In the latest episode of MindChats, aired on February 22, the Mind Network hosted a Twitter Space discussion delving into the Layer 2 (L2) landscape with a focus on Metis. The episode garnered attention with 965 tuned-in participants, featuring key insights from the host, Mind Network, and speaker Aman Sidhu, Business Development at Metis L2. We covered vital insights, updates, Metis’ origin, vision, and solutions to sequencer centralization, hybrid roll-ups, native staking, and ecosystem developments.
Time stamps
Check out the recording of the AMA：https://twitter.com/i/spaces/1PlJQDzAelkGE?s=20
3:59 Introduction to session and speakers
6:00 Updates on Metis
7:13 Need for L2's success
9:32 Metis's origin story
12:12 Metis's vision and its advantage over other L2s
14:24 Centralization issues in sequencers and how Metis solves them
16:28 Incentivized sequence decentralization
19:19 Hybrid roll-ups
21:24 Native staking
24:16 EDF for Metis ecosystem development
30:04 Talks on Mind Network and Metis collaboration
Top Highlights of the Episode
Importance of L2 Success in Crypto's Maturation Phase
- L2's success in the next 12 to 18 months is essential for the overall success of the crypto industry.
- A stable L2 success will ensure Ethereum's stability and industry position.
- L2's growth will secure an open position in the crypto industry.
Factors Influencing L2 Success
- Continuous innovation and updates in L2 push it for success.
- Significant growth in Total Value Locked (TVL) is observed and expected, driven by increasing interest from users, developers, and L1 applications.
- L2 networks' ability to launch, interoperate, and collaborate enhances accessibility. It fosters adoption through new use cases like liquid staking derivatives and cross-chain exchanges.
Metis Origin Story
- Elena Sinelnikova and Natalia Ameline, Metis founders, have a longstanding presence in the crypto space.
- Metis originated from shared visions at crypto talks in Canada, bringing together crypto project co-founder Kevin Liu and lead IBM developer Yuan.
- The Metis main net was launched in November 2021.
Metis Vision and Differentiators
- Metis offers permissionless Ethereum L2.
- It supports EVM equivalence, allowing seamless transition of smart contracts and decentralized applications from Ethereum L1 to Metis L2.
- Metis implements the decentralized sequencer, enhancing network participation, security, and revenue sharing.
- The Metis L2 implements a hybrid roll-up scaling architecture combining the strengths of optimistic and ZK roll-ups.
Sequencer Centralization Concerns
- Sequencer nodes, controlling transactions, pose centralization risks.
- Centralized sequencers risk network stoppage if compromised.
Metis Solution to Sequencer Centralization
- Metis announces decentralization of the sequencer between March and April, distinguishing itself from other L2s.
- It aligns sequencer revenue with stakers, promoting broader network security participation.
Incentivization of Sequencer Decentralization
- Market dynamics drive sequencer decentralization in response to centralized revenue flow observed in foundations like Arbitrum and Optimism, which manage single sequencers, acting as central entities controlling fund flow
- Early adopters receive financial rewards for chain development, encouraging continued engagement.
- Metis distributes sequencer revenue among all stakers, enhancing network security and fostering broader participation. This approach extends participation to users, aiding in token distribution and positively impacting price dynamics.
- Metis incentivizes sequencer decentralization through an ecosystem development firm and offers stakers a significant 20% APR in the first year.
Hybrid Roll-up Implementation
- Hybrid roll-ups merge optimistic and ZK roll-up characteristics.
- It provides immediate confirmations, EVM equivalence, persistence, security, and faster finality.
Native Staking in L2
- Decentralized sequencers enable native token locking in pools and user participation in liquid pools.
- Native staking unlocks various decentralized finance (DeFi) use cases.
Metis Ecosystem Developments
- The Ecosystem Development Fund (EDF) allocates 4.6 million Metis tokens for sequence mining, project funding, and tool deployment.
- Metis will be the first L2 to allow native and liquid staking and shock supply.
- It fosters self-sustainability and supports projects like LSDs, borrow-ins, RWA, and prediction markets.
About Mind Network
Mind Network is a Zero Trust (Zero Knowledge Proofs #ZKP + Fully Homomorphic Encryption #FHE) layer aiming to bring the next billion users and trillion dollars to Web3. Mind Network offers a security and data privacy solution that achieves true CrossFi scale, complying with regulatory requirements while staying true to Web3 principles of asset tokenization and individual data ownership.
