NEAR Chain Signatures explained: MPC network, Eigen AVS, chain abstraction
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Explains how Chain Signatures let one NEAR account control addresses on other chains via an MPC network secured by staked NEAR and restaked ETH on EigenLayer. Works for non-smart-contract chains like Bitcoin; starts with ten operators under proof of authority.
Key claims
MPC network launches as an EigenLayer AVS with double staking quorum
Initially ten AVS node providers under PoA, later permissionless
Supports Bitcoin, XRP Ledger and Dogecoin signing
Chain abstraction is the modular endgame and the next billion $$$ narrative.
Unifying liquidity and UX across chains is key to make a multichain Web3 ready for mass adoption.
@NEARProtocol solves this.
Chain signatures are coming! 👇
Chain Signatures enable NEAR accounts, including smart contracts on @NEARProtocol to sign transactions across any supported blockchain.
How does this work?
Chain signatures are powered by a decentralized MPC network which is crypto-economically secured by staked $NEAR and restaked $ETH on @eigencloud.
To initiate a cross-chain interaction, the NEAR account requests the MPC nodes to sign a message, such as a transaction to be executed on another blockchain. The signed payload is then sent to the destination chain.
Through the MPC network, NEAR accounts can control multiple addresses on various chains.
The chain signatures MPC network hence essentially acts as a decentralized signer for NEAR accounts and smart contracts living on @NEARProtocol.
It handles requests to addresses on various blockchains without burdening the user with the complexities of the fragmented backend.
As mentioned above, the MPC network will launch on @eigencloud as an AVS with double staking quorum.
Initially, ten top @eigencloud AVS node providers will operate it under a Proof of Authority model. It will later transition to a permissionless network secured by staking and slashing conditions.
Why does this matter?
Remember the hype around account abstraction (AA) on Ethereum?
Chain abstraction is multichain AA on steroids.
Chain signatures is what makes this possible.
A single NEAR account can manage multiple accounts across various chains, aggregating user accounts in one unified UI.
This allows users to achieve ERC 4337-like functionality without deploying new smart contracts or updating their accounts on each individual chain.
Solving execution layer fragmentation on the account level, chain Signatures also enable users to pay for gas on various chains in tokens like $USDC.
Thanks to the unique concept of chain signatures, which does not require supported chains to have smart contract functionality, NEAR accounts and contracts can even sign transactions for non-smart contract chains.
This includes:
✦ Bitcoin
✦ @CelestiaOrg
✦ @bittensor_
✦ @ripple (XRP Ledger)
✦ @DogeCoin
✦ +++
This is powerful, because it enables applications such as multichain DEXes that can leverage the native assets of these chains, unlocking liquidity that was previously inaccessible.
Moreover, since NEAR smart contracts can custody assets on any chain, users can build natively multichain apps such as RFQ based trading systems, orderbook DEXes, AMMs, lending protocols, and more.
It is also possible to build multichain DEXes that do not require bridges or message passing layers, abstracting significant complexities that often provide attack vectors to malicious actors.
Pretty cool, no?
Aside the before-mentioned non smart contract chains, @NEARProtocol's chain signatures also support:
✦ Ethereum
✦ EVM L2s
✦ @Cosmos chains
✦ @Solana (soon)
✦ @ton_blockchain (soon)
✦ @Polkadot chains (soon)
✦ +++
This is a game-changer anon.
Imagine the amount of liquidity that will be bridged over to @NEARProtocol because users want to deploy that capital seamlessly across chains from their NEAR wallet?
It's huge and few understand the full ramifications of this.
@ilblackdragon is on to something big here.
🧠 NFA but DYOR anon.
QUOTING @zerokn0wledge_
𝗖𝗵𝗮𝗶𝗻 𝗔𝗯𝘀𝘁𝗿𝗮𝗰𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗵𝗲 𝗠𝗼𝗱𝘂𝗹𝗮𝗿 𝗘𝗻𝗱𝗴𝗮𝗺𝗲 The modular expansion is just starting. 🧱✨ A rollup-centric multi-chain future composed of 1000s of app- and vertical-specific chains is emerging. So are we done? According to @vitalikbuterin, not quite yet. While modularity enables t
𝗖𝗵𝗮𝗶𝗻 𝗔𝗯𝘀𝘁𝗿𝗮𝗰𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗵𝗲 𝗠𝗼𝗱𝘂𝗹𝗮𝗿 𝗘𝗻𝗱𝗴𝗮𝗺𝗲 The modular expansion is just starting. 🧱✨ A rollup-centric multi-chain future composed of 1000s of app- and vertical-specific chains is emerging. So are we done? According to @vitalikbuterin, not quite yet. While modularity enables t
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