Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Problem as method: a new framework for understanding chain abstraction

Problem as method: a new framework for understanding chain abstraction

BlockBeatsBlockBeats2024/08/14 10:10
By:BlockBeats

Will chain abstraction become the hottest trend after modularization or a big bubble?

Original title: "Using Problems as Methods: A New Framework for Understanding Chain Abstraction"
Original author: Lydia Wu, Mint Ventures


Problem as method: a new framework for understanding chain abstraction image 0


If you are confused when you first come into contact with the concept of "chain abstraction", then you are not alone.


——It looks very important, there are many projects, a lot of financing, and they all say they are standards...but I don't know what they are for. Is "chain abstraction" another buzz word on the new concept pipeline of Web3?


This article will start from the concept and return to the basic issues, in order to scoop out pearls from the sea of nothingness.


TL; DR:


· The purpose of abstraction is to hide complexity. The level of abstraction in the Web3 context is often higher than that of Web2 (and therefore more difficult)


· Modularity lowers the threshold for building a public chain, and chain abstraction includes the re-architecting of public chain relationships and the improvement of user/developer experience


· Cross-chain asset transfer, cross-chain communication, interoperability, and chain abstraction: a set of conceptual subsets centered on coordinating state modifications (transactions) on different chains (but often full of middle ground in actual use)


· Intent-based chain abstraction solutions have become a popular architecture, and many component products may gradually move towards the final form of chain abstraction in the form of puzzles


· The industry's current discussion and construction of chain abstraction has not yet broken the ice on infra The superstition of the self-centeredness, the establishment of chain abstraction as a real problem is inseparable from the on-chain activity, modularization progress, and the entry of new users and developers


· The future of chain abstraction is not a bright and smooth road. It is necessary to consider the impact on the long-tail public chain and the exploration of non-DeFi applications


What is the problem of chain abstraction?


1. Is chain abstraction a real problem?

2. If so, which category does it belong to among the many problems?

3. What is the difference between cross-chain, interoperability, and chain abstraction?


Is chain abstraction a real problem?


——Not necessarily. The establishment of a problem requires context. Imagine asking people 500 years ago about their views on the energy crisis.


So where does our discussion of chain abstraction come from?


The answers given by different people may include several keywords: Ethereum roadmap, modularization, intention, large-scale adoption... At present, the most explanatory point of view may be: Chain abstraction is the second half of modularization.


In order to understand this point of view, it is necessary to explain the definition of chain abstraction.


In computer science, "abstraction" refers to the process of separating high-level operations and concepts from background processes, with the purpose of simplifying understanding by hiding complexity. For example, most Web2 users only need to know browsers and ChatGPT, and they may know nothing about the abstract content or even the abstract concept itself.


Similarly:


· Account abstraction: By hiding the internal information of the blockchain account, such as the address, private key, and mnemonic phrase, the account is realized without feeling


· Chain abstraction: By hiding the internal information of each chain, such as the consensus mechanism, gas fee, and native token, the chain is realized without feeling


In traditional software development, abstraction and modularity are a set of closely related important concepts. Abstraction defines the hierarchy and architecture of the system, and modularity is the way to implement this architecture.Specifically, each module represents an abstraction level, and the interaction between modules hides its internal complexity, which facilitates the expansion, reuse, and maintenance of the code. Without abstraction, the boundaries between modules will become complex and difficult to manage.


Problem as method: a new framework for understanding chain abstraction image 1

Source: https://web.cs.ucla.edu/classes/winter12/cs111/scribe/3a/


It is worth noting that Web2 usually abstracts and modularizes within a closed or partially closed ecosystem, with the abstraction level concentrated within a single platform or application, and the environment is relatively controlled, and usually does not need to solve cross-platform or cross-system compatibility issues. However, in the context of Web3, due to the pursuit of decentralization and an open ecosystem, the relationship between modularization and abstraction is more complicated.


At present, although modularization helps solve the abstraction problem within a single public chain and lowers the threshold for public chain construction, the user/developer experience abstraction under the multi-chain pattern is an area that modularization has not fully covered. There is a relatively obvious island effect between different public chains and ecosystems, which is specifically reflected in the dispersion of liquidity, developers and users. The proposal of chain abstraction includes the re-architecting of the public chain relationship to achieve the connection, integration and compatibility between multiple chains, which can be confirmed in an article published by Near in January this year.


We can think that the urgency of chain abstraction as a real problem is closely related to the development of the following conditions:


· On-chain activity:Do more dAPPs bring more active user on-chain behavior


· Modular blockchain progress:Does more active on-chain behavior drive the construction of more rollups and app chains


· Barriers to entry for new users and developers:To what extent does the current blockchain environment hinder the influx of new users and developers (referring to the wear and tear in the upward trend, rather than the anger of stagnation)


Which category does chain abstraction belong to among the many problems?


Chain abstraction itself is an abstract concept, and the narrative level within Web3 is also relatively high-dimensional, which may explain to some extent why chain abstraction presents an all-encompassing and even confusing appearance. Specifically, it is not a solution, but a guiding ideology.


Another example is Bitcoin today. After several halvings, sharp rises and falls, and ETF landings, Bitcoin is no longer just a technical solution or asset class, but also a time-spanning ideological system and industry totem, representing a series of crypto core values, and will continue to guide the innovation and development of the industry in the foreseeable future.


Problem as method: a new framework for understanding chain abstraction image 2


What are the differences and connections between cross-chain, interoperability, and chain abstraction?


We can also understand cross-chain, interoperability, and chain abstraction on a spectrum from concrete to abstract. From a morphological point of view, they are a set of concept subsets centered on coordinating state modifications (transactions) on different chains, but in actual use they are often full of middle ground.


Problem as method: a new framework for understanding chain abstraction image 3


We can roughly divide cross-chain related applications and protocols into two categories:


· Cross-chain asset transfer: cross-chain bridge, cross-chain AMM, cross-chain aggregator, etc.

· Cross-chain communication: Layerzero, Wormhole, Cosmos IBC, etc.


The transfer of assets is also inseparable from message passing. The message passing layer of the cross-chain asset transfer application is generally composed of a set of on-chain smart contracts and state update logic. The cross-chain communication protocol is the solution that abstracts the function of this message passing into a general, protocol-layer solution.


Cross-chain communication protocols can handle more complex cross-chain operations, such as governance, liquidity mining, NFT transactions, token issuance, game operations, etc. Interoperability protocols go a step further on this basis, involving deeper data processing, consensus and verification, ensuring consistency and compatibility between different blockchains from the blockchain system level. However, in actual use, these two concepts are often mutually exclusive and can be replaced by each other according to the context.


The connotation of chain abstraction includes the interoperability of blockchains, but the usage context adds a layer of experience improvement on the user and developer side, which is not unrelated to the intention narrative that has emerged in this cycle. The combination of intention and chain abstraction will be explained below.


What specific issues does chain abstraction include?


1. How to achieve chain abstraction?

2. Why should we pay attention to the combination of chain abstraction and intention?


How to achieve chain abstraction?


Different projects have different understandings and entry points of chain abstraction. Here we divide them into the classic school, which evolved from interoperability protocols and is closer to developer-side abstraction, and the intentional school, which combines emerging intentional architectures and focuses more on user-side abstraction.


The history of the classic school can be traced back to Cosmos and Polkadot, which were born much earlier than the concept of chain abstraction. OP superchain and Polygon Agglayer are rising stars, currently focusing on liquidity aggregation and interoperability within the Ethereum L2 ecosystem. Layerzero, Wormhole and Axelar, which originated from cross-chain communication protocols, are also expanding to more chains to strive for more customer adoption in order to enhance their own network effects.


The intentional school includes L1s such as Near and Particle Network, which are committed to providing comprehensive solutions for chain abstraction, as well as component classes that start from solving specific problems. Currently, DeFi protocols are the main ones, represented by UniswapX, 1inch and Across Protocol.


Whether it is the classical school or the intentional school, safe and fast cross-chain and friendly interaction are at the core of the design, including but not limited to a unified user interface, seamless cross-chain of dAPP, gas sponsorship and management, etc.


Problem as method: a new framework for understanding chain abstraction image 4


Why should we pay attention to the combination of chain abstraction and intent?


"xx protocols based on intent" are emerging in an endless stream. This section will explore the reasons and potential for them to become a popular product architecture.


Similar to abstraction and modularity, intent is not a native concept of Web3. Intent recognition has existed in the field of natural language processing for decades and has been widely studied in human-computer dialogue.


When it comes to intention research in the field of Web3, we cannot do without the famous paper of Paradigm. Although similar design concepts have been reflected in products such as CoWSwap, 1inch, and Telegram Bot, the core of the intent architecture was formally proposed in this article-Users only need to specify the expected results, without caring about the process, and the complex process of achieving the task is best outsourced to a third party. This is consistent with the improvement of user experience that chain abstraction focuses on, and provides a more specific solution.


There are many classifications of chain abstraction architectures on the market, and the more well-known one is the CAKE framework (Chain Abstraction Key Elements) developed by Frontier Research. This framework combines the intent architecture and divides the various technologies and solutions that constitute chain abstraction into permission layer, solution layer, and settlement layer. There are also other frameworks that make fine-tuning on this basis, such as Everclear, which adds a layer of clearing function between the solution layer and the settlement layer.


Problem as method: a new framework for understanding chain abstraction image 5

Source: Frontier Research


Specifically:


· Permission Layer:The core is account abstraction, serving as the user entrance of dAPP to request intent quotations - users express their intentions


· Solver Layer:Generally, it is a third-party solver layer off-chain, used to meet user intentions - solvers compete for orders


· Settlement Layer:After the user approves the transaction, the oracle, cross-chain bridge and other solutions are called to ensure the execution of the transaction - users get the expected results, and solvers get paid


The solvers in the solution layer are a group of third-party off-chain entities, which are called solvers, resolvers, searchers, fillers, Takers, relayers, etc. Solvers usually need to pledge assets as margin to qualify for competing orders.


The process of using intention products is similar to filling in a limit order. In the cross-chain scenario, in order to satisfy the user's intention as soon as possible, solvers usually advance funds and charge a certain risk fee at the time of settlement (this model is similar to a short-term loan, the loan period = blockchain state synchronization time, interest = service fee).


The comprehensive intention solution represented by Near hopes to combine the permission layer, solution layer and settlement layer into a unified infrastructure product. It is currently in the early stage of proof of concept and it is difficult to directly observe and evaluate its utility.


Component-type intention solutions represented by cross-chain DeFi protocols have shown obvious advantages over traditional cross-chain models (such as Lock Mint, Burn Mint). As the flagship product of Across Protocol, Across Bridge's intention-based architecture enables it to have the first-tier speed, low price and charging ability in the cross-chain bridge of the EVM ecosystem, and its advantages are particularly obvious in small cross-chain scenarios.


Problem as method: a new framework for understanding chain abstraction image 6

Cross-chain speed and fees of different products displayed by the aggregator Source: Jumper


Problem as method: a new framework for understanding chain abstraction image 7

Speed and fee comparison between Across Protocol and Stargate in L2-L1 scenarios
Source: https://dune.com/sandman2797/across-vs-stargate-taxi-vs-bus-eth


Problem as method: a new framework for understanding chain abstraction image 8

Across Protocol has a higher charging capacity Source: DefiLlama


From the roadmap, Across Protocol will launch a cross-chain intention settlement layer in the third phase. ERC-7683, jointly proposed by Uniswap Labs and Across Protocol, attempts to lower the barrier to entry for solvers through standardized intent expressions and build a universal network for solvers. Many component products may gradually abstract the final form of the chain in the form of puzzle pieces.


What are the problems with our understanding and practice of chain abstraction?


1. What problems does Infra standard bring?

2. What other issues are worth thinking about about chain abstraction?


What problems does Infra standard bring?


As the leader of interoperability protocols, Layerzero has raised 290 million yuan in total, and Wormhole has raised 225 million yuan. The billions of FDV and low circulation make their tokens the representatives of the VC coins that have been criticized in this cycle, which has dampened the market's confidence in the chain abstraction track.


Back to the cartoon at the beginning of the article, chain abstraction projects each have a technology stack and token standards. In a market environment lacking external increments, they are inevitably criticized as empty infrastructure. The data gap before and after the Layerzero airdrop also made the market doubt the real demand for "cross-chain communication".


Problem as method: a new framework for understanding chain abstraction image 9

The data before and after the Layerzero airdrop is obviously different
Source: https://dune.com/cryptoded/layerzero


In the ERC-7683 forum page, facing the doubts that the cross-chain asset transfer function is too small, not universal enough, and does not support enough ecology, developers discussed the responsibilities of the ERC standard itself. Supporters of minimalist ERC believe that the tool-level standard is sufficient to solve the current problems and can be combined with existing standards, and the resistance to adoption will be relatively small.


Considering that the design concept of the intent architecture is largely application-oriented, the "universal, full-stack, compatible" protocol standards sometimes become "too general and meaningless" and "too large to solve practical problems", resulting in an ironic phenomenon - the chain abstraction protocols that were created to solve the fragmentation problem themselves deliver fragmented solutions.


Problem as method: a new framework for understanding chain abstraction image 10

Source: https://ethereum-magicians.org/t/erc-7683-cross-chain-intents-standard/19619/18


What other questions are worth thinking about about chain abstraction?


· For new public chains/long-tail public chains, chain abstraction makes it more difficult to retain TVL (analogous to the impact of globalization on underdeveloped regions). What impact will this have on the adoption of chain abstraction?


· A study by Variant pointed out that UniswapX will lead to a new situation where long-tail tokens are directed to AMMs and mainstream tokens are more filled by off-chain solvers. Is this the development trend of DEX in the future? Will a global solver layer be superimposed on the global liquidity layer in the future?


· In addition to DeFi protocols, what form may other intent-based product architectures take?


· Will chain abstraction become a hot topic or a big bubble after modularization?


Original link

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like