Puffer UniFi: An efficient Rollup solution based on Ethereum

Puffer is developing a more efficient Based Rollup solution using Restaking technology, aimed at achieving decentralized ordering and enhancing liquidity interaction between chains. This solution will bring a different development pattern to the Ethereum ecosystem compared to mainstream Rollups.

Puffer's main products include:

1. Puffer LRT: Ethereum restaking service based on Eigenlayer
2. Puffer UniFi: Optimization solution of Based Rollup introducing pre-confirmation technology
3. Puffer UniFi AVS: Used to build a highly synchronized application chain ecosystem, reducing liquidity fragmentation.

The Based Rollup differs from mainstream Rollup solutions in terms of decentralization, efficiency, and profit distribution, to cater to the needs of different application scenarios.

Overview of Rollup Technology

Rollup is a blockchain scaling technology designed to increase transaction processing capacity and reduce fees. It alleviates the burden on the mainnet by processing a large number of transactions off-chain and then submitting the results to the mainnet for verification. Rollups are mainly divided into two categories:

1. Optimistic Rollup: Assumes transactions are correct by default and only validates in case of disputes, faster but has a challenge period.
2. ZK Rollup: Uses zero-knowledge proofs to ensure transaction correctness, more secure but technically complex.

The core concept of Rollup is "a large amount of work done off-chain, with results verified on-chain" to improve the processing speed of the blockchain and reduce costs.

Based Rollup Concept

Based Rollup was proposed by Ethereum Foundation researcher Justin Drake in March 2023, primarily targeting the role of sorters between L2 and L1. Unlike traditional centralized sorters, Based Rollup shifts the responsibility of transaction sorting to L1, managed by Ethereum validator nodes. This design leverages existing Ethereum node resources, avoiding centralization risks, but also faces the issue of longer transaction confirmation times.

Puffer UniFi Optimization Plan

Puffer UniFi introduces a "pre-confirmation" mechanism to solve the efficiency issues of Based Rollup:

1. Ethereum validators provide pre-confirmation: Before the block is packaged, validators commit to including specific Rollup transactions.
2. Penalty Mechanism: Validators who fail to fulfill their pre-confirmation commitments will face penalties.

This mechanism bypasses the issue of Based Rollup being limited by the mainnet block time, greatly improving transaction confirmation efficiency (approximately 100ms).

Puffer UniFi AVS

To achieve the pre-confirmation mechanism, Puffer proposed the UniFi AVS solution based on EigenLayer. This solution utilizes Ethereum Restaking to package UniFi into AVS services. Validators on EigenLayer can participate in providing pre-confirmation services for UniFi AVS and are subject to corresponding penalty mechanisms.

Core Values

The application chain built by UniFi AVS has the following advantages compared to other Rollup solutions:

1. Decentralized Sorting Based on L1
2. Pre-confirmation technology improves transaction confirmation speed
3. Create earnings for Restaking
4. Achieve synchronous composability

In particular, the feature of synchronous composability helps to address the current liquidity fragmentation issue in a multi-Rollup environment. The UniFi ecosystem allows users to operate seamlessly across different Rollups and application chains, providing a smooth experience similar to that of a single chain.

Summary

The development prospects of UniFi depend on whether Based Rollup becomes a necessary solution. Although the centralization issues of current L2 solutions do not directly affect user interests, addressing the problems of decentralized orderers and liquidity fragmentation is imperative in the long run.

Base Rollup is more like Ethereum's "vassal", directly scheduled by Ethereum and adhering to a fair system. In contrast, mainstream Optimistic Rollup is more akin to "feudal lords", having more autonomy but requiring additional mechanisms (such as chain abstraction) for coordination.

The focal point of the controversy between these two proposals is whether Rollup should return value to Ethereum or maintain autonomy. The former offers higher security, while the latter provides operators with more opportunities to capture benefits. The inclusiveness of blockchain determines that these two proposals will coexist to meet the needs of different application scenarios. In the future, continuous technological advancements and the innovative ideas of developers will continue to drive the development of this field.