The next iteration of the network: AVS will bring Web3's trust mechanism to Web2.

Author: Sumanth Neppalli, Polygon Ventures

Compiled by: Yangz, Techub News

AVS (Active Verification Service) integrates the scale of Web2 with the trust mechanism of Web3, opening the next iteration of the network. This article will briefly outline the ecosystem of EigenLayer’s Active Verification Service (AVS).

While blockchain can settle transactions efficiently, it is extremely challenging to try to offload all computations to smart contracts due to the limitations of latency and throughput. Even Rollup solutions cannot fully meet the comprehensive needs of front-end hosting, oracle machines, databases, etc.

Smart contracts need to interact with the account layer and paying gas fees for each transaction can be expensive, so they must be carefully designed. Taking Uniswap as an example, its latest v4 version uses a Hook mechanism, which allows externally deployed contracts to provide highly customized functionality for liquidity providers and users, such as limit orders, dynamic fee structures, customized oracles, and TWAMM (Time-Weighted Average Market Maker).

The future of blockchain computing may be a hybrid architecture that separates computation and storage into a transient layer and a persistent layer. In this architecture, the blockchain serves as a persistent layer with high security guarantees, maintaining a shared state among multiple validators. Lower validator requirements ensure widespread decentralization, minimizing audits and protecting critical data such as transaction logs and identities. AVS introduces a transient layer maintained by a decentralized operator network that provides hardware such as GPUs, ZK validators, and solid-state drives. This operator network offers specialized services including execution engines, virtual machines, oracle machines, and distributed key generation.

Web2 relies on centralized cloud service providers for storage and computing, so it has lower security and is easily subject to censorship. Although AWS replicates data in different locations for redundancy, sensitive information such as bank accounts still needs government custody.

Unlike centralized cloud service providers, AVS services are supported by a subset of Ethereum operators who stake their cryptocurrency to prove their honesty and reliability. Even if the state of the temporary layer is compromised, user funds remain secure on the underlying blockchain layer.

The core promise of AVS is to provide Web3 trust guarantees for any computation, whether on-chain or off-chain. Its architecture supports verifiable cloud services and verifiable computing.

First is verifiable cloud services.

Versatus has launched a cloud service AVS called “Allegra” that provides anti-censorship, transparent infrastructure for dApps at 50% lower cost than traditional cloud service providers. These applications are hosted on the AVS node network, eliminating single points of failure.

In the future, we may very well see a new type of application that is different from traditional DApps that are entirely on-chain. Versatus has named it “Unstoppable Apps” and introduced a new framework similar to the familiar HTTPS standard.

Applications that require recommended information, such as decentralized social media, are now possible. AVS achieves this by supporting advanced algorithms that continuously update user feeds based on their browsing history, creating a dynamic experience when accessing on-chain media NFTs.

Do we need “trust” for such services?

Just as we expect quality of service from physical goods, the integrity calculation of software is also what we need. Unlike tangible goods with visible quality, trust in software depends on the intangible processes behind each function. The algorithms that affect our lives are actually lacking in transparency. Take the recently leaked Google Search Engine Optimization (SEO) algorithm as an example. Obviously, Google has misled the public in terms of web page rankings.

So, how high is the cost of this “trust”?

As we are still in the early stages, it is difficult to calculate the additional costs of operating AVS software. Sreeram Kannan, the founder of EigenLayer, estimated that achieving financial transaction security through encryption would require an additional 0.1% operating cost.

Apart from ‘trust’, the second key advantage of AVS is ‘verifiable computing’.

AVS Node network can perform off-chain computation with the support of encryption economy/ZK proof (usable as application input), which also provides the possibility for interaction with experiments and AI agents.

For example, the Hook mechanism of Uniswap v4 can be combined with a decentralized matching engine hosted on dedicated AVS nodes. This operator pool can efficiently match thousands of trade requests with counterparts, creating batch transactions settled on-chain.

AVS operators cannot steal user funds, they can only match transactions based on the intent defined by the user. This architecture allows operators to process intent, integrate AI-driven results, manage dark pools, and develop applications with variable fees, thereby enhancing functionality.

AVS provides a neutral, accessible, and unstoppable network service. It provides developers with a powerful node network that can handle any professional computing on demand, simplifying the development process without having to build from scratch. Currently, there are 1459 AVS operators and 16 AVS services. Among them, EigenDA ranks first with 264 active operators.

The possibility of AVS unlocking is very extensive, covering multiple areas. We divide it into 3 major categories, including:

• Verifiable Web2 Infrastructure
• Web3 Infrastructure
• Rollup Service

First, there are trustless Web2 services, including content delivery, key management, and decentralized computing, etc.

For example, Witness Chain uses the globally distributed AVS “Watchtower” service to provide location proof by analyzing network latency. Similarly, Mishti generates private keys from biometric technology through a set of distributed nodes, combines MPC and Threshold signatures with AVS, and provides smoother login measures and enhanced privacy protection. In addition, AVS is also changing decentralized computing and providing innovative technologies such as off-chain matching engines for traders. Cedro Finance is preparing to launch an AI agent layer that allows LPs to dynamically calculate the prices of CEX and DEX to provide timely liquidity.

Next is the Web3 infrastructure. AVS can power the fundamental principles relied upon by blockchain and Rollup. By ensuring the security of the DA layer, providing an Oracle Machine with ZK support, and deploying an easily integrable monitoring system, AVS can strengthen the Web3 ecosystem.

For example, in the decentralized verification process of Lagrange and Brevis, queries will be transferred to the off-chain AVS network for execution and verification, and then re-integrated into the contract. Another example is the innovative DA solution EigenDA developed inspired by the Danksharding roadmap, where AVS operators provide enterprise-grade solid-state drives for data storage, with storage speeds reaching as high as 10 Mbps in testing, and the goal is to reach 1 Gbps with more operators joining.

Finally, there is the Rollup service protected by AVS, such as cross-chain bridges, interoperability solutions, fast settlement layer, shared sequencer, and re-stake Rollup, etc. Currently, NEAR is developing a fast finality layer NFFL, using AVS to prove the state of Rollup across L2.

In summary, AVS is a transformative encryption economy layer on top of blockchain, enabling developers to build trustless applications using any programming language.