EigenLabs Introduces EigenDA to Reduce Data Storage Costs for Layer 2 Ethereum Rollups
EigenLabs, the developer behind the EigenLayer re-staking protocol, has announced the upcoming launch of EigenDA, a solution aimed at reducing data storage expenses for Layer 2 Ethereum rollups. EigenDA is expected to go live by the end of 2023.
Several projects including Celo, Mantle, Fluent, Offshore, and Layer N have expressed interest in integrating this mechanism into their Layer 2 setups, according to EigenLabs.
The Role of EigenLayer and Introduction of EigenDA
Introduced in June, EigenLayer’s primary purpose is to utilize staked ether (ETH) from Ethereum validators and other liquid staking tokens to secure other blockchain protocols. Additionally, the protocol can validate add-on services such as EigenDA. Nodes participating in these services are expected to receive payments.
EigenLabs states that EigenDA will be the first actively validated service (AVS) on EigenLayer. This means it relies on restaking and validation from EigenLayer.
Determining the EigenDA Operator Set and Ensuring Data Accessibility
The selection of the EigenDA operator set will be based on the amount of restake allocated to nodes through EigenLayer. The system will incorporate a “proof of custody” mechanism to ensure that stored data remains accessible.
Calvin Liu, Chief Strategy Officer at EigenLabs, explained that nodes failing to store data appropriately will face penalties through the proof of custody mechanism. Thus, restaking with EigenLayer helps guarantee that data is available within the system.
Data Availability Challenges and Benefits
Data storage presents challenges for Ethereum decentralized applications (dapps) on Layer 2 networks due to scalability and transaction fee issues. EigenDA aims to address this by implementing data partitioning and storage methods that distribute data across multiple nodes managed by EigenDA operators.
By breaking down data into manageable segments, EigenDA allows nodes to store only a portion of the complete data. This approach can significantly reduce transaction costs, benefiting dapps in areas like decentralized gaming and decentralized social platforms.
Similar Solutions and Funding
Ethereum’s core developers have been working on a similar data availability solution called EIP 4844 or proto-danksharding. It introduces temporary storage features called “blobs” to lower transaction costs on Ethereum Layer 2s.
In March, EigenLabs concluded its $50 million Series A funding round led by Blockchain Capital. The total value locked in EigenLayer exceeded $230 million following the rapid filling of deposit caps for liquid staking assets like stETH, rETH, and cbETH.
Hot Take: EigenDA Revolutionizes Data Storage for Layer 2 Ethereum Rollups
EigenLabs’ introduction of EigenDA marks a significant step towards reducing data storage costs for Layer 2 Ethereum rollups. By leveraging the power of EigenLayer and implementing innovative data partitioning methods, EigenDA offers an efficient solution for enhancing data availability while minimizing transaction expenses.
This development has attracted the attention of prominent projects in the crypto space, highlighting the potential impact of EigenDA on Layer 2 setups. With its expected launch by the end of 2023, EigenDA has the potential to revolutionize data storage in decentralized applications, enabling seamless scalability and affordability.
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