Modular thesis and DA layers: Celestia vs Avail with DAS and ZK proofs
Thread938 words
Recaps the modular thesis and argues DA layers must cut fees for rollups to compete with Solana. Compares Celestia's fraud proof DAS with Avail's KZG validity proofs and expects Celestia to adopt ZK.
Key claims
Avail uses KZG commitments for validity proofs, adding cost but removing the challenge window
Celestia will likely move to ZK tech
Thousands of modular chains expected by end of 2024
Missed @CelestiaOrg & watched TIA create generational wealth from the sidelines? 🚀
If so, don't fade again anon. 💸
There is a modular DA layer like Celestia that no one is talking about yet. It uses almost the same tech but adds ZK to the mix! 👀
Alpha of the Year 🧵
1/ @CelestiaOrg has put the public attention on the narrative I have been telling you about for 2 years already.
The modular thesis. 🧱✨
In monolithic blockchains (like Ethereum), all the core functions of a blockchain are unified in one layer.
2/ This enables simple network architectures with a reduced degree of complexity, which comes with composability benefits.
However, monolithic chains are generally hard to scale.
3/ This problem is embodied by the blockchain trilemma, a.k.a. the tradeoff between scalability, decentralization & security.
To improve on one, a monolithic blockchain has to compromise on another.
4/ In the context of the modular thesis, we strip the core functions of a blockchain apart into interchangeable components.
5/ In these functional areas, we allow specialized players arise that optimise on specific functions.
6/ In combination, these modular building blocks enable more flexible & performant network designs, effectively overcoming the before-mentioned blockchain trilemma.
At the core of the modular thesis stand rollups.
7/ Rollups are the scalable execution layers that will provide the programmable base layer for applications ready for mass adoption.
Today, the core scaling bottleneck these systems are facing is the data availability limitations of Ethereum.
x.com/expctchaos/status/1535698402939265025
8/ I have covered this in depth in a research report published with @Castle__Cap a few weeks ago.
Check it out here! 👇
x.com/Castle__Cap/status/1717526579109339596
9/ @CelestiaOrg is the first mover of this narrative.
The first modular DA layer, exclusively focused on providing cheap block space to rollups to post their tx data to.
x.com/zerokn0wledge_/status/1535970188012572672
10/ Still, few understand how big these modular DA layers will actually be though.
To compete with high-throughput L1s like @solana or @monad (that make sacrifices on decentralization), cutting down DA fees will be crucial for rollups.
11/ Paying for calldata on Ethereum is too expensive (for now).
x.com/zerokn0wledge_/status/1661794274206445569
12/ Modular DA layers that run on their own decentralized validator sets provide a more secure alternative to centralized off-chain solutions.
They allow rollups to close the throughout & cost gap to @solana, while maintaining network decentralization & security.
13/ Unsurprisingly, many high-profile projects like @MantaNetwork or @EclipseFND are building on @CelestiaOrg already. 👀
By the end of 2024, we will have thousands of modular chains. 🚀
14/ However, not all of them will be running on @Celestia.
This finally brings me to @AvailProject! 🌟
Avail is a modular DA layer that rollups can post their data to. It enables novel network designs like Avail-based Validiums or Sovereign Rollups.
15/ As mentioned before, @AvailProject is very similar to @CelestiaOrg in terms of tech.
What do I mean?
@CelestiaOrg has pioneered a technology that is referred to as data availability sampling (DAS).
16/ That’s important because DAS allows @CelestiaOrg to scale data availability almost infinitely and provide unparalleled end user verifiability.
DAS basically allows anyone with a device that is connected to the internet, to verify that data is actually available on-chain.
17/ This heavily differs from traditional full nodes that need to download all data in order to be able to verify a blockchain’s state (and hence have heavy hardware reqs).
However, even a blockchain with data availability sampling light clients can’t run without full nodes.
18/ But the trust assumptions are different as light clients get a significant security upgrade (can't get tricked).
In a DAS setting, we only need one honest full node to download all the data and ensure block validity.
19/ In the context of @CelestiaOrg, light nodes work in an optimistic setting, in which data is assumed to be valid as long as the full nodes don’t provide a fraud proof.
In the context of @AvailProject, the full nodes generate KZG commitments (ZK proofs) of validity.
20/ ZK proofs come with a latency benefit as there is no need for a challenge window to generate fraud proofs.
However, the proof generation introduces an additional cost component, that might make DA slightly more expensive on @AvailProject than on optimistic DA layers.
21/ But due to the latency & security benefits of validity proofs, it is likely that Celestia will also move to ZK tech in the future.
For a deep-dive into light nodes in the context of Avail's DA layer, check the thread by @ri5hitripathi below! 👇
x.com/ri5hitripathi/status/1733896392840741232
22/ Currently, @AvailProject is in the final stages of testnet.
The “Clash of Nodes” testnet has been a great success so far, clearly indicating that @AvailProject is actually following in @CelestiaOrg’s footsteps.
x.com/AvailProject/status/1735764930156994571
23/ If you’re in for the gains, keep your eyes on @AvailNetwork and the projects building on it to get in early.
If you’re in this for the tech, check out my in-depth comparison of modular DA layers here! 👇
x.com/expctchaos/status/1663213648121307141
24/ 🚨 Bonus Alpha: Before spinning off from @0xPolygon about a year ago, @AvailProject was known as Polygon Avail.
The founder @anuragarjun (great guy, like entire team) was also among the founders of @0xPolygon!
Probably nothing. 👀
25/ That’s a wrap for today! I hope you found this thread helpful! 🫡
Follow me @zerokn0wledge_ & @AvailProject to stay up to date! ✨
Like / Retweed of the below tweet highly appreciated as well! 🙏👇
Tagging some chads you should definitely follow! 🫡 👇
@ShivanshuMadan
@0xDinoEggs
@modularmedia_
@therollupco
@alice_und_bob
@Louround_
@0xSalazar
@andyyy
@0xDinoEggs
@maestro
@poopmandefi
@hmalviya9
@thesaint_
@0xSalazar
And some more! 🫡👇
@CJCJCJCJ_
@francescoweb3
@Hercules_Defi
@0xJermo
@andrewmoh
@splinter0n
@wacy_time1
@DefiIgnas
@2lambro
@CryptoMaestro
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What came next · since 21 Dec 2023
Show how the covered asset moved
This piece lays out a thesis on the sector without making a call on the token, so price moves since publication are shown as market context.
Covered, no call
Since then
Zero has written 24 more pieces on Celestia and $TIA since this one.
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