Necessary factors
- MegaETH leverages Ethereum as its premier blockchain execution surroundings.
- MegaETH stress exams achieved 55,000 transactions per second.
- Layer 2 options that replicate Layer 1 companies face safety challenges.
- Ethereum’s strengths are essential to your complete good contract ecosystem.
- Ethereum’s scaling technique is shifting from layer 2 to layer 1 enhancements.
- Current modifications in Ethereum’s roadmap signify a logical shift.
- Regulatory stress is pushing some rollups towards centralization.
- Ethereum could return to larger transaction prices as exercise returns to layer 1.
- The present low transaction prices are as a result of motion of actions to Layer 2.
- The power spent on Layer 2 growth is crucial to the evolution of Ethereum.
- Layer 2 advanced from sharding and allowed for range and experimentation.
- A zk-based optimistic anti-fraud system ensures transaction accuracy.
Visitor introduction
Lei Yang is the co-founder and CTO of MegaLabs, the crew constructing MegaETH, a high-performance layer 2 of Ethereum with sub-10ms block instances and 100,000 transactions per second. He earned his PhD in laptop science from MIT in 2024 for his analysis on blockchain consensus and networking that enabled end-to-end methods with 80,000 transactions per second in 2018-2019.
Why MegaETH chooses Ethereum
Mega makes use of Ethereum as a result of it supplies essentially the most performant blockchain execution surroundings.
— Ray Yang
The explanation Mega makes use of Ethereum just isn’t as a result of it's meh as you realize, however as a result of it permits them to construct essentially the most performant blockchain potential.
— Ray Yang
- MegaETH achieved 55,000 transactions per second throughout mainnet stress testing.
We ran a stress check on mainnet, so everybody might check operating 55,000 transactions per second.
— Ray Yang
- The stress check demonstrated MegaETH's potential to deal with massive volumes of transactions.
We checked out it and it was actually superb…it trains extraordinarily quick, has unimaginable compute, and might deal with loopy ranges of exercise.
— Ray Yang
- MegaETH's efficiency metrics are extremely dependable because the mainnet surroundings intently emulates real-world launch circumstances.
Flip the change and also you're operating mainnet. It's like having the very same server, identical IP deal with, identical settings, identical administration key.
— Ray Yang
Evolution of Ethereum’s scaling technique
- Ethereum’s scaling technique is shifting from counting on Layer 2 to enhancing Layer 1 capabilities.
The unique model of Imaginative and prescient not works. Ethereum itself must scale in its unique model. Mainly, we have been offloading a variety of this to l two, however now that l one is scaling, we don't want that anymore.
— Ray Yang
- Current modifications in Ethereum’s roadmap signify a logical pivot relatively than a price pivot.
I consider this as a pivot relatively than a values pivot, however I exploit the phrase pivot from the angle of the roadmap itself, when it comes to what was initially envisioned within the rollup-centric roadmap and the place it’s now.
— Ray Yang
- The transfer to extra centralized options with some rollups is an comprehensible, though unlucky, response to regulatory pressures.
In a way, I feel it is a unhappy actuality much like Moloch's victory. To be trustworthy, everybody has completely different incentives…Within the stage 1 rollup, they mentioned they didn't need to be within the stage 2 level hole as a result of they have been in a regulatory surroundings that most well-liked to be extra centralized.
— Ray Yang
- As exercise returns to Layer 1, Ethereum will finally return to larger transaction prices.
I feel it's a little bit of an overreaction to say Ethereum doesn't want one other 2…we'll quickly be again to a world the place File 1 has $200 transactions.
— Ray Yang
Position of Layer 2 Options
- Constructing a Layer 2 that replicates a Layer 1 service is technically uninteresting and introduces safety points.
Attempting to construct and replicate the precise primitives supplied by Layer 1 is fairly uninteresting… It's truly very tough to construct a safe Layer 2, and if all you need for Layer 2 is to undertake Ethereum's safety out of the field, I feel you're higher off constructing Layer 1.
— Ray Yang
- The power spent creating the Layer 2 roadmap just isn’t wasted, it’s important to Ethereum's evolution.
I actually don't suppose the power we spent on this board is wasted. I feel Mega is feasible as a result of Ethereum has been following this Layer 2-centric roadmap for a number of years.
— Ray Yang
- Layer 2 advanced from the idea of sharding and enabled range and experimentation within the Ethereum ecosystem.
The unique thought was that Ethereum would run and function all of the shards. Why not delegate it to a number of groups to make sure range, competitors and experimentation?
— Ray Yang
- Layer 2 options embody mechanisms to make sure censorship resistance and person termination choices.
First, Layer 2 doesn’t censor customers. Which means that if a person's transaction is maliciously excluded from Layer 2, they will at all times return to Layer 1 and ship the connection there, forcing the Layer 2 sequence to incorporate the connection.
— Ray Yang
Financial sustainability in blockchain
- Chain charges should not a viable enterprise mannequin for Mega $ETH.
I don't suppose it's cool that you just guys can do 11,000,000,000 transactions per second. I don't suppose you guys are going to achieve sustained ranges of 11,000,000,000 natural transactions per second anytime quickly.
— Ray Yang
- The financial sustainability of blockchain methods should prioritize person accessibility over short-term income from charges.
I feel that is truly a short-term thought as a result of the way in which Mega grows is by permitting everybody to come back and use my ID for as low cost as humanly potential.
— Ray Yang
- Present approaches to blockchain income era have to evolve past merely issuing tokens.
We have to construct one thing like some type of precise enterprise mannequin, however at the least we obtained to stablecoins earlier than it grew to become what it’s now.
— Ray Yang
- The mechanism for monetizing stablecoins on the Mageve platform permits for reinvestment on the chain with out harming finish customers.
What we principally mentioned is that you probably have one thing like this native steady coin usdm, and your utility makes use of usdm, you get a tibo yield on that proper, and that goes into Maggie Eve's stability sheet…
— Ray Yang
The way forward for rollups and governance
- Stage 2 rollup requires a dedication to immutability of governance logic, which comes with vital dangers.
Stage 2 is principally saying that decommissioning the Safety Council code is for lifetime immutability…principally saying that one a part of the design of the Layer 2 rollup can be completely fastened for the lifetime of Ethereum, the lifetime of the universe.
— Ray Yang
- Reaching Stage 2 of the rollup could take longer than beforehand anticipated, probably exceeding two years.
I feel it’s irresponsible to assert that we are going to attain the second stage inside a yr, and even inside two years.
— Ray Yang
- Trusting the Safety Council in step one might result in potential abuses of energy.
We should additionally belief that the Safety Council doesn’t intend to abuse its energy. As a result of I feel inside a yr we'll be…actually in Stage 1, however truly, insisting on labeling one thing like Mega Ether as Stage 1 might be not an excellent factor.
— Ray Yang
- AI might play a key function in validating the accuracy of software program, which is crucial to reaching the second stage.
I feel what AI is finest at is proving issues which might be tough to create however straightforward to confirm: software program code.
— Ray Yang
Influence of AI on blockchain
- The following billion customers of blockchain know-how may very well be AI brokers.
One other risk, which has lately come to my consideration, is that the subsequent billion customers may very well be AI brokers.
— Ray Yang
- The poor person expertise of cryptocurrencies for people may very well profit software program brokers.
When you imagine that a part of the explanation we don't undertake extra cryptocurrencies is as a result of the UX is horrible…all of the UX issues now we have are literally benefits for small software program brokers.
— Ray Yang
- We have to begin prioritizing agent customers in our blockchain expertise.
Possibly we have to actually begin prioritizing agent customers in a few of our blockchain experiences.
— Ray Yang
- Brokers have limitless power to strive completely different transaction paths, not like people who hand over after a number of tries.
To assist the brokers in want…we want block house that’s low cost sufficient for brokers to experiment and error…brokers have monumental quantities of power…people don't simply experiment.
— Ray Yang
The function of proximity markets in blockchain
- Ethereum's fine-grained auctions in block order are impractical in methods with very brief block spacing.
The basic downside for us is that the block spacing could be very small. In our case, the block interval is 10ms, so operating an public sale at this type of fantastic granularity is totally unworkable.
— Ray Yang
- We imagine that shut market fashions are simpler than micro auctions on the subject of ordering trades.
What we're making an attempt to realize is…we name it a proximity market…operating these choices at such intervals that lots of people resolve on it.
— Ray Yang
- Working with a sequencer permits optimized buying and selling algorithms to function with minimal delay.
You might have seats to co-locate together with your sequencer, and as soon as that's finished, you’ll be able to choose the algorithms you need to run and run them on these seats, that are principally digital machines proper subsequent to your sequencer, so the quote you get out of your cloud supplier is all the way down to 1ms…
— Ray Yang
- Incentive buildings ought to encourage high-frequency merchants to be bodily positioned close to sequencers to extend market liquidity.
The explanation for setting the block interval to 10 ms is to create an environment friendly and extremely liquid market. Because the market wants to come back to the sequencer, I feel that is each an incentive construction and a extra sensible method to make environment friendly precedence assignments when buying and selling in real-time.
— Ray Yang
MegaETH innovation promotion technique
- mega $ETH's method of cultivating its personal app ecosystem is crucial to keep away from redundancy between chains.
You possibly can't get right into a state of affairs the place you’ve a bunch of repetitive purposes that exist on each different chain. What's the purpose of spending the final three years constructing this if there's actually nothing new about this practice?
— Ray Yang
- mega $ETH is actively looking for founders to construct their very own purposes to strengthen our ecosystem.
All we did was principally simply discover founders and begin convincing them to construct one thing that was frankly cool.
— Ray Yang
- There’s a large mind drain within the crypto trade, with many potential founders leaving for AI attributable to poor person expertise.
I feel a variety of founders who might have constructed nice apps couldn't do it in earlier cycles as a result of their UX was garbage, they usually simply let AI do it on this cycle.
— Ray Yang
- If we stay trusted and impartial and don’t actively encourage growth, we threat leaving new purposes undeveloped.
What I'm extra afraid of is that we'll run out of builders… We are able to truly be extremely impartial. When you try this, you gained't have the ability to run any extra apps.
— Ray Yang
The way forward for token distribution and possession
- The present method to token distribution available in the market is flawed and unfair.
This is a matter we noticed, and we all know that cryptocurrencies need to be distinctive, so we thought it wasn't splendid.
— Ray Yang
- Worth discovery is shifting from public markets to personal markets, resulting in unequal entry for public individuals.
I feel that was a reasonably great point… a variety of worth discovery moved into non-public markets, and consequently, as you realize, public individuals didn't essentially have equal entry to property.
— Ray Yang
- Conventional possession fashions in know-how don’t apply to cryptocurrencies, the place customers need to be the house owners of the purposes they use.
I feel it's completely fantastic that it's not precisely the case with cryptocurrencies, the place individuals have traditionally needed to be the house owners of the purposes I exploit, but it surely simply felt very unfair.
— Ray Yang
- The method of permitting customers to take part in possession has confirmed profitable, as evidenced by excessive participation charges in funding rounds.
We principally simply doubled down on that idea…80% of Echo customers tried to affix…we ended up oversubscribed by about 25x.
— Ray Yang
