EigenLayer is a new Ethereum blockchain protocol that lets users "restake" their already staked Ether (ETH). This means ETH used for securing Ethereum can also secure other protocols without needing to unstake.
What is Eigenlayer
Here's how it’s works:
- Restaking: You can use your staked ETH to provide security to both Ethereum and other protocols. This was not possible before, as ETH could only secure one thing at a time.
- Smart Contracts: EigenLayer uses smart contracts on Ethereum, allowing ETH stakers to agree to extra rules (slashing conditions) for their staked ETH. This extends Ethereum's security to new areas.
- Solving Fragmentation: Ethereum has a problem where trust (security) and innovation (new protocols) are separate. This makes it hard for new ideas to be secure and slows down progress. EigenLayer lets all kinds of new projects use Ethereum's security, even if they're not built exactly for Ethereum.
- Benefits: Stakers can earn more by securing multiple things. Plus, new Ethereum technologies can be tested here before they become official.
- Uses: EigenLayer can be used for many things, like MEV-Boost, data layers, oracles, and more.
- Opt-in and Risks: It's your choice to use EigenLayer. There are new risks, like different rules for losing your ETH, but EigenLayer explains these well.
In summary, EigenLayer lets your ETH do more by securing multiple projects, helping Ethereum grow and stay strong.
Team of Eigenlayer
Sreeram Kannan
CEO
He is the founder of EigenLayer. He was a professor at the University of Washington, and he is also the director of the UW Blockchain Lab, which teaches topics on blockchain technologies.
Chris Drury
COO
Chris Drury is the COO of EigenLayer. He’s had extensive Management Level experience at Amazon as a General Manager and Director of Amazon web services (AWS) where he has led teams of 100+ engineers, product managers, designers, and marketers
Funding of Eigenlayer
$100,000,000
Series B
Investors include: Andreessen Horowitz (a16z).
$50,000,000
Series A
Led by Blockchian Capital. Other investors include: Coinbase Ventures , Hack VC , Polychain Capital, Electric Capital.
$14,500,000
Seed
Led by Polychain Capital and Etheral Ventures. Other investors include: Robot Ventures, Figment Capital, dao5, P2P Validator.
Eigenlayer review
Pros
Permissionless Innovation
EigenLayer facilitates new distributed validation modules without needing a separate trust network. This openness invites a wider range of ideas and participants.
Robust Security
Utilizing ETH restakers, EigenLayer capitalizes on Ethereum's security, safeguarding against malicious activities and building trust.
Decentralized Validation
The system operates without central authority, distributing validation and enhancing resilience and resistance to censorship.
Cost Efficiency
Innovators save on costs linked to building trust networks, allowing them to focus more on core innovations.
Scalability
EigenLayer's design supports the validation of numerous transactions, crucial for meeting the increasing demands of blockchain applications.
Ethereum Interoperability
Compatibility with the Ethereum network ensures smooth integration and collaboration within the Ethereum ecosystem.
DApp Development
The platform supports building middleware services and decentralized applications, offering developers more opportunities to innovate.
Cons
Potential Centralization
The reliance on ETH restakers could lead to centralization if few entities control a significant portion.
Dependence on Ethereum
EigenLayer's functionality is closely tied to Ethereum's performance and developments, which could limit its efficiency in case of Ethereum's issues.
Customization Limits
Innovators might face restrictions in customizing validation processes to suit specific needs, potentially narrowing application possibilities.
Regulatory Risks
The evolving regulatory landscape could impact the adoption and development of EigenLayer, posing a challenge to its growth.