Thread by @jerome_wong99

Cryptoeconomic security has always been a critical challenge for #Web3. As the trailblazer of #crypto, Bitcoin's security model is application-specific, which means any new #dApp needs to build a #blockchain to maintain its own trust network.

@ethereum solves this problem to a certain extent through its modular design. Specifically, the EVM enables #dApps to be built permissionlessly on the @ethereum network by leveraging the underlying security of @ethereum itself, without the need for rebuilding a new trust network

At present, however, middleware and non-EVM applications built on the @ethereum network still need to create their own trust network, but bootstrapping and maintaining the security is expensive and time-consuming, which slows down the speed of potential innovation.

@eigenlayer introduces a simple and efficient solution to this problem: re-staking.

1) Introduction to @eigenlayer
 
The idea behind @eigenlayer is not complicated. It allows #ETH stakers to “re-stake” their #ETH into new smart contracts on @ethereum, thereby securing other networks and projects.

This could bring us many benefits. First of all, for #ETH stakers, they have better flexibility and higher returns in staking. Of course, stakers will also need to bear additional slashing risks.

Besides, @eigenlayer actually introduces a two-sided market, allowing the new network to rent the security of @ethereum to reduce the cost of network security.

2)  What can be built with @eigenlayer?
 
By leveraging #ETH's security layer, @eigenlayer will actually extend the trust layer to peripheral infrastructure such as sidechains, middleware, and even other non-Ethereum networks.

One potential use case for @eigenlayer is to create sidechains for @ethereum.

The benefits of sidechains are obvious by which new functions such as protection technology for transaction privacy and smart contracts can be added on the main chain, and the operation of existing main chain will not be affected.

In addition, the side chain also provides a safer way to upgrade the protocol. Even if the side chain encounters any catastrophic problems, the main chain will still be safe and sound.

The problem is that a sidechain runs in parallel to the main chain and cannot take advantage of the main chain’s security, so it must maintain its own trust network.

But with the help of @eigenlayer, developers can build sidechains that align with @eigenlayer directly and are secured by the @eigenlayer network.

Likewise, developers can create new Layer 1 #blockchains secured by @eigenlayer. These blockchains can be created by completely different virtual machine that we have never seen before, or created for specific applications.

3) Closing
 
@eigenlayer can greatly reduce the cost of scaling sidechains, middleware, and other decentralized technology stacks.

In the long run, this could pave way for faster innovation on different layers of #blockchain stacks and facilitate the explosion of new projects built on @ethereum and its ecosystem.