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Tag: layer 2

  • Scroll Token Airdrop Guide: Beta Testnet LIVE NOW!

    Scroll Token Airdrop Guide: Beta Testnet LIVE NOW!

    Zero-knowledge rollups (ZK-rollups) could be one of the strongest performing sectors in 2023, as demand for Ethereum scaling solutions is increasing. As such, Scroll is another highly anticipated ZK-rollup project that has recently hinted at a token airdrop. On 3rd July 2024, Scroll completed the Curie upgrade to its mainnet. As the potential for ZK-rollups is massive this year, this is a good opportunity for you to earn free airdrop rewards.

    If you are interested in other trending ZK-rollup projects, zkSync and StarkNet should definitely be on your watchlist.

    Scroll Airdrop Step-by-step Guide

    Here’s how to position yourself for a potential Scroll airdrop:

    1. Add Scroll Alpha Testnet to MetaMask
    2. Claim Goerli ETH from Goerli Faucet
    3. Bridge Goerli ETH to Scroll L2
    4. Bridge Scroll L2 to Goerli
    5. Send ETH to another wallet using MetaMask
    6. Interact with Scroll Ecosystem
    7. Use Scroll Alpha on Aave
    8. Use Scroll Alpha network on SyncSwap
    9. Interact with Izumi Finance
    10. Perform swaps and add liquidity using Symbiosis
    11. Get Scroll Guild roles
    12. Collect the Scroll Origins NFT

    See below for more in-depth details!

    What is Scroll?

    Scroll is developing a ZK-rollup that is fully compatible with the Ethereum Virtual Machine (EVM). Their proving system supports the direct verification of an Ethereum block with a single, concise proof. This means much faster Ethereum transaction finality and less gas fees.

    How Does Their ZK-Rollup Work?

    The concept involves verifying the accuracy and completeness of each operation code in the EVM execution trace. As a result, layer-1 smart contracts can be easily transferred to Scroll. Instead of incorporating new ZK-specific features, they will take a different approach by supporting the native EVM with tailored optimizations. This gives them a significant advantage as they can work seamlessly with all existing Ethereum systems without the need for any modifications.

    Layer-2 Proof Outsourcing

    Scroll also aims to establish and standardize the outsourcing of layer-2 proofs, which streamlines rollup processes. They have created a strong outsourcing system that motivates rollers to produce zero-knowledge proofs for them. They will standardize this approach to accommodate a wider range of off-chain computations. This will create a new proof market.

    Another benefit for developers is that they can deploy complex contracts on Scroll without worrying about gas limits. This opens up many new possibilities for off-chain applications with on-chain proofs.

    Key Takeaway of Scroll’s Proof System

    Based on the two points mentioned above, Scroll is a hierarchical zero-knowledge proof system. The first layer will be optimized for prover efficiency, utilizing custom circuit optimization and hardware-friendly proving algorithms. The second layer will be optimized for verifier efficiency, featuring succinct proofs and verification algorithms that are compatible with the Ethereum Virtual Machine (EVM).

    This proof system has the potential to support larger programs than the EVM and offer additional features such as privacy, surpassing the capabilities of existing solutions.

    Who is the Team behind Scroll?

    Scroll is co-founded by Sandy Peng, Ye Zhang, and Haichen Shen. Peng has rich experience in business development, project strategy and data curation. On the other hand, Zhang and Shen are experts in computer science, open-source protocol engineering, and cryptography. Shen, in particular, previously worked for Amazon as a senior applied scientist on AI compilers.

    In April 2022, Scroll successfully raised $30 million in a Series A funding round led by Polychain Capital and Bain Capital Crypto, with participation from Robot Ventures and Geometry DAO. As of now, their team has at least 20 people across the globe who are experts in zero-knowledge cryptography and distributed systems on blockchain technology.

    Does Scroll have a Token?

    Scroll does not have a token yet. According to their roadmap published on Discord, they mentioned that they are creating an incentive mechanism to encourage participation in the network. They also have a Scroll Marks system which rewards participation and engagement in the Scroll ecosystem. This strongly indicates that there will be a token coming soon, and airdrops will be rewarded for early users.

    How to Get the Potential Scroll Token Airdrop?

    Here is our step-by-step guide on how to get the potential Scroll token airdrop

    1. Add Scroll Alpha Testnet to MetaMask

      Go to the Scroll Alpha Testnet portal, and add the L1 and L2 configurations to your wallet.

      Add the Scroll Alpha Testnet to Metamask- the network configuration details are here. If you have added the Pre-Alpha Testnet network before, you will need to remove it from your MetaMask before proceeding. Afterwards, reset MetaMask for Scroll’s L2.

    2. Claim Goerli ETH from Goerli Faucet

      In case you haven’t added the Goerli network to your MetaMask, you can do it via ChainList.

      Now, you will need Goerli ETH on your wallet. Request them at any Goerli faucets such as Alchemy or Goerli PoW.

    3. Bridge Goerli ETH to Scroll L2

      Use the Scroll Bridge to transfer testnet ETH tokens from Goerli Testnet to Scroll Alpha Testnet. The transaction will take around 10-15 minutes.

      You can check your transactions on the Scroll Rollup Explorer.

    4. Bridge Scroll L2 to Goerli

      While on the Scroll Alpha Testnet network, you can also do the reverse of step no.3 i.e. bridge your testnet ETH tokens back to the Goerli Testnet.

    5. Send ETH to another wallet using MetaMask

      Send ETH from one wallet to another on the Scroll Network using Metamask.

    6. Interact with Scroll Ecosystem

      Scroll has a large ecosystem of projects. Interacting with them generates on-chain evidence that can help you qualify for a potential airdrop. Some examples include Aave, Syncswap, Izumi Finance and Symbiosis (see below). Here’s a list of the Scroll ecosystem projects.

    7. Use Scroll Alpha on Aave

      Connect your wallet to Aave, then click the settings button on top right hand corner and turn on Testnet Mode. Then, click the down arrow on the left hand side and choose “Scroll Alpha” for the Aave Testnet Market. Finally, supply and borrow some tokens such as ETH, DAI, USDC and USDT.

    8. Use Scroll Alpha network on SyncSwap

      Connect your wallet to SyncSwap and choose the Scroll Alpha network on the top right hand side. Click on “Faucet” and “Claim now” to get testnet tokens. Note you will need ETH to cover gas fees. Perform some swaps on the “Trade” tab, add liquidity to some pools on the “Pool” tab and remove part of the liquidity.

      SyncSwap may also be doing its own $SYNC token airdrop! Learn more here!

    9. Interact with Izumi Finance

      Connect your wallet to Izumi Finance. On the “Swap” tab, swap between tokens such as ETH, USDT, WETH, USDC and IZI. Then, go to the “Pro” tab to access their exchange. On the exchange, make some limit orders. Finally, click on “Liquidity” and add liquidity.

    10. Perform swaps and add liquidity using Symbiosis

      Perform swaps on Symbiosis exchange. Also add liquidity to their Liquidity Pools. Remember to do this with Scroll tokens only! You can tell which tokens are Scroll tokens since they will have the 📜 emoji on them.

    11. Get Scroll Guild roles

      Go to the Scroll Guild Page. Connect your wallet, Discord and Twitter accounts. Complete the tasks to earn guild roles.

    12. Collect the Scroll Origins NFT

      Scroll Origins is an NFT mint launched by Scroll to celebrate their earliest builders. To be eligible, you must deploy a smart contract to Scroll Mainnet within 60 days of 10th October 2023 at 6:00am GMT. Then, you will be eligible for 1 of 3 NFTs based on the deployment date (before 9th and 24th November, and 9th December 2023 respectively). Your NFT will be a better rank if you deploy earlier! The Scroll Origins NFT can be claimed on the Scroll website from 15th December 2023 onwards.

      To deploy a smart contract to the Scroll Mainnet and be eligible for the Scroll Origins NFT, you must first bridge funds from Ethereum Mainnet to Scroll mainnet here (this is for gas fees when deploying the smart contract). Then, create your own token by going here and selecting the “ERC-20” tab. Choose a name and ticker symbol for your token. Under “Features”, select “Mintable” and at “Access Control” select “Ownable”. Then, click “Open in Remix” on the upper right-hand corner. On the new window, click on “Solidity Compiler” (the two arrows button on the left sidebar) and see if there is a green tick next to it. Afterwards, click the blue “Compile contract” button and the “Deploy and run transactions” button (this is the button showing the Ethereum logo with an arrow). Under “Environment” click on the drop-down menu and select” Injected provider-MetaMask”. Your MetaMask wallet will then pop up, log in and make sure you are on the Scroll Mainnet. Back on the webpage, paste your wallet address next to the “Deploy” button and click. Confirm the transaction when prompted to on MetaMask.

      To check you have correctly deployed the smart contract, go to https://scroll.io/developer-nft/check-eligibility and check your eligibility for the NFT. If you are eligible, you will be told so and asked to come back on 15th December 2023 to claim it.

      Here are the 3 Scroll Origin NFTs you can expect to get based on the smart contract deployment date: (1) Quintic: Before 9th November; (2) Quartic: Before 24th November; and (3) Cubic: Before 9th December.

    13. Participate in Scroll’s Session Zero

      To participate and be eligible for Scroll’s Session Zero, bridge $ETH or $wstETH via Scroll’s native bridge or STONE Bridge using LayerZero to Scroll. You will earn Scroll Marks for holding specified assets on Scroll. Those who have spent more than US$5 on gas on Scroll from 10th October 2023 to 29th April 2024 at 12:00pm UTC will also be eligible for Scroll Marks.

    14. Participate in Scroll’s Session One

      In Sroll Session One, participants earn Scroll Marks for depositing assets into specific DEX liquidity pools. For now, depositing into the ETH/USDC pool using the Scroll network on Ambient Finance and depositing into the pools on Nuri will make you eligible to earn Scroll Marks. Other eligible protocols for Scroll’s Session One include Izumi Finance, Syncswap, Oku Trade, Unisswap and Zebra. You will earn more Scroll Marks for liquidity deposits with tighter rangers or more market depth. Scroll has suggested you could get Scroll Marks faster by, for example, choosing LP positions that are more concentrated around the actual price. Also, LP positions with higher volatility such as ETH-USDC would accrue Scroll Marks faster than low/no volatility positions such as USDC/USDT.

    15. Mint a Scroll Canvas

      Scroll Canvas is a way to display your onchain credentials, status and achievements across the Scroll ecosystem. To mint a Scroll Canvas, connect your wallet to Scroll Canvas. Minting a Scroll Canvas requires a mint fee of 0.001 ETH, however you can enter our invite code TRQI1 to get 50% off the mint fee! Afterwards, choose your username and click “Mint my Canvas”.

    16. Earn Scroll Badges

      After you have minted your Scroll Canvas, click “Mint eligible badges” to collect the Scroll Badges you are already eligible to mint. To earn other Scroll Badges, click the “Badges” tab and then “Explore badges” for a list of other badges you can earn and their eligibility criteria. Here are some of the easiest Scroll Badges to earn: Ethereum Year Badge (At least 1 year old wallet), Scroll Origins NFT Badge (own Scroll Origins NFT), AlienSwap Badge (interact with AlienSwap), Pudgy Penguin Badge (Own a Pudgy Penguin NFT) and Unique Humanity Score Badge (have a Passport XYZ score of over 20).

    Scroll Badges List: Which is the easiest or most difficult?

    Scroll Badges are Badges you can earn by completing various tasks on the Scroll ecosystem. These Scroll Badges may play an important role in a potential Scroll token airdrop. Here is a list of the Scroll Badges you can earn ranked in order of difficulty from easiest to hardest:

    • Ethereum year badge: Free, shows off the year your wallet debuted on Ethereum
    • Scroll on Highlight commemorative mint badge: Free, go to the mint page and click “Mint now”.
    • XHS holder: Free, go to XHS and click “Genesis”, join their Discord and connect your Twitter.
    • Gitcoin Passport: Free, complete proof of humanity and get at least 20 points (level 1).
    • Trusta Labs Proof of Humanity: Free, complete and mint your proof of humanity on Linea Chain.
    • Omnihub: 0.000005 ETH, create one NFT collection through OmniHub to Scroll network.
    • XHS booster: 0.002 ETH, Go to XName and register a .scroll name.
    • ZNS domain badge: 0.002 ETH, register your ZNS domain name.
    • Scrolly: 50,000 $SCROLLY, go to Scrolly Name Service and mint a .scrolly domain name.
    • Symbiosis Swapper: US$10, do a minimum of $10 worth of swaps on Scroll
    • Symbiosis Beginner: US$10, bridge a minimum of $10 through Symbiosis to Scroll
    • Symbiosis Professional: US$100, bridge a minimum of $100 through Symbiosis to Scroll
    • Scroll Retro-Bridger: US$150, bridge 0.05 ETH or US$150 worth of stables via RetroBridge to Scroll.
    • Ambient Swapoor: US$500, make 1 or more single swaps on Ambient Finance for $500.
    • Symbiosis Whale: US$500, bridge a minimum of $500 through Symbiosis to Scroll
    • Ambient Filoor: US$500, have 1 or more filled limit orders on Ambient Finance valued over US$500.
    • Zebra: US$1,000, swap over US$500 and provide liquidity of over US$1,000.
    • Ambient Providoor: US1,000, make at least 1 LP positions on Ambient Finance valued over US$1,000.
    • Pencils P: 0.1 ETH, stake at least 0.1 ETH for a minimum of 28 consecutive days
    • Pencils S: 0.5 ETH, stake at least 0.5 ETH for a minimum of 28 consecutive days
    • Ambient Yeet: US$50,000, provide liquidity of over a “sizable amount” (rumoured to be US$50,000) in a single position on Ambient.

    Airdrop Review

    When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.

    Likelihood of Airdrop: Scroll has hinted they will create an “incentive network” to encourage participation on Scroll. They currently have a campaign where users can collect Scroll Badges which many speculate would position you for a potential airdrop.

    Airdropped Token Allocation: Scroll has not given any information on its token yet.

    Airdrop Difficulty: Scroll has not yet released details about its airdrop. However, there is a Scroll Badge campaign which many believe may lead to a potential airdrop.

    Token Utility: Scroll has not given any information on its token yet.

    Token Lockup: Scroll has not given any information on its token yet.

  • Mantle Network ($MNT) Token Airdrop Guide: LIVE NOW!

    Mantle Network ($MNT) Token Airdrop Guide: LIVE NOW!

    Mantle Network is an Ethereum Layer-2 protocol developed by BitDAO, one of the largest decentralized autonomous organizations (DAOs), and a partner of Bybit. The public testnet is now live, along with a community incentive program. You can potentially earn $MNT token airdrops from using the protocol. In this article, we will explain what Mantle Network is and what you can do to position yourself for the airdrop.

    Sign up for Bybit today!

    Mantle Network ($MNT) Airdrop Step-by-step Guide

    Here’s how to receive a potential Mantle Network ($MNT) token airdrop:

    1. Set up Mantle Testnet
    2. Claim testnet $MNT tokens from Mantle Faucet
    3. Bridge Assets from Goerli to Mantle Testnet
    4. Complete Mantle Quests on Crew3 and join the Mantle Guild
    5. Bridge assets to Mantle Network mainnet
    6. Get $MNT tokens
    7. Vote on governance proposals
    8. Interact with dApps on the Mantle ecosystem

    See below for more details

    What is Mantle Network?

    Mantle Network is an Ethereum Layer-2 scaling solution created by BitDAO that focuses on enhancing security, reducing fees, and increasing transaction throughput. It leverages roll-up technology and adopts a modular approach to create a separate, decentralized data availability layer in collaboration with EigenLayer. By implementing this strategy, it accomplishes the following:

    1. Facilitates hyperscaled throughput for heavy-duty applications.
    2. Removes the need for forking capital to motivate validators, thus reducing the marginal cost of capital when setting up new protocols.
    3. Enables restaking mechanisms — re-staking allows anyone who has staked ETH on layer-1 to re-stake a pegged asset (stETH, rETH, cbETH, etc) and provide security to Mantle’s data availability layer.

    Does Mantle Network have a Token?

    Mantle Network uses $BIT, BitDAO’s governance token, as its native gas token. BitDAO has announced the approval of a proposal to deploy $100 million into the Mantle Ecofund, aiming to incentivize developers to build within the Mantle ecosystem. Additionally, the team is considering an airdrop for its testnet users. They have a subchannel on Discord where they discuss airdrop plans with the community.

    What is the $MNT and $BIT token?

    The $BIT token is BitDAO’s governance token. ByBit exchange is partnered with BitDAO and therefore use $BIT as their “unofficial official” token. Bybit frequently has campaigns and perks for $BIT coin and token holders. For example, there had a BIT Trading Fiesta where frequent $BIT traders on Bybit got up to US$100,000 in rewards. $BIT holders are also eligible for higher VIP levels and discounted trading fees.

    On 19th May 2023, BitDAO rebranded itself to become Mantle and most importantly, voted to covert its $BIT token to $MNT tokens at a 1:1 ratio. So now, the $MNT token will be used across the entire Mantle Network ecosystem, for its products and for governance.

    How do I convert my $BIT tokens to $MNT tokens?

    From 17th July 2023 at 6:00am UTC onwards for a period of 6 months, $BIT token holders can convert their $BIT tokens to $MNT tokens. Here’s how to convert or migrate $BIT to $MNT:

    1. Connect your wallet to https://migratebit.mantle.xyz/
    2. Approve the use of your $BIT tokens on your wallet.
    3. Enter the amount of $BIT tokens you wish to convert.
    4. Approve and wait for the conversion to be completed.

    How to receive a potential Mantle Network $MNT token airdrop?

    Here’s a step-by-step guide on how to receive a potential Mantle Network $MNT token airdrop:

    1. Set up Mantle Testnet

      Add Goerli network on your MetaMask via Chainlist. Then, claim Goerli testnet ETH to cover gas fees using Paradigm Faucet or Alchemy Faucet. Afterwards, add Mantle Testnet to MetaMask via Chainlist.

    2. Claim Testnet $MNT from Mantle Faucet

      Connect your wallet to the Mantle Faucet. Verify your Twitter and paste your wallet address. You can mint up to 1,000 $MNT testnet tokens.

      If you don’t see $MNT in your wallet, click “Import Token” and paste the following $MNT token contract address: 0x3c3a81e81dc49a522a592e7622a7e711c06bf354

    3. Bridge Assets from Goerli to Mantle Testnet

      Use the Mantle Bridge to transfer Goerli ETH and testnet $BIT to the Mantle Testnet.

      Switch the network to the Mantle Testnet. Import the token contract address of Goerli ETH, which will be shown as WETH on Mantle: 0xdEAddEaDdeadDEadDEADDEAddEADDEAddead1111

    4. Complete Mantle Quests on Crew3 and join the Mantle Guild

      Complete as many Crew3 quests as possible to get exclusive Discord roles. This could also be an eligibility criterion for the airdrop.

      You can also complete other quests on guild.xyz/mantle to obtain additional roles such as the BIT Delegate. For that, you will need to buy and hold at least 1 $BIT or $MNT, delegate them to your ETH address on delegate.bitdaotools.io, and vote on at least on BIT Improvement proposal (BIP) in the bitdao.eth Snapshot space.

      Crew3 and Guild tasks are not mandatory, but it could help your chances of getting the airdrop.

    5. Bridge assets to Mantle Network mainnet

      Bridge assets to Mantle using Orbiter Finance or the Mantle Bridge. This may make you eligible for a potential Orbiter Finance airdrop too! Check here for our guide on how to bridge assets to Mantle using Orbiter Finance.

      To bridge assets to Mantle Network using their bridge, go to https://bridge.mantle.xyz/ and deposit any tokens from Ethereum Mainnet to the Mantle Network. You will also get a dust bonus in $MNT for this!

    6. Get $MNT tokens

      Get some $MNT tokens. You can buy $MNT on exchanges such as ByBit, MEXC or Gate.io.

      Learn more about ByBit with our guide and review.
      Sign up for Bybit today!

    7. Vote on governance proposals

      Find governance proposals here and vote on them. Note you will need $MNT for this.

    8. Interact with dApps on the Mantle ecosystem

      Interact with dApps on the Mantle ecosystem. This may also make you eligible for any potential airdrops the ecosystem projects may have! Do note however you will be using real funds for this.

    Airdrop Review

    When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.

    Likelihood of Airdrop: BitDAO allocated $100 million to incentivize developers to build on the Mantle Network. Moreover, they are also considering conducting an airdrop for protocol users.

    Airdropped Token Allocation: Token allocations for the community are not yet confirmed.

    Airdrop Difficulty: The steps are easy to do. All you have to do is bridge testnet $BIT and ETH from Goerli to Mantle Testnet. Crew3 and Guild tasks are optional.

    Token Utility: $BIT, the native utility token of BitDAO, offers holders benefits like voting rights, revenue sharing, and exclusive access to features within the BitDAO ecosystem. This includes Mantle Network.

    Token Lockup: There is no information available on token lockup for airdrops.

  • Orbiter Finance Token Airdrop Guide: Huge gains to be made!

    Orbiter Finance Token Airdrop Guide: Huge gains to be made!

    Orbiter Finance is the hottest bridge for emerging layer-2 blockchains right now. They have confirmed they will issue a token. No airdrop has been officially announced yet, but it IS hinted. This means that no snapshot has been taken yet, and early users can potentially earn huge airdrop rewards. In this article, we will explain what Orbiter Finance is and what you can do to position yourself for their potential airdrop.

    Orbiter Finance Airdrop Step-by-step Guide

    Here’s how you can get a potential Orbiter Finance token airdrop:

    1. Connect your MetaMask or other Ethereum/Polygon/zkSync/Arbitrum wallet.
    2. Select the chain you want to send your assets to.
    3. Complete the transaction.
    4. Get Discord Roles
    5. Claim Orbiter Pilots NFT

    See below for more details.

    What is Orbiter Finance?

    Orbiter Finance is a decentralized bridge that supports cross-rollup transfers between Ethereum and other layer-2 blockchains such as zkSync and Arbitrum. Users can move ETH, USDC, USDT, and DAI between those supported networks.

    It is secured by a series of smart contracts that involves two roles: Sender and Maker. The Maker provides liquidity for the transfer initiated by the Sender. If the Maker does not carry out their role, the Sender can initiate an arbitration request to the contract with the Maker’s margin and receive compensation for any excess losses.

    Does Orbiter Finance have a Token?

    Orbiter Finance does not have a token yet, as they are currently focusing on developing the protocol and improving user experience. However, in a recent Tweet, they strongly hinted at issuing a token as well as a possible airdrop. Moreover, Orbiter Finance has closed its first round of funding with participation from Tiger Global, A&T Capital, StarkWare, and even Vitalik Buterin. As such, DeFi projects backed by major players tend to launch a token after product completion.

    How to Receive Potential Orbiter Finance Token Airdrop?

    The best chance to receive Orbiter Finance token airdrops is to bridge ETH or stablecoin assets between the 11 supported networks. Here’s how to get a potential Orbiter Finance airdrop:

    1. Connect your MetaMask or other Ethereum/Polygon/zkSync/Arbitrum wallet.
    2. Select the chain you want to send your assets to.
    3. Complete the transaction.

    Although it is recommended to bridge assets frequently to increase your airdrop chances, there will be a transaction fee. However, Orbiter will modify its fees based on the Gwei of the destination network to maintain a fee that is below the average, but this will not happen frequently due to the volatile nature of gas fees. The sender can view the current fee on the Orbiter website.

    Get Discord Roles

    Get higher ranking roles on Orbiter Finance’s Discord by completing tasks on their Guild page. The requirements for the Orbiter Finance roles are as follows:

    1. Member: Connect your wallet to the Guild page.
    2. Flying Alien: Have the UFO emoji in your Twitter username and follow Orbiter Finance’s Twitter.
    3. Trainee Pilot: Complete 3-9 transactions on Orbiter Finance.
    4. Pilot: Complete 10-49 transactions on Orbiter Finance.
    5. Elite Pilot: Complete 50-99 transactions on Orbiter Finance.
    6. Expert Pilot: Complete 100-499 transactions on Orbiter Finance.
    7. Ace Pilot: Complete 500 transactions or more on Orbiter Finance.

    You can check the number of transactions by connecting your wallet here. Note that the allowlist is only updated once a week on Mondays, so you will need to check the Guild page frequently. You must have a role of Trainee Pilot or above in order to be included in their allowlist.

    Claim Orbiter Pilots NFT

    Orbiter has created an NFT series for Orbiter Pilots (i.e. Orbiter users). There are 5 NFTs based on your Discord role. To claim your Orbiter Pilot NFT, connect your wallet to their Galxe Page and click “Claim”. Note you will need MATIC to pay for gas fees when claiming your NFTs.

    Airdrop Review

    When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.

    Likelihood of Airdrop: There is no confirmation of a token launch and airdrop by Orbiter Finance, but they hinted in their Tweet that they are considering issuing a token as well as a potential airdrop.

    Airdropped Token Allocation: Since there is no token launch yet, tokenomics data are not available.

    Airdrop Difficulty: If there is a potential airdrop, the steps to be eligible is fairly easy. All you have to do is connect your wallet on their platform and bridge assets to another chain. It is recommended to do this frequently, but be cautious of transaction fee.

    Token Utility: Since there is no token launch yet, token metrics are not available.

    Token Lockup: Since there is no token launch yet, tokenomics data are not available.

  • Understanding Layer 2 & Scaling Solutions: Arbitrum, Boba, Optimism, Polygon, Ethereum 2.0

    Understanding Layer 2 & Scaling Solutions: Arbitrum, Boba, Optimism, Polygon, Ethereum 2.0

    One of the core problems with the Ethereum network today is scalability. As more and more decentralized apps (dApps) are built on the network, the number of users and transactions increases. This has slowed down the speed of transactions and driven up the cost of using the network, creating the need for scaling solutions.

    At its full capacity, the Ethereum network is only able to process 15 transactions per second. To put Ethereum’s scaling limits into perspective, consider that Visa handles around 1,700 transactions per second on average. Therefore, increasing the network capacity in terms of speed and throughput is fundamental to the meaningful and mass adoption of Ethereum.

    There are multiple solutions being researched, tested and implemented that take different approaches to achieve similar goals. Two solutions that we will explore in this article are known as sidechains and optimistic rollups.

    Check out our explainer video on layer 2 solutions such as Arbitrum, Boba, Optimism, and Ethereum 2.0

    Layer 2 solutions explained (Arbitrum, Boba, Optimism, Ethereum 2.0)

    What is Layer 2 and How Does it Work?

    The Ethereum main chain is known as Layer 1. Layer 1 applications and smart contracts interact directly with the native chain. Layer 2 refers to a series of different protocols that facilitate the creation of smart contracts and decentralized applications (dApps) on top of the core Ethereum blockchain.

    Operating on Layer 2 frees up Layer 1 by taking transactions off the main chain, offloading it to Layer 2, enabling them to interact, and then recording the remainder of the whole transactions back to Layer 1. Due to transactions being processed off-chain on Layer 2, Ethereum benefits from higher transaction processing capacity, faster confirmation times, and lower gas fees. 

    In fact, many believe that Layer 2 solutions will be how Ethereum wins over mainstream users. It is estimated that 2,000 – 4,000 transactions per second can be processed in Layer 2, which is already in line with Visa’s processing capabilities. By combining the scaling of Layer 1 with Ethereum 2.0 and Layer 2, Ethereum is set to obtain a powerful economic bandwidth.

    Sidechains: Polygon Network

    Sidechains are a Layer 2 solution utilizing separate blockchains that run in parallel to the Ethereum main chain but operate independently, hence increasing its scalability. 

    Polygon is the most popular sidechain that aims to scale Ethereum by building and connecting Ethereum-compatible blockchain networks. Polygon operates on its own consensus mechanism and also has its own native token known as $MATIC.

    Because sidechains run on a separate blockchain, they do not inherit the security of Layer 1. If a sidechain is hacked or compromised, the damage will be contained within that chain and will not affect the main chain. Conversely, should the main chain become compromised, the sidechain can still operate.

    Sidechains also provide room for a lot of flexibility, allowing developers to experiment with new features or software updates before pushing them onto the main chain.

    Rollups Explained: Optimistic Rollups & Zero Knowledge Rollups

    Rollups are another Layer 2 solution intended to solve Ethereum’s scalability and complement the network. Rollups interact with the main chain, therefore inheriting Layer 1’s security features as well as its secure consensus mechanism. The term ‘rollup’ refers to the way that the chain bundles many transactions to be submitted to the main chain.

    Because rollups use smart contracts that reside within Ethereum, they do not require a native token like Polygon, but instead use $ETH as their currency. Rollups seem to be the most sound scaling solution for Ethereum as it does not compromise the security and sovereignty of Layer 1.

    There are basically two types of rollups: Optimistic Rollups and Zero Knowledge Rollups (ZK Rollups). Both aim to scale Ethereum by processing transactions on Layer 2 before submitting the results back to Ethereum. However, the difference is in how they validate transactions. 

    In simple terms, Optimistic Rollups assume that transactions are valid — hence an optimistic outlook. However, it also allows what are called “watchers” to call out fraudulent transactions since blockchain is transparent and public. If a watcher proves instances of fraud, the transaction is reverted, the bad actor penalized, and the watcher rewarded to incentivize them.

    On the other hand, Zero Knowledge Rollups attempt to prove that transactions are valid. They do so by submitting validity proof to an Ethereum smart contract along with the bundled transactions.

    Optimistic Rollups are currently the more popular option, so let us look at some projects that have adopted this mechanism. These projects are Arbitrum, Boba, and Optimism.

    Optimistic Rollups: Arbitrum, Boba & Optimism

    Arbitrum, Boba and Optimism are 3 projects which have the same goals of scaling Ethereum and reducing gas fees. All of these Layer 2 projects are competing with one another to be the best network. Therefore, each project offers different features to stand out from the others.

    • Arbitrum describes itself as a Layer 2 solution designed to improve the capabilities of Ethereum smart contracts — boosting their speed and scalability while adding additional privacy features to boot. Arbitrum is, according to the team, around 90-95% cheaper than Ethereum. And with their Nitro being launched soon, they expect costs to be cut even further.
    • Optimism is an EVM-compatible Optimistic Rollup chain designed to be fast, simple, and secure. Optimism pledges to uphold the values of Ethereum by producing infrastructure that promotes the growth and sustainability of public goods.
    • Boba Network is a next-generation Layer 2 scaling solution that reduces gas fees, improves transaction throughput, and extends the capabilities of smart contracts, shrinking the Optimistic Rollup exit period from seven days to only a few minutes, while giving liquidity pools (LPs) incentivized yield farming opportunities.

    Arbitrum’s fraud proofs seek to find the particular point of disagreement over transaction history. In contrast, Optimism’s tech looks at fraud a bit more holistically. And this means that Arbitrum has a higher transaction capacity equating to higher performance.

    Optimistic Rollups have a time period in which users can dispute transactions and call fraud. Both Arbitrum and Optimism allow one week for that dispute period, which means that transactions in a bundle under suspicion can be held in limbo for one week before they are verified and released. This is where Boba comes in as a serious player. 

    Instead of having funds locked for several days, Boba’s solution brings the dispute period down to only a few minutes. It also provides incentivized yield farming opportunities, both serving as very attractive features in comparison to its competitors. 

    Will Ethereum 2.0 Make Layer 2 Solutions Irrelevant?

    Ethereum 2.0 is regarded as the long-term solution that can bring speed, efficiency, and scalability to the Ethereum network. The long awaited upgrade will move the network from a Proof-of-Work consensus to a Proof-of-Stake consensus, a much more energy efficient method of maintaining the network that uses validators instead of miners.

    Ethereum 2.0 is currently slowly being released in different phases and will ultimately speed up transactions as well as drastically reduce the cost of gas fees. That brings up the question: Will Ethereum 2.0 make all these Layer 2 solutions irrelevant?

    While there are many different opinions and discussions surrounding this topic, however, we think that all of these solutions can coexist and benefit the network as well as its economy.

    This is because despite the upgrade, Ethereum 2.0 may still not be able to handle the amount of transactions per second required for widespread adoption. The impressive capabilities of Layer 2 solutions could eradicate Ethereum’s scalability issues for good, allowing the network to improve other aspects and prevent congestion on the main chain.

    Final Thoughts: Why Are So Many Solutions Needed?

    There is no debate that Ethereum has a stronghold over developer mindshare. It is the first network that enabled developers to build truly unstoppable decentralized applications with global distribution from day one. But competition is coming fast, and as it stands today, Ethereum will not be able to handle the scale necessary for millions of users. If the network wants to retain the same level of decentralization, it will have to look for new ways to structure use around the main blockchain. 

    As such, there are currently several Layer 2 solutions that aim to resolve Ethereum’s scaling issues. There are also some hybrid solutions which seek to improve the network’s scalability by combining the technologies. But is there really a need for so many solutions?

    We say yes, because multiple solutions can help reduce the overall traffic on any one part of the network, and also prevent single points of failure. The whole is greater than the sum of its parts. Different solutions can exist and work in harmony, allowing for an exponential effect on future transaction speed and throughput. Furthermore, not all solutions require utilizing the Ethereum consensus algorithm directly, and alternatives can offer benefits that would otherwise be difficult to achieve.

    If Ethereum achieves its full potential of becoming a global trust layer, it is likely that these solutions and more will be required to scale the network in combination with Ethereum 2.0. In the future, the Ethereum ecosystem could see significant change as new projects assess the benefits and drawbacks of running on Layer 2. 

    If all of these solutions can come together in harmony, Ethereum will achieve a blockchain system that can match the speed and scale of programmatic advertising – one that can be used by industries with high data processing needs as well as users worldwide.

    Sources:

    https://ethereum.org/en/developers/docs/scaling/

    https://hackernoon.com/ethereums-layer-2-the-story-so-far-and-what-to-expect-next-kn41342c

    https://dappradar.com/blog/ethereum-rollups-a-simple-explanation

    https://medium.com/general_knowledge/rollup-rollup-top-layer-2-compared-arbitrum-vs-optimism-vs-polygon-4a469389faef
  • Layer-1 vs Layer-2 Blockchain Scaling Solutions: What are the Differences?

    Layer-1 vs Layer-2 Blockchain Scaling Solutions: What are the Differences?

    What are Layer-1 and Layer-2 Solutions?

    Layer-1 refers to the base level of the blockchain’s underlying infrastructure. Bitcoin, Ethereum, Binance Smart Chain, and Solana are examples of layer-1 blockchains. These networks can process and finalize transactions on its own blockchain.

    On the other hand, layer-2 refers to a network built on top of a layer-1 blockchain. Its main purpose is to help offload computational work from layer-1s by processing transactions off-chain, increasing transaction speed and throughput. Polygon, for example, is a layer-2 solution that runs on top of Ethereum to facilitate transactions away from the mainnet.

    Layer-1 Overview

    Underlying Problems of Layer-1

    Scalability is the biggest issue that has been plaguing most layer-1 blockchains. As more users carry out increased simultaneous transactions, the blockchain becomes slow and expensive to use. Ethereum, for example, is the most used decentralized network, but its gas fees and process time are high.

    Blockchain Trilemma

    This is known as the “blockchain trilemma” — an impossibility for blockchains to simultaneously achieve decentralization, security, and scalability. As such, a decentralized and secure layer-1 blockchain cannot provide scalability. And a scalable, secure network lacks decentralization.

    This happens because of the fundamental nature of a blockchain. All transactions require the independent verification of the nodes who are running the blockchain’s software. The verified data will then be logged and stored on the blockchain.

    Transaction Confirmation Time

    However, depending on the network, this entire process takes time. For Bitcoin, all transactions require six confirmations in the blockchain from miners before being processed. The completion time varies between ten minutes and an hour. A node can only handle so much at a time. In times of network congestion, users will experience longer confirmation times and higher gas fees due to high demand.

    How do Layer-1 Solutions Work?

    There are several ways to increase throughput and overall network capacity of layer-1 blockchains.

    Transition to Proof-of-Stake

    For blockchains using proof-of-work as their consensus mechanism, they may switch to proof-of-stake to increase transactions per second while reducing gas fees. Ethereum is a great example of this as they are undergoing a transition to proof-of-stake called the “Merge.”

    The blockchain’s development team can also introduce a hard fork or soft fork of the network for their community to vote and approve:

    Soft Fork

    A soft fork is when new features are implemented to the protocol at a programming level. It is a backward-compatible upgrade, which means that the non-upgraded nodes will still see the chain as valid and can still communicate with other upgraded nodes. In other words, the addition of a new rule will not clash with the older rules.

    An example of a soft fork is Bitcoin’s SegWit update in which signatures are separated from transaction data, freeing up more space for transactions to be stored in a single block, increasing the throughput of the network.

    Hard Fork

    On the other hand, a hard fork is a major change to the blockchain’s protocol that results in the splitting of the blockchain, creating a second blockchain that inherits all of its history with the original, but is on its own towards a new direction. The new rules conflict with the rules of the old nodes, which means upgraded nodes cannot communicate with non-upgraded nodes.

    In July 2016, the Ethereum network hard forked into two blockchains: Ethereum and Ethereum Classic. Ethereum Classic is the old Ethereum with a completely seperate cryptocurrency (ETC). They have different technological and philosophical goals.

    Layer-2 Overview

    How do Layer-2 Solutions Work?

    Layer-2 solutions are built on top of a layer-1 blockchain to increase its throughput and overall network capacity. They work in parallel or independent of the main chain. Rollups and sidechains are two of the most common layer-2 solutions that help offload computational load from layer-1s:

    Rollups

    Rollups scale layer-1 blockchains by processing transactions on layer-2 platforms before submitting the results back to the layer-1. The term “rollup” refers to the way that the chain bundles many transactions to be submitted to the main chain.

    There are two types of rollups: Optimistic Rollups and Zero-Knowledge Rollups (ZK Rollups). The difference is in how they validate transactions.

    In short, Optimistic Rollups assumes that the transactions are valid, hence an “optimistic” outlook, whereas ZK Rollups attempt to prove that the transactions are valid.

    See also: Understanding Layer 2 & Scaling Solutions: Arbitrum, Boba, Optimism, Polygon, Ethereum 2.0

    Arbitrum, Optimism, and Boba Network are examples of layer-2 projects employing optimistic rollups. On the other hand, Starknet and zkSync are among the Ethereum layer-2s that leverage ZK Rollups.

    Sidechains

    Sidechains are secondary blockchains that run parallel to the layer-1 blockchain. Since they have their own virtual machine and validators, they can operate independently. In short, the sidechains validate the transactions and then send them back to the main chain via bridges.

    Polygon is the most popular sidechain that aims to scale Ethereum by building and connecting Ethereum-compatible blockchain networks. Polygon operates on its own consensus mechanism and also has its own native token known as $MATIC.

    Are Layer-2 Solutions Viable Long-term?

    Although layer-2 provides a quick solution to improve scalability, questions have been raised as to whether layer-2 will be irrelevant once scalability issues are solved on layer-1’s end.

    Ethereum 2.0 will ultimately be able to speed up transactions while drastically reducing gas fees. This not only affects layer-2 solutions but also impacts other competing layer-1 blockchains like Solana or Avalanche.

    However, as of now, because of the upcoming Merge in September, we still see bullish sentiment surrounding competing layer-1s of Ethereum and several other layer-2 projects. Perhaps the completion of Ethereum 2.0 will indirectly foster other layer-1 and layer-2 ecosystems, instead of the other way around.

    Key Takeaway

    If you are new to crypto, it may be confusing to distinguish between layer-1 blockchains and layer-2 solutions. It is helpful to understand the differences between the two as well as the different approaches to scaling that they offer.

    Layer-1 blockchains are networks that can validate and finalize transactions by themselves, and their scaling solutions involve improvements to the existing protocol. On the other hand, layer-2 solutions are built on top of a layer-1 blockchain to help scale its throughput and overall network capacity.