Modular March EP 15: Where Espresso Fits In The Modular Thesis

A truly fascinating conversation about cryptoeconomic incentive models


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gmodular:

We really enjoyed this presentation.

While we’ve had multiple shared sequencers talks on Modular March, each one has been far different. Today’s deep dive is around the game theory and incentive designs behind creating a rollup ecosystem which feels completely seamless and interoperable.

At its core, Espresso leverages a two part system to enforce how transactions are ordered and finalized across rollups via its sequencer. This system mirrors Ethereum’s, but with a twist, aiming to streamline interactions between different rollups and thereby improve user experience significantly.

We discussed the based sequencing approach, their auction & lottery mechanism, and where Espresso fits in the broader modular thesis.

While we are bullish on Espresso (and Ellie is amazing), we didn’t let their vision go untouched so to speak. There were areas where we pushed back around the incentive designs and whether or not this would actually work in practice. We also tried to understand why potentially making things more complex is really the solution for scaling the modular L2 landscape. Also, if Espresso is another chain with trust assumptions, what tradeoffs does that bring for rollup operators?

Finally the big question…Will rollup operators really want to use Espresso if it could cause a big revenue reduction? Ellie flipped that narrative on its head, ever so graciously. She helped us understand how Espresso works under the hood and answered our questions.

We were impressed and left feeling extremely optimistic on shared sequencing.

Happy April Fools Day (no jokes here, yet!) & let’s have a great week!

The Rollup


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