OMNI Network ($OMNI)?

9may...WMMw
14 Apr 2024
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Omni is an Ethereum-native interoperability protocol that establishes low latency communications between all Ethereum rollups. Omni offers a secure, performant, and globally compatible architecture that presents Ethereum as a single, unified operating system to both users and developers.
Learn: New to Omni or Ethereum interoperability? Start here to understand the basics of how Omni connects all Ethereum rollups.
Protocol: Dive deep into Omni’s network architecture and core processes. This section is ideal for those interested in the technical underpinnings and innovative solutions Omni brings to Ethereum interoperability.
Develop: Ready to build on Omni? Explore our developer resources and examples to easily integrate Omni into your application. This area is tailored for developers seeking practical tools and examples to expand their applications to all Ethereum rollups.
Operate: Learn how to run an Omni validator and contribute security to Omni’s network.

Ethereum’s commitment to the rollup-centric roadmap has forced the network to scale via isolated execution environments. While this allows rollups to support various execution environments and programming languages, it creates negative externalities that degrade Ethereum’s network effects. Specifically, liquidity, users, and developers are fragmented between disparate ecosystems. The expanding variety of rollup designs and their growing adoption will only exacerbate these issues. Consequently, Ethereum requires a native interoperability protocol that realigns the network with its original vision of being a single, unified operating system for decentralized applications.

The Ideal Interoperability Solution

The ideal Ethereum interoperability solution must be secureperformant, and globally compatible with the Ethereum ecosystem. To meet our security standards, the solution should derive its security from the same source as Ethereum rollups: Ethereum L1. To be considered performant, the interoperability protocol must verify and process cross-rollup messages with minimal latency. For the protocol to be globally compatible, it must enable applications to be Turing-complete across all rollup environments, ensuring that applications are not limited by the resource constraints of any single rollup.

Interoperability Verification Approaches

Existing interoperability protocol designs can be broadly classified according to their verification approach.

Interoperability verification approaches

Natively verified systems ensure trustless interoperability but require the underlying network security providers to validate state changes. Since rollups derive security from Ethereum L1, Ethereum L1 is the only natively verified solution for rollup interoperability. However, validating rollup state changes on Ethereum L1 via optimistic or zero-knowledge mechanisms is both costly and time consuming, making Ethereum L1 an unfit interoperability solution for rollups.
Similar to a strictly native approach, other approaches also fail to meet our three criteria of security, performance, and global compatibility. Solutions that rely on local verification provide strong security guarantees and can be applied across various rollups, yet their inability to handle arbitrary messages limits their application compatibility. Optimistic approaches, which incorporate a latency period for potential challenges, inherently do not satisfy our performance requirement.

Externally verified systems meet our performance and global compatibility needs but require trust in an external verifier set, compromising security. To enhance security, these systems can implement cryptoeconomic security measures that require verifiers to stake capital that is at risk of being slashed for misconduct. However, existing solutions that use this approach derive their cryptoeconomic security from a native asset rather than Ethereum L1, making them unfit for our security requirements. By devising a method to extend Ethereum L1’s cryptoeconomic security to an external set of verifiers, we can fulfill our security criteria and create a novel interoperability solution that offers all three of our desired properties.

Omni


Omni is a natively securedexternally verified interoperability network that establishes a new precedent in securityperformance, and global compatibility for the future of Ethereum’s modular ecosystem.

Omni realizes this vision by introducing a novel network architecture tailored for low latency cross-rollup communications and global compatibility with Ethereum’s entire rollup ecosystem, underpinned by the cryptoeconomic security of restaked $ETH. This design achieves sub-second cross-rollup message verification while harnessing Ethereum’s industry leading cryptoeconomic security budget. Furthermore, Omni is intentionally designed to be easily integrated with any rollup architecture and local rollup application, while also providing a programmable state layer for managing application deployments across rollups.
With Omni, Ethereum can once again provide a single, unified operating system for decentralized applications, but this time, at a global scale.

Blockchains


The concept of modular blockchains is a mental model for building blockchains that has grown in popularity over the past few years in the crypto industry. Let's discuss the history of the idea, and how it's relevant to Omni.

Monolithic Blockchains

Historically, blockchains were built in a monolithic fashion. Most Layer 1 blockchains were built as an "end to end" service – taking responsibility for all services that a blockchain must provide. Layer 1 solutions like Bitcoin and Ethereum were built in this fashion.
As the industry evolved, new Layer 1s were developed that optimized their stacks to make different trade-offs in terms of security, scalability, and speed. Many of these new Layer 1s adopted the monolithic approach – optimizing the full chain stack to provide the optimal desired experience. Examples of these newer monolithic Layer 1s include SolanaAptos, and Sui.

Modular Blockchains

However, as time has passed the latest innovations have grown to more closely reflect the architecture of microservices in the traditional software engineering world. Blockchain developers realized that we could decouple the various components that make up a blockchain and optimize them independently.
This approach was first proposed in Ethereum's rollup-centric roadmap, and more recently has been popularized by projects such as ArbitrumCelestia and now Omni.

Components

Today, our understanding of blockchains has led us to disambiguate the stack into three primary components, broadly speaking:

  • Data Availability: ensuring that a blockchain's transaction data is available to network participants at block proposal time (read further here).
  • Execution: running a blockchain's state transition function (STF) on the input data (transactions from the Data Availability module) and computing its output.
  • Consensus: mechanism for nodes to agree on the computed output of the execution layer (and optionally finalizing the chain's state).

Ethereum's Roadmap


As the Ethereum ecosystem developed, we learned that scaling transaction throughput and decreasing costs would be extraordinarily difficult on Layer 1 Ethereum while maintaining its high security. Over time, various proposals have attempted to solve this problem: state channels, side chains, and plasma to name a few. However, each of these options came with unfortunate trade-offs that typically sacrificed security to achieve these goals. But their development was not in vain! They led to the growth of rollups, the currently agreed upon optimal solution for scaling Ethereum.

Rollup-Centric Roadmap

Hence, the rollup-centric roadmap was proposed.
Today, Ethereum Layer 1 handles Data Availability, Execution, and Consensus. But over time, Ethereum will primarily become a Data Availability layer. Rollups will handle execution off-chain, and utilize either Ethereum's smart contract layer, or their own sovereign settlement layer, for consensus. This allows rollups (Layer 2s) to borrow Ethereum security while scaling throughput and decreasing cost. Upgrades like EIP-4844 will even further improve Ethereum as a Data Availability layer by providing the service at lower cost.
You can view the growth of rollup ecosystems at L2Beat.com, a great resource for understanding the security trade-offs, current state of development, and adoption levels for rollups.

Rollups

Rollups are a type of layer 2 solution that aim to enhance the scalability and efficiency of blockchain networks. They do so by processing transactions outside the main blockchain (off-chain) and then posting the transaction data (on-chain) in a compressed form. This method significantly reduces the strain on the network, allowing for faster and cheaper transactions. Rollups are pivotal to the Omni protocol's ability to facilitate seamless cross-rollup communication.
There are mainly two types of rollups that differ in how transaction data is processed and verified: Optimistic Rollups and ZK-Rollups.

Optimistic Rollups

Optimistic Rollups assume transactions are valid by default and only perform computation, and hence incur expenses, when a transaction is challenged. They offer a significant increase in scalability by running computation off-chain and posting the transaction data on-chain. Users or "watchers" can challenge a transaction if they believe it to be fraudulent.
Learn more about Optimistic Rollups

ZK-Rollups

ZK-Rollups, or Zero-Knowledge Rollups, bundle hundreds of transfers into a single transaction. Instead of publishing all data on the chain, they generate a cryptographic proof known as a SNARK (Succinct Non-interactive Argument of Knowledge). This proof confirms the validity of all transactions in the bundle. ZK-Rollups are highly efficient, as they allow the network to confirm the legitimacy of transactions without executing them fully.

Fragmentation

As rollups have become increasingly popular for scaling blockchain networks, a new challenge has emerged: fragmentation of users and liquidity. While rollups enhance performance by processing transactions off the main chain, they often operate in isolation from one another. This isolation can lead to siloed ecosystems where assets and interactions are confined to individual rollups, hindering the potential for broader interoperability and network effects.

The Fragmentation Challenge

Fragmentation can manifest in several ways:

  • Liquidity Split: Assets are spread across multiple rollups, which can dilute the liquidity and make it harder for users to access the full value of the network.
  • User Experience: With different rollups offering various features, users may have to navigate complex processes to move assets or data between them, impacting usability.
  • Developer Complexity: Building applications that span multiple rollups requires dealing with disparate systems, which can increase development time and costs.

Omni's Approach to Unification

The Omni protocol aims to address these fragmentation challenges by enabling seamless communication and interoperability between different rollups. Here's how Omni contributes to a more unified blockchain ecosystem:

  • Cross-Rollup Communication: Omni allows users and applications to interact across various rollups as if they were a single, cohesive network.
  • Unified Liquidity Pools: By facilitating cross-rollup transactions, Omni helps aggregate liquidity, improving capital efficiency and reducing slippage for users.
  • Simplified User Journeys: Users can enjoy a smoother experience with the ability to move assets or execute actions across rollups without complex processes or multiple steps.
  • Developer-Friendly Platform: Developers can build applications with the confidence that they will work across the entire rollup ecosystem, thanks to Omni's standardized communication protocols.


Looking Forward

The vision for the future is an interconnected blockchain landscape where fragmentation is a thing of the past. Rollups will continue to play a critical role in scaling, and protocols like Omni are key to ensuring that the ecosystem remains unified and user-friendly.
For more information on how Omni tackles fragmentation and promotes a cohesive blockchain environment read further on Omni and its background and EigenLayer's enhancing of security through restaking.
Omni is dedicated to bridging the gaps between isolated rollups, fostering a more connected and powerful blockchain infrastructure. Through its innovative protocols, Omni is paving the way for a future where the full potential of blockchain can be realized without the barriers of fragmentation.

Interoperability

Interoperability is the ability of different blockchain networks to communicate and interact with one another seamlessly. It's a foundational element for building a connected and accessible decentralized ecosystem. By allowing different chains to exchange information and value, interoperability breaks down barriers, enabling a more versatile and cohesive blockchain experience.

Why Interoperability Matters

The rise of multiple blockchain networks, each with its unique features and advantages, has led to a fragmented landscape. Interoperability is critical in this context for several reasons:

  • Enhanced User Experience: Users can transact across chains without needing multiple wallets or accounts, streamlining the user experience.
  • Increased Network Effects: Interoperability allows networks to leverage each other's strengths, leading to greater adoption and utility.
  • Combined Liquidity: It consolidates liquidity from various networks, improving market efficiency and reducing slippage for traders.


Omni: Bridging Chains

Omni addresses the need for interoperability by providing a protocol that facilitates cross-chain communication. It enables different blockchain networks to work together, creating a web of interconnected chains.

Key Features of Omni's Interoperability:

  • Cross-Chain Communication: Omni allows for the transfer of data and assets between chains, fostering collaboration and interaction between distinct blockchain ecosystems.
  • Unified Development Platform: Developers can create applications that operate across multiple chains, reducing complexity and development time.
  • Security, Transparency and Trust: With the integration of EigenLayer's restaking model, Omni ensures that cross-chain interactions maintain a high level of security and reliability.



Omni Omega Testnet



The Omni Omega Testnet is currently under construction. Please check back soon for more information, values are placeholders and will be updated soon.
During the Omni Omega Testnet, users will be able to delegate restaked $ETH to the Omni Operators and take part in challenges posted in a site soon to be released.

Delegating Holesky $ETH

You can delegate testnet $ETH to secure Omni through EigenLayer. Check out this blog post and follow the instructions to delegate. A succinct summary of the steps is below:

  1. Have Holesky as a network to your browser wallet, funded with Holesky $ETHRead more on how here.
  2. Swap Holesky $ETH for any of the EigenLayer supported restaking tokens.
  3. Connect your wallet to the EigenLayer dashboard.
  4. Restake your restaking tokens on the dashboard restake section.
  5. Delegate your restaked tokens to any of the Omni Operators.
  6. 🎉 You are helping secure the Omni Omega Testnet! 🎉


Resources:
https://docs.omni.network/

Community:
https://t.me/OmniFDN
https://discord.com/invite/bKNXmaX9VD
https://github.com/omni-network
https://twitter.com/OmniFDN

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