Tenet’s Vision for Layer-2 Solution：Overcoming pain points and Optimizing Tenet functions
Pain Points of Layer-2 Solution Development
Layer 2 in fact is the general name of a certain category of expansion solution, which mainly transfers computing, transaction and other services to outside-Layer 1; and realizes the interaction between Layer 2 and Layer 1, so that the transaction trust of Layer 2 can be passed successfully to Layer 1. The main function is to greatly reduce the burden of the main chain, improve the processing speed and throughput of the main chain, and greatly reduce the Gas fee of Etherum network transactions. At present, Layer 2 mainly has four technical schemes: state channel, side chain, Plasma and Rollup.
While all these solutions have their own pros and cons. Layer-2 solutions painpoints still bother both developers and users.
Main pain points:
Most of the layer2 protocols we see today are working alone, and the whole industry is disjointed and scattered. L1 protocol also faces the same problem, but a lot of work has been done to bridge these protocols and establish cross-chain communication and interoperability.
If we look at the top DeFi ecosystem participants in Ethereum, each of them plans to migrate to a different layer2 solution, causing more fragmentation of the ecosystem. None of these layer2 solutions dominate the market, creating a fragmented ecosystem for users and DeFi developers. DeFi developers want to keep competitive by using cross-chain and cross-layer protocols to build applications, but the decentralized ecosystem makes them time-inefficient, resource-intensive and vulnerable to hackers’ attack.
Lack of composability
If there is one thing that has deeply changed Internet, it is composability in the ecosystem. In blockchain and DeFi, composability means that developers can combine different protocol parts to build a decentralized application model. Think of it as Lego bricks, and we can combine them in an infinite number of ways to build interesting things.
In layer1 and layer2 ecosystems, lack of composability is a serious problem, especially in layer2 protocol, there is still no concept of cross-layer communication and interaction. We do have a certain degree of cross-chain composability between L1 protocols through bridges and packaged assets, but when it comes to actually building applications on them, they are very limited. This lack of composability leads to a fragmented ecosystem and a bad user experience for both developers and users.
Tenet’s Action to Overcome Pain Points and Lead the Industry
Performance, security and sustainability
TENET was designed to be a super connector of AMMs. Now TENET Bridge V2 has been launched, more liquidity is injected by the effective cross-chain swap. The TENET Bridge V2 enables cross-chain services and greater liquidity pumping. In the next stage, TENET will be committed to build a strong layer-2 structure to improve processing proficiency and reduce gas fee. Moreover, TENET plans to introduce liquidity mining using tokens on layer-2 protocols. TENET will embrace muti-layer liquidity providing and more opportunities to gain mining rewards.
Now in Layer-2 developing, the more superior Rollup scheme has become the most concerned and most valuable Layer 2 scheme at present. Among these Layer 2 schemes, due to the security problems caused by the control of assets, many Layer 2 schemes have been gradually eliminated, such as state channel and Plasma; Other solutions that can meet this problem gradually show their vitality, such as the solution of Rollup, among which Optimal Rollup and Arbitrum are the easiest solutions to be realized under the current technical background; However, in essence, it still does not fundamentally solve the security problem of assets, so we think that ZK Rollup is more likely to become the final Layer 2 scheme with the development of zero-knowledge proof technology.
TENET’s bridge has already utilized zk-rollup. Zero-knowledge proof means that the prover (operator) can convince the verifier that a judgment is correct without providing any useful information to the verifier. This result has been verified by mathematical methods, and there will be no errors. That is to say, the security has been scientifically guaranteed, and because there is no need for interactive fraud proof, the transferring has been greatly accelerated.
Layer-2 developing and layer-1’s expanding capacity is equally important. Their purpose and methodology are complimentary to each other. TENET will continue to develop zk-rollup technology and focus on the transaction & service side to provide more benefits for our users.