Sirwin
Sirwin

EigenLayer DA: What Is It and Why It Matters to Celestia

By Michael @ CryptoEQ | CryptoEQ | 19 Feb 2024


You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $20/month you can upgrade to our FULL library of 60+ reports (including this one) and complete industry-leading analysis on the top crypto assets. 

67cbbf4723857b85c151585aa280e6d940346c501cef75bafd7dea02b44b24c9.png

Becoming a Premium member means enjoying all the perks of a Basic membership PLUS:

  • Full-length CORE Reports: More technical, in-depth research, actionable insights, and potential market alpha for serious crypto users
  • Early access to future CORE ratings: Being early is sometimes just as important as being right!
  • Premium Member CORE+ Reports: Coverage on the top issues pertaining to crypto users like bridge security, layer two solutions, DeFi plays, and more
  • CORE report Audio playback: Don’t want to read? No problem! Listen on the go.

EigenDA

EigenDA represents a pioneering advancement in the blockchain space, emerging as a data-availability layer that operates under the stewardship of ETH stakers. As the inaugural service devised atop the EigenLayer framework, it plays a crucial role in catalyzing network engagement by providing incentives for early stakers. This initiative underscores a broader strategic aim to enhance scalability and address the data availability challenges that have long constrained blockchain ecosystems.

At the core of EigenDA's architecture are erasure codes and validity proofs. The former dissects data into manageable segments, distributing them across the network in such a manner that retrieval and reconstruction are feasible with the participation of merely half the nodes. Validity proofs serve to verify the accurate encoding of this data, ensuring integrity and reliability. This dual-faceted approach has catapulted EigenDA to achieve a systemwide performance of 15 mb/s, marking a nearly 200-fold increase over Ethereum's existing capacity.

The scalability and performance benchmarks of EigenDA are not static; they embody a dynamic potential that is expected to escalate with the expansion of the node network. The design principle of relying on a majority of honest nodes (N/2) not only fortifies the system against compromise but also lays the groundwork for a scalable, robust data layer that can adapt to growing demands.

Layer 2 solutions, such as the optimistic L2 protocol Mantle, are actively exploring integrations with EigenDA to leverage its superior scalability features. These collaborations are indicative of the transformative potential EigenDA holds for enhancing the efficiency and viability of blockchain applications.

Beyond its immediate utility, EigenDA is emblematic of the broader ambitions encapsulated in the EigenLayer project. EigenLayer reimagines the concept of meta-staking or programmable staking protocols, where the principle of slashing enforces credibility and accountability. This framework opens up a plethora of opportunities, from MEV management through enhancements like MEV-Boost+ to decentralized block building and the subjective expression of staking preferences. Such innovations not only enrich the blockchain's functionality but also introduce a new paradigm of flexibility and user-centric customization.

EigenLayer distinguishes itself by its foundational structure, not as a separate blockchain, but as a constellation of smart contracts residing on Ethereum. This design ensures that data forwarded to rollup contracts for proving availability is anchored in Ethereum's block time and finality. However, rollups fully embracing EigenLayer can achieve significantly faster finalization times, transcending the inherent limitations of Ethereum's block intervals.

In essence, EigenDA's launch, together with the EigenLayer service, heralds a new era in blockchain development. It offers a scalable, secure solution for data storage and availability, paving the way for more sophisticated and efficient blockchain applications. As the blockchain community continues to grapple with scalability and data availability issues, EigenDA stands out as a beacon of innovation, promising to redefine the landscape of blockchain technology.

Celestia

Celestia is a new modular blockchain that primarily serves as a "data availability network." By separating execution from consensus, Celestia can offer cheap transaction verification costs regardless of demand. Celestia can maintain high decentralization and scalability because it will enable users to launch light nodes from a basic mobile device.

Importantly, Celestia does not execute any transactions like typical rollups (Arbitrum, Optimism, zkSync, etc.). Validators on Celestia guarantee data availability for verifiers to authenticate the veracity of off-chain executions so as to eliminate any need for a challenge period like in Optimistic rollups. Data availability is critical in this regard because as long as all the execution data is made available on the mainnet, the chain does not require every node to execute every transaction in order to validate transactions and reach consensus. 

It is a network that has the latest state of an L2 that can be leveraged by verifiers to assess whether or not data is available (and therefore can reconstruct the prior state to check if execution has been done appropriately in different intermediate states).

How do you rate this article?

51


Michael @ CryptoEQ
Michael @ CryptoEQ

I am a Co-Founder and Lead Analyst at CryptoEQ. Gain the market insights you need to grow your cryptocurrency portfolio. Our team's supportive and interactive approach helps you refine your crypto investing and trading strategies.


CryptoEQ
CryptoEQ

Gain the market insights you need to grow your cryptocurrency portfolio. Our team's supportive and interactive approach helps you refine your crypto investing and trading strategies.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.