dWallet Network Partners With Espresso To Transform The Rollup Ecosystem By Auctioning Sequencing Rights
Decentralized, native multichain infrastructure startup dWallet Network said today it’s exploring the possibility of creating a new sequencing marketplace for Zero Knowledge Proof-based rollups on Espresso. The two collaborators are said to be working on ways to enable the auction of rollup sequencing time slots and even transfer control of an entire rollup to third parties, by leveraging dWallet’s Zero Trust Framework.
Sequencers on Layer-2 rollup networks such as zkSync, Loopring and StarkWare play a key role in processing transactions. They perform the task of creating blocks by ordering and processing transactions, before sending them to validators. Typically, most sequencers are operated by the rollups themselves, but in the decentralized world, this practice is not ideal, as it creates concerns over trust and centralization. As such, there’s a growing demand for sequencing to be outsourced, and this is where the partnership between dWallet Network and Espresso might bear fruit.
dWallet Network is the developer of dWallets, which utilize the cryptographic signatures that are the default authentication method of blockchains. From the network’s perspective, dWallet-generated signatures are indistinguishable from those of regular users. With its dWallets, Zero Trust Protocols can operate across any network without the need for a bridge, and it’s this capability that will enable the ownership of rollups to be transferred via the Espresso marketplace.
Under the proposed initiative, dWallet said it will deploy a Zero Trust Protocol in Espresso that’s able to transfer control of a rollup’s smart contract to the highest bidder. It’s an entirely novel auction mechanism that will enable the open market to dictate the value of the rollup economy, dWallet Network believes.
If the plan is implemented, Espresso will be able to connect sequencers (buyers) with rollups (sellers). Rollups may have a number of reasons to want to outsource sequencing, such as to increase decentralization or gain more value than if they were sequencing exclusively. Rollups will be able to set a minimum reserve price, and can either sell sequencing rights as “slots” that define a specified time period, or else sell their entire sequencing rights.
It’s an idea that could transform the rollup marketplace, enabling individuals or DAO’s to invest in rollups and establish more sophisticated ownership structures around them, dWallet Network said.
dWallet Network’s co-founder Omer Sadika said the partnership will introduce the possibility of selling an entire rollup for the first time, paving the way for a more dynamic and efficient marketplace around Layer-2 networks.
Espresso’s chief scientist Benedikt Bunz was even more excited, saying that dWallet’s ZTP could pave the way for an even broader vision that allows for entire rollups to be priced and transferred.
“We are excited to collaborate with dWallet to explore our shared vision of creating a better and more secure modular blockchain ecosystem,” he said.
dWallet Network and Espresso said they are optimistic that their partnership will eventually help to catalyze innovation and adoption of rollup technologies and create new possibilities for developers. Ultimately, they hope to provide the foundation of a more democratic and efficient rollup ecosystem that delivers richer, more beneficial experiences to end users.
