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The next iteration of the network: AVS will bring the trust mechanism of Web3 to Web2

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2024-06-16 09:00:28544browse

Written by: Sumanth Neppalli, Polygon Ventures

Compiled by: Yangz, Techub News

AVS ​​(Active Verification Service) integrates the scale of Web2 with the trust mechanism of Web3, opening up the network Next iteration. This article will provide a brief overview of EigenLayer’s Active Verification Service (AVS) ecosystem.

The next iteration of the network: AVS will bring the trust mechanism of Web3 to Web2

#While blockchain can efficiently settle transactions, trying to offload all calculations to smart contracts is extremely challenging due to latency and throughput limitations. Even a Rollup solution cannot fully meet the combined needs of front-end hosting, oracles, and databases.

Smart contracts need to interact with the account layer, and paying gas fees for each transaction is too expensive, so the design must be careful. Taking Uniswap as an example, its latest v4 version uses the Hook mechanism, which is an externally deployed contract that can provide market makers and users with highly customized functions, such as limit orders, dynamic fee structures, customized oracles and TWAMM (Time Weighted Average Market Maker).

The future of blockchain computing may be a hybrid architecture that separates computing and storage into a transient layer and a persistent layer. Among them, the blockchain, as a persistence layer with high security guarantees, can maintain shared status among multiple validators. Low validator requirements ensure broad decentralization, minimize censorship, and protect critical data such as transaction logs and identities. AVS, on the other hand, introduces a temporary layer maintained by a decentralized operator network that provides hardware such as GPUs, ZK validators, and solid-state drives. The operator's network provides professional services including execution engines, virtual machines, oracles, and distributed key generation.

The next iteration of the network: AVS will bring the trust mechanism of Web3 to Web2

Web2 relies on centralized cloud service providers for storage and computation, making it less secure and prone to censorship. Although AWS replicates data in different locations for redundancy, sensitive information such as bank accounts still needs to be held in government custody.

Unlike centralized cloud service providers, AVS services are powered by a subset of Ethereum operators who stake their share of cryptocurrency to prove their integrity. Even if the state of the temporary layer is destroyed, user funds remain safe on the ongoing blockchain layer.

The core promise of AVS is to provide Web3 trust guarantees for any computation, whether on-chain or off-chain. Its architecture supports verifiable cloud services and verifiable computing.

The next iteration of the network: AVS will bring the trust mechanism of Web3 to Web2

The first is verifiable cloud services.

Versatus has launched AVS, a cloud service called "Allegra" that provides censorship-resistant, transparent infrastructure for dApps at a cost that is 50% lower than traditional cloud service providers. These applications are hosted on the AVS node network, eliminating single points of failure.

In the future, we are likely to see a new class of applications that are different from traditional DApps that reside entirely on the chain. Versatus named it "Unstoppable Apps" and introduced a new framework similar to the HTTPS standard we are familiar with.

Applications that require recommended information like decentralized social media are now possible. AVS achieves this by supporting advanced algorithms that continuously update user feeds based on their history, creating a dynamic experience when accessing on-chain media NFTs.

The next iteration of the network: AVS will bring the trust mechanism of Web3 to Web2

Do we need “trust” for such services?

Just as we expect the quality of physical services, we also need the integrity of every software calculation. Unlike tangible goods whose quality is visible, with software, trust depends on the intangible processes behind each function. The algorithms that influence our lives lack transparency. Take the recently leaked Google search engine optimization (SEO) algorithm. It’s clear that Google misled the public about page rankings.

So, how high is the cost of this kind of "trust"?

Because we are still in the early stages, it is difficult to calculate the additional cost of operating the software for AVS. EigenLayer founder Sreeram Kannan has estimated that implementing cryptoeconomic security for financial transactions would cost an additional 0.1% in operating expenses.

In addition to "trust", the second key advantage of AVS is "verifiable computing".

The AVS node network can perform off-chain computations with the support of cryptoeconomic/ZK proofs (which can be used as application inputs), which also provides the possibility to experiment with interacting with artificial intelligence agents.

For example, Uniswap v4’s Hook mechanism can be combined with a decentralized matching engine hosted on a dedicated AVS node. This pool of operators can efficiently match thousands of trade requests to counterparties, creating batches of transactions that are settled on-chain.

The next iteration of the network: AVS will bring the trust mechanism of Web3 to Web2

#AVS ​​operators cannot steal user funds and can only match transactions based on user-defined intent. This architecture enhances functionality by allowing operators to handle intent, integrate AI-driven outcomes, manage dark pools, and develop applications with variable fees.

AVS ​​provides neutral, accessible and unblockable network services. It provides developers with a powerful network of nodes that can handle any specialized calculation on demand, simplifying the development process without having to build it from scratch. Currently, there are 1459 AVS operators and 16 AVS services. Among them, EigenDA ranks first with 264 active operators.

AVS ​​unlocking possibilities are vast and cover many areas. We divide it into 3 major categories, including:

  • Verifiable Web2 Infrastructure

  • Web3 Infrastructure

  • Rollup Service

The next iteration of the network: AVS will bring the trust mechanism of Web3 to Web2

The first is trustless Web2 services, including content delivery, key management and decentralized computing.

For example, Witness chain uses the AVS "Watchtower" service (Watchtower) spread across the world to provide location proof by analyzing network delays. Another example is Mishti, which generates private keys from biometrics through a group of distributed nodes and combines MPC and Threshold signatures with AVS to provide smoother login measures and enhanced privacy protection. In addition, AVS is also changing decentralized computing, providing traders with innovative technologies such as off-chain matching engines. Cedro Finance is preparing to launch an AI proxy layer that will allow LPs to dynamically calculate CEX and DEX prices to provide timely liquidity.

The second is Web3 infrastructure. AVS powers the fundamental principles on which blockchain and Rollup depend. AVS strengthens the Web3 ecosystem by securing the DA layer, providing ZK-backed oracles, and deploying monitoring systems that can be easily integrated.

For example, in the decentralized verification process of Lagrange and Brevis, the query will be transferred to the off-chain AVS network for execution and verification, and then re-integrated into the contract. Another example is EigenDA, an innovative DA solution inspired by the Danksharding roadmap. Its AVS operators provide enterprise-grade solid-state drives to store data. The storage speed in the test is as high as 10 Mbps. As more operators join, its goal is to is to reach 1 Gbps.

Finally, there are Rollup services protected by AVS, such as cross-chain bridges, interoperability solutions, fast settlement layers, shared sequencers, re-staking Rollup, etc. Currently, NEAR is developing a fast finalization layer NFFL that uses AVS to prove rollup state across L2.

To summarize, AVS is a transformative cryptoeconomic layer on top of the blockchain that enables developers to build trustless applications using any programming language.

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