Decode Puffer UniFi: Based Rollup will reshape the future order of ETH's L2

With the rapid expansion of the ETH Ethereum Rollup ecosystem, issues such as Liquidity fragmentation and inefficient Cross-Chain Interoperativity are increasingly prominent. Based Rollup, aimed at returning transaction sequencing power to the Ethereum mainnet and solving the Rollup "island effect", has been widely regarded as a new path to promote the Ethereum ecosystem from "fragmented competition" to "collaborative win-win".

Against this background, Puffer, as a pioneer in the Based Rollup field, has launched Puffer UniFi, which provides developers with a decentralized and highly compatible Based Rollup solution by integrating Layer-2 Relayering Technology (LRT) and Unconfirmed Transaction Service (UniFi AVS).

As early as November 7, 2024, Puffer UniFi officially launched the developer-focused UniFi internal testing service, and will soon release the public version of the second phase of the UniFi testnet. This also marks the gradual transition of the Ethereum ecosystem from fragmentation to interconnectedness, moving towards a more collaborative development stage.

Based Rollup: Technical Leap of ETH's Self-correcting

According to L2BEAT data, there are currently more than 50 rollup-based L2s on the Ethereum network, making it one of the most prosperous tracks on Ethereum. However, with the expansion of L2s, the problem of liquidity fragmentation caused by independent sequencers and cross-chain interaction delays between chains is becoming increasingly serious.

For example, seamless interaction of funds and contracts between different Rollups cannot be achieved. Developers must bet on one or more L2s to attract customers, and users frequently transfer assets dynamically between multiple L2s. This process not only increases the complexity of user experience and development process, greatly limits the efficiency of funds, and severely restricts the overall development of the Ethereum ecosystem.

Ultimately, the core factor that causes this fragmentation between L2s lies in the fact that each L2 has its own centralized sequencer, which is why Based Rollup with the feature of "L1-Sequenced" becomes a new solution.

Return the power of transaction ordering to the Ethereum mainnet, and all Rollup application chains share this decentralized ordering infrastructure, and all transactions are sorted and packaged through the Ethereum mainnet.

Therefore, the core advantage of Based Rollup is the achievement of complete decentralization, and inheriting the liveliness of the ETH mainnet - which means funds can be withdrawn directly from Rollup, and smart contracts on different Rollups can directly interact seamlessly since they are all sorted through the mainnet, fundamentally eliminating the isolation effect of funds and user groups.

From this perspective, Based Rollup is also an important step in breaking down the high walls of ETH L2, and is expected to restore interoperability and composability between L2 and L2, and L2 and L1. Users will experience seamless interactions like a single chain, and developers can build highly interconnected application ecosystems, maximizing the capital efficiency and network effects of Ethereum.

As a "Decentralized Infrastructure Provider" for Ethereum, Puffer has also launched its own Based Rollup development stack based on UniFi AVS. On the one hand, Puffer LRT aggregates and re-stakes node resources to reduce the threshold for node participation and provide a decentralized sequencer cluster. On the other hand, UniFi AVS can also achieve millisecond-level transaction confirmation latency with TEE hardware acceleration.

In particular, Puffer uses its TEE-Multiprover technology to achieve atomic composability with the ETH mainnet - all cross L2-L1 operations can be carried out within a single transaction with millisecond-level low latency, ensuring either complete success or complete failure.

For example, users can invoke contracts on multiple Rollups in the same transaction to complete complex financial operations of Cross-Chain Interaction while avoiding the uncertainty of intermediate states. This unlocks use cases such as efficient arbitrage, flash loan refinancing, and instant settlement, bringing direct economic benefits to developers and users.

The ecological reconstruction value of Puffer UniFi

From a product perspective, re-staking is just the beginning for Puffer. The ultimate mission of Puffer is to break the fragmentation of the ETH ecosystem through the Based Rollup architecture, while Puffer LRT and UniFi AVS provide UniFi with complete tools and technical support - L1 verification/sorting/re-staking nodes, pre-confirmation mechanism, etc.

Building on this, Puffer deeply integrates Puffer LRT and UniFi AVS into the development stack of Based Rollup, empowering developers to quickly build highly interoperable and decentralized Based Rollup application chains, which not only provides an effective path to solve the existing Rollup L2 bottlenecks, but also opens up new collaboration and growth models for developers and projects.

First, based on the application chain architecture of Puffer UniFi, it eliminates the dependence on traditional centralized sorters, greatly reducing developers' operational burden and technical costs:

● Simplified on-chain management: Developers can focus more on application development without the need to maintain complex sorter infrastructure.

● Lowering the entry barrier: Start-up projects and small to medium-sized teams can quickly join the ecosystem, build their own application chains, and further stimulate the innovation vitality of the Ethereum ecosystem.

Secondly, Puffer UniFi allows developers to deploy their own application chains and directly capture a portion of the value generated by transaction fees (Congestion Fees generated by transactions in the figure above), thereby creating a new incentive mechanism for the ecosystem.

After all, these profits are a piece of self-retained land, which can be used to subsidize users and incentivize liquidity, and can also serve as a source of income for the project itself, further supporting marketing, user acquisition, and product development within the ecosystem. This economic autonomy enables project teams to balance ecosystem expansion and their own profit goals more flexibly, forming a virtuous cycle.

In this ecosystem, Rollups are no longer zero-sum competition, but achieve win-win by sharing resources. This means that latecomers can also quickly open up promotion with low cost by leveraging the existing mature user base. At the same time, this economic autonomy is expected to stimulate each project party/developer to fully exert subjectivity and form a spontaneous ecosystem based on UniFi for application development, achieving large-scale scenario implementation and breaking adoption barriers.

Conclusion

Based Rollup is a dynamic rebalancing of Ethereum in the scalability, security, and decentralization triangle.

So the finality of Rollup is not an endless forked 'island universe', but a 'unity in diversity' achieved through the Based Rollup architecture with the ETH mainnet as the trust anchor.

And Puffer UniFi, as the engineering practice of this vision, is providing a standardized toolset that balances efficiency, security, and collaboration for developers, users, and the entire Ethereum ecosystem. In the future, with the addition of more application chains, a seamless and freely flowing Web3 super ecosystem may accelerate.