Scalability vs Customizability, how do Slush and Sovereign expand L1 in their own ways?
Sovereign Labs and Slush are both building a Rollup ecosystem, but they differ in interoperability, customizability, and scalability.Written by: Revelo Intel
Compiled by: Deep Tide TechFlow
In this episode of the podcast, Mike and Myles invited Kalman Lajko and Preston Evans to discuss the similarities and key differences between Slush and Sovereign designs. Both Sovereign Labs and Slush are building Rollup ecosystems, but they differ in terms of interoperability, customizability, and scalability. The key points highlighted in the following excerpts also touch on topics such as monetization strategies, asset bridging, and infrastructure development for user onboarding.
The Internet of Rollups
Preston from Sovereign Labs and Kalman from Slush SDK discussed their vision for the Rollup internet. Overall, Rollup blockchains outsource part of their security to another chain, and the Rollup internet will significantly accelerate the pace of innovation on layer one blockchains.
They are building the Sovereign SDK, a tool inspired by the Cosmos SDK but specifically designed for application-specific Rollups.
They use zero-knowledge proofs to ensure minimal trust in interactions between Rollups.
Their ultimate goal is to create a Rollup ecosystem that allows Rollups to communicate seamlessly with each other.
Slush vs Sovereign
Rollups are layer 2 scaling solutions that can increase transactions per second and reduce blockchain fees. There are different types of Rollups, including smart contract Rollups, layer 3 built on settlement Rollups, and Sovereign Rollups.
The Sovereign Labs team builds Rollups using a principles-based approach, while the Slush team focuses on interoperability and building on mature platforms.
In terms of usability and interoperability, it is crucial to use the same virtual machine and cryptographic primitives.
Building on the StarkNet layer has different requirements compared to the design principles in the Cosmos SDK. The Ethereum ecosystem places more emphasis on security and the need for decentralized, low-cost data availability and fast bridging.
Slush and the Cosmos SDK stack differ in flexibility, as they are designed to support virtual machines.
There are risks in bridging between different virtual machines, so they are focusing on how to ensure the security of virtual machines and adhere to their own rules. Smart contracts need to be able to interpret the state of other chains and ensure that malicious chains do not affect other chains connected to them.
Business Models and Monetization
In a decentralized ecosystem where everything is open-source and forkable, direct monetization is challenging.
They proposed possible monetization strategies such as premium support, finder’s fees, and providing infrastructure services.
However, they emphasized that a usable product needs to be in place before worrying about monetization.
Winner-Takes-All Market?
In the ultimate market structure of Rollup or application chain stacks, potential winner-takes-all or winner-takes-most scenarios may arise from using a common standard virtual machine.
Standard virtual machines have many benefits, such as strong network effects and how they enable interoperability among all these virtual machines.
Sovereign Labs and Slush have different approaches to achieving interoperability, with Sovereign Labs focusing more on grassroots customizability, while Slush aims for scalability and hopes to onboard as many applications as possible.
Attracting Developers
It is still too early to focus on business development and recruiting application developers. The current focus is more on building a product that users will love.
There is a huge demand for cheap transactions and block space, and application developers want to run their own chains to provide cheaper services to users and generate revenue.
Demand will primarily come from new entrants in the field, and the adoption of these new architectures will take time.
Infrastructure and Developer Tools
It is important to establish infrastructure for user onboarding, such as block explorers and developer tools.
They prioritize backward compatibility and reasonable design decisions to ensure the functionality of existing tools and infrastructure.
They are still in the early stages of wallet design and may take some time to be ready to announce news.
Review
Sovereign Labs is taking a full-stack approach to building application-specific Rollups, while Slush has chosen to share L2 on Ethereum.
It is important to strike a balance between allocation and building, as well as to focus on brand positioning and market positioning.
Flexibility in adapting to the market is crucial.
