A Programmable Execution Layer with Shared State is Required

[phroi]

Hey @orange-xc, nice to talk with you once again

@orange-xc

2.1 State Channels

The first component is state channels. By constructing a complex network of state channels, many transactions can be completed with minimal on-chain settlement. This pattern is suitable for designing payment applications or turn-based games, for example.

I’d like to congratulate you on the prediction (come true) that state channels would come first to Nervos L1

@orange-xc

Firstly, an execution layer with shared state is essential for a modern blockchain system.

I’m well aware of how much time you already dedicated to this and how many shared-state models you proposed in the last few years, since you ask me to review some them and I happily obliged.

@orange-xc

As an ecosystem begins to thrive, issuing and trading new assets are the most fundamental requirements.

Many things together in a single statement, so let’s break it down.

@orange-xc

As an ecosystem begins to thrive

Let’s not kid ourselves, we have already a pretty decent base layer of protocols and standards, but it’s not thriving. Hopefully the upcoming channel tech (that you envisioned) will change this trend.

@orange-xc

issuing […] new assets […] fundamental

We are both well aware that Nervos L1 is already the best place for issuing assets. Any shortcoming in the current protocols can be improved by new standards and/or augmenting them with SSRI. See for example PausableUDT.

@orange-xc

trading new assets […] fundamental

For the current network activity, trading is a solved problem. For example:

• Most users use CEXs / trust-based exchanges (not DeFi, but still effective)
• UTXO Swap exists (not Open Source, but it has some usage)
• UDT Limit Orders exist (fully Open Source, but low usage)
• Fiber’s compatible UTXO Stack incorporates a swap mechanism
• RGB++ can be easily extended to connect base Nervos L1 to another UTXO chain which would provide a programmable execution layer with shared state, effectively using this second UTXO chain as a L2

Unless a well-defined niche-fulfilling need for a Nervos-developed L2 emerges (like Fiber or RGB++), we should stay clear of developing yet another failed L2. History of previous attempts proves this.

@orange-xc

Secondly, although solutions like OTX or Intent are feasible on CKB, they still struggle to meet numerous demands. After careful analysis and design of related methods, I have found that the difficulty and workload required to implement these solutions are not less than those needed to directly integrate an execution layer, and the user experience is likely to be inferior.

Agreed, but users generally don’t use/appreciate L2 (Unless this L2 is filling in a specific niche)

That said, special-purpose intent cells are not too hard to create and they are already employed on Nervos L1. All in all, until something better comes along, they fit well enough the requirements.

@orange-xc

Lastly, CKB itself is not intended to be a chain that serves all applications. This was anticipated at the initial design stage of the network. However, for a long time, the entire ecosystem has not fully committed to advancing this original goal.

Given this perspective, feels like Fiber is a step in the right direction. Axon was pretty interesting too, kind of a bummer that its development stalled.

That said, keep in mind that at high-level Nervos L1 is a distributed database with generalized transition rules and that Nervos L1 aims to be as decentralized as possible, so anything can be built on top, at the builders choice.

In this regard, as an independent builder, I would appreciate if all players in the ecosystem were to Open Source their techs, at the very least the implementation of what makes them decentralized. Otherwise, they are just proposing yet another centralized tech with DeFi marketing sprinkled on top.

Love & Peace, Phroi