How does Nuffle Labs contribute to the modular ecosystem?

Compiled by: Felix, PANews

On June 13, the NEAR Foundation established Nuffle Labs, which was renamed Nuffle Labs from NEAR Modular and received US$13 million in funding. The fundraising also includes external investors including Electric Capital, Canonical Crypto, Fabric Ventures, Robot Ventures, Caladan and Lyrik Ventures. NEAR core contributors and Ethereum builders are building two services in Nuffle Labs:

• NEAR DA
• Super Fast Finality Layer (SFFL)

How does Nuffle Labs contribute to the modular ecosystem?

Overview

NEAR DA: rollups can take advantage of NEAR Protocol’s sharding architecture to publish data.

SFFL: AVS is on EigenLayer, meaning it relies on EigenLayer for cryptoeconomic security. It provides faster block finality for various protocols.

NEAR DA

Thanks to NEAR Protocol’s Nightshade Sharding, NEAR Protocol can act as a scalable DA layer for rollups. Major frameworks and RaaS such as Arbitrum Orbit, Polygon CDK, AltLayer, and Caldera have integrated NEAR DA.

Nightshade Sharding

Nightshade Sharding architecture is similar to Ethereum’s danksharding, with a single network consisting of smaller parts (such as blocks). This novel architecture facilitates cross-shard communication and scalable DA.

Performance of NEAR DA

NEAR DA is one of the most scalable data processing layers, compared to Ethereum, Celestia, etc. Delivers unparalleled performance and cost efficiency. If you simulate the year-to-date cost of Arbitrum DA:

• Ethereum: ~$20 million
• Celestia: ~$3000
• NEAR DA: ~$45

Fragmentation problem

The following is a brief analysis of Nuffle’s next product. There are so many rollups on the market today, meaning state and liquidity dispersion are definitely issues that need to be addressed. To solve this problem, fast finality is needed.

SFFL

SFFL provides faster block finality for various rollups. The rollup should publish the data to NEAR DA, but the repeater (not the sorter) will do the job, so no modifications to its sorter are needed.

Since SFFL is AVS, its security level relies on the re-pledged assets on EigenLayer.

Basic concepts of SFFL

How to end SFFL quickly? it's actually really easy.

SFFL Operators (AVS Operators) check whether the data from the rollup full node is the same as the data from NEAR DA, and then sign it. If the aggregator reaches the required quorum, finalize quickly.

Now rollup can easily check the validity of its rollup through the SFFL layer.

Final Thoughts

In the author’s opinion, NEAR Protocol is now no longer just an L1 blockchain. NEAR Protocol has evolved into a modular stack that enhances the modularity of the Ethereum ecosystem. Nuffle will provide a benchmark for NEAR x modular integration.

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