Ethereum Foundation DevCon 6 - Layer 2s Track, 13 Oct 2022

Previous Meeting Next Meeting

⏯

youtube image

►

From YouTube: How Bridges Improve L2 Composability by Georgios Gontikas | Devcon Bogotá

Description

Visit the https://archive.devcon.org/ to gain access to the entire library of Devcon talks with the ease of filtering, playlists, personalized suggestions, decentralized access on Swarm, IPFS and more.
https://archive.devcon.org/archive/watch/6/how-bridges-improve-l2-composability/

Two of the biggest arguments against L2s are that they are breaking composability and interoperability. DApps are deployed as stand-alone apps in each L2 with limited ability to communicate with each other. This leads to silos and several issues in terms of capital efficiency, governance, security, user experience and maintenance.
We will explore how bridges should become the interoperability layer that will connect all the protocol “silos” across L2s, by using secure message passing.

Speaker(s): Georgios Gontikas
Track: Layer 2s
Keywords: bridges,interoperability,L2

Follow us: https://twitter.com/efdevcon, https://twitter.com/ethereum
Learn more about devcon: https://www.devcon.org/
Learn more about ethereum: https://ethereum.org/

Devcon is the Ethereum conference for developers, researchers, thinkers, and makers.
Devcon 6 was held in Bogotá, Colombia on Oct 11 - 14, 2022.
Devcon is organized and presented by the Ethereum Foundation, with the support of our sponsors. To find out more, please visit https://ethereum.foundation/

A

A

Georgius I do product for Sigma and I'm gonna talk to you about how bridges can improve well to composibility.

A

um So let's look at some numbers about the L2 growth. So at the moment there are more than 20 Roll-Ups on top of ethereum and all the total value locked, which is a good proxy for user. Adoption, is like around 6 billion, which is around one-fifth of what minute is so that shows like that is going quite well um and two of the most important Roll-Ups like Arboretum and Optimus respectively. They have more than 160 dabs.

A

On top right, however, there are some side effects, so all these protocols and apps are silos across all these Road Labs, so the liquidity is fragmented and the end user experience across using all these roadlapses, not so optimal. So it looks like there is a trade-off between low fees and hydroelection throughput overcomposability.

A

So what is composability? uh It's yeah. In other words, it's the money, Legos like it's. What fuel ethereum growth all these years- and yes, we can simply see here- is uh on L1 uh how our yield aggregator can use the decks or how um uh Landing protocol can use a standard protocols. I can build on top right and, as you can see here, L1 is yeah the risk composability another one, and all these optimistic or ZK Road Labs different ones. uh The there's also composability inside them, but not across them right.

A

So that's the issue we just described um yeah. So as an example, these are four of the most popular protocols and we see that they are developed. They are deployed on ethereum and the roll ups and yeah at least two of the road labs. uh But all these deployments are separate from each other right. They cannot communicate with each other.

A

There is no connection between them, um so you can see the the L2 ecosystem is uh quite huge, uh quite thriving with all these kind of apps like Dexys, yield, aggregators nft, Marketplace synthetics, but it's fragmented and here's an example use case from from a user perspective right. So a user has some liquidity on curve. Let's say on arbitrary: they want to move it to optimism, to do that.

A

They need at least 13 transactions like wallet confirmations, and they need to wait seven days for exiting the roll up and, of course they need to pay the exit and the entry fees right on mainnet.

A

um What has been the uh the role of the bridges so far um apart from the canonical Bridges, there are at least 10 bridges for uh roll-up hopping or this second, um so we solved two of the problems, so you don't have to wait seven days anymore and you don't have to pay the enter and exit fees, but all these 2013 separate transactions still exist. So what we propose is you know that the bruises should move away from uh just this year's C20 token bridging and focus more on message passing right.

A

So how do you pass messages from an L2 to another L2 or 12-1 and yeah? The end game of that is yeah. You can call them the cross roll up money, Legos right. So it's! This is the same um diagram we showed before, but now you can basically use a a decks on L1 um to communicate with uh derivatives protocol on an L2 right and and all these kind of um synergies over there.

A

um So yeah. The the benefits of these cross roll up composibility from for the end user would be that they don't uh have to manually uh Bridge anymore for any kind of cross or lab transaction like a token swap or moving the liquidity or any kind of government governance actions like voting or Market, making or money market transactions like lending or borrowing not having to move the collateral or nft marketplaces. They can Market the market, the the nfts, whatever they want in wherever and L2 they want. So how this could look like.

A

um So this is uh yeah. Our proposal like a cross roll up, composibility layer and you can see on top- is one uh imagine like one roll up on top and another roll up uh below and in the middle is the relay. So it's basically off chain uh really a network, and the main concept here is that you have a generic message. Passing smart contracts developed on both deployed on both roll ups and you have the so-called Adobe contract, which will prepare and parse the necessary messages right.

A

So this uh the setup will help any smart controls for now from one up from one roll up to communicate with another roll up or even with uh layer, one yeah. So that was basically it. Let me talk yeah. We can have some questions, I, don't know how much we have one just one question: yeah yeah in case here's a question: how does the relayer maintain uh L1 level of security, like you mentioned, I didn't mention that it maintains little one security but yeah there's several kind of setups right. So you can.

A

You can have a fully trusted setup. uh You can have a trust, minimize setup with um you know, kind of optimistic model or a ZK model, so yeah I mean if you're we're talking for this specific uh proposal. We're doing uh you know we're starting with a kind of controlled setup and we are exploring um like optimistically. You know uh putting the state back on L1 or you know using ZK. So this is something this still work in progress.

A

Thank you so much big round of applause for your guys in Sigma.