Puffer: Constructing an Efficient Based Rollup Solution Using Re-staking

Puffer is building a more efficient Based Rollup solution through re-staking technology, including decentralized sequencers and inter-chain liquidity interoperability. This solution will create a different Ethereum ecosystem landscape compared to mainstream Rollups.

Puffer's main business includes:

1. Puffer LRT: Ethereum re-staking service based on Eigenlayer.

2. Puffer UniFi: An optimized solution for Based Rollup that introduces pre-confirmation technology.

3. Puffer UniFi AVS: Build a highly synchronized application chain ecosystem using UniFi AVS to reduce liquidity fragmentation.

The differences between Based Rollup and mainstream Rollup solutions mainly lie in the trade-offs of decentralization, efficiency, and benefits, in order to adapt to different types of application scenarios.

Basic Concepts of Rollup

Rollup is a blockchain scaling technology designed to increase transaction processing capacity and reduce costs. It achieves this by bundling a large number of transactions together, processing them off-chain, and then submitting the results to the mainnet for verification, thereby alleviating the burden on the mainnet.

Rollups are mainly divided into two types:

1. Optimistic Rollup: Default transactions are correct, verification only occurs in case of disputes. Faster speed but has a challenge period.

2. ZK Rollup: Uses zero-knowledge proofs to ensure transaction correctness, safer but technically complex.

The core idea of Rollup is "performing a large amount of work off-chain and only submitting the results on-chain" to improve blockchain processing speed and reduce costs.

The Rollup process can be simplified into two parts:

• Batch packaging: Increase transaction volume/throughput
• Transaction Confirmation: Increase Confirmation Speed

Based Rollup

The concept of Based Rollup was proposed by Ethereum Foundation researcher Justin Drake in March 2023, mainly targeting the role of the sequencer ( between L1 and L2.

The sorter is responsible for the transaction sorting and packaging from L2 to L1, covering batch packaging and transaction confirmation. Currently, most L2s use centralized sorter solutions, but as the on-chain capital increases and the infrastructure matures, decentralized sorters will become a necessary issue to address.

There are currently two main solutions:

1. L2-based decentralized sorter
2. Transfer to L1 Based Rollup

Based Rollup transfers the responsibility of transaction ordering from L2 to L1, with Ethereum L1 validators acting as block proposers responsible for transaction ordering. This design leverages existing Ethereum node resources, avoids the risks of centralized orderers, and elevates the security level of the orderer to that of the mainnet.

However, Based Rollup also faces a dilemma: while obtaining the security of the mainnet, the transaction confirmation time is limited by the mainnet performance, with the block time being about 12 seconds, which is significantly inferior to conventional L2 sequencer solutions.

Puffer UniFi Optimized Based Rollup Solution

To break through the three difficult dilemmas, Puffer proposed that UniFi introduce a "pre-confirmation" mechanism.

UniFi pre-confirmation has two characteristics:

1. Ethereum validators provide guarantees: before block packaging, validators commit to the Rollup transactions that are pending confirmation.

2. Penalty mechanism: Validators who fail to fulfill their pre-confirmation commitments will face penalties.

UniFi bypasses the issue of Based Rollup being constrained by the mainnet block time through "pre-confirmation," allowing Ethereum mainnet nodes to take on additional work to ensure transaction confirmation efficiency ) about 100ms (.

The pre-confirmation mechanism improves the confirmation efficiency of mainnet transactions, but L2 is still needed to enhance mainnet performance. Rollup essentially achieves "transaction batch packaging" and "fast transaction confirmation" through horizontal and vertical scaling. Pre-confirmation addresses the speed and fairness of transaction confirmations, while transaction batch packaging still needs to be completed through layer two or off-chain.

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Puffer UniFi AVS

UniFi AVS is a solution based on EigenLayer that utilizes Ethereum's "Restaking" to package UniFi into AVS services. Validators who restake on EigenLayer can participate in the pre-confirmation services provided by UniFi AVS and design corresponding penalty mechanisms.

Restaking and AVS make "pre-confirmation" smoother, and are currently one of the most fitting and valuable AVS solutions, providing support for the Based Rollup scheme.

Core Value

Building application chains using UniFi AVS will become an upgrade solution for Based Rollup, offering the following advantages compared to other Rollups:

• Decentralized sorting based on L1
• Pre-confirmation technology integration enhances transaction confirmation speed
• Generate income for Restaking
• Synchronized Composability

Synchronous composability is the core feature of UniFi that addresses the fragmentation issue. UniFi is based on decentralized ordering at the L1 level, with Ethereum mainnet nodes acting as "global sequencers," allowing different Rollups to interact within the same block without the need for cross-chain bridges. This provides users with a smooth experience similar to a single chain, effectively reducing the problem of liquidity fragmentation.

Summary

UniFi's business depends on whether Based Rollup is a necessary solution. From a long-term perspective, decentralized sequencers and addressing liquidity and experience fragmentation issues are imperative.

Based Rollup is more like an "affiliated" Rollup of the Ethereum mainnet, similar to Ethereum's loyal troops, directly scheduled and communicated by Ethereum, following a fair system, with no risk of information transmission errors or intentional malice.

Mainstream Optimistic Rollups function like the autonomy of feudal lords, where a hundred flowers bloom but fairness depends on themselves. Communication between the feudal lords requires an additional department of "chain abstraction" for scheduling and regulation.

The controversy between these two solutions lies in whether Rollup should return value to Ethereum or be autonomously self-governing. The former has higher security, eliminating the costs of decentralization and possessing natural synchronous composability; the latter allows operators to capture greater benefits, but requires significant costs to create decentralized security and relies on external sources for composability.

The inclusiveness and freedom of blockchain determine that these two solutions will coexist, stemming from the trade-offs of each solution in decentralization, efficiency, and interests, to accommodate different application scenarios. This exploration will continue, and through continuous technological adjustments, the developers' ideas can create a new future.

![Bodyguards and Feudal Lords: Puffer UniFi )Based Rollup( and Mainstream Rollup])https://img-cdn.gateio.im/webp-social/moments-8fc7abab34917ef38778ee39fc66b10b.webp(