Dear Frens,

Welcome to the vanguard of layer 2 innovation! Today, we embark on a journey through the latest developments reshaping the landscape of blockchain scalability. From groundbreaking solutions to emerging trends, join us as we explore the ever-evolving world of layer 2 protocols.

StarkWare, the primary developer firm behind the layer 2 blockchain, Starknet unveiled plans on Wednesday for its Zero-Knowledge rollup, designed to be compatible with the Ethereum Virtual Machine. This implementation, known as a zkEVM called Kakarot, is currently undergoing testing and will soon be accessible through Starknet’s Stack which is a set of software tools that make it easier for developers to spin up their own customized application-specific chains.

Meanwhile, as at the time of writing, Ethereum’s layer 2 tokens, including Arbitrum (ARB), Optimism (OP), and Starknet (STRK), witnessed significant price surges, with ARB rising by 20%, and OP, STRK doing over 10% as well. These gains can be attributed to the recent approval of Spot ETH ETF and we might see more movements in the market over the coming days and weeks.

As we look into this week's exploration of layer 2 advancements, the horizon of blockchain scalability appears to be brighter than ever. Be sure to keep exploring, keep innovating, and keep pushing the boundaries of what's possible in the decentralized world.

Contributors: Ritaakubue, Melasin, anointingthompson1, jengajojo, Tonytad, Boluwatife, Kornekt, WinVerse

This is an official newsletter of BanklessDAO. Please subscribe and share to help us grow our audience as we fulfill our mission to build user-friendly crypto onramps.

Share

🗞️ Ecosystem Updates

🧑‍💻 zkSync Protocol Upgrade v24: New Precompiles, More Blobs, Validiums, and More

🆕 Welcoming L3s to the Superchain

👛 Scroll Gets Integrated Into Trust Wallet

🪂 The Taiko Token Airdrop is Here

⭕ Optimism Launches the Reto Funding App by Agora

🌱 Starknet Launches the Seed Grant Program

🖼️ Farcaster Integrates Arbitrum

🔥 Hot News

Retro Public Goods Funding Round 4 Is Live🔥

Attention Blockchain Pioneers! Retro Public Goods Funding Round 4 by Optimism is live, with a massive 10 million OP up for grabs. This round is exclusively dedicated to the fearless on-chain builders who have deployed smart contracts across the Superchain, generating unparalleled demand for its blockspace.

If you're one of these blockchain OG's, seize this golden opportunity and submit your application before June 6th, 19:00 UTC.

For more information, check out the thread by clicking the link below.

Showcase your on-chain prowess and secure a share of the 10 million OP bounty!

🏛 Governance

💬 Proposals in Discussion

Arbitrum

• Pilot Phase: Arbitrum Venture Initiative

• Establish a Short Term Marketing Program

Optimism

• Protocol Upgrade #7: Fault Proofs

Polygon

• Heimdall v1.0.6 Mainnet Release for Validator Nodes

Launching Into the Arbitrum Orbit

Author: Kornekt

Arbitrum Orbit, developed by Offchain Labs, is a rollup development kit for building highly customizable chains. It harnesses the power of Arbitrum Nitro to create a ground for crafting tailored layer 2 and even layer 3 blockchains. Picture it as a canvas where developers can unleash their creativity and build chains that resonate with their vision.

Permissionlessness is one thing that gives Arbitrum Orbit an edge. However, what sets it apart isn't just its open-door policy; it's the boundless possibilities it offers for customization. Developers aren't constrained by one-size-fits-all solutions; instead, they have the liberty to tailor every aspect of their chains to suit their specific needs and preferences. Arbitrum Orbit takes the idea of scalability up a notch by offering the technology that streamlines the creation of EVM-compatible L2 chains and even L3 chains (and beyond) that settle on Arbitrum One or any other Ethereum L2.

Elements of the Orbit

Arbitrum Orbit offers a remarkable level of customization, allowing users to tailor their blockchain networks according to their specific needs and preferences across three crucial dimensions: technology stack, security models, and features.

1. Technology Stack: Users have the flexibility to design their blockchain networks with a technology stack that best suits their requirements. Whether they prefer a specific consensus mechanism, data availability layer, precompiles, or governance mechanism, Arbitrum Orbit provides the freedom to customize these fundamental components.

2. Security Models: Arbitrum Orbit allows users to define and implement security models that align with their risk tolerance and use case requirements. The platform supports various consensus algorithms and validation mechanisms, empowering users to build secure and resilient blockchain networks tailored to their unique security considerations.

3. Features: In addition to customizing the underlying technology and security architecture, users can enhance their blockchain networks with a wide range of features and functionalities. Whether it's support for specific transaction types, interoperability with other blockchain networks, or integration with external systems and services, Arbitrum Orbit provides the flexibility to incorporate these features seamlessly. This empowers developers to create versatile and innovative blockchain solutions that address diverse use cases and requirements.

Rollup or AnyTrust Chains?

Arbitrum Orbit allows users to choose between Rollup and AnyTrust chains, providing them with distinct advantages and trade-offs depending on their specific requirements and use cases.

1. Rollup Chains: Rollup chains leverage the security of the Ethereum mainnet while offloading transaction processing and data storage to a secondary layer. This approach offers significant scalability improvements by aggregating multiple transactions into a single batch and submitting a succinct proof of their validity to Ethereum. Rollup chains provide high-security guarantees as all transactions are ultimately settled on the Ethereum mainnet, benefiting from its robust consensus mechanism and decentralized network of validators.

2. AnyTrust Chains: AnyTrust chains, on the other hand, prioritize flexibility and customization, allowing users to design their consensus mechanisms and security models tailored to their specific needs. While AnyTrust chains may sacrifice some of the security guarantees provided by Rollup chains, they offer greater freedom in designing governance structures, consensus algorithms, and validation mechanisms. AnyTrust chains can be particularly suitable for applications that prioritize performance, efficiency, or specialized use cases that may not be well-suited to Ethereum's mainnet constraints.

Ultimately, the choice between Rollup and AnyTrust chains depends on factors such as security requirements, performance considerations, governance preferences, and interoperability needs. Arbitrum Orbit empowers users to make informed decisions based on their unique priorities, providing the flexibility to select the chain architecture that best aligns with their goals and objectives.

Arbitrum Orbit Vs. Optimism Superchain

Arbitrum Orbit and Optimism Superchain represent two innovative approaches to scaling Ethereum and fostering the development of decentralized applications (dApps) within the blockchain ecosystem. While both platforms share a common goal of enhancing scalability, throughput, and usability for Ethereum-based applications, they employ distinct architectural designs and operational models to achieve their objectives.

Arbitrum Orbit, as a permissionless platform for creating customizable chains, emphasizes flexibility, extensibility, and ease of deployment. This decentralized approach empowers developers to experiment with various configurations, consensus mechanisms, and governance structures, fostering innovation and diversity within the blockchain ecosystem. Arbitrum Orbit's focus on customization and permissionless innovation distinguishes it as a versatile platform capable of accommodating a wide range of use cases, from financial services and gaming to supply chain management and decentralized finance.

On the other hand, Optimism Superchain embodies a vision of interoperability and composability, seeking to integrate disparate L2 solutions into a unified "superchain" ecosystem. By linking L2 networks and facilitating seamless communication between them, Optimism Superchain aims to create a scalable and interoperable infrastructure capable of supporting a diverse array of decentralized applications and use cases.

Unlike Arbitrum Orbit's emphasis on permissionless innovation, Optimism Superchain prioritizes standardization, compatibility, and network effects, envisioning a future where developers can easily deploy and interconnect L2 solutions across a unified network architecture. Through collaboration with industry stakeholders and strategic partners, Optimism Superchain aims to establish itself as a foundational layer for web3 applications and services, driving widespread adoption and mainstream acceptance of decentralized technologies. The uniqueness of Arbitrum Orbit and Optimism Superchain lies in their respective approaches to scalability, interoperability, and decentralization.

Deeper Into the Orbit

Arbitrum Orbit offers an innovative approach to building scalable chains. Its array of scalable features, composability, and customizability empowers developers to forge the future of decentralized technology. If you want to dive deeper and explore the orbit better, check out the Arbitrum Docs.

📈 Data

Total Value Locked on L2s Approaches $50 billion!

Top Ten Projects by Total Value Locked:

🔭 Project Watch

Arbitrum

Top Projects by TVL

Optimism

Top Projects by TVL

zkSync

Top Projects by TVL

zkEVM

Top Projects by TVL