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Omni Network, Potential Solution For Fragmentation On Ethereum Ecosystem


news.coincu.com 26 May 2023 08:19, UTC
Reading time: ~6 m

This is based on the fact that the scaling solutions, also known as Rollups, are helping the current Ethereum Layer 2 solve the Ethereum scalability problem but were not able to do the same interactions between different Rollups, leading to fragmented liquidity. Fragmentation in various L2 networks significantly reduces user experience and makes Ethereum more fragmented than ever.

What is Omni Network?

Omni Network, Potential Solution For Fragmentation On Ethereum Ecosystem

Omni Network is a protocol that provides an EVM-compatible infrastructure layer by leveraging EigenLayer to facilitate the connection of Layer 2 rollups such as Optimism, Arbitrum, zkSync, and Starkware… faster.

By integrating the Ethereum EigenLayer re-commit protocol and the Cosmos SDK into a unified platform, it aggregates Ethereum’s modular ecosystem. It enables developers to build on all Layer 2 on Ethereum to achieve security from ETH.

Combining the security of Ethereum with the speed and programmability of Cosmos in this way allows developers to reach more users and the users themselves to more easily access innovative new applications. Therefore, the project helps developers build and scale their applications while ensuring security without fragmenting liquidity.

This new design space is believed to usher in a new era of modular blockchain. As leaders in this trend, the project says it will open-source its modules to accelerate the adoption and testing of these technologies by other groups looking to build modular blockchains- their own dedicated and safe kettle.


Omni Network, Potential Solution For Fragmentation On Ethereum Ecosystem

For more than a decade, the crypto industry has been criticized for the slow and expensive nature of layer 1 blockchains. Over the past few years, scaling solutions, also known as rollups, have begun offering users the same open, permissionless promise of blockchains at a low cost. However, the problem is that too many aggregations will only grow when some high-profile zkEVMs start rolling out their mainnet.

While the intention to build these synthetic solutions is pure, Ethereum is more fractured than ever. As a result, both users and their liquidity, who used to share common ground on Ethereum layer 1, were scattered across several isolated environments. So the problem of high transaction fees is solved, but it certainly comes at the cost of fragmentation.

In the current context, developers who want to build dApps will only have two options:

Option 1: Choose an independent ecosystem

With this option, developers deploy their applications on a single chain. However, users will need to use bridges to move assets to different chains. This reduces the number of users and causes certain difficulties for new users.

Option 2: Multi-chain

Developers can choose to develop their applications using data transfer protocols to communicate between smart contracts on various chains. The complexity of this design model makes it easy for protocols to expose security holes.

Both of these options bring certain problems to projects. Recognizing that problem, Omni Network introduces a blockchain capable of interoperability and application management on all different chains. This solution helps access liquidity and users across every ecosystem.

Undo the knot

Interoperability Guaranteed by Ethereum

Nearly half of the funds lost in DeFi hacks originate from vulnerabilities in interoperability protocols. The design space needs to be improved, leading to fragile, insecure implementations. Omni solves this problem by re-imagining the future of the decentralized economy.

The future of cryptocurrency is built with Ethereum at its core. With this in mind, Omni built the most secure interoperability solution ever invented. By leveraging EigenLayer, the Omni Network can facilitate fast and rooted inexpensive communication between aggregations with security in Ethereum itself.

The Omni network includes validators that run both an Ethereum node and a built-in Rollup node, through which validators reset ETH and validate Rollup state updates to facilitate global interoperability.

Omni sets a new standard for cross-modular blockchain security. Using a reset-stake mechanism, the Omni Network is the first blockchain to achieve fully customizable features while still receiving security from Ethereum.

Programmable Interoperability

Omni is not only the most secure interaction solution ever created but also the most functional. By building a programmable interoperability layer, Omni will provide economically beneficial cross-rollup applications through properties such as multi-rollup liquidity pooling, compared to applications specified deployed on different networks.

Omni’s execution layer is EVM-compatible, implemented by Ethermint (an EVM module) on Cosmos, so developers can use their familiar Solidity tools for development. The execution layer includes a built-in functionality to access status, notifications, and applications from Total Integration, creating a seamless user access and liquidity experience.

By building a programmable interoperability layer, Omni will empower developers to create globally applicable applications by default, reducing the complexity of their operations. Developers.

Programmable interoperability will provide cross-totaling applications with a fundamental economic advantage over single applications through properties such as multiple liquidity pooling.

The Future of Omni Network

Omni Network, Potential Solution For Fragmentation On Ethereum Ecosystem

Omni Network announced on April 26 of this year that it has completed an $18 million funding round. Pantera Capital, Two Sigma Ventures, Jump Crypto, Hashed, The Spartan Group, and more participated in this funding round. Omni claims that its core technology partners include EigenLayer, the Ethereum re-commit protocol, and Arbitrum, Polygon, StarkWare, Scroll, Linea, and more, the Ethereum Layer 2 scaling network.

Omni will launch the Omni Network public testnet in Q3 of 2023 and plans to launch the first version of the mainnet in 2024 in collaboration with key Rollup partners such as Arbitrum, Polygon zkEVM, Scroll, ConsenSys’ Linea and Starkware.

By taking security from ETH, Omni Network intends to reconnect the entire Ethereum ecosystem so that projects on Ethereum are no longer limited to a single Rollup, but users and liquidity can be found within the Ethereum as a whole ecosystem. The overall impact of this approach on Ethereum is to be expected.

Notably, the Omni network will mine Eigenlayer, a protocol built on the Ethereum network that introduces the reset of authorized Ethers on the beacon chain and from liquidity staking schemes like Lido Finance. With EigenLayer, Ethereum stakingers can help secure multiple decentralized finance protocols by resetting their staked Ether and simultaneously opting into multiple DeFi projects, thus providing pooled security.

Although Omni Network has yet to launch a test network, it aims to achieve a seamless and secure Rollup user experience through modularization of the core infrastructure of the application, which has attracted a lot of attention.

The Omni Network is in its early stages of development, and a lot of things are yet to be released to the public. In the coming weeks, the Omni networking team has announced that they will be releasing more details on how DeFi developers can benefit from the newly launched layer two interoperable infrastructure.

Specifically, the Omni network intends to educate users on how it derives security from Ethereum for interoperability, a new layer of programmable interoperability applications that will facilitate, and technical progress with its core aggregation partners.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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