EigenLabs, the developer behind the EigenLayer re-staking protocol, plans to unveil EigenDA, a solution designed to reduce data storage costs for Layer 2 Ethereum rollups. It is expected to go live by the end of 2023.
The solution has piqued the interest of projects like Celo, Mantle, Fluent, Offshore, and Layer N, which are looking into integrating this mechanism into their Layer 2 setups, according to EigenLabs.
Introduced in June, the primary role of EigenLayer is to leverage ether (ETH) staked with Ethereum validators and other liquid staking tokens to secure other blockchain protocols. The protocol can also validate add-on services (like EigenDA) built on top of it, with nodes expected to receive service payments.
EigenLabs said that EigenDA will be the first actively validated service (AVS) on EigenLayer. An AVS means a system that is built on restaking, sourcing validation from EigenLayer.
The determination of the EigenDA operator set, entities which operate and validate the system, will be based on the re-stake amount allocated to nodes through EigenLayer. The system will integrate "a proof of custody" mechanism, ensuring storage data remains accessible.
“The EigenDA operator set will be selected based on amount of restake to each node via EigenLayer. Nodes that do not appropriately store data will be slashed via proof of custody mechanism. Thus EigenLayer restake helps guarantee data is actually available in the system,” Calvin Liu, chief strategy officer at EigenLabs told The Block.
What is data availability?
Despite the importance of full transaction data storage for Ethereum decentralized applications (dapps) on its Layer 2 networks, there are inherent challenges linked with scalability and transaction fees, predominantly due to the vast amount of data that requires processing.
Having good data availability can involve separating the roles of data storage and transaction processing on Layer 2 networks, potentially resulting in significantly cheaper transaction costs.
Using EigenDA, rollups can reduce transaction costs, which would prove advantageous for scaling dapps, notably in areas like decentralized gaming and decentralized social platforms.
The team said EigenDA aims to navigate this issue by implementing data partitioning and storage methods that distribute data across several nodes, which are managed by EigenDA operators. This approach means the protocol will break data down into more manageable segments, allowing nodes to store only a section of the complete data.
A similar data availability solution has been in the works from Ethereum’s core developers, known as EIP 4844 or proto-danksharding. It aims to introduce a temporary storage feature called "blobs" to reduce the cost of transactions on Ethereum Layer 2s.
EigenLabs closed its $50 million Series A funding round in March which was led by Blockchain Capital.
EigenLayer’s total value locked crossed $230 million after the platform’s second round of deposit caps for liquid staking assets such as stETH, rETH and cbETH were filled quickly last month.
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