Decode Puffer UniFi: Based Rollup will reconstruct the future order of ETH Ethereum L2

Based Rollup is a dynamic rebalancing of Ethereum's scalability, security, and Decentralization triangle.

Source: Puffer

With the rapid expansion of the Ethereum Rollup ecosystem, issues such as liquidity fragmentation and inefficient cross-chain interaction are becoming increasingly prominent. Based Rollup, which aims to return transaction ordering rights to the Ethereum mainnet and solve the 'island effect' of Rollup, has been widely regarded as a new path to promote the Ethereum ecosystem from 'fragmented competition' to 'collaborative win-win'.

In this context, as a pioneer in the Based Rollup field, Puffer's Puffer UniFi integrates Liquid Rollup Token (LRT) and UniFi AVS (Advanced Verification System) to provide developers with a decentralized and highly compatible Based Rollup solution.

As early as November 7, 2024, Puffer UniFi officially launched the UniFi internal test service for developers. The second phase of the UniFi testnet public version will also be released soon, which also marks that the Ethereum ecosystem is gradually moving from fragmentation to interconnection, and moving towards a new stage of more collaborative development.

Based Rollup: Ethereum's self-correcting technological leap

L2BEAT data shows that there are currently over 50 Ethereum Rollup Layer 2 solutions, making it one of the most prosperous tracks in the Ethereum ecosystem. However, with the expansion of Layer 2 solutions, the problem of liquidity fragmentation caused by independent sequencers and cross-chain delays between chains is becoming increasingly severe.

For example, seamless interaction of funds and contracts between different Rollups is not achievable, developers must bet on one or more L2s to attract customers, and users frequently transfer assets dynamically between multiple L2s, this process not only increases the complexity of user experience and development process, greatly limits the efficiency of funds, and severely restricts the overall development of the Ethereum ecosystem.

In the final analysis, the core factor that causes the fragmentation between these L2s lies in the fact that each L2 has its own centralized sequencer. Therefore, Based Rollup, characterized by 'L1-Sequenced', becomes a completely new solution.

Return the power of transaction ordering to the Ethereum mainnet, all Rollup application chains share this set of decentralized ordering infrastructure, and all transactions are sorted and packaged through the Ethereum mainnet.

Therefore, the core advantage of Based Rollup is the realization of complete Decentralization, and it inherits the liveliness of the Ethereum mainnet. This means that funds can be directly withdrawn from Rollup, and smart contracts on different Rollups can interact seamlessly because they are all sorted through the mainnet. This fundamentally eliminates the island effect of funds and user groups.

From this perspective, Based Rollup is also an important step in knocking down the high wall of Ethereum L2, and is expected to restore the interoperability and composability between L2 and L2, L2 and L1. Users will experience seamless interaction like a single chain, and developers can build highly interconnected application ecosystems. The capital efficiency and network effects of Ethereum can also be maximized.

As a "Ethereum Decentralization Infrastructure Provider", Puffer has also launched its own Based Rollup development stack based on UniFi AVS. On the one hand, it aggregates and re-pledges node resources through Puffer LRT to reduce the threshold for node participation and provide a Decentralization sorter cluster. On the other hand, UniFi AVS can also achieve millisecond-level transaction confirmation delay with TEE hardware acceleration.

In particular, Puffer achieves atomic composability with the Ethereum mainnet using its TEE-Multiprover technology—all cross-L2-L1 operations can be included in a single transaction under millisecond-level low latency, ensuring either complete success or complete failure.

For example, users can invoke multiple contracts on the same transaction to complete complex cross-chain financial operations, while avoiding the uncertainty of intermediate states. This unlocks use cases such as efficient arbitrage, flash loan refinancing, and instant settlement, bringing direct economic benefits to developers and users.

The Value of Puffer UniFi's Ecological Reconstruction

From a product perspective, re-staking is just the starting point for Puffer. The ultimate mission of Puffer is to break the fragmented state of the Ethereum ecosystem through the Based Rollup architecture, and Puffer LRT and UniFi AVS provide UniFi with complete tools and technical support - L1 validation/sorting/re-staking nodes, pre-confirmation mechanism, etc.

Building on this, Puffer deeply integrates Puffer LRT and UniFi AVS into the development stack of Based Rollup, empowering developers to quickly build Based Rollup application chains with strong interoperability and highly Decentralization characteristics, which not only provides an effective path to solve the existing Rollup L2 bottlenecks, but also opens up new collaboration and growth models for developers and projects.

First of all, the application chain architecture based on Puffer UniFi eliminates the reliance on traditional centralized sorters, greatly reducing the operational burden and technical costs for developers:

• Simplified on-chain management: Developers can focus more on application development without the need for complex sorter infrastructure maintenance;
• Lowering the entry barrier: Start-up projects and small and medium-sized teams can quickly join the ecosystem, build their own application chains, and further stimulate the innovative vitality of the Ethereum ecosystem;

Secondly, Puffer UniFi allows developers to deploy their own application chains and directly capture a portion of the value generated by transaction fees (Congestion Fees in the figure above), thus creating a new incentive mechanism for the ecosystem.

After all, these profits are a self-retained land, which can be used to subsidize users and liquidity incentives, as well as a source of income for the project itself, further supporting marketing, drainage, and product development within the ecosystem. This economic autonomy enables the project party to more flexibly balance ecosystem expansion and its own profit goals, forming a virtuous cycle.

In this ecosystem, Rollups are no longer zero-sum competition, but achieve win-win through sharing resources. This means that latecomers can also quickly open up promotion opportunities at a low cost by leveraging existing mature user communities. At the same time, this economic autonomy is expected to stimulate project teams/developers to fully exert subjective initiative, form a self-generated ecosystem based on UniFi, and achieve large-scale application scenarios and breakthroughs in adoption.

Conclusion

Based Rollup is a dynamic rebalancing of Ethereum's scalability, security, and Decentralization triangle.

So the finality of Rollup is not an "isolated universe" of infinite forking, but a "unity in diversity" achieved through the Ethereum mainnet as the anchor of trust, using the Based Rollup architecture.

And Puffer UniFi, as the engineering practice of this vision, is providing a standardized toolset that balances efficiency, security, and collaboration for developers, users, and the entire Ethereum ecosystem, and with the addition of more application chains in the future, a seamless and value-free flow of the Web3 super ecosystem may accelerate arrival.