How Espresso Aims To Solve The L2 Fragmentation Problem
How Espresso's Sequencing Marketplace and Fast Finality Camn Simplify Cross-L2 Coordination
Welcome to Episode 7 of EigenLayer Unlocked, where we’re exploring the concept of cross-chain composability -- and in particular, the fragmentation of the modular ecosystem.
This is the key to unlocking the full vision of Ethereum's rollup-centric roadmap facilitating coordination between different chains, and Espresso is at the forefront of making it happen. Robbie had a very technical conversation with Ellie, a researcher and engineer at Espresso, who shared insights into how their protocol is addressing one of the modular ecosystems biggest challenges: bringing true composability to rollups and app chains.
Espresso’s approach centers around a sequencing marketplace and a fast finality layer. These two products enable different rollups to coordinate sequencing without sacrificing their sovereignty. Rollups can sell their sequencing rights through a combinatorial auction, allowing them to maximize revenue while still maintaining control over their operations.
The addition of EigenLayer’s restaking mechanism further enhances this process, simplifying sequencing while leveraging Ethereum’s strong economic security for guarantees.
Fast finality is another key feature of Espresso, reducing latency for cross-chain transactions. Their consensus protocol, Hotshot, ensures transactions are finalized in less than four seconds, providing strong guarantees for atomic cross-chain operations without waiting for Ethereum settlement.
Espresso’s marketplace also ensures that sovereignty is preserved by redistributing auction proceeds back to the rollups (if you watched the ASS podcast, then you know we are extremely bullish on redistributing this to apps). Rollups can set floor prices to ensure they’re always getting the revenue they deserve, even if they opt to sequence themselves.
This piece will give you a detailed look at how Espresso is rethinking composability and making appchains a more viable option in the current semi-isolationist reality we live in onchain today.
Enjoy.
The Rollup