How Rollups Will Decentralize Their Sequencer | Josh Bowen, Ben Fisch

Explicit content warning

05/02/23 • 72 min

Today we are joined by Josh Bown (Astria) and Ben Fisch (Espresso Systems) to discuss the role of shared sequencers in the modular future. Josh and Ben explain the risks of centralized sequencers, why rollups will use a shared sequencer and the core tradeoffs. What is the value proposition of a shared sequencer? How will MEV be allocated between rollups and sequencers? Why haven't rollups already decentralized their sequencer? We discuss these questions and more in this epic conversation!

Timestamps:

(00:00) Intro

(04:27) The Role of a Sequencer

(11:24) The Risks of Centralized Sequencers

(20:13) Using the L1 as the Sequencer

(23:12) Why Use a Shared Sequencer?

(34:56) Quicknode

(36:43) Kwenta

(37:40) The Tradeoffs

(40:35) Who will be the Sequencers?

(45:23) The AWS Analogy

(50:27) Economic Capture and Allocation Challenges

(58:28) How Block Times Impact Shared Sequencing

(01:01:12) Competition

(01:05:04) Restaking Risk and Timelines

Follow Josh: https://twitter.com/Jskybowen

Follow Ben: https://twitter.com/benafisch

Follow Jason: https://twitter.com/JasonYanowitz

Follow Santi: https://twitter.com/santiagoroel

Follow Empire: https://twitter.com/theempirepod

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This episode is brought to you by Quicknode. QuickNode is an end-to-end blockchain developer platform that makes building Web3 apps easy. Go to QuickNode.com and use code Empire for a free month on their feature-packed Build Plan!

This episode is brought to you by Kwenta, the premier derivatives trading platform on Optimism that offers deep liquidity, low fees and up to 50x leverage across 24+ assets. Go to Kwenta.io and start trading today!

Resources

Espresso Systems

https://www.espressosys.com/

https://twitter.com/EspressoSys

Astria

https://www.astria.org/

https://twitter.com/AstriaOrg

Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.

Timestamps:

(00:00) Intro

(04:27) The Role of a Sequencer

(11:24) The Risks of Centralized Sequencers

(20:13) Using the L1 as the Sequencer

(23:12) Why Use a Shared Sequencer?

(34:56) Quicknode

(36:43) Kwenta

(37:40) The Tradeoffs

(40:35) Who will be the Sequencers?

(45:23) The AWS Analogy

(50:27) Economic Capture and Allocation Challenges

(58:28) How Block Times Impact Shared Sequencing

(01:01:12) Competition

(01:05:04) Restaking Risk and Timelines

Follow Josh: https://twitter.com/Jskybowen

Follow Ben: https://twitter.com/benafisch

Follow Jason: https://twitter.com/JasonYanowitz

Follow Santi: https://twitter.com/santiagoroel

Follow Empire: https://twitter.com/theempirepod

Subscribe on YouTube: https://tinyurl.com/4fdhhb2j

Subscribe on Apple: https://tinyurl.com/mv4frfv7

Subscribe on Spotify: https://tinyurl.com/wbaypprw

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

Resources

Espresso Systems

https://www.espressosys.com/

https://twitter.com/EspressoSys

Astria

https://www.astria.org/

https://twitter.com/AstriaOrg

Previous Episode

Why Santi Bought SOL | Roundup

In today's episode, Jason and Santiago discuss why Santi is bullish on Solana. We start with a debate on how low liquidity creates wild volatility, BTC's correlation to the S&P and if shared sequencers are overhyped. This leads to a conversation on the MadLads mint, Santi's allocation to the Solana ecosystem, Circle's CCTP launch and more!

Timestamps:

(00:00) Introduction

(01:38) Low Liquidity Side Effects

(06:42) First Republic Bank & BTC's S&P Correlation

(019:46) “Valora Ad”

(20:45) Shared Sequencer Hype

(30:00) MadLads Mint

(34:01) Why Santi is Bullish on Solana

(41:45) “Crypto is Dead”

(44:16) Base’s Adoption, Franklin Templeton & CCTP launch

Follow Santi: https://twitter.com/santiagoroel

Follow Jason: https://twitter.com/JasonYanowitz

Follow Empire: https://twitter.com/theempirepod

Subscribe on YouTube: https://tinyurl.com/4fdhhb2j

Subscribe on Apple: https://tinyurl.com/mv4frfv7

Subscribe on Spotify: https://tinyurl.com/wbaypprw

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

This episode is brought to you by Valora. Valora is a self-custody, mobile-first wallet... and the easiest way to send, swap, collect and purchase digital goods on the Celo blockchain. Download the app and start exploring today at valoraapp.com/empire.

Resources:

1000x Episode

https://spoti.fi/41VjYPU

Frank Templeton fund

https://bit.ly/446T09Q

Director of Podcasts application

https://jobs.ashbyhq.com/Blockworks/adb7324a-0635-4dbc-ac40-aec73474daad

Empire Multicoin episode

https://spoti.fi/3AxlrQP

Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.

Next Episode

Blend: Unlock The Value of Your NFTs | Pacman, Blur

Today we are joined by Pacman to discuss Blend, Blur's new perpetual NFT lending platform. Blend is peer-to-peer, doesn't require oracles and offers non-expiring loans. Pacman explains how these mechanics work, why Blend focuses on institutional liquidity provision, borrower liquidation risk and more! Blend could be the NFT primitive that ignites the next NFT run - you don't want to miss this one.

Timestamps:

(00:00) Introduction

(00:10) Blend: A Peer-to-Peer Lending Platform

(07:30) How Refinancing Auctions Work

(22:27) Institutional Liquidity Provision

(30:15) Strategies, Market Inefficiencies & Adding New Collections

(38:09) The Yield Curve and User Preferences

(45:28) Catering to Consumers vs Professionals

(52:44) Liquidation Coordination Risk

(55:36) Lending Incentives

(58:46) Blur’s Roadmap

(1:06:01) Infrastructure Unlocks Economic Value