Introduction | Fuel Sidechain: 10x Expansion Token Payment Throughput

Editor's Note: This article comes fromEthereum enthusiasts (ID: ethfans)Editor's Note: This article comes from

Ethereum enthusiasts (ID: ethfans)

Ethereum enthusiasts (ID: ethfans)

Two months ago, a small team of ethereum engineers and researchers was formed to work on what Vitalik Buterin later became known as "optimistic rollup." Our work builds on the research and work of ConsenSys researcher John Adler, who wrote a detailed description of this technique a few months ago as a viable scalability solution.

The scalable solution described by John Adler does not require any changes to the consensus rules of layer-1 (the bottom layer of Ethereum), and it can immediately improve the "state inflation problem" of Ethereum (this problem is mainly caused by ERC -20 due to transfers of tokens (especially Tether stablecoins). After some in-depth discussions, we began to work hard to combine the implementations of Ethereum scaling solutions that can solve individual problems, and finally realized a sustainable, scalable, cheap and reliable stablecoin payment solution: Fuel.

We believe the killer app of blockchain is stablecoin payments. If a blockchain network can dominate this business, it can add immeasurable value and have a profound impact on the global economy. Fuel recognizes this point and uses the simplest optimistic rollup method on Ethereum to solve the throughput problem.

A Sustainable Scaling Solution on Ethereum

We’ve seen time and time again that Ethereum’s transaction throughput is very limited: less than 10 transactions/second for ERC 20 tokens. Throughput limitations are largely due to state data (i.e. account balances, contract storage slots, etc.). The uncompressed state data size of Ethereum is at the level of 45 GB, which is too large to fit in RAM, so nodes need to access the hard disk a lot, especially when processing token transfers.

The growing problem of state bloat is currently the biggest problem in Ethereum, because state, unlike history, cannot be deleted. We just want to be able to expand the throughput of Ethereum without exacerbating state data expansion and state data reading and writing. In fact, this can be easily achieved by simply trading calldata! By simply "sending" a sidechain's transaction data on-chain and Merkleizing it on-chain, we can virtually eliminate state access to Ethereum's underlying layer while sustainably scaling throughput (ie: no need for Full nodes often invest a lot of resources or incur additional long-term costs).

What is Optimistic Rollup?

Fuel builds on Adler's insightful article "Minimum Viable Merge Consensus". In this paper, Adler provides a reliable minimum technical specification for trustless, permissionless sidechains with on-chain data availability, and error proofs to promote correct execution (now known as "Optimistic Rollup" technology).

Optimistic rollup has several properties that differentiate itself from earlier scaling proposals such as shadow chains and Plasma. Unlike Shadow Chain, it doesn't require state transitions to be performed on-chain unless someone wants to do so and is willing to pay - automating all state transitions on-chain would lead to state bloat (a problem we're trying to avoid)! Also unlike Plasma, it is permission-free and uses non-interactive error proofs, so it is strongly resistant to chain congestion attacks.

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Fuel: Overview

The Fuel sidechain is specifically designed to handle high-volume payment transactions on Ethereum, and can reduce the cost of ERC-20 token transfers by 5 times before the Istanbul upgrade is activated. Unlike state channels, Fuel does not promise instant finality, but it can provide trustless and cheaper transaction throughput within Ethereum block time, and does not require users to fully pre-stake funds like state channels. The Fuel sidechain achieves instant certainty through the quasi-permission-free operator model. Before the Ethereum block has achieved certainty, as long as users trust the main block committee, the transaction can be considered to be instant.

Fuel chain can realize burner wallet like experience

• The primary purpose of Fuel is to reduce the burden of gas fees for entering and exiting funds on exchanges. Using Fuel instantly reduces these costs by a factor of 5 without depressing the price of the associated ERC-20 token. Additionally, Fuel can be used to execute trustless, non-depository native atomic swaps (but using a centralized order book matching model).
• In order to maximize the scalability of the client, Fuel uses a UTXO data model that can be processed in parallel, and any computer or mobile phone can easily complete the verification. Our current estimate is that before the Istanbul update activates, our sidechain can increase the total TPS of Ethereum to about 50, compared to the current main chain, which can only handle about 10 ERC-20 transactions That's a 5x improvement. After the Istanbul upgrade (which incorporates EIP-2028), we believe we can push the cap further to about 200 TPS. Coupled with some small upgrades to layer-1, we can increase to 2000. What's more, as long as the erasure code data availability proof is integrated into Ethereum, the TPS of Ethereum can be expanded at the quadratic level, rising to the billion level.
• Fuel Key Points
• Optimistic Rollup Sidechains on Ethereum
• Adopt UTXTO data model
• Finality reached within Ethereum block time
• Optional burner-like trading experience
• Operators cannot censor transactions
• Support all ERC-20 tokens and ETH transactions (of course focusing on DAI/Tether)
• Trust-free, decentralized
• Clients can verify in parallel (browser friendly)
• Committed to enabling cheap ERC-20 transactions

Atomic transactions and liquidity providers can be used to enter and exit at any time

In the future, we will strive to achieve quadratic scaling

wallet integration

• We're designing Fuel to be developer-friendly, so integration will be as simple as adding a library to handle deposits, withdrawals, and UTXO transactions. Any Ethereum account and contract can process Fuel transactions as long as they are able to sign and send transactions. Compared with ordinary wallets, contract wallets will save a little gas from Fuel, but they can still save a lot of costs when transferring tokens.
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• Extended reading
• Slides from our presentation at the EthPlanet Lightning Talk prior to Devcon5
• Compact falsehood proofs available for UTXO chains (no intermediate state serialization)
• EIP-2242: Transaction Postdata

On-chain non-interactive proof of data availability

Multi-threaded data availability on the Eth1 chainWebsite: https://fuel.sh Twitter: https://twitter.com/FuelLabs_ GitHub: https://github.com/FuelLabssecondary titleour next step

Both our Ethereum smart contract and the client arranged in the browser are performing security audits, and will be launched on the main network after the audit is completed. For more information, please see the information below and follow our Twitter @FuelLabs_; in addition to learning information, you can also participate in our upcoming testnet and our official technical notes.