Why Ethereum Layer-2 Network Taiko Is Spending $100K on Each Blob

An Ethereum Layer-2 A network called Tyco is dominating the market for so-called blobs, or dedicated data storage for Ethereum scales—but those efforts cost tens of thousands of dollars each and every day for a less scalable solution. $100,000 marks several times this week.

The Tyco protocol, which went live at the end of May, aims to offer users cheaper and faster transactions than the Ethereum network, while borrowing elements of the network's security. She's had Taiko since she went live. spent $900,000 on Blobs in less than two weeks for transferring user transactions to the Ethereum network.

Meanwhile, Tyco's competitors, such as Optimum Network, spend no more than $1,000 a day in fees associated with Blob. As introduced in March Part of the Ethereum updateLayer-2 screening networks are billed as a new resource for cheaply posting Ethereum transactions.

The creator of the protocol is Tyco Labs announced It raised $15 million in a Series A funding round in March. By using “zero-knowledge” encryption in its design, Tyco is striving to differentiate its meter design in an increasingly competitive field, which includes dozens of different meter networks.

“Tyco just launched the mainnet, and there's a lot to know before it settles down,” said Daniel Wang, CEO of Tyco Labs. Decrypt In a written statement. “We know we're going to use more components than other Layer-2s. That's a design decision, not a bug.

Layer-2 networks usually work by linking batches of transactions together and processing them on a separate chain before sending receipts to Ethereum. However, Tyco's design differs from that formula, with many transactions grouped elsewhere.

Instead, a process of ordering transactions, known as sequencing, takes place on Ethereum. as if Blog postTyco Labs This process named “basic sequence” is more decentralized than other layer-2 based on centralized sequences – controlled by the network development team and gathering a small part of users.

“This seems very expensive,” said Alexey Zamyatin, co-founder of the Bitcoin Layer-2 network BOB. Decrypt In an interview. “It makes it more reliable, but not as reliable [Ethereum]and you are more expensive than most layer-2s.

Competition game

Still, the costs associated with Tyco's operations could easily reach break-even, Wang said, “even if Tyco is fully consumer-driven” and offers sustainable gas payments.

Wang added that Tyco is fully aware of the advantages and disadvantages associated with the chain method, and hopes that Ethereum researchers will study Tyco's on-chain data to study improvements that would allow Ethereum to better support parallel measurement networks.

Some Ethereum researchers, including Justin Drake, believe that the Tyco Group is on the way to a new decentralized order that will solve key obstacles in Ethereum.

“It's a leap forward in integrating decentralized, trusted neutrality and packages,” he said. Decrypt In a written statement.

He said that if more layer-2 networks moved the order of their transactions to Ethereum itself, the fragmentation issues that plague the entire space could be solved. Until now, liquidity and assets have mostly been distributed across multiple layer-2s, effectively putting users and applications into a single virtualization solution that is all tied to Ethereum.

When it comes to layer-2 networks on Ethereum, the introduction of blobs marks a major change in how those protocols interact with the underlying blockchain. Before blobs were available as a separate payment market, layer-2s could only post packaged transactions in the form of Ethereum “calldata”, a data space within transactions.

Rather than routing users' transactions en masse along with normal Ethereum activity, blobs act as special lanes on the highway, potentially reducing congestion costs. However, the best way to package those transactions before shipping is still up for debate.

A blob of blobs

In some cases, centralized procedures can be used To stop the network, piercing the veil of unauthorized activity similar to crypto. Sometimes they can be centralized sequences Abuse to delay transactions as well as. However, Taiko's commitment to decentralization may not be efficient, according to one community advocate.

“Unfortunately, it's too expensive,” says anonymous crypto researcher arixon.eth. he said. On Twitter (aka X). “Due to the established order, we have to post every 12 posts [seconds]And if they are not enough [transactions]Then we don't fill the stick.

Tyco Labs' Wang said that changing this speed could be a viable solution soon, adding that the Tyco community is “thinking about reducing the frequency a bit.”

A constant stream of blobs, no matter how full they are, makes Tycoon a prime user. On Sunday, for example, Tyco posted 25% on Ethereum according to a celebrity Dunn Dashboard. That day, Tyco spent about $63,000 in Blob-related fees.

On Thursday, Tyco paid Blobs $123,000—representing 73% of its spending on Layer-2s—in its second straight day with a six-figure payout. And while most Layer-2s pass the cost savings on to their users through lower fees, the premium Tyco is paying for decentralization, so far, isn't the bill users foot.

“For now, it's partially funded by the team,” arixon.eth said he said.In the future, the process can be adjusted, so “blocks will be missing until it's good enough.” [transactions] In the membrane to push the block [Ethereum] Profitable.

Amidst the network's first airdrop of Tyco tokens on Wednesday, the network's native cryptocurrency, Layer-2 reached an average of 6.42 transactions per second. L2BEAT. Meanwhile, Ethereum itself recorded around 13.6 transactions per second.

So far, Tyco Token's performance has been chaotic. After plunging 40% an hour after launch, to $2.27 from $3.80, the token has recovered to $2.45, down nearly 3% from the previous day as of this writing. CoinGecko.

Edited by Andrew Hayward.