Explain Eigen Layer | A Restaking Primitive

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In simple terms, Eigen Layer is a new layer being developed on top of the Ethereum blockchain to create an ecosystem similar to Cosmos and Polkadot :grinning:

Before Ethereum, it was not possible to launch decentralized programs on the Bitcoin blockchain, so researchers were looking for a new blockchain infrastructure where people could take security and block space to launch their crypto projects :innocent:

When Ethereum was launched in 2015, it became the first blockchain with smart contracts and allowed for the creation of new crypto projects on top of its blockchain :dizzy:

However, with the growth in demand for Ethereum’s security and block space, the chain started to jam due to ICOs and Crypto Kitty games :boom:

In response, layer two systems were built on top of Ethereum to help with scalability and fees, but they still struggled to compete with Ethereum :wave:

During the crypto market crash of 2022, the market for Ethereum colors collapsed, leading to a domino effect on other market players and businesses :crossed_swords:

However, Ethereum’s Layer 2 ecosystem projects attracted significant capital during the bear market, and investors began to prefer Ethereum due to its stability :earth_africa:

Eigen Layer is being developed to consolidate the market capitalization of all Ethereum companies and provide required services without creating unnecessary layer 1 or layer 2 chains :blue_heart:

Experts in different fields can provide specialized services in the crypto ecosystem, such as providing capital for a DEX or building bridges, rather than creating their own unnecessary layers :upside_down_face:

In the next bull run, the focus will be on application-specific models, and Eigen Layer will play a significant role in creating the foundation for these models :sunglasses:

Eigen Layer | A Restaking Primitive
Eigen Layer | A Restaking Primitive557×557 21.9 KB

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what is eigenlayer??

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I think that this is the most pressing problem for the protocol - it needs to answer what is it really for, and why would users want to use it! The website tends to use very technical language, and frames this in a way that is very degen (“just try it!”), or self-reliant on a deep dive (ie. DYOR, but where do users look?). Pushing people to read the white paper is a little harsh (as seen in the forum), as this is too over-complex for most users (as we can see, even most early adopters in these forums). Upfront, I think that the CTA on using this protocol needs a fairly major rejig. The UI isn’t a problem (in fact, it’s really pretty easy to use), but users will need to have - embedded in the front end and info/instructions - a lightweight model of what the systems is for, what it performs technically, why they might want to use it, and what investment value it will bring to their DeFi portfolio.

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good job go ahead. very good project

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https://forum.eigenlayer.xyz/t/what-is-eigen-layer-in-simple-terms/169?u=0xasharib

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Eigen Layer is going towards the mainnet stage, you’ll understand it, until you can try out the current ongoing testnet also and they’ve explain everything else on their website.

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do you like this project? @gauravmobile :grin:

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https://forum.eigenlayer.xyz/t/explain-eigen-layer-a-restaking-primitive/221/3?u=2isabellam2a

Wow! Interesting!

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Hello! very happy to be part of this community :smile: :smile:

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Future product…can’t wait to see it on etherum blockchain

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Nice tagline eigenlayer

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In response, layer two systems were built on top of Ethereum to help with scalability and fees, but they still struggled to compete with Ethereum :wave:

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During the crypto market crash of 2022, the market for Ethereum colors collapsed, leading to a domino effect on other market players and businesses :crossed_swords:

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Experts in different fields can provide specialized services in the crypto ecosystem, such as providing capital for a DEX or building bridges, rather than creating their own unnecessary layers

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Welcome @romaniaferp! Glad to see you!

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revisiting this thread a bit late but i’ll give it my shot:

the way I see it, EigenLayer is creating a raw market for decentralized trust. What that means is that Ethereum’s consensus is being commoditized in a way such that the capital being used to secure the network is now able to be levered across other modular networks.

One of the biggest issues for small PoS chains is that they are only as secure as the value of their staked assets. With low-value staked chains, it doesn’t take much capital for nefarious actors to step in and cause some serious harm to the chain through 51% attacks or validator re-orgs. Ethereum has billions of capital at stake, which makes it an extremely sturdy permissionless protocol to build on. In a way, Ethereum increases its monetary premium the more capital gets staked.

What EigenLayer does is allow existing Ethereum validators to “re-stake” their capital to secure other networks - thus introducing some sort of leverage in Ethereum’s security. It might sound scary at first, but the idea actually works since the validator must agree to increased probability of slashing if it is to boost yields by securing smaller chains.

The largest upside of EigenLayer is that the shifting narrative for application-specific rollups and L2s is actually enhanced, given that these builders no longer need to concern themselves with setting up and recruiting their own validator sets. Instead, they can tap into the raw public market for Ethereum economic security, thus, freeing up builders to focus more on PMF rather than making sure their new L2 / appchain is actually secure.

Hope this helps :slight_smile:

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https://forum.eigenlayer.xyz/t/what-is-eigen-layer-in-simple-terms/169?u=labdogeth
Nice explanation. We need more people to understand Eigenlayer

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