcoin, promote the safe asset issuance and cross-chain experience across heterogeneous Blockchains, especially in ensuring the scalability of Bitcoin without changing its consensus rules, and promoting fast and secure Bitcoin Layer 2 development and interoperability is necessary and urgent.

Today, whether it is the physical world or the encryption world, we are in an era of rapid change and development. In the physical world, the spirit and system of the beautiful country are declining, and terms such as open source, geek, encryption, DAO, decentralization, AI, quantum, interstellar migration, Metaverse, Decentralization and other terms continue to emerge and iterate human cognitive and behavioral patterns.

In the narrative of "AI and Web3 in the Metaverse", a group of evangelists, leaders and promoters of the new era will be born.

Next week, 16 projects will usher in Token Unlock events. Among them, MEME will usher in a large number of unlocks, accounting for 33.6% of the total unlocks, and other important unlocks include DYDX and NYM.

The specific unlock details are as follows:

Memeland

Project Twitter:

Project Official Website:

Number unlocked: 5,600,000,000,000

Amount unlocked: Approximately $156 million

Memecoin (MEME) is the native Token that powers the Memeland NFT ecosystem. Memeland is 9 GAG's independent Web3 venture capital studio dedicated to developing and investing in the SocialFi and creator economy, with the goal of connecting creators and communities through its MEME Token and other NFT.

This is the first Cliff unlock since the launch of MEME, with the largest proportion being the Airdrop part, with a total of 3.45 billion and a value of nearly $100 million. The remainder were 1.04 billion for advisors and 828 million for investors, valued at $30 million and $23.5 million, respectively.

The specific release curve is as follows:

dYdX

Project Twitter:

Project Official Website:

Unlocked this time: 33.34 million

The amount unlocked this time: about $73 million

dYdX is a Decentralization derivatives trading for Perptual Futures and Margin trading, providing Blockchain digital asset trading services in the form of an order book, as well as trading functions for leverage and contracts. dYdX adopts the order model of off-chain matching + on-chain Settlement. The operation experience is closer to the traditional CEX, and can realize limit order, stop loss and other operations.

This unlock is a regular unlock and is open to investors and project parties. Among them, there were 18.49 million for investors, worth $39.3 million, and 14.85 million for founders, employees, and advisors, worth $31.6 million.

The specific release curve is as follows:

Nym

Project Twitter:

Project Official Website:

Unlocked this time: 45.63 million

The amount unlocked this time: about $8.06 million

Nym is a privacy platform that provides strong network-level privacy against sophisticated, end-to-end attackers long wick candle and anonymous access control using blinded, rerandomizable, decentralization credentials. Nym protects privacy at the network layer by encrypting and relaying users' Internet traffic through a longest network called a mixnet.

NYM has been basically unlocked, accounting for 78% of the total unlock, this round is the penultimate round of large unlocking, and the full unlock of this round is released to backers.

The specific release curve is as follows:

Original author: Biteye

Winning Airdrops through Gitcoin Donations is like opening a mystery box, and in order to help everyone better judge, Biteye analyzed the Airdrop rules of Optimism, Dmail, Namada, NIM Network, and Celestia.

They both Airdrop Addresses that have participated in Gitcoin donations, and the rules are slightly different, see the comparison below.

Rule 1 : Gitcoin donors can directly get the Airdrop, unlimited rounds and amount

Optimism is the Ethereum Layer 2, and in the first round Airdrop distributed 5% of the OP supply to 248, 699 Address, including Gitcoin donors.

The main requirement is that on-chain donations have been made through Gitcoin on L1 before the snapshot, regardless of the round and amount, each Address can get 555.92 OP, which is about $800 based on the Opening Price, which is very substantial.

Rule 2 : Gitcoin donors can receive Tokens directly, with limited rounds and amounts

Dmail provides an encryption email service, airdropping 7.5 million DMAIL IN Q1 (3.75% OF TOTAL SUPPLY).

In the past two rounds of Gitcoin donations, all Address Airdrop donated to Dmail totaled 37,500 DMAIL, which will be converted into dollars based on the Exchange Rate at the time ($2,268.26/ETH) if it is donated ETH.

Rule 3: Gitcoin donors can get Tokens directly, limit rounds, and sort the amount

Namada is an L1 for attestation of assets across chains, airdropping 65 million NAM (6.5% total supply) on RPGF Drop, 26% of which goes to donors to ZK Tech and Advocacy project Gitcoin.

Donations to specific projects in specific rounds are ranked by the total amount of donations in each round, with the lowest ranking range of 71 NAM.

Rule 4: Gitcoin donors can get Tokens directly, limiting the type of donation

NIM Network, an AI gaming Blockchain based on Dymension, Airdropped 90 million NYM (9% of the total supply).

The project team will Airdrop 7,599 Wallets that have donated specific open games, infrastructure, and Open Source software projects on Gitcoin, and the specific proportion is unknown.

Rule 5: Use Gitcoin donations as a scoring weight

Celestia is the first modular blockchain network to Airdrop 60 million TIAs (6% of the total supply), of which 1/3 goes to early Ethereum Rollups.

When measuring the level of user on-chain activity, some on-chain behaviors are officially weighted to generate a score (out of 23) linked to the number of Airdrop Token for each Address, and Gitcoin donors can get 3 points.

Summary

Gitcoin donation is a good on-chain interaction behavior, and there is even a probability of getting high-quality project Airdrops to be small and big.

It is worth noting that the entire hair industry is getting more and more rolled, and so is Gitcoin donations, Airdrop the income is not as good as before, in the past, maybe only donations can be, but now it depends on the amount, donation project, donation round, etc., and it is long "one of the weights" as a project Airdrop.

PANews News on April 28, NaaS operator NodeOps announced that it has integrated Decentralization cloud computing infrastructure project Aethir, the latter Checker Node is now online in the NodeOps console, allowing one-click Node deployment.

It is understood that NodeOps is the only Node operator that supports almost all the latest Node infrastructure, aiming to provide a one-stop Node deployment solution for Node infrastructure and related communities. NodeOps has actively supported more than 20 chains, including XAI, HyChain, Avail, and Zora, among others, and has raised more than $125 million through node sales. In the first quarter of 2024 alone, NodeOps has powered more than 17,000 nodes.

ORIGINAL AUTHOR: ZHEV

Original compilation: Ladyfinger, Blockbeats

*Editor's note: With the rapid expansion of the Decentralized Finance field, Solana Blockchain is becoming a new hotspot for Decentralization applications with its high-performance architecture and innovative technology. However, with the surge in economic activity, the Solana fee market and MEV issues have gradually come into the spotlight of the community. *

*This article delves into Solana's fee market design, challenges, and potential impact of MEV on its ecosystem, while comparing Ethereum's experiences and strategies. We invited technical expert Zhev, who previously gave an in-depth technical explanation of AMMs and other Decentralized Finance primitives on his substack to provide us with unique insights into the Solana fee market and the future of MEV. In this article, we'll take a look at how Solana is tackling the growing rise MEV challenges while maintaining its high-performance benefits, and explore the possible direction of its expense market. *

Introduction

The rise of Solana has expanded the Decentralized Finance space. We've been watching from afar, but we've never offered a new perspective. However, the frenzied activity on Solana over the past few months has provided us with a new opportunity to see where it sits in the market, and how it might evolve. Zhev has previously written technical explanations of AMMs and other Decentralized Finance primitives on his own substack. This month, we partnered with him to take a deep dive into Solana's fee market. MEV is already dominating Ethereum's fee market discussions, and as Zhev explores below, it will soon be dominant on Solana as well.

Money Laundering is necessary to support the most basic activities on the Blockchain because they enable users' transactions to gain validity and be included in a single block. The main purpose of these fees is to stop spam, and it is also part of the subsidy paid to validators to build/verify Block. In a sense, these network fees are similar to rent; users pay a fee to access a limited number of goods per unit of time. The product here is the "Block short room", that is, the short room on the Block.

Here, we evaluate the two largest smart contracts Blockchain, Ethereum and Block short on Solana. As we dug deeper, we learned that the fee market, both designed within the protocol and grown organically from the ground up, enabled validators to take advantage of their access to Block short.

Solana's fee market long wick candle is optimized for high performance and aims to avoid the problems that arise in the Ethereum approach. However, while Solana's market may ultimately be more efficient than Ethereum's, it will still need to go through a similar MEV revolution to its peers (where validators are starting to take advantage of their privileged position). Solana doesn't have to go the Proposal Builder Separation (PBS) route chosen by Ethereum, but it needs to identify a comprehensive approach to stabilizing its fee market over the long term.

The basics of Block short valuation

Before we dive in, let's try to understand how Block short value is roughly determined.

There are both technical aspects and social aspects (basically the coordination of the parties that give value to the Blockchain). From a technical point of view, Blockchain can adjust Block Size, Block Time, and Block Production and Propagation Mechanism. The chart below provides a more detailed description and comparison of Ethereum's approach to Solana.

The social aspect refers to the coordination of Blockchain stakeholders to achieve the technical and financial goals of the chain. It can also be seen as the social status of Blockchain, which, while subjective, is an important measure. Social pressures are just as effective as building a specific culture of problem-solving, and both Solana and Ethereum have built such cultures. Examples of recent discussions around the social layer include the debate over whether to increase Ethereum's gas cap and issuance per epoch, and the recent closure of Jito's mempool on Solana.

Now, let's review and contrast the fee markets for Ethereum and Solana in more detail.

Summary of Ethereum's fee market

Ethereum's popularity is largely due to its execution environment: the Ethereum Virtual Machine (EVM), which enables smart contracts. Another factor is that the permissionless nature of Ethereum has generated a variety of innovative applications over longest cycles: the ICO boom of 2017-2018, the Decentralized Finance Summer of 2020, and the NFT mania of 2021-2022. The continued presence of these apps creates value for validators, and they provide a Block short for these activities.

Shortly after the surge in economic activity on Ethereum, miners (which was a few years before the shift to PoS) began exploring how to use their position as block proposers to insert their own transactions when arbitrage opportunities arose.

Phil Daian was the first to document such an event. He was the first to document this activity in his seminal paper published in 2019 (Flash Boys 2.0) (which we now call MEV). At the time, Ethereum's fee market only allowed higher gas prices as a way to incentivize transaction inclusion. These preferred gas auctions (PGAs) clogged the Ethereum network and raised gas prices until Flashbots (co-founded by Daian) launched. This creates a marketplace for Miner where they can pay the transaction inclusion fee through searchers, who are on-chain Arbitrage traders. Ethereum researchers then realized that MEV extraction could be more powerful than protocol fees.

Perhaps the biggest change to the Ethereum fee market is EIP-1559, which creates a base fee (dynamically determined per epoch, blocking spam, burning), as well as a priority fee (used to show urgency or specify a preference, and paid to block proposers to include transactions). An important point is that "priority fees" are functionally different from "tips". The former ensures the inclusion and intermediary by the underlying chain, while the latter ensures sorting as well as the inclusion and intermediary by the fee market.

Ethereum's approach is always evolving; check out our two-part deep dive into MEV last fall. This happens through a combination of social layers that attempt to decentralize a centralized MEV industry, as well as the technology layer, where MEV is now a key part of the technology roadmap (which Vitalik calls "The Scourge").

The mechanics of Solana's fee market

Solana takes a very different approach when it comes to Blockchain architecture, especially when it comes to scalability.

Some of Solana's notable innovations include:

1. There is no universal memory pool: In Solana, transactions are forwarded directly from the initiating client to the leader who is currently responsible for generating blocks, so there is no need for a memory pool. This theoretically reduces the latency of transaction confirmations, but in practice this is not always the case due to "jitter" (i.e., different processing times experienced by different validators when processing a transaction or block).

2. State isolation: The lack of memory pool extension makes transactions on its dAPP more independent of each other. This approach is similar to the concept of "adding more long lanes to divert traffic", where different types of transactions on Solana must follow a specific "path", from the user to the leader, in order to be added to the Block.

3. Parallel Execution: Solana is able to process non-overlapping transactions in parallel in the same block at the same time. This is due to two factors:

• Solana's Block Production is (roughly) sequential because the Leader is expected to add transactions to the Block when they are received.

• Slot Leaders are fixed because they are pre-arranged in the queue, and these Leaders are also responsible for producing four Block in a row.

These two factors, combined with Solana's state isolation, make transactions "longer". This is where the leader of the current epoch schedules longest transaction packages to be confirmed at approximately the same time (provided that transactions in the same thread do not change the same state) in the same way and at the same time.

Solana's Fee Market: Cheaper ≠ Better

Network fees on Solana are usually very low (although they have risen with recent demand). In contrast to Ethereum, Solana has a static base fee metered in lamports. Its priority fee is then metered in micro-lamports per requested unit of compute.

This means that while fees scale algorithmically as complexity and requirements increase on the EVM, SVMs only need to increase their priority charges with simple requirements. The resulting non-dynamic technical problems are detailed here, but the gist is that pricing commodities with highly volatile demand Fluctuation and certain supply in a static manner is not ideal.

Solana's Fee Market: The Inevitability of MEV

Solana's social consensus considers its low fees to be its unique advantage over other Blockchains. This approach invites spam, so some have called for higher fees or a dynamic base fee (similar to EIP-1559) during periods of high activity.

Solana's approach to date has been to implement localized fee markets in response to increased demand. Because the state is isolated, it's easy for the network to identify "hot spots" or states that are experiencing a surge in demand. This hotspot approach enables Blockchain to Algorithm Price Higher Target Money Laundering Fees for Transactions Than Other States with Less Demand. This approach is similar to the Block builder role on Ethereum that is done by a scheduler who helps place transactions in consecutive blocks based on priority fees.

As part of the implementation of the local fee market, Solana built an in-protocol scheduler that locally schedules transactions for execution on a first-in, first-out Algorithm basis. Trades are constantly streamed to the slot leader, which is then sorted according to the hints they provide.

The algorithm also requires slot leaders to share the shards they are building with some of the nodes they connect, based on the latter's stake. However, as mentioned earlier, this process is disrupted by jitter. Specifically, scheduler jitter (due to Solana randomly assigning incoming transactions to the executing thread) and network jitter (P2P Relay latency from incoming transactions and Sharding).

These "jitters" result in an uncertain order of transactions on the Solana, which makes Block short-room auctions economically viable. In other words, whenever there is jitter, validators have an economic incentive to insert or reorder transactions. For users, this means MEV leaks, and for validators, MEV profits.

Solana vs Ethereum

A quick recap of MEV-Ethereum: On Ethereum before Flashbots, MEV activity squeezed out regular Blockchain activity, driving up gas prices for all users through PGAs. On Solana, fees don't spike because it doesn't have a shared state and a global minimum price like Ethereum, but it's hard for the average user to complete transactions on Solana when activity increases. Flashbots released MEV-GETH to process PGAs, creating a separate channel for MEV value that is auctioned protocol to an in-protocol fee mechanism. In the case of Solana, Jito launched a similar product for validators, providing them with a pseudo-memory pool and a custom scheduler to order transactions in the most advantageous way. Jito's memory pool is attractive to users, providing them with guaranteed inclusion rights to be front-run (i.e., their MEV is extracted).

While a popular product, Jito's memory pool came under social pressure and shut down last month. This may be the same reason why more than 20% of Ethereum transactions run through private memory pools: users are tired of being attacked by sandwiches. Spam is now once again the only mechanism on Solana that (probariably) guarantees the execution of time-sensitive transactions. The lack of an efficient inter-Block short bidding mechanism leads to uncertainty during periods of high demand.

Because transactions on Solana are now streamed directly to the slot leader, and the priority model has been broken, the topology (and the resulting latency) is the most important component of time-sensitive transactions that users will consider.

The topology of users in the network can be understood as how far they are long from the leader, depending on their stake weight and/or the stake weight of the Node they are connected to. As a result, rational agents seek to connect with Nodes that already control high stakes, leading to centralization.

As a short-term consequence of spam, Solana is now so crowded that it is almost unusable for less skilled users due to failed transactions. As a result, addressing the long-term consequences (centralization of co-location and network shares) becomes even more important.

A more structured market?

Solana's original design philosophy centered around removing user friction and allowing the validation network to meet requirements in any way. What they ignore is that markets work best when they have some certainty about how they operate. Fee-based markets provide a way to democratize inclusion by requiring users to pay longest, shifting the problem from a topological perspective to an incentive-based one.

While this has changed the user experience, accepting the fee market, and specifically their relationship with MEV, is the best way forward for Solana and its users. Arguably, providing a cost-intensive package approach while maintaining the integrity of the chain is longer than no method at all.

In fact, on-chain activity is almost always time-sensitive, especially when agents seek to extract value at little or no economic cost. Overly deterministic execution is better than cheap probabilistic execution.

(The sample size is small, but it's still the same!!)

The specialization of the fee market allows inter-Block short bargaining and auctions to take place at a higher level away from Consensus and execution. As a result, validators can fulfill their responsibilities without worrying about how to optimize the best results of cumulative Block short value.

Solana's upcoming MEV revolution

Solana is in the midst of a chain-wide discussion about how its fee market should be restructured (which has been pondered for Ethereum long years, but remains unresolved).

Solana has yet to undergo the necessary MEV transformation. While the recent increase in on-chain activity has attracted MEV players like Jito and Ellipsis to start building MEV infrastructure, major validators have yet to cross this hurdle and start running their own Solana MEV strategies. In stark contrast, all major staking providers on Ethereum are running MEV. Solana validators community isn't as adversarial as the Ethereum community, so in order to prioritize the end-user's experience, the two sides reached a handshake protocol that doesn't extract MEV (so far).

This situation will not last; Blockchain must operate in an adversarial environment of self-interested actors. Solana may perform better than Ethereum because it can solve some MEV problems without being severely constrained by Decentralization like Ethereum. However, it must also answer some tough questions, such as, should all staked SOLs be rewarded with MEV, as Ethereum has achieved with MEV boost?

To solve Solana's congestion problem, we are already exploring some minimization mechanisms. These mechanisms include dynamic fee structures, upcoming changes to the local scheduler specification, stake-based restrictions, and other application layer optimizations. Things are moving fast. Jito's CEO recently admitted that "a small group of operators/searchers are sandwiching private mempools".

MEV is a sign of economic rise and is therefore inevitable. In fact, even Bitcoin, whose simplicity is often hailed as its greatest feature, began to undergo a reinvention after the rise of Ordinals and economic activity. The solution was chosen to ignore because negative externalities (as in Jito's case) do not eliminate said externalities, they only lead to an uncoordinated market.

The social dimension is an effective tool to discourage predatory behavior, but it can only last for a short time. Ethereum is experiencing a social inadequacy with the rise of the time game, which is a strategy for Block proponents to deliberately release their Block for as long as possible latency to maximize MEV capture. This weakens the chain's security, but makes economic sense from a validator's perspective. Shame can last for a while, but protocol research is the only long-term solution.

It's too early to say what Solana's MEV Supply Chain will look like in a few years. But one thing we can be sure of now is that a large longest of value will be captured by a large number of validators.

AUTHOR: ZHEV

Compilation: Ladyfinger, Blockbeats

Editor's note: With the rapid expansion of the Decentralized Finance field, Solana Blockchain is becoming a new hotspot for Decentralization applications with its high-performance architecture and innovative technology. However, with the surge in economic activity, the Solana fee market and MEV issues have gradually come into the spotlight of the community.

This article provides an in-depth look at Solana's fee market design, the challenges it faces, and the potential impact of MEV on its ecosystem, as well as a comparison of Ethereum's experiences and strategies. We invited technical expert Zhev, who previously gave an in-depth technical explanation of AMMs and other Decentralized Finance primitives on his substack to provide us with unique insights into the Solana fee market and the future of MEV. In this article, we'll take a look at how Solana is tackling the growing rise MEV challenges while maintaining its high-performance benefits, and explore the possible direction of its expense market.

Introduction

The rise of Solana has expanded the Decentralized Finance space. We've been watching from afar, but we've never offered a new perspective. However, the frenzied activity on Solana over the past few months has provided us with a new opportunity to see where it sits in the market, and how it might evolve. Zhev has previously written technical explanations of AMMs and other Decentralized Finance primitives on his own substack. This month, we partnered with him to take a deep dive into Solana's fee market. MEV is already dominating Ethereum's fee market discussions, and as Zhev explores below, it will soon be dominant on Solana as well.

Money Laundering is necessary to support the most basic activities on the Blockchain because they enable users' transactions to gain validity and be included in a single block. The main purpose of these fees is to stop spam, and it is also part of the subsidy paid to validators to build/verify Block. In a sense, these network fees are similar to rent; users pay a fee to access a limited number of goods per unit of time. The product here is the "Block short room", that is, the short room on the Block.

Here, we evaluate the two largest smart contracts Blockchain, Ethereum and Block short on Solana. As we dug deeper, we learned that the fee market, both designed within the protocol and grown organically from the ground up, enabled validators to take advantage of their access to Block short.

Solana's fee market long wick candle is optimized for high performance and aims to avoid the problems that arise in the Ethereum approach. However, while Solana's market may ultimately be more efficient than Ethereum's, it will still need to go through a similar MEV revolution to its peers (where validators are starting to take advantage of their privileged position). Solana doesn't have to go the Proposal Builder Separation (PBS) route chosen by Ethereum, but it needs to identify a comprehensive approach to stabilizing its fee market over the long term.

The basics of Block short valuation

Before we dive in, let's try to understand how Block short value is roughly determined.

There are both technical aspects and social aspects (basically the coordination of the parties that give value to the Blockchain). From a technical point of view, Blockchain can adjust Block Size, Block Time, and Block Production and Propagation Mechanism. The chart below provides a more detailed description and comparison of Ethereum's approach to Solana.

The social aspect refers to the coordination of Blockchain stakeholders to achieve the technical and financial goals of the chain. It can also be seen as the social status of Blockchain, which, while subjective, is an important measure. Social pressures are just as effective as building a specific culture of problem-solving, and both Solana and Ethereum have built such cultures. Examples of recent discussions around the social layer include the debate over whether to increase Ethereum's gas cap and issuance per epoch, and the recent closure of Jito's mempool on Solana.

Now, let's review and contrast the fee markets for Ethereum and Solana in more detail.

Summary of Ethereum's fee market

Ethereum's popularity is largely due to its execution environment: the Ethereum Virtual Machine (EVM), which enables smart contracts. Another factor is that the permissionless nature of Ethereum has generated various innovative applications over longest cycles: the ICO boom of 2017-2018, the Decentralized Finance Summer of 2020, and the NFT mania of 2021-2022. The continued presence of these apps creates value for validators, and they provide a Block short for these activities.

Shortly after the surge in economic activity on Ethereum, miners (which was a few years before the shift to PoS) began exploring how to use their position as block proposers to insert their own transactions when arbitrage opportunities arose.

Phil Daian was the first to document such an event. He was the first to document this activity in his seminal paper published in 2019 (Flash Boys 2.0) (which we now call MEV). At the time, Ethereum's fee market only allowed higher gas prices as a way to incentivize transaction inclusion. These preferred gas auctions (PGAs) clogged the Ethereum network and raised gas prices until Flashbots (co-founded by Daian) launched. This creates a marketplace for Miner where they can pay the transaction inclusion fee through searchers, who are on-chain Arbitrage traders. Ethereum researchers then realized that MEV extraction could be more powerful than protocol fees.

Perhaps the biggest change to the Ethereum fee market is EIP-1559, which creates a base fee (dynamically determined per epoch, spam blocked, burned), and a priority fee (used to show urgency or specify a preference, and paid to the block proposer to include the transaction). An important point is that "priority fees" are functionally different from "tips". The former ensures the inclusion and intermediary by the underlying chain, while the latter ensures sorting as well as the inclusion and intermediary by the fee market.

Ethereum's approach is always evolving; check out our two-part deep dive into MEV last fall. This happens through a combination of social layers that attempt to decentralize a centralized MEV industry, as well as the technology layer, where MEV is now a key part of the technology roadmap (which Vitalik calls "The Scourge").

The mechanics of Solana's fee market

Solana takes a very different approach when it comes to Blockchain architecture, especially when it comes to scalability.

Some of Solana's notable innovations include:

1. There is no universal memory pool: In Solana, transactions are forwarded directly from the initiating client to the leader who is currently responsible for generating blocks, so there is no need for a memory pool. This theoretically reduces the latency of transaction confirmations, but in practice this is not always the case due to "jitter" (i.e., different processing times experienced by different validators when processing a transaction or block).

2. State isolation: The lack of memory pool extension makes transactions on its dAPP more independent of each other. This approach is similar to the concept of "adding more long lanes to divert traffic", where different types of transactions on Solana must follow a specific "path", from the user to the leader, in order to be added to the Block.

3. Parallel Execution: Solana is able to process non-overlapping transactions in parallel in the same block at the same time. This is due to two factors:

• Solana's Block Production is (roughly) sequential because the Leader is expected to add transactions to the Block when they are received.

• Slot Leaders are fixed because they are pre-arranged in the queue, and these Leaders are also responsible for producing four Block in a row.

These two factors, combined with Solana's state isolation, make transactions "longer". This is where the leader of the current epoch schedules longest transaction packages to be confirmed at approximately the same time (provided that transactions in the same thread do not change the same state) in the same way and at the same time.

Solana's Fee Market: Cheaper ≠ Better

Network fees on Solana are usually very low (although they have risen with recent demand). In contrast to Ethereum, Solana has a static base fee metered in lamports. Its priority fee is then metered in micro-lamports per requested unit of compute.

This means that while fees scale algorithmically as complexity and requirements increase on the EVM, SVMs only need to increase their priority charges with simple requirements. The resulting non-dynamic technical problems are detailed here, but the gist is that pricing commodities with highly volatile demand Fluctuation and certain supply in a static manner is not ideal.

Solana's Fee Market: The Inevitability of MEV

Solana's social consensus considers its low fees to be its unique advantage over other Blockchains. This approach invites spam, so some have called for higher fees or a dynamic base fee (similar to EIP-1559) during periods of high activity.

Solana's approach to date has been to implement localized fee markets in response to increased demand. Because the state is isolated, it's easy for the network to identify "hot spots" or states that are experiencing a surge in demand. This hotspot approach enables Blockchain to Algorithm Price Higher Target Money Laundering Fees for Transactions Than Other States with Less Demand. This approach is similar to the Block builder role on Ethereum that is done by a scheduler who helps place transactions in consecutive blocks based on priority fees.

As part of the implementation of the local fee market, Solana built an in-protocol scheduler that locally schedules transactions for execution on a first-in, first-out Algorithm basis. Trades are constantly streamed to the slot leader, which is then sorted according to the hints they provide.

The algorithm also requires slot leaders to share the shards they are building with some of the nodes they connect, based on the latter's stake. However, as mentioned earlier, this process is disrupted by jitter. Specifically, scheduler jitter (due to Solana randomly assigning incoming transactions to the executing thread) and network jitter (P2P Relay latency from incoming transactions and Sharding).

These "jitters" result in an uncertain order of transactions on the Solana, which makes Block short-room auctions economically viable. In other words, whenever there is jitter, validators have an economic incentive to insert or reorder transactions. For users, this means MEV leaks, and for validators, MEV profits.

Solana vs Ethereum

A quick recap of MEV-Ethereum: On Ethereum before Flashbots, MEV activity squeezed out regular Blockchain activity, driving up gas prices for all users through PGAs. On Solana, fees don't spike because it doesn't have a shared state and a global minimum price like Ethereum, but it's hard for the average user to complete transactions on Solana when activity increases. Flashbots released MEV-GETH to process PGAs, creating a separate channel for MEV value that is auctioned protocol to an in-protocol fee mechanism. In the case of Solana, Jito launched a similar product for validators, providing them with a pseudo-memory pool and a custom scheduler to order transactions in the most advantageous way. Jito's memory pool is attractive to users, providing them with guaranteed inclusion rights to be front-run (i.e., their MEV is extracted).

While a popular product, Jito's memory pool came under social pressure and shut down last month. This may be the same reason why more than 20% of Ethereum transactions run through private memory pools: users are tired of being attacked by sandwiches. Spam is now once again the only mechanism on Solana that (probariably) guarantees the execution of time-sensitive transactions. The lack of an efficient inter-Block short bidding mechanism leads to uncertainty during periods of high demand.

Because transactions on Solana are now streamed directly to the slot leader, and the priority model has been broken, the topology (and the resulting latency) is the most important component of time-sensitive transactions that users will consider.

The topology of users in the network can be understood as how far they are long from the leader, depending on their stake weight and/or the stake weight of the Node they are connected to. As a result, rational agents seek to connect with Nodes that already control high stakes, leading to centralization.

As a short-term consequence of spam, Solana is now so crowded that it is almost unusable for less skilled users due to failed transactions. As a result, addressing the long-term consequences (centralization of co-location and network shares) becomes even more important.

A more structured market?

Solana's original design philosophy centered around removing user friction and allowing the validation network to meet requirements in any way. What they ignore is that markets work best when they have some certainty about how they operate. Fee-based markets provide a way to democratize inclusion by requiring users to pay longest, shifting the problem from a topological perspective to an incentive-based one.

While this has changed the user experience, accepting the fee market, and specifically their relationship with MEV, is the best way forward for Solana and its users. Arguably, providing a cost-intensive package approach while maintaining the integrity of the chain is longer than no method at all.

In fact, on-chain activity is almost always time-sensitive, especially when agents seek to extract value at little or no economic cost. Overly deterministic execution is better than cheap probabilistic execution.

(The sample size is small, but it's still the same!!)

The specialization of the fee market allows inter-Block short bargaining and auctions to take place at a higher level away from Consensus and execution. As a result, validators can fulfill their responsibilities without worrying about how to optimize the best results of cumulative Block short value.

Solana's upcoming MEV revolution

Solana is in the midst of a chain-wide discussion about how its fee market should be restructured (which has been pondered for Ethereum long years, but remains unresolved).

Solana has yet to undergo the necessary MEV transformation. While the recent increase in on-chain activity has attracted MEV players like Jito and Ellipsis to start building MEV infrastructure, major validators have yet to cross this hurdle and start running their own Solana MEV strategies. In stark contrast, all major staking providers on Ethereum are running MEV. Solana validators community isn't as adversarial as the Ethereum community, so in order to prioritize the end-user's experience, the two sides reached a handshake protocol that doesn't extract MEV (so far).

This situation will not last; Blockchain must operate in an adversarial environment of self-interested actors. Solana may perform better than Ethereum because it can solve some MEV problems without being severely constrained by Decentralization like Ethereum. However, it must also answer some tough questions, such as, should all staked SOLs be rewarded with MEV, as Ethereum has achieved with MEV boost?

To solve Solana's congestion problem, we are already exploring some minimization mechanisms. These mechanisms include dynamic fee structures, upcoming changes to the local scheduler specification, stake-based restrictions, and other application layer optimizations. Things are moving fast. Jito's CEO recently admitted that "a small group of operators/searchers are sandwiching private mempools".

MEV is a sign of economic rise and is therefore inevitable. In fact, even Bitcoin, whose simplicity is often hailed as its greatest feature, began to undergo a reinvention after the rise of Ordinals and economic activity. The solution was chosen to ignore because negative externalities (as in Jito's case) do not eliminate said externalities, they only lead to an uncoordinated market.

The social dimension is an effective tool to discourage predatory behavior, but it can only last for a short time. Ethereum is experiencing a social inadequacy with the rise of the time game, which is a strategy for Block proponents to deliberately release their Block for as long as possible latency to maximize MEV capture. This weakens the chain's security, but makes economic sense from a validator's perspective. Shame can last for a while, but protocol research is the only long-term solution.

It's too early to say what Solana's MEV supply chain will look like in a few years. But one thing we can be sure of now is that a large longest of value will be captured by a large number of validators.

Author: dt, DODO Research

Runes protocol, the runes that retail investors have been waiting for for a long time, have finally debuted with BTC Halving, except for No. 0 as a reservation, everyone can register issuance runes, and the Bitcoin Block network was crowded at the beginning of the launch, Money Laundering once broke k sats/vB, according to the Dune Analytics dashboard shared by Blockchain research firm Crypto Koryo, more than 238 have been processed since the launch of Runes on April 20 10,000 transactions, accounting for 68% of total Bitcoin transactions.

Today, Dr. DODO will take you to know what runes are, what innovations there are, and what inscription items are worth noting.

What are Runes Runes?

Casey Rodarmor, the founder of Ordinals, believes that the current issuance Token solutions on Bitcoin networks (BRC20, Taproot Assets, etc.) have their own flaws, and a token standards has emerged from the idea of creating a UTXO-based Fungible Token protocol.

KEY FEATURES

• Based on UTXO: Runes balances are held by UTXOs, and each UTXO can contain any number of Runes.
• Transaction and protocol information: Output containing specific scripts is considered part of protocol information. These scripts specify how Runes are transferred and distributed.
• Flexibility: The transfer of runes is defined by interpreting the data push in the transaction, allowing for the flexibility to allocate runes to different outputs.
• Issuance: If there is a second data push in the protocol message, it will be treated as an issuance transaction, allowing the creation of new runes.
• Simplicity and Decentralization: Runes protocol as simple as possible, doesn't rely on off-chain data, has no native Token, and fits into Bitcoin UTXO models.
• Symbol allocation: Runes can have symbols associated with them, but the protocol does not try to avoid symbol squatting in order to keep it simple.

Innovation, Strengths and Weaknesses

Advantage:

1. Protocol to UTXO, the model Rune protocol adopts Bitcoin's native UTXO model, and each UTXO can contain any number of any Rune Token, which solves the problem of Brc20 junk UTXO inflation and makes Rune more naturally integrated into the Bitcoin system.
2. Don't rely on off-chain data, all the information protocol Rune is included in the on-chain transaction, no need to rely on off-chain data, drop complexity, and improves the user experience.
3. Native BTC Token, unlike protocol sidechains or BTC L2 solutions that require native Token to pay fees, the operation of Rune protocol does not require any additional Token, simplifying the use process.

Disadvantage:

1. There is no anti-cybersquatting mechanism, in order to keep it simple, Rune does not set up a mechanism to prevent cybersquatting of Token symbols, which may lead to some ideal symbols being registered prematurely, the current solution is that when Runes is first launched, all Token name lengths are from 13 digits and above, and thereafter, about every four months, the minimum length of the name is reduced by one letter until the next Halving event, when a single character Rune (26 in total) can be created.
2. Long runes are not conducive to spreading coins on exchanges
3. The project party is allowed to reserve, and the fair distribution is questioned

How runes can be minted and traded

long the websites that support the Brc20 minting all support Runes runes minting, among which GeniiData, Runestore and Luminex are the most popular because they can monitor popular inscription in the minting at the same time, but at the same time, you must pay attention to the associated fees, in addition to the front-end of the web page, there are also TG bots such as BTCBot, which makes it easier to quickly minting runes.

Casting:

1. Unisat -
2. OKX Web3 -
3. GeniiData -
4. Luminex -
5. Runestore -
6. BTCBot - btcbot.pro

On the other hand, the trading market is still the mainstream MagicEden, Unisat and OKX Web3 as the largest, and ME is currently the best from the perspective of user experience, with a simple interface that supports longest order scanning and the lowest Money Laundering fees, while the previous Brc20 leader market OKX Web3 is not satisfactory because it does not support order scanning and can only interact with its own OKX Web Wallet.

Trading Market:

1. MagicEden -
2. Unisat -
3. OKX Web3 -

Runes to watch out

At present, the mainstream of runes is still dominated by meme narratives, and the first ten runes are the most long people's attention, in addition to the cat DOGE theme and the words mentioned by founder Casey such as (WANKO, MANKO, RUNES, ANARCHO, CATBUS) are all hype.

Source:

Judging from the 24-hour trading data of MagicEden, the rune market with the largest volume at present, the current leader rune is the inscription DOG•GO•TO•THE•MOON launched by KOL Leonidas' Runestone project The project is 100% reserved and airdropped to Runestone holders, there is no open minting, and because Runestone holders have longest communities and have been operating for several months, it is currently the target with the strongest consensus.

The inscription with the second volume RSIC•GENESIS•RUNE is Airdropped by the NFT project RSIC METAPROTOCOL based on previous mining activities, and is currently one of the very few inscriptions with gameplay mechanisms that are not pure Memecoin, and the project party is currently planning to carry out the second phase of mining activities.

volume third place, LOBO•THE•WOLF•PUP, is also 100% reserved Airdrop for Runestone and Rune Doors holders, launched by KOL @_BuoyantCapital, which has just been distributed the day before yesterday Airdrop so the community is hot.

SATOSHI•NAKAMOTO, the fourth volume, is the first rune to be successfully launched in exchange, and it was once the most long rune by the highest holder of the market capitalization before the DOG•GO•TO•THE•MOON issue Airdrop, and because it is the least reserved (20%) rune among the top ten, it was the most popular in the first two days of the rune protocol was also launched on Gate exchange, but the current leader status is MOON by DOG•GO•TO•THE• After surpassing, the popularity is no longer there, and no project party stands up to express that the community consensus is low.

volume fifth Z•Z•Z•Z•Z•Z No. 1 rune reserved a 99% share, due to speculation by long people that the share would be permanently locked, it provoked a wave of people to minting two days ago, but as the project team stated on Twitter that it is not recommended for users to take expensive Money Laundering minting, and said that 99% of the share will be given to everyone in the future, and everyone will have the opportunity to get it.

In addition, the two major Meme Puppet and Wizard communities promoted by the well-known KOL Ansem launched the No. 13 rune PUPS•WORLD•PEACE, and the No. 17 rune MAGIC•INTERNET•MONEY are 100% reserved by the project team, and will be airdropped to BRC20 and Ordinals NFT holders in the future, which is also worth everyone's continued attention and tracking.

Author's point of view

In the first few days of the rune online, the author also participated in the minting of several rune projects, in terms of experience, the rune minting due to the rather long infrastructure of BRC20 inscription Leike, it is quite easy and not as unchanged long as the early inscription, but at the same time, it also derives the question of what is the difference between runes and inscription, and the asset issuance narrative on the BTC has BRC20 and BRC20 is quite successful so far, and runes are no different for retail investors in terms of gameplay.

But at the same time, for those who want to enter the BTC issuance asset project, issuance runes are indeed better than BRC20 in terms of experience, runes are more mature asset issuance protocol, and can be perfectly used as a replacement for BRC20, but for Memecoin Consensus, the community Consensus can not be established overnight, so the Runes Memecoin that was born short benchmark Ordi and Sats This is unrealistic, and the author will focus more long on the runes launched by projects that already have mature products or communities, rather than the runes that attract Fomo's minting just because of their names.

Crypto money market has experienced significant volatility in recent months. Leading cryptocurrencies such as Bitcoin and Ethereum have lost value, while some altcoin projects have skyrocketed. While this situation made investors nervous, it also raised questions about the future of the market. While the eyes of Crypto money analysts are also on the market, il Capo, one of the well-known analysts, shared his latest analysis. Capo made remarkable predictions for Bitcoin, Ethereum, and altcoins and gave important signals to investors. In this article, we will examine Capo's latest predictions and the latest developments in the market.

Capo made a statement about altcoin projects

Il Capo, one of the well-known analysts of the Crypto money world, made evaluations about the current situation of the market and gave important signals to investors. According to Capo's analysis, while Bitcoin and Ethereum may continue their downward trend in the coming period, rise opportunities may arise in some altcoin projects. Capo noted that Bitcoin is currently in an fall trend in the $57,000 to $59,000 range, which is a key resistance point. According to the analyst, if Bitcoin fails to break through this resistance level, there is a risk that it will decline to its main target of $40,000.

Opened short positions in CRO and BNB

Capo thinks that despite the possibility of the market making a bounce in the short term, the coming months should be favorable for a bear market. Therefore, he warns that investors should proceed with caution and manage their risks. Capo also gave information about his own positions. According to the analyst, he said that he is currently in short position in CRO and BNB and is waiting for the end of the correction trend in the market for his next moves.

Capo's analysis shows that a fall trend may continue in Bitcoin and Ethereum in the coming period, but rise opportunities may also arise in some altcoins. It is important for investors to do their own research and manage their risks with these analyses in mind. The information in this news is not investment advice. Crypto money investments are quite risky and detailed research is required before investing.

As we reported as Kriptokoin.com, Capo predicted that there would be a bear market in Bitcoin in the second half of 2022, and this prediction turned out to be largely correct. Bitcoin fell considerably from its ATH level in November 2021 (around $69,000) to less than $30,000 in June 2022.

Follow us on Twitter, Facebook, and Instagram to stay up to date on breaking news. Join our Telegram and Youtube channel.**

Matt Williams

Last updated:

April 28, 2024 00:30 EDT | 2 min read

## TLDR

• Thailand plans to block unauthorized crypto platforms to enhance law enforcement and protect against online crime while supporting innovation.
• Milei Moneda ($MEDA) offers defiance, humor, and economics in crypto, with a $0.0125 presale price and the potential to become one of the top crypto coins.

Thailand’s recent crackdown on unauthorized exchanges mirrors the global struggle to balance crypto regulation with innovation. Meanwhile, Milei Moneda’s ($MEDA) presale surge offers investors a unique blend of defiance, economics, and humor in the crypto sphere.

Economize Like Milei: Invest in $MEDA!

Thailand to Block Access to Unauthorized Crypto Platforms

In a move aimed at enhancing law enforcement efficiency and tackling online crime, Thai authorities have announced plans to block access to unauthorized cryptocurrency platforms.

Following a meeting of the Technology Crime Prevention and Suppression Committee, Thailand’s SEC has been tasked with identifying and submitting information on unauthorized digital asset service providers to the Ministry of Digital Economy and Society for blocking access.

While the authorities have not specified the platforms deemed unauthorized, they have urged users to swiftly withdraw their assets from these platforms. Moreover, the SEC assures users that they will be given ample time to manage their accounts before facing restrictions.

This decision comes amid Thailand’s efforts to strike a balance between fostering the crypto eco and safeguarding against fraudulent activities. While the country has embraced certain aspects of cryptocurrency investment, such as allowing institutional investors and high-net-worth individuals to participate in crypto ETFs, it remains vigilant about potential risks.

The move also aligns with earlier decisions by countries like India and the Philippines to curb unauthorized crypto platforms. Meanwhile, Thailand’s regulators continue to navigate the evolving landscape of digital assets, seeking to establish a vigorous regulatory framework that supports innovation while prioritizing investor protection and financial integrity.

Milei Moneda: Defiance, Economics, and Humor in Crypto

Milei Moneda’s presale has attracted millions, promising a breakthrough in meme coin evolution. Priced at $0.0125 in its Stage 2 presale, Milei Moneda symbolizes defiance, economics, and humor, captivating investors with its unique features

Moreover, with a deflationary model, community engagement, meme culture integration, and NFT rewards, it is set to be a potential top ten cryptocurrency. Furthermore, the project’s journey intersects politics, blockchain innovation, and humor, embodying the essence of Mileinomics.

Inspired by Argentine president Javier Milei, Milei Moneda represents defiance against conventional norms, focusing on economic freedom and decentralized finance.

Boasting a total supply of 500,000,000 $MEDA tokens, Milei Moneda ensures broad participation and community engagement through transparent token distribution. Additionally, investors gain access to exclusive NFTs and NFT staking rewards, enhancing the investment value and positioning $MEDA amongst top crypto coins.

Currently, in Stage 2 of its presale, with a vesting schedule releasing 25% weekly over four weeks, early investors anticipate a 60% ROI as the project prepares for its May 21 Uniswap launch at $0.020. This amazing growth prospect puts $MEDA amongst the best cryptos to buy.

With a projected 100% price surge post-launch, $MEDA emerges as the best crypto investment opportunity in the volatile crypto space and positions itself as one of the best DeFi projects. Whether seasoned or new, investors can participate in the movement toward economic freedom and decentralization with Milei Moneda.

Conclusion

Amid regulatory uncertainties, Milei Moneda represents resilience and potential, providing investors with a promising avenue for economic freedom in the volatile crypto market.

Got $MEDA curiosity? Visit us or chat on Telegram for the inside scoop. Fast, fun, and informative!

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