Thread by @expctchaos

0/ @MetisDAO is a hyper-scalable rollup-based layer 2 solution built on Ethereum. But $METIS is not just your average optimistic rollup 🌿

A 🧵 on $METIS and why you should pay attention (0/29)👇

#L222

@MetisDAO 1/ But before we dive into @MetisDAO, let’s quickly take @optimismPBC as an example to see how $METIS tackles problems that other optimistic rollups face today

@MetisDAO @optimismPBC 2/ #Optimism uses a single node called Sequencer to generate blocks on #L2. This bears speed advantages as blocks are generated in seconds because new blocks do not need to be handed over to other nodes for verification

@MetisDAO @optimismPBC 3/ By minimizing the block generation process, the #L2's local blocks can go from generation to finalization in 1 second or less.

@MetisDAO @optimismPBC 4/ However, at this time, the new block on layer 2 has not been audited by the verification node & there is a chance of malicious transactions being included in the block

@MetisDAO @optimismPBC 5/ As outlined in previous #rollup posts, this is mitigated by the sequencer regularly publishing a copy of the block generated on L2 onto the $ETH L1, including tx data & the state root (associated with the account information on L2)

@MetisDAO @optimismPBC 6/ Verifiers will automatically check the content published by the sequencer & produce a fraud proof if necessary

For more information see:

https://twitter.com/expctchaos/status/1527419754729947155

@MetisDAO @optimismPBC 7/ Essentially, #Optimism uses $ETH as a court for disclosing data & resolving disputes. However, this comes at a high cost (gas fees). However, its key from both a cost & security perspective, how often the sequencer publishes data on L1

@MetisDAO @optimismPBC 8/ If the Sequencer submits only rarely, the audit process of the verifier is delayed & it will take a long time for nodes to reach consensus, which can weaken the security of the #L2. Many submissions on the other hand come at a correspondingly high cost

@MetisDAO @optimismPBC 9/ @arbitrum has the same flaws as #Optimism. The Sequencer node responsible for block production is centralized & true procedural justice can't be guaranteed

@MetisDAO @optimismPBC @arbitrum 10/ To ensure trust, Arbitrum & Optimism's block producers are run/endorsed by the official teams to make up for the imperfection of the current system. Nevertheless, the consequences of this are clear as @arbitrum and @optimismPBC essentially become centralized operators

@MetisDAO @optimismPBC @arbitrum 11/ Although both parties allow users to run verifiers (verification nodes) & challenge the sequencer freely, the team still has the full control over the sequencer node

@MetisDAO @optimismPBC @arbitrum 12/ But how does $METIS address this issue?

First of all, $METIS introduces what is referred to as the peer node network, thereby transferring the power of running sequencer nodes to the community or other institutions, while adding a security layer based on economic incentives

@MetisDAO @optimismPBC @arbitrum 13/ $ETH is also a P2P network of nodes that frequently synchronize data to ensure a consistent state across the network, while each node can voluntarily become a miner & participate in block production. Newly generated blocks are propagated to other nodes for auditing purposes.

@MetisDAO @optimismPBC @arbitrum 14/ $METIS has built a similar P2P node network that serves as the sequencer pool. This allows community members to run nodes themselves, thereby solving the centralization issue that sequencer nodes face in other optimistic rollup systems

@MetisDAO @optimismPBC @arbitrum 15/ This innovative network design gives $METIS two layers of security. One from the peer node network & one from the verifier node. While peer nodes can verify the local data of the sequencer on #L2 in real-time, the verifier is responsible for verifying the data submitted to L1

@MetisDAO @optimismPBC @arbitrum 16/ In the future, $METIS plans to increase the number of peer nodes in the sequencer pool on to make the network more decentralized & secure, while also incorporating the verifier node role into the peer node pool, so that all peer nodes can act as both sequencer & verifier

@MetisDAO @optimismPBC @arbitrum 17/ A final layer of security is provided by what is called rangers. Users can participate as rangers. Rangers sample a range of blocks & validate the state roots in return for token rewards. A successful challenge (fraud proof) results in sequencer slashing

@MetisDAO @optimismPBC @arbitrum 18/ While single-party sequencer systems like #Optimisms & #Arbitrum require withdrawal times on the order of days (if no fast bridge is used), @MetisDAO's multiple layers of checks & balances enable $METIS to lower withdrawal times to around six hours

@MetisDAO @optimismPBC @arbitrum 19/ But $METIS has also introduced unique scalability features. In #Optimism & and #Arbitrum (except AnyTrust), the sequencer publishes all tx data & state roots to $ETH L1, essentially using Ethereum as a storage & DA layer, while also using $ETH to handle the challenge process

@MetisDAO @optimismPBC @arbitrum 20/ Although storing all the data on $ETH L1 brings high DA guarantees, it is also very expensive. Additionally, fees are unstable because rollups compete for block space with all the applications built on the unified execution/consensus layer

@MetisDAO @optimismPBC @arbitrum 21/ In response to this problem, $METIS has made essential adjustments recently. $METIS does away with the step of directly storing tx data on $ETH & dumps tx batches to @Memo_Labs, a platform similar to @Filecoin but with lower storage costs & faster data retrieval speeds

@MetisDAO @optimismPBC @arbitrum @Memo_Labs @Filecoin 22/ By integrating the @Memo_Labs storage layer, the sequencer first stores many transaction instructions in @Memo_Labs & then publishes the storage index corresponding to this transaction batch on $ETH L1

@MetisDAO @optimismPBC @arbitrum @Memo_Labs @Filecoin 23/ Importantly, the verifier node can still read the original tx data from @Memo_Labs through the index value. At the same time, the more critical state roots are still stored on $ETH (alongside the storage index)

@MetisDAO @optimismPBC @arbitrum @Memo_Labs @Filecoin 24/ By implementing this native storage layer, $METIS has been able to cut transaction fees down to 0.01$, making it the cheapest rollup currently on the market. However, one might argue that because only the state roots are posted to L1, $METIS is not actually a true rollup

@MetisDAO @optimismPBC @arbitrum @Memo_Labs @Filecoin 25/ That view is not wrong. Rather than a pure rollup, $METIS is what a Validium (zk-rollup using off-chain DA solution) is in the context of zero knowledge rollups. In this regard its similar to @arbitrum's Anytrust:

https://twitter.com/expctchaos/status/1535109516747935745

@MetisDAO @optimismPBC @arbitrum @Memo_Labs @Filecoin 26/ While one might argue that the DA dependence on @Memo_Labs lowers network security, it is worth noting that this is an intermediary solution & $METIS is likely to switch back to rollup or hybrid model (like Volition in zk context) once EIP-4844 hits:

https://twitter.com/expctchaos/status/1532100096111824901

@MetisDAO @optimismPBC @arbitrum @Memo_Labs @Filecoin 27/ $METIS supports an EVM-equivalent development environment. It uses a fork of Optimism’s OVM, that it calls the Metis Virtual Machine (MVM). Additionally, $METIS seeks to further simplify the transition to L2 for existing $ETH-based dApps through the Polis middleware

@MetisDAO @optimismPBC @arbitrum @Memo_Labs @Filecoin 28/ $METIS intends for Polis to help bridge the gap from Web 2.0 to Web 3.0 by offering developers “low to no code” templates for deploying new dApps. The combination of low fees & a low barriers of entry for devs positions $METIS well as a hub of innovation in the #L2 space

@MetisDAO @optimismPBC @arbitrum @Memo_Labs @Filecoin 29/ The $METIS ecosystem has certainly been prospering before the market crash. Optimistic that $METIS will survive the bear market & come back stronger

https://twitter.com/Master_Metis/status/1524670767367344128