A comprehensive interpretation of Parallel EVM: is it a gimmick or the endgame of EVM public chains?

1. What is Parallel EVM?

The Parallel Ethereum Virtual Machine (Parallel EVM) is an upgraded version of the traditional Ethereum Virtual Machine (EVM), which improves the throughput of blockchain transactions by simultaneously processing multiple non-conflicting transactions, thus enhancing transaction processing speed and efficiency.

The Ethereum Virtual Machine (EVM) is the Consensus and Execution Mechanism of the Ethereum network that is responsible for processing and executing transactions. But in a traditional EVM, transactions and smart contracts execution occur sequentially. Each transaction must be processed one after the other, forming a linear and orderly process. This approach, while simple, can lead to bottlenecks, especially as volume increases. Every transaction has to wait for our turn, and processing times can increase, leading to potential latency and higher costs (in terms of gas charges).

Parallel EVM significantly improves the throughput and execution speed of the blockchain by simultaneously processing multiple non-conflicting transactions. For example, if Bob wants to make a swap, Alice wants to mint a new NFT, and Eric wants to stake funds with validators, these transactions can be processed simultaneously instead of sequentially, reducing transaction processing time and cost. This parallel processing capability allows the blockchain to handle more transactions in a shorter period of time, addressing the congestion issues of traditional blockchain systems.

2. How does Parallel EVM work?

In the current EVM architecture, the finest-grained read and write operations are sload and sstore, which are used to read from and write to the state trie. Therefore, ensuring that different threads do not conflict on these two operations is a direct entry point for implementing parallel/concurrent EVM. In fact, in Ethereum, there is a special type of transaction that includes a special structure called an ‘access list’, which allows transactions to carry the storage addresses they will read from and modify. Therefore, this provides a good starting point for implementing scheduler-based concurrency methods.

In terms of system implementation, there are three common forms of parallel/concurrent EVM:

1. Based on scheduling concurrent processing

• Access List: Before executing a transaction, the access list is used to determine in advance the storage addresses that the transaction will read from and modify. The access list contains all the state information that each transaction needs to access.
• Scheduling Algorithm: The scheduling algorithm arranges transactions to be executed on different threads based on the access list, ensuring that transactions being executed simultaneously do not access the same storage address, thereby avoiding conflicts.
• Concurrent Execution: During actual execution, multiple transactions can proceed simultaneously on different threads, and the scheduling algorithm ensures that these transactions do not have mutual dependencies or conflicts.

2. Multi-threaded EVM instance

• Instantiate multiple EVMs: Create multiple EVM instances on a node, each instance is able to run independently and process transactions.
• Transaction allocation: Allocate pending transactions to different EVM instances according to some strategy (such as hash value, timestamp, etc.).
• Parallel Execution: Each EVM instance executes the transactions assigned to it in its own thread, and multiple instances can run simultaneously, enabling parallel processing.

3. System-level Sharding

• Sharding: Divide the entire blockchain state into multiple shards, each shard contains a portion of the global state information.
• Sharding node: Multiple nodes run on each shard, with each node responsible for maintaining and processing transactions and states within that shard.
• Cross-shard Communication: Ensuring data consistency and global transaction order between different shards through cross-shard communication protocol. Cross-shard communication can be achieved using cross-shard message passing and cross-shard locking mechanisms.
• Parallel Processing: Nodes within each shard can independently process transactions within that shard, and multiple shards can also run in parallel, thereby achieving the parallel processing capability of the entire system.

3. Header Project

3.1 Monad: L1 with built-in parallel EVM

Monad is a layer 1 blockchain project based on EVM, aiming to significantly improve the scalability and transaction speed of blockchain through its unique technical features. Monad processes up to 10,000 transactions per second and has a one-second block time and instant finality. Such high efficiency is achieved through the unique Monadbft consensus mechanism and compatibility with the Ethereum Virtual Machine (EVM).

Application of Parallel EVM in Monad:

1. Implementation of parallel execution

• Optimistic Execution Method: Start executing subsequent transactions before earlier transactions are completed in the block, which sometimes leads to incorrect execution results. To address this issue, Monad tracks the inputs used in transaction execution and compares them with the outputs of previous transactions. If differences are found, it indicates that the transaction needs to be re-executed.
• Static Code Analysis: Monad uses a static code analyzer to predict the dependency relationship between transactions during execution, avoiding invalid parallel execution. In the best case, Monad can predict many dependencies in advance; in the worst case, Monad will fall back to a simple execution mode.

2. Monadbft Consensus Mechanism

• Efficient Communication: Use paired BLS signatures to solve scalability issues, allowing signatures to gradually aggregate into one signature, proving the shared signed messages related to the public key.
• Hybrid Signature Scheme: BLS signatures are only used for aggregatable message types such as voting and timeouts, while the integrity and authenticity of the messages are still provided by ECDSA signatures.

3. latency execution

• Greater fault tolerance: Because execution only needs to keep up with the speed of consensus, this approach is more tolerant of variations in specific computational time.
• Merkle Root Latency: To ensure state machine replication, Monad includes a Merkle root with a delay of d blocks in the block proposal. This ensures consistency across the entire network, even in the presence of node failures or malicious behavior.

Currently, Monad’s parallel EVM supports processing 10,000 transactions per second, with a block time of only 1 second, enhancing network security and efficiency using the PoS mechanism, and is expected to launch the mainnet in the third quarter of 2024.

The official account has also accumulated 283,000 followers on Twitter, leading a passionate and active community. Especially the Ethereum community seems to be very excited about the upcoming launch of Monad, which will put Monad in a favorable position to capture early hype and adoption.

In terms of project background, Monad Labs has completed two rounds of financing, in February 2023 and April of this year. The $225 million financing completed on April 9th this year was led by Paradigm, with other investors including Electric Capital. The $19 million seed round financing completed in 2023 was led by Dragonfly Capital, with participation from Placeholder Capital, Lemniscap, Shima Capital, Finality Capital, angel investor Naval Ravikant, Cobie, Hasu, and others.

Monad team has a strong background, with members from top blockchain projects and strong technical team and financial support. Monad’s co-founder and CEO Keone Hon previously led a high-frequency trading department at Jump Trading. He graduated from the Massachusetts Institute of Technology. Another co-founder, James Hunsaker, is also a senior software engineer at Jump Trading, and he graduated from the University of Iowa. In addition, Eunice Giarta is a co-founder and COO of Monad, with rich experience in the traditional financial technology field. Eunice has worked in the payment and infrastructure licensing department at Shutterstock, and has led the development team in Broadway Technology to build enterprise trading systems.

3.2 SEI Network: L1 with built-in parallel EVM, V2 version will put parallel EVM on the agenda

SEI Network is a Layer 1 blockchain focusing on the development of decentralized finance (DeFi) infrastructure, with a particular emphasis on order book.

By adopting the parallel mechanism of EVM, SEI Network parallelizes order matching, achieving the goal of high speed, low cost, and dedicated functionality supporting various transaction applications. Sei has an average block time of 0.46 seconds and over 80 applications.

The application of parallel EVM in SEI Network:

1. Smart Block Propagation and Optimistic Block Processing: By providing all relevant transaction hash values, it accelerates transaction processing time, reduces latency, and increases throughput.
2. Local Order Matching Engine: Unlike the commonly used Automated Market Maker (AMM) systems, SEI uses an on-chain order book to match buy and sell orders at specific prices. All Cosmos-based decentralized applications (dApps) can access SEI’s order book and liquidity.
3. Frequent Batch Auction (FBA): Combining transactions into batches and executing orders simultaneously in each block to prevent frontrunning and MEV.

SEI Network has now issued its native token SEI. In the Sei Network ecosystem, SEI coin plays various roles, including:

1. Transaction Fee: SEI coin is used to pay for transaction fees generated on the Sei network. These fees serve as incentives for validators and contribute to the security of the network.
2. Stake: Users can stake SEI coins to earn rewards and enhance the overall security of the Sei network.
3. Governance: SEI token holders have the ability to actively participate in the governance of the Sei network. This participation includes voting on proposals and electing validators.

The total token supply of SEI is 10 billion, with 51% allocated to the Sei community. 48% serves as ecosystem reserves, rewarding stakers and contributors, validators, and developers. In addition, 3% (i.e. 3 billion SEI) is designated for the first season of Airdrop, with the remaining portion allocated to private sale investors, foundations, and the Sei team.

As of May 30, the price of SEI Token is $0.5049, with a market capitalization of $1,476,952,630, ranking 63rd on the cryptocurrency leaderboard. The 24-hour trading volume is $78,970,605, indicating high market participation.

The current TVL of SEI Network is 18 million, and it has received a total financing of about 55 million US dollars. The FDV is 8.2 billion US dollars, and the official Twitter account has 666,000 followers.

Jeff Feng, co-founder of SEI Network, graduated from UC Berkeley. Before joining Coatue Management as a venture capitalist, he worked as a technology investment banker at Goldman Sachs for three years. Another co-founder, Jayendra, graduated from UCLA and was a software engineering intern at Facebook.

3.3 Eclipse: Compromise, Introducing SVM into Ethereum L2 Ecosystem

Eclipse is a next-generation optimistic Layer 2 solution based on Ethereum, powered by the Solana Virtual Machine (SVM). By introducing SVM to Ethereum and combining multiple technologies such as Ethereum’s settlement, Solana’s SVM execution, Celestia’s data availability, and RISC Zero’s zero-knowledge proofs, it provides a highly parallel execution environment that allows for simultaneous operations, thereby improving network throughput and efficiency while reducing congestion and transaction costs. With this architecture, Eclipse aims to enhance the scalability and user experience of dApps.

Main Features of Eclipse

1. High transaction throughput:

Eclipse utilizes SVM and parallel execution technology to achieve high transaction processing capabilities, supporting the simultaneous processing of thousands of transactions.

2. Instant Finality:

By using a pipeline consensus mechanism, the immediate completion and finality of transactions within each block are achieved.

3. Ethereum Compatibility:

Eclipse is fully compatible with Ethereum Virtual Machine (EVM), allowing developers to easily port existing Ethereum applications to Eclipse.

4. Data Availability:

By using Celestia’s data availability solution, ensure high throughput while ensuring the security and verifiability of the data.

5. Zero-Knowledge Proof:

Adopting RISC Zero technology to achieve zero-knowledge fraud proof, improving system efficiency and security.

Application of Parallel EVM in Eclipse

Eclipse integrates Solana Virtual Machine (SVM) to achieve parallel EVM, a technology that significantly improves transaction processing speed and efficiency.

1. Parallel Execution:

Technical Principles: When Eclipse uses the SVM’s Sealevel runtime, this runtime allows non-overlapping state transactions to be executed in parallel instead of sequentially.

Implementation method: By clearly describing all the states that each transaction reads or writes during execution, SVM can process transactions that do not involve overlapping states in parallel, thereby significantly improving throughput.

2. Ethereum Compatibility:

Neon EVM Integration: In order to achieve EVM compatibility, Eclipse has integrated Neon EVM. This enables the Eclipse Mainnet to support Ethereum bytecode and Ethereum JSON-RPC.

Local Fee Market: Each Neon EVM instance has its own local fee market, and applications can deploy their own contracts to enjoy all the benefits of the AppChain without compromising user experience, security, or liquidity.

3. Modular Rollup Design:

Infrastructure Layer: Eclipse aims to be the infrastructure layer of the Layer 3 ecosystem, achieving high performance and scalability by supporting dApp-specific Layer 3 Rollup.

Simply put, Eclipse’s design logic is that transaction execution occurs in Solana’s SVM, while transaction settlement remains on Ethereum.

In terms of project background, Eclipse completed a $15 million financing in September 2022, with investors including Polychain, Polygon Ventures, Tribe Capital, Infinity Ventures Crypto, CoinList, etc. In addition, on March 11th this year, it also completed a $50 million Series A financing, co-led by Placeholder and Hack VC. Currently, its total financing amount has reached $65 million.

Eclipse co-founder & CEO Neel Somani has previously worked at multiple companies including Airbnb, Two Sigma, Oasis Labs, etc. Chief Business Officer Vijay was formerly the Head of Business Development for Uniswap and dYdX teams.

4. Challenge

1. Data competition and read-write conflict:

In a parallel processing environment, concurrent reading and modifying of the same data by different threads can lead to data races and read-write conflicts. This situation requires complex technical solutions to ensure data consistency and conflict-free execution of operations.

2. Technical Compatibility:

The new parallel processing method needs to be compatible with the existing Ethereum Virtual Machine (EVM) standards and smart contract code. This compatibility requirement requires developers to learn and use new tools and methods to fully leverage the advantages of parallel EVM.

3. Ecosystem Adaptability:

Users and developers need to adapt to the new interaction mode and performance characteristics brought by parallel processing, which requires the participants in the entire ecosystem to have sufficient understanding and adaptability to new technologies.

4. Increased system complexity:

Parallel EVM requires efficient network communication to support data synchronization, which increases the complexity of system design. Intelligent management and allocation of computing resources is also an important challenge, ensuring efficient resource utilization during parallel processing.

5. Security:

Security vulnerabilities in parallel execution environments may be amplified because a security issue could affect multiple transactions executed simultaneously. Therefore, more rigorous security audits and testing processes are needed to ensure the system’s security.

5. Future Outlook

1. Improve the scalability and efficiency of blockchain:

Parallel EVM improves the throughput and processing speed of the blockchain by executing transactions simultaneously on multiple processors, breaking the limitations of traditional sequential processing. This will greatly enhance the scalability and efficiency of the blockchain network.

2. Promote the popularization and development of blockchain technology:

Despite facing technical challenges, the potential of parallel EVM is enormous, as it can significantly enhance the performance and user experience of blockchain. Successful implementation and widespread adoption will drive the popularization and development of blockchain technology.

3. Technological Innovation and Optimization:

The development of parallel EVM will be accompanied by continuous technological innovation and optimization, including more efficient parallel processing algorithms, smarter resource management, and a more secure execution environment. These innovations will further enhance the performance and reliability of parallel EVM.

4. Support more diverse and complex applications:

Parallel EVM can support more complex and diverse decentralized applications (dApps), especially in scenarios that require high-frequency transactions and low latency, such as decentralized finance (DeFi), games, and supply chain management.

Reference: