The Golden Triangle of the ideal Execution Layer

In the modular blockchain world, the unbundling of formerly monolithic structures has led to the separation of a blockchain into different layers:

• Consensus Layers
• Settlement Layers
• Security Layers
• Data Availability Layers
• Execution Layers

Our exclusive focus is on creating the world's best Execution Layer.

In everything we do, we strive to perfect each of the three main elements of a perfect execution layer.

At its core, the ideal execution layer combines and continually perfects three key elements:

$$ INTEROPERABILITY ∧ PERFORMANCE ∧ FLEXIBILITY $$

Interoperability

• Liquidity, or more broadly, data, flows as freely as physically possible within the execution layer.
  • Goal: Progressively minimize the friction in communication between Smart Contracts within the execution layer.
    • No bridges are used within the execution layer.
    • The cost for communication between Smart Contracts within the execution layer has to be as low as possible.
• Why?
  • Interoperability creates network effects
    • Network effects are essential for a functioning blockchain economy
    • Liquidity gives life to each web3 application
• How are we solving it today?
  • Cross-VM-Calls
    • Smart Contracts regardless of the VM they are running on can communicate with each other natively
      • Achieved through our Blockchain Management System (Metacontract)

Performance

• Measurement should be split into multiple different indicators

  • Gas Cost (TX costs)
  • Full finality speed
  • Speed of block production
  • Propagation Latency
    • The ideal system:
      • Instant “soft commitments” or “receipts”
        • Feature to cancel TXs at no costs (CEX-like)
    • The lower the network’s latency is, the wider the spread on on-chain DEXs, the less attractive it becomes for traders
      • Because low latency is riskier for MMs to place orders, so they adjust that risk by widening the spread on an OB
  • How does our system perform today?
    • up to 100 TPS

  Working towards >1k TPS through Optimistic Parallel Execution

• Performance attracts more users and projects

  • Low performance can lead to absolutely no traction as it becomes economically infeasible to use a chain
    • Even if flexibility and interoperability are achieved

• Execution Layers can live on performance alone but not on interoperability and flexibility

  • Therefore performance is the underlying element which has to be ideal otherwise no one will ever use a chain in the long run