The new L2's King: Mantle
The new L2's King: Mantle
Bis research on Mantle it's technical and not only overview
Introduction
Since the inception of blockchain, it has been lauded for its potential to revolutionize various sectors, ranging from finance to computer games by providing a decentralized, immutable, and transparent solution. However, as the technology matured and found widespread adoption, particularly with the rise of Ethereum and smart contracts, certain limitations became increasingly apparent.
Ethereum brought to life the concept of a decentralized platform for applications that run exactly as programmed without any chance of censorship, or third-party interference. However, the platform suffers from significant scalability issues, which means it can process only a limited number of transactions per second (TPS). This limitation has led to problems such as high transaction costs (gas fees) and slow confirmation times, particularly during periods of high demand such as the meme-coin season (hello $PEPE).
To solve those limitations, Layer 2 (L2s) solutions have emerged. These are protocols built on top of Ethereum to increase the transaction capacity and lower the fees. Everything is floating around the blockchain trilemma. Ethereum being extremely secure and decentralized is not that scalable, and this is what L2s are trying to solve, which is to achieve scalability without making decentralization and security tradeoffs.
This is where Mantle comes in. Mantle proposes a new approach to blockchain scalability by introducing a modular design, breaking down the blockchain into separate layers for settlement, consensus, and execution, each optimized for its specific function. This report aims to provide an in-depth understanding of Mantle, its principles, innovations, potential benefits, and challenges, starting with an exploration of its unique architecture.
Mantle Design
The mantle is the first modular Layer-2 Ethereum scaling solution. Sounds fancy but how is it really different from other optimistic rollups like Arbitrum and Optimism? Let’s find out.
Modular Rollup
The first word we might not grasp is “modular”. In traditional blockchains such as Ethereum and Solana, all the network operations, including transaction validation, consensus, and state updates, are performed within the same network. This means that each node in the network needs to perform all these tasks, dividing its resources across different tasks. This kind of design is called a "monolithic blockchain."
On the other hand, Mantle proposes a new approach called “modular blockchain”. The idea is that each function of the network is performed by a separate network of nodes, allowing each network to specialize in a particular task. This kind of specialization leads to efficiency gains, reducing transaction costs and increasing performance.
Mantle nodes are divided into 3 different tasks:
Settlement: Nodes maintain a historical ledger of valid transactions.
Consensus: Nodes participate in consensus to agree on the contents of the ledger.
Execution: Nodes update the state of the ledger in response to user or DApp-submitted transactions.
Another unique aspect of Mantle's approach is its use of rollup-based scaling in conjunction with its modular design. Rollups are a Layer 2 solution that increases a blockchain's transaction capacity by performing computations off-chain and only storing the results on-chain. With this, Mantle not only benefits from the increased throughput of rollups but also from the efficiency gains from its modular design. This combination is a significant innovation in the blockchain space.
Data Availability with EigenDA
Data availability is a crucial aspect of any blockchain network. It refers to the assurance that the data is available to all participants in the network at any given time. If data is not readily available, it can lead to various issues such as data loss, inability to verify transactions, and even network splits.
If we take a look at traditional blockchains such as Ethereum or Solana (I know, I know) the data availability solution is very straightforward. It’s ensured through replication, where every node in the network stores a complete copy of the blockchain. However, as the size of the blockchain increases, this approach becomes increasingly inefficient and impractical but still very secure, remember “tradeoffs”.
We need to understand that under data availability we are referring to the ability of any node in the Mantle network to access the transaction history posted by the Sequencer. This allows any node to submit fraud-proof and as a result, verify if the blocks are being produced healthy.
Mantle went a little further here and partnered with EigenLayer to integrate a specialized protocol called EigenDA. EigenLayer is a re-staking protocol that leverages Ethereum’s existing trust network. EigenDA in particular, enables any rollup-based L2 to guarantee data availability to its execution layer.
Feel free to find more info on EigenLayer/EigenDA here.
EigenDA works by dividing the data into shards, each of which is then encoded into multiple fragments. These fragments are distributed across the network, and as long as a certain threshold of fragments is available, the original data can be reconstructed. Using EigenDA Mantle allows nodes to provide data availability and participate in Mantle’s economic model via BIT Token staking. We will cover BIT partnership in the next sections, so read on.
EigenDA's unique design allows Mantle to store significant amounts of data very effectively compared to traditional blockchain networks while maintaining high data availability. This is particularly crucial for a modular blockchain like Mantle, where different parts of the network need to access different types of data.
Furthermore, EigenDA operates at Layer 1, which means it provides a secure foundation for Layer 2 solutions like rollups, enhancing their security and reliability.
Decentralized Sequencer and Fraud Proofs
Two other important Mantle innovations are decentralized sequencer and fraud proofs. Those are crucial parts of every optimistic rollup and Mantle is about to bring a completely new design of those.
In the context of blockchain networks, a sequencer is a component that orders transactions in a specific sequence before they're added to the blockchain. Traditionally, these sequencers have been centralized (Optimism and Arbitrum), which can lead to issues related to trust and single points of failure. A decentralized sequencer, on the other hand, is a network component that is made up of multiple nodes. This approach enhances the security of the network and reduces reliance on a single entity.
Mantle implements a decentralized sequencer to improve the efficiency of transaction processing. By decentralizing the sequencing of transactions, Mantle can ensure that transactions are processed in a timely and orderly manner, reducing the likelihood of bottlenecks and enhancing overall network performance. Furthermore, by distributing the responsibility of sequencing transactions across multiple nodes, Mantle can eliminate single points of failure and increase the resilience of the network.
This part is crucial for every L2 as that’s what makes Mantle truly decentralized. So far Arbitrum and Optimism have full control over their sequencers which makes them much more centralized and prone to errors. We will cover this part in more detail by comparing Mantle with other L2 solutions.
Introduction to Fraud Proofs
Fraud proofs are the central mechanism of any optimistic rollup. ORs assume good behavior of the network participants, which means that the fraud-proof design and its implementation are crucial for this kind of L2s.
Fraud proofs allow nodes in the network to challenge the validity of transactions, and if a transaction is found to be fraudulent, it can be rejected by the network. This mechanism is particularly important in layer-2 scaling solutions, where transactions are batched together for efficiency.
In the Mantle network, fraud proofs play a critical role in maintaining the integrity of the network. Due to the modular nature of Mantle's design, transactions are processed in separate layers, which can potentially open up avenues for fraudulent transactions. However, the implementation of fraud proofs allows any inconsistencies or inaccuracies to be swiftly identified and rectified. This ensures that only valid transactions are added to the blockchain, enhancing the security and reliability of the network.
Mantle improves standard Fraud proof design by compiling and verifying fraud proofs with EVM-Level instructions. This kind of implementation allows all Ethereum clients to interact with a common proof system, fully permissionless. Furthermore, it reduces trust assumptions across verifiers, clients, and compilers.
Feel free to learn more here
Transaction Life Cycle on Mantle
A transaction in the context of Mantle, much like other blockchain networks, refers to the act of changing the state of the blockchain. This could be a transfer of tokens, executing a function of a smart contract, or any other actions that alter the data stored on the blockchain. In Mantle, these transactions follow a life cycle that ensures secure and accurate execution.
Stages of a Transaction's Life Cycle
The life cycle of a transaction on Mantle involves several stages:
Creation: A user initiates a transaction on their wallet, specifying the details such as the recipient, amount, and data for smart contract interactions.
Submission: The transaction is signed by the user's private key and submitted to the Mantle network, where it's received by the decentralized sequencer.
Ordering: The decentralized sequencer, chosen through a PoS consensus algorithm, orders the transactions based on certain criteria (such as the timestamp or fee).
Validation: Validators in the network check the transactions for any irregularities using fraud proofs. If a transaction is found to be fraudulent, it's excluded from the batch.
Batching and Submission: Valid transactions are batched together and submitted as a single proof to the Ethereum mainnet.
Confirmation: Once the Ethereum network confirms the proof, the transactions within the batch are considered confirmed, and the state of the Mantle network is updated accordingly.
Role of Decentralized Sequencer and Fraud Proofs
The decentralized sequencer plays a crucial role in the transaction life cycle on Mantle. As the entity responsible for ordering transactions, it ensures that all transactions are processed in a fair and transparent manner.
Users might benefit massively from the decentralized sequencer. With it being centralized it makes the system bottlenecked and adds a crucial single point of failure. The whole system goes down as L2 can’t function without posting batches to the Ethereum Mainnet. U could also be censored for whatever reason. The sequencer or dev might not like u and don’t execute your transaction. It would not be possible on Mantle with sequencer being distributed over multiple entities.
Fraud proofs, on the other hand, are used to validate the transactions. Validators in the network use these proofs to verify that the transactions are legitimate and follow the network's rules. This process ensures the integrity of the transactions and guards against potential fraudulent activities.
Batching Transactions
In Mantle, multiple transactions are batched together and submitted as a single proof to the Ethereum mainnet. This process increases the throughput of the network and reduces the overall transaction cost for users, making Mantle a more scalable and cost-effective solution than traditional Ethereum transactions.
Potential Challenges and Solutions
The Mantle network is designed to handle potential issues that might occur during the transaction life cycle. For instance, if a transaction is found to be fraudulent, the fraud-proof mechanism ensures it's excluded from the batch. Similarly, if the decentralized sequencer behaves maliciously, the PoS consensus mechanism provides a means to replace it.
Through these mechanisms, Mantle maintains the security and integrity of its transactions while offering enhanced scalability and reduced costs for its users.
Network Roles in Mantle
In the Mantle network, different types of nodes have distinct roles, working in harmony to maintain the network's functionality and security. The four main types of nodes are Validators, Data Availability Committee (DAC) Nodes, Multi-Party Computation (MPC) Nodes, and Sequencers.
Validators are the backbone of the network. They are responsible for the production of new blocks, validating transactions, and adding them to the blockchain. Validators ensure that all transactions are valid and adhere to the network's rules.
Data Availability Committee (DAC) Nodes store the full state of the Mantle network, ensuring data availability. They are critical for validating proofs and updating the state root. The DAC Nodes are instrumental in ensuring transparency and accessibility of data in the network.
Multi-Party Computation (MPC) Nodes play a crucial role in enhancing the network's efficiency. They perform computations off-chain to reduce the load on the blockchain, resulting in faster transaction processing. The incorporation of MPC nodes helps optimize the network's resources and speed up transaction finality time.
Sequencers are nodes that order transactions before they are batched and added to the blockchain. By reducing the computational load on validators, they help improve the efficiency of the network. Sequencers ensure an optimal transaction flow, reducing latency, and enhancing the overall user experience.
Together, these nodes form a robust, efficient, and secure network that underpins Mantle's functionality. Each node type plays a critical role, and their collaboration ensures smooth and secure transaction processing. This design highlights Mantle's commitment to scalability, efficiency, and security in the blockchain space.
More info on Node types is here.
Mantles Innovation
With all the technologies mantle offers, the main goal is still to make the UX better. It’s a very broad definition but we want, faster, cheaper, and more secure. And that’s exactly what Mantle offers.
In this part, we will compare Mantle to other Optimistic Rollups such as Arbitrum and Optimism. I don’t think it’s somehow logical to compare Mantle to ZkRollups or other EVM chains as both have way different technical backgrounds and serve different purposes. So in this part, Mantle, Arbitrum, and Optimism will clash.
Introduction
In the same way as Mantle, Optimism, and Arbiturm are L2 solutions built on Optimistic Rollups architecture. They have huge TVLs and strong communities. It might seem that Mantle is very similar to those but it wouldn’t even exist if it was true. Let’s dive in 🌊
Design Philiposhy and Goals
When we compare the design philosophies and goals of Mantle with those of other Layer 2 solutions such as Optimism, Arbitrum, and zkSync, we can see some clear differences and similarities.
Mantle: Mantle's philosophy revolves around providing a scalable, secure, and efficient Layer 2 solution while maintaining a strong developer-friendly environment. It aims to achieve Ethereum-level security through its modular design and its unique use of Optimistic Rollups, EigenDA, and Multi-Party Computation. One of Mantle's main goals is to create a platform where the transaction finality time is significantly reduced and the transaction costs are minimized.
Optimism: Optimism's philosophy is centered on scaling Ethereum by utilizing a technology known as Optimistic Rollups. It aims to retain the Ethereum developer experience as much as possible, allowing developers to port their dApps to Optimism with minimal changes. The primary goal of Optimism is to increase the throughput of transactions while ensuring a high level of security.
Arbitrum: Its primary aim is to offload the computational load from Ethereum without sacrificing the platform's robust security guarantees. As mentioned before it’s very similar to the Optimism philosophy.
Architectural Design
Mantle brings something very special to the table with its modular design, new data availability solution, and decentralized sequencer architecture. Let’s go through each part.
Unlike many other blockchain networks that intertwine their consensus, execution, and data availability layers, Mantle takes a different approach by having these layers modular and distinct. This modularity allows each layer to be optimized independently and thus enhances the overall efficiency of the network.
Another important part of Mantle is its decentralized sequencer. As already mentioned before, the Sequencer is a crucial part of every L2 solution as it posts the transaction batches to the Ethereum mainnet. So far Optimism and Arbitrum are keeping it centralized which basically makes the whole solution ultimately centralized and dependent on Arbitrum DAO and Optimism Foundation.
Mantle announced its decentralized sequencer which allows anyone to join the permissionless set of L2 block producers. This makes the L2 way more decentralized and less dependent on the managing entity.
The Data Availability layer, or EigenDA, plays a crucial role in Mantle's architecture. It uses a distributed hash table (DHT) to store and distribute transaction data across various nodes in the network. This approach allows for significant reductions in cost and latency compared to posting all transaction data on the Ethereum mainnet. While the Merkle root hashes of the data are posted on the Ethereum mainnet for security purposes, the complete transaction data is available through the EigenDA.
In summary, Mantle's architectural design is a testament to its commitment to scalability, security, and efficiency. By adopting a modular approach, Mantle ensures that each component of its network can be independently optimized, leading to a more robust and high-performing system.
Use cases and adoption
Even with Mantle being that innovative the biggest challenge so far is to attract users and TVL with them. If u are wondering why are we comparing it to Arb or Optimism is because they succeeded and are widely used.
The narrative which is easy to spot is that every L1/L2 has its own deal-breaking DApp/Protocol which attracts tons of users. In the Arbitrum ecosystem, those are GMX and Radiant.
For Optimism, those are Velodrome and Synthtetix.
Mantle so far being in the testnet already has some interesting projects which might help the Mantle ecosystem to grow.
Mantle seems to be very much focused on the gaming and GameFi industry, which is a great way to stand out as GameFi will only emerge in the coming decade. Fungies expect GameFi to rise significantly.
In collaboration with G7_DAO and HyperPlayGaming, they are aiming to revolutionize GameFi and create an ultimate L2 for blockchain gamers.
Bullieverse has already announced that they will be joining Mantle Ecosystem and more partnerships are coming.
Be sure to check out all upcoming Mantle projects here.
Conclusion
Mantle has picked a highly anticipated niche with a bright future. With the backers and partnerships, they have the development of GameFi on Mantle will only grow. I would even say as Arbitrum and Optimism are not being direct competitors of Mantle as Mantle positioned itself differently, even innovatively. If u are thinking about GameFi the Mantle should come to your mind.
Partnership with BitDAO
The leverage over other L2, Mantle develops is not being created solely with technical innovations. Everyone has heard about the CEX called ByBit with its own governance BIT token. The mantle is the first L2 that is initiated and backed by such a big partner.
BitDAO initiated a Mantle EcoFund with a whopping $200M to support newly developing projects and bootstrap the ecosystem growth.
Feel free to check it out here.
I went through the interview of Mantle’s Head of Ecosystem with BitDAO and here’s what I found:
The main goal is to deliver the mainnet and to build multiple types of value accrual for the BIT token.
With the BitDAO ecosystem being already greatly developed Mantle will try to add new value to all of those projects.
The BIT token will be used for Gas Fees (which is pretty unusual), as an Ecosystem token, and for Infrastructure purposes (staked for network security, etc.)
The mainnet launch is planned for early Q3 of 2023 which is so soon 👀
Imagine the support Binance gave to the BSC network, I would assume we will see smth very similar to it between BitDAO and Mantle.
The partnership between Mantle and Bit signifies a huge step towards enhanced scalability and efficiency in blockchain technology. Bit, with its wide reach and influence, offers a fertile ground for the deployment and testing of Mantle's cutting-edge Layer 2 solutions.
In conclusion, the Mantle and Bit collaboration is a promising alliance, aiming to push the boundaries of what's currently achievable in the blockchain space. The future implications of this partnership could be far-reaching, potentially influencing the trajectory of Layer 2 blockchain technologies.
Conclusion
Throughout this comprehensive study, we've unveiled the distinct layers of Mantle's technology, its architectural innovations, and the ways it promises to revolutionize the Layer 2 landscape. Mantle's unique modular design, coupled with its cost-efficient and secure methods, introduces a fresh perspective on scalability in the blockchain realm.
As we've explored, Mantle's commitment to modular blockchain design enables the network to be both versatile and adaptable. By separating the Settlement, Consensus, and Execution layers, Mantle exhibits a certain degree of flexibility that isn't seen in many other Layer 2 solutions. This modular approach is what allows Mantle to continually adapt to new advancements and techniques in the blockchain industry.
Further, the partnership between Mantle and Bit Finance highlights the potential for practical applications of Mantle's technology. As Bit Finance leverages Mantle's Layer 2 solutions, we can expect to see a significant increase in scalability, transaction speed, and security in their platform, driving positive implications for DeFi as a whole.
In conclusion, Mantle is a forward-thinking Layer 2 solution that aims to address the pressing issues of scalability and high gas fees in Ethereum. As we look toward the future, it's clear that Mantle's innovative approach to blockchain technology is setting the stage for the next generation of decentralized applications and services.
However, as with any nascent technology, it is crucial to keep an eye on the continued development and adoption of Mantle. While it has introduced some promising innovations, the long-term success of Mantle will depend on its ability to deliver on these promises and maintain its advantages in an ever-evolving blockchain landscape.