The Future of Rollups is Based | Mteam
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Welcome to the bank of summer, a series of talks from speakers all around the aero ecosystem, which were all presented at a one day event hosted the day after that con called the bank summer. We're really seeing some of these talks on the pod casters out the week, and the rest will be available on the bank. Less premium feed you're want to hear from mt.

Or Matthew m. Team is what he's known as on twitter, who is the CEO and cofounder of spire, a based roll up framework. M teen, for those who don't know, is seventeen years old.

I actually had to write an excuse, note that he could give to his school for him to miss class and go all the way for the united states to tend dev con and to give this talk about how bed rolls help its value cruel and tap into the terms network effects at the bank of summer. Many people say that this was the most impressive technical talk at the bank on IT. I don't know what you guys were doing when you were seventeen, but I wasn't doing anything like this.

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I am here today because I am an a thorium bull and a baseball. And I think that we can make these two things work together. So if you don't know a base rope is, then raise your hand a couple people that, but I thought, raise.

And if you don't know what eat this, yes, I OK ah by the end of this presentation, you're going to go home by home maybe and you're going to buy more eat because this story that i'm about to sell you is incredibly blish more bullish than deflationary money or yieldin money. All right? That's pretty boring.

That's like actually don't care. Um I am m team. I am Matthew. I am the cofounder of a company called spire labs.

We build framework that gives developers the ability to make their own based options a customizable and composer environment for their applications. If you want a base roll up and then talk me athwartships so to understand value will cruel today and the future. And i'm about to promise you, we're onna talk about value cruel so far.

So everything was ent around for about eight years, and we've had a few different ideas about what value of gruel could be. The first one, I think is really notable is p one five five nine, which is the idea of the burn, right. We have a multi dimensional fee markets made up our priority fees on top and the base fee down below.

The base fee is set by the protocol and burned. The parody fee is returned to proposals to incentivize them to include transactions. Now this has like a court thesis in its entire roycore's narrative, which is that the each supply as a number of eat goes down, then the new value of each individual either goes up right as long as the market cap says the same that's true um that same idea is a part of yep, four four and blocks.

The idea here is that thiam provides a valuable service D A blows to roll ups who purchase these um and in that purchase they what they're exchanging is the burning of some eat. So that's the same. This is right as the number of eat goes down, then the Price of eat goes up. That's about where we are today are not a ton of work on specifically eth value qual um other than the kind of issuance and deflationary. There's some future things though. There's MV burn where we use uh, an auction that's down here to give the theory an protocol, the ability to know how much MV is being extracted by um the sequence is in the system and then forcing those actors to burn some of that value burning eat makes eat Price go up or so we think there's there's one thing up here we seeking that is not a each value cruel disease but a eat staker of value qualities is right. If you are sticker and are willing to take on slashing conditions and provide economic security, then you'll make more revenue which you could return to people who stick their eat with you.

So this is this is one thing that might be useful um to just consider the question of about risking is like is economic security actually that valuable will ABS is really demand economic security so far it's been represented like someone imperative that really not that much um and unfortunate not enough for the the kind of billion of dollars that I want to see floating across my togas so what so what if we learned MV burn and IP one, five, five, nine or at odds with a roll up center grow map? The roll up centric road map will take activity and congestion and MV activity and move IT to lair tues, move IT to rops. This means this will no longer take place on everyone.

So if your bullish roll ups, then unfortunately you are barish on the burn because the burn is dependent on lair one activity and MV. Now it's very possible there be some MV and some congestion taking place on everyone, but unfortunately, that will not be nearly as much as what's second place on roll ups. Now da is a whole other thing, right? Loves are specifically designed for the role of center go map, and they work really well, except that da is not very sticky if you just have like a centralized sequent will up a central sequence.

Rolm could choose to use all da instead of a theory um lobs just and day was out here talking about that um kind of a thereon da premium. That doesn't matter unless you have you're using other kind of features of that. Da, we'll talk about those during this presentation, but the key one is sign in composition order and things like a negative loves.

So we look at all these value cool things and researchers um just in joke, of course, realize something important a theory um is the best sencer and i'm going to make this case of of an express lide but some of you might be asking a serum is the sencer question mark and the answer is yes. A theory um has many sencer. For the past eight years, every consensus protocol that reaches consensus on inclusion and ordering is doing sequencing a theory um is sequencing a theoria may.

And so you you know you're like, of course obviously and have adJusting your question to a theory as a layer two signal. Sir and I am here to tell you that we have made the necessary research breakthrough and the social coordination breakthrough to make IT so that I can practically answer that question. yes. Aerion is sequencing a lair to as we speak.

So we decided to call this a terim sequencing no he didn't. That would be a great name. Um we decided to call requenes ing which would still be agree name but no we did not. We had to name sequences rops anatha um and so this guy of here decided on the name based sequencing don't ask me why, but the me is stuck.

And the rest of this presentation is going be specifically about base sequencing, why IT is valuable and in turn why IT is extremely valuable and important for e holders to understand why a serum sequences is valuable, we have to understand how a theory um sequences, this is obviously important to make the case that is not that important. Today, we use a off chain auction called move boost that allows proposals that are granted sequencing rights by the earth protocol to auction these off to specialize builders that are the ones actually extracting M V and and doing the sequence right. Um in the future, it's very likely that will change that because my boost has a big problem, which is that IT pretty directly instantiated zis builder centralization.

That's why of two builders there's things like fossil is four choice enforced inclusion lists and grade which is max resonance proposal to do multiple concurrent proposal. There's also whole bunch of other designs fleeting around out there um that do something on these lines. These are all kind of ways to change how the m sequences, but i'm going to make the case that is not actually that important.

How with m sequences a theme has a few good properties. One of those is a living ess and reliability. This is a graph um of theorem is live ess over the past eight years, you'll notice there is no point where a serum had an outage.

Um I tried to find a graphic online for this, but I decided to make man because I couldn't um yeah I know of thing a theory um has four second block times as an important part of its sequencing. IT also has other properties. Happy to talk about looking an efficient building market, but by far the best property is what theory m sequences, not how thim sequences.

The answer to that question, of course, is a theory. Um there one and a plus little a little text is based on the reason there m one is such a big font is because a theme layer one is massive and has a lot of network fex. Network effects are really important to sequencing.

And I explain that this second but first just kind of loosely defined network of ex network of ax or anything that make one network more than than other another network and scale with the kind of the growth and usage of that network. They are good things, always good things. So no work effects are something that are really difficult to fake.

We can go to another old layer one ecosystem and they might sell us on the idea of network effects but they would be unfortunately lying um a theory um over the past eight years and as the first turning complete, blockin has offered us the ability to a mass a gigantic nower effect sAlina has fifteen percent of the TV l mona has like zero percent of the users song has murder ankle um I don't think that say about about about to and these people change the perception of a theory um network effect on cypher twitter to something very different than in actually is so i'm going to show you some numbers on the next few slights and proving a few things deal. This is stable coins. Stable coins are a part of new project because they enable decentralized finance and open finances of using centralize sample coins.

A therm has more than half of all shoot sample coins. SAlina has only two point one five percent massive win for a theory um but don't clap up because we have TV l fifty five percent a theory um with that big blue one is a theory um island is over here at seven point three four percent fifteen percent of the tva of a theory um there is some other smaller change um let me just like kind of reiterate this. Fifty five percent of all value locked across every blockchain is on a theoria layer one.

That's not a themar one, a layer, a theory layer one. Now TV l uh, metrics, activity metrics, volume metrics s can all kind of be faked, right? It's possible to gain these metrix.

Something that is more charter to fake is the kind of thing that the electric capital developer reports um we'll tell you about, which is developers sixteen point seven thousand newcomer's were code in the syrian, two point seven times more than the next largest ecosystem. There are twenty twenty three numbers. I'm eagerly waiting for twenty twenty four numbers.

Um you'll see over here we have polygon is the second largest ecosystem. Sona is the third largest independent code stem. There are more um developers that work on chains that are not on this list than developers that sort already going to snow in two thousand and three.

There's also a quite bit of contract innovation in the theory um this is one of my favor charts uh for just evm code, but seventy one percent of contract logic originates on a theoria. Now this is often applied to like SVM code. So it's not a fair comparison at all, but it's just a number theory want to still the home for a lot of contract innovation and that has remained true for quite well.

So also a quatitative of APP depression contract logic originates on there one and then moves legist is kind of iberian from this obviously ban beer pale gon um or two of the um biggest like receivers of contract logic after originates on the thorium. One interesting thing is that everyone is like the largest uh one of our rops that uh that actually creates apps. It's not base.

Surprise me at listen to me. The other thing about the theme is a massive researcher and developer community. I choose these researchers because I really like them. Um we also have the entire east research community of which I have contributed to and many people in this room have contributed to. Its amazing um we have these institutions, these organizations that work hard to make a theoria Better and easier to develop.

On this Q R code will take you to the protocol guild website where you can see a list of more than hundred and fifty contributors to a theory. Um now this is from starks decker note and the a the amazing thing about the theme is not not only this research shows, but also like practical developer things people have try to build SVM will tell you that IT actually sucks. Being evm is very nice or and it's because of these tools that are primarily open source to accept egana course um and are really, really useful for developers that is in newark effect for the evm ic system but applies there there one as well.

Now a theory is also home to the second largest cripp currents. It's natively issued on the theory um as the ledger of last resort. Um as you heard today, eat is permissionless money if erm has no VC unlocks unlike other corpo s has a reasonable issue in policy as we just heard.

And that issue in policy might be getting even Better in the future. And of course has a top tear tear ker. Therm is also global. So there are researchers in court developers distributed around the world. This is not true for other lair ones who are building products, not protocols. Um IT is translated into tens of world languages, which doesn't sound that um important for speakers but IT really is for bringing on new developers and new researchers is also a global community events as evidence by this.

I live in the united states and i'm in asia, which is amazing and know one other kind of anecdote here is I was an events, a death considered ent called E I P fun where I met chinese native speaking researchers to translate a theory um research into chinese for the the chinese native speaking um research and developer. One interesting thing that they told me that shot me was that um these these chinese speaker speaking researchers and developers are about six months behind the the chain tip like they are research chain tip. So no, there's still learning about things that we build this research for six months ago.

The reason for that because translation is slow and information dispersion is slow and there is a massive communication overhead, I think that's a problem, something we can improve in the theory um but I can imagine that uh for a later once, like sala, there are not only six months behind. They're like forever behind because there is no communication there. Let's go out to you so that a lot about neuk effects.

How does this plain about you? The vehicle is great. I love europe, but I really like sustainable vehicle because sustainable vehicle is even Better from my bags.

Um the frame shift that I want you guys to take here is think not what you should do for your lair one, but what your layer one can do for you. Stop saying lair tools should approve ID layer tues shouldn't do anything. This is a permissions list in network.

What we can do is provide a valuable service. Eat can generate value for lattice and exchange receive fees. So why sequences? What do I think sequencing is that valuable service? Uh, there's a few numbers that are publicly available.

More than one billion dollars of lyone MV has been extracted since the merge. This is a conservative estimate. Um I believe that the number is probably much closer to two billion dollars.

Central sequences who do a lot of signings in the theory um today more than their one or absolutely rolling in catch coin base makes more money than attarian quant funds pay millions of dollars for lower alliance cy in if you believe that finance and Price discovery will start taking place on the theory um minutes later years, then you have to um at least expect that such things will begin to happen on a theory as well. Sixteen value is child also scales with scale. So as a year, layer one scales up and IT gets Better and is able to facilitate more financial activity and just more activity in general.

And the sequences value will also scale. There's a newer k fact there as well. So this is where based world loop kind of android, the equation, I should have A A few images es to provide a definition if you want a real definition I gave a deficient talk on this bed.

Helps do execution extremely to a theory um and use a theory um for security and the sequencing. This is opposed to a centralize sequence, a roll up, but that does execution externally just like a based well um but also does signal externally but then uses a thim for security and of course, all of things. So here's what I think these properties end up looking like is how we like kind of fit these dig sop pozieres together.

We have based obtains or at least spacewalks, maybe special purpose um all using products services on the lair one sequencing obviously uh oracles like chain link and asset issuance like U S D C and native eth and L S. This is opposed to what we have today and probably will have for the next year. So which is a bunch of layer juice that have their own sequences, have their own oracles and have their own asset issuance, which is like pretty much the very different notion of brigantes because they all have their own liquidity too.

Well, we can change that. So I want to call this slide and game but um someone told me that trying not a good idea. I don't really think there are and games and crypto only very long ID games.

So i'm going to talk about today how we do this. So just want to read at this exporting a theory um sequences. The product that we just talked about that is incredibly valuable is called base sequencing, base roll ups or roll ups that use base sequencing as opposed to centralize sequencing or another form of decentralized sequencing.

So there are a few teams working on based rops teco wo some code that was forced by another mind to make surge and forked by popper finance make unified. Um there is a team, good nett who's kind of a part of teo as well under that umbrella, but they have their own code. Rise is also building a based rop hyperon best rob spire is building based and rogues building a based role in kind of the uh the purse form.

Um these three on the right are rise, spire and winner, and the three that I believe are building next generation based ups that have the potential to actually solve problems. So what do we get after all of this? Would I like to call harmony, which has this important sees me this important, important property, which is composed bly, seamless user experience and developer experience.

You cannot get a seamless developer experience with a synchronize composition body, only synchronous composition order. Once we have this, we have a seamless user experience, seamless developer experience. Yet we still have some orange applications, still have the ability to choose things about their, their are trained, right? They could chose to launch using a different day provider.

They could choose to change out of service providers. They have the ability to do that. They also have the ability to customize right and specialized all of human history.

We have learned that specialization leads to efficiency. So vid hopman said the fragmentation is sovereign. He would be creative.

Ly just changed regression to composition order, which what we're all trying to do with space rops. Now it's GTA live IT more specific, perhaps obtains are dead long live APP chains. I believe that APP chains are the only way to replicate a monographic user and developer experience.

While establishing infinite expressively obtains are the only way to get infinite expressivity because they give application the developers to customize everything right. This means things like your execution environment, your virtual machine, how you do gas fees at Better. So what happens to on lymph c change, what happens to what happens to monad? They die.

And there's a simple reason for that. Monolithic change can no longer be competitive on user experience, which will be Better on layer tues developer experience will be Better in the syrian based releve ecosystem or on scale we a lot Better on the later to ecosystem. Um layups have the superpower of parallel innovation where they can make progress using the unifying now work effective the theory um while doing independent tracks of research so we can go down in ten different research kind of pass on the text tory at one time, which is something a mono thick chain cannot do.

I am m team. I make the best based rops at vie lives. You can message me on twitter. It's my tour handle. You can email me stables.

Questions, questions who has got a question and we're got a question about a bed. I'll let go down there.

Oh, when men that when .

would be .

in proud? We so that's fire. Well, there's all a basis of of love in may. Net teco is live on main net.

My husband for the past few months, there is A A whole bunch of based all projects working towards the main that I don't know about the status of many of them and if I did that I can tell you um spire is what I know a lot about. We are live on teston with really excEllent composition order that is one way. So not full synergy ness composite book, but still very helpful, very valuable. And we are looking to get that in main us next year.

What does a main net look like if you are also not a single chain, your many, many APP chains, right? So how does that change? The idea may net right?

So first fire that means producing main at ready code that is used by applications um to build up chains that are on a theoria a minute and .

then our teams just be able like how well can I just freely use that code? The code open source.

not yet, but I will be when it's on minute. O K.

O K, cool. So they don't have to come talk to you.

Use your code. Well, I hope they do because will help them.

but they don't have good questions.

questions that we convince based to become best sequence the base network, how you convent apps base, base open to a we don't need to. So base is a platform and developed platform that offers its application developers services, right um like low blow times, low gas.

Is that to what base does not offer and I didn't not believe will offer in the the near future is MV that they give back to elders and they also don't give back congestion fees to build this. So if you build an apple and base, you are sacrificing some important things to coin base, right? Quite a bit of revenue.

In fact, an application developers really care about revenue. So our strategy is not let's go talk to Jessie and convit them to make a base, a base row up. Let's go talk to airdrome, right, and commits airdrome to be a base, rob.

And then coin base will realized we've lost all of our we've lost all of our users. We've lost all over apps. And then I believe that they will eventually run the reward analysis and become a based real op. That's a fierce online question.

That's one more earlier today.

we heard eric kind of asked the audience a question about fragmentation and player tools. Do you believe in that baseball lips will save the and if so, how? Yeah so using some technology that is um called coordinated proving or aggregated proving, we can get synonomous compose border between a theory um layer on and based rock.

So which is like the perfect solution to register ation, there is no more recommendation anymore. To get there we need ordinated sequencing, which is base sequencing that's one of the um requirements. And then we also need some scriptores phy. So um either fast tea validity proofs that can be a verified on chain, or fast we call real time sometimes esk briefs that can be verified on their one. We use all of these to do what we call shared deposits, kind of like polygon eglah, but not necessarily without branding and then use those to to essentially allow all s to compose with each other without ever touching a theory um or composed with a theory um as well or and I guess um and enjoy like compose bly perfectly synchro sly across all baseball PS material.

No more question and one more question. What last question?

Never move up on that? Yeah just question. How do you the M E V about the application? Great question. So the there's a few ways that we know of as researchers to understand how much MV is being captured because it's like not obvious from looking at the E V M. One of these is an auction and the other, this is like using the obligations, the sequences and like just kind of catching over that fact that we don't know the the way that spires specifically does IT non overthrows to this.

We run a auction to distribute what we call tickets, which are similar to execution tickets on lair one, but applied to the proposal of a layer two block instead of layer one block, you must burn a ticket to propose a layer to block unless um some some some circumstances where no ticket holders are available in the look ahead with technical itself, but basically something somewhere to execution tickets. We distribute tickets using an auction and then you need to burn when those things to propose block. So if you end up doing sequencing, you're giving else money.

I like one more question. One more question.

Thanks for a great presentation. Just to extend on the question from can who how you your advice developers to pick a chain to build on today, how do you on the fragmentation question, how would you advise a developer or a team to pick a chain to build on so they don't get paralyzed by trans? Choose one.

Yeah, great question. So today, developers are forced to choose between building on a lair one and building on their. In the future, that line will be blurred with based rops. I believe we're deploying on a based action, give you your own sovereign environments while still being like on a theoria by for all intensive purposes. Today, I would recommend that you build on base or some other high performance later to, and be very ready for a migration to a bed up once spire goes a minute.

Even more questions. I thought, I.

I want more hand, one more hand. Uh, what kind of future will make IT difficult for blow up the like? Firmly believe that there's a few as I amid as we like based roll up by or criticism tearless st. The number one was kind of aligning some of the different based roll up teams if I had to like being totally onest. I think the greatest risk to the success of bed relax is not the success of anything to do with based rops but rather to the success of a theoria like you believe in theory um you probably by extension believe in based rops. To sum degree, I believe that if base rops on a thorium failed, it's ninety percent chance that it's because if there's a one has failed um if you believe that all that neuro of ec stuff that I showed will leave and go to other because sims monsanto um then that is I think, the reason that baseball .

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