Thread by @ohale_david

Metis! Metis!! Metis!!!
Many say it's the next big thing🤔

Well what exactly is @MetisDAO $METIS, and can it really become the #1 L2 scaling solution on Ethereum? I wonder

Let’s ride🧵👇🏾
1/18

Flashback when Ethereum introduced smart contracts for decentralized apps, it opened a whole new world to its users.
The King of DeFi, it is.

Though as it grew in popularity, some major flaws were realized in the design.
2/18

Ethereum simply couldn’t keep up with the demand (only 14 TPS), resulting in the crazyyy gas fees.

Why? In order to have first priority on a txn, users outbid each other.

The user paying the standard gas fee would be "frontrunned" by the user paying more!
3/18

The miners will always choose to put through the txn with the highest gas fee paid.

This has resulted in a ridiculous uptick in gas prices, sometimes reaching $100+ per txn🤯 CRAZY!

In fact, over 20 Billion dollars in gas have been paid on the Ethereum network!
4/18

So how can this be mass adopted by institutions/companies! This is inefficient and very expensive!

Now this is where L2s come in, providing a solution to speed/scalability/cost issues.

@MetisDAO to the rescue👇🏾
5/18

Metis utilizes optimistic rollups in order to effectively scale the network.

Optimistic rollups process transactions on layer 2 and bundle the transactions into a single block on layer 1, assuming that all the validators are honest by default (thus, the name optimistic).
6/18

This allows for up to 100x increased scalability!

And how about security?

Fraud proofs:
If a txn is disputed, the rollup will execute a fraud proof, in order to insure the validity of the txn.
7/18

The downside is that these txns take days to execute, as they can be challenged.

For example, on Arbitrum, withdrawals back to Ethereum can take up to a week!

But not with #Metis👇🏾
8/18

Metis utilizes multiple sequencers that are pooled into on-chain entities called Decentralized Autonomous Companies (DACs).

In each block, a new sequencer will be randomly selected to push any state changes to Ethereum, allowing for extreme speed and decentralization!
9/18

Sequencers must stake more $METIS than the Dynamic bond threshold, disincentivizing malicious behavior.

In addition, Rangers police over sequencers, validating their actions, in return receiving $METIS rewards.
Cool?

Let's keep going👇🏾👇🏾
10/18

If sequencers are found guilty, their stake will be slashed, with the Ranger receiving the slashed assets.

As a result, L2 to L1 (Ethereum) txns will take a much shorter time to execute, with no room for error!

Eventually, txns back to Ethereum will take mere seconds😧
11/18

So what exactly are DACs?

Unlike DAOs, who use a decentralized voting and governance structure, DACs allow for companies to launch their services on-chain!

Each DAC is it’s own MVM (METIS virtual machine) by itself. As the number of DACs grow, scalability/speed increases!
12/18

On-chain storage:
With DACs come private data; not everything can be published on the blockchain for everyone to see!

Each MVM (DAC) has a built-in storage layer that uses Interplanetary File Service (IPFS).
This gives room for separate computing and data storage!
13/18

Oh, and because of this, there’s no more bridging fee to Ethereum 🤯

Is there really anything @MetisDAO can’t do?
14/18

The higher the DAC economic activity, the more $METIS is needed to be staked.

Oh, and the METIS team created a DAC with 100 million in grants to support upcoming projects👀

The potential of DAC is truly limitless!!
15/18

The $METIS token utility:
1. Menial txn fees, the cheapest of any L2, as seen below

2. Initial DAC creation must stake $METIS in order to launch a new MVM layer and become sequencers

3. DACs and Rangers are rewarded in $METIS for their contributions validating the network
16/18

The $METIS token and TVL have taken a beating this bear cycle, giving us some amazing buying opportunities!

I mean, it’s the best L2 by far at a 214 million dollar mcap at the time of writing.

17/18

Thanks for reading fams❤
Would really appreciate a Retweet🫂

18/18