Imagine if there were an easier and more secure way to launch blockchain projects. Lowering the barrier to entry for new web3 services could unleash a wave of innovation, accelerating development and adoption.
What if blockchain services could leverage Ethereum’s reliable proof-of-stake validation from the start, rather than build their own infrastructure? ETH stakers could simply opt-in to help secure emerging services and receive additional rewards, giving them a solid foundation — a win-win approach for strengthening the entire ecosystem.
EigenLayer, an Ethereum restaking protocol, has made this vision a reality. By tapping the pooled security of ETH, EigenLayer supports the creation of Actively Validated Services — a new game-changing model for web3 projects.
What is an Actively Validated Service (AVS)?
An EigenLayer AVS is any blockchain-based system that uses EigenLayer’s restaking mechanism to support unique validation methods across the Ethereum network. (Click here for examples.) These services can rapidly scale by taking advantage of the security of Ethereum validators.
AVSs aren’t limited by the Ethereum Virtual Machine’s design. They provide developers with a broader set of tools, enabling new capabilities beyond what’s possible on Ethereum. AVSs can include:
- Sidechains
- New virtual machines
- Oracle networks
- Keeper networks
- Bridges
- Data availability layers
- Privacy-preserving protocols
- Cross-chain interoperability solutions
- And more…
Why is the AVS Model Important?
EigenLayer allows Ethereum stakers to restake ETH or liquid staking tokens (LSTs) to secure additional services on the network. This shared security layer eliminates the need for new services to establish their own security from scratch, addressing a critical issue with web3 development: fragmented security.
- Dapps often rely on multiple services (see the list above).
- Each service typically has its own security system.
- Vulnerabilities are compounded — the entire dapp is at risk if any service is exploited.
EigenLayer achieves pooled security through restaking, combining Ethereum’s security across all Actively Validated Services.
- Bootstrapped Security: New AVSs can leverage the existing validator set and staked ETH of Ethereum, making it easier to secure their networks.
- Increased Cost of Attacks: Corrupting the system becomes substantially more expensive because attackers must break the combined security of all AVSs, not just one.
- Free-Market Governance: EigenLayer introduces a marketplace where validators are incentivized to support services, allowing for flexible resource allocation.
- Improved Efficiency: Validators can restake their ETH for multiple AVSs, reducing the overall financial burden on the system and making it more economically sustainable.
- Enhanced Trust: The total amount of staked capital in EigenLayer strengthens the overall trust and security of the ecosystem.
How Do AVSs Operate?
EigenLayer’s architecture has four key players:
- Restakers: Individuals or entities that stake ETH or LSTs through EigenLayer.
- Operators: Operators run specialized node software and perform validation tasks for AVSs. They register with EigenLayer, receive delegated stakes from restakers, and earn rewards for their services.
- Actively Validated Services: Decentralized services and infrastructure modules that benefit from EigenLayer’s pooled security.
- AVS Users: End-users or applications that interact with EigenLayer AVSs.
Each AVS consists of smart contracts that manage its functionalities, such as which operators are running the service and the amount of stake securing it. AVSs are built and operated through a combination of off-chain execution and on-chain enforcement.
- Off-chain Container: Each AVS requires an off-chain container, which operators must download. This container handles the execution of tasks specific to the AVS.
- On-chain Contract: An on-chain smart contract specifies the terms for slashing (penalties for malicious behavior) and payments to validators. This contract integrates with the Ethereum network to enforce security and accuracy.
Custom Validation Groups: AVSs can design unique validation structures that use both restaked ETH and their own tokens. They can tailor the requirements to their specific security and operational needs, ensuring that a sufficient number of validators are involved to maintain security and consensus.
High-Impact Use Cases: EigenLayer makes it possible for innovative services to address key challenges in the Ethereum ecosystem. Major AVS use cases include:
- Event-Driven Activation: Ethereum lacks native support for event-driven activations like liquidations and collateral transfers, but an EigenLayer AVS could support their prompt execution. Ethereum validators who opt-in can guarantee inclusion of these actions, improving the efficiency and resilience of DeFi.
- Hyperscale Data Availability Layer: It's hard to scale on Ethereum due to limited data availability. With restaking and concepts like Danksharding, an EigenLayer AVS could support a high-performance, cost-efficient data availability layer by combining restaking with concepts like Danksharding. This will help scale Ethereum as well as layer-2 solutions.
- Fast-Mode Bridges for Rollups: Bridges between Ethereum and rollups typically suffer from high latency and security risks. An EigenLayer AVS could improve these bridges. For ZK rollups, off-chain proof verification speeds up confirmations. For optimistic rollups, it provides a larger collateral pool, boosting security.
Various Business Models: EigenLayer supports different AVS business models, enabling AVS developers to choose the most suitable economic structure for their services.
- Service Provider Model: Users pay fees in a common cryptocurrency, such as ETH, to use the AVS. The fees are split between the AVS, ETH restakers who secured the service, and the EigenLayer protocol.
- Token-Based Protocol Model: Users pay fees in a common cryptocurrency, such as ETH, but some of the fee goes to people who hold the AVS’s native token. The fees are split between holders of the AVS’s token, ETH restakers who secured the service, and EigenLayer.
- Native Token Model: Users pay fees using the AVS’s native token. Fees are still shared with token holders, ETH restakers who secured the service, and EigenLayer.
- Dual Staking Model: This option allows more people to participate by creating two groups — one for people restaking ETH, and another for people staking the AVS’s token. Security depends on the stronger group, while responsiveness depends on the weaker group.
Example AVSs
EigenLayer already has several AVSs, including:
- Ava Protocol: Event-driven automation for private, autonomous super-transactions.
- EigenDA: A data availability network providing high throughput and low costs.
- Hyperlane: An interoperability protocol enabling secure cross-chain messaging.
- AltLayer: Three AVSs to support Ethereum-based rollups.
- Lagrange: Decentralized infrastructure for multi-chain block production and validation.
- Witness Chain: A network coordinating decentralized physical infrastructure networks (DePIN).
- eoracle: A decentralized oracle network integrating real-world data into Ethereum.
- Brevis coChain AVS: Utilizing zero-knowledge proofs for efficient blockchain data computation.
- Blockless: A decentralized computing network for dapps and services.
Future Horizons
To learn more about the technical details and vision behind EigenLayer, read the EigenLayer whitepaper.
As more AVSs launch on EigenLayer, web3 will continue to rapidly evolve. Previously challenging innovations in cross-chain interoperability and decentralized computation are becoming viable. The industry could soon see a proliferation of powerful specialized services that benefit from Ethereum’s shared security.
The growth of the Eigenlayer AVS ecosystem may also influence the broader web3 community, potentially changing how developers and users approach blockchain infrastructure and service development. The future of blockchain is now actively validating itself — one service at a time.
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