How to research and understand everything in cryptocurrency?
Basically, we need two key steps:
analyze
comprehensive
Imagine you are playing with Lego bricks. Normally you would assemble the bricks into a whole, but what we are going to do is the reverse process.
1. When you want to understand a topic, one of the best ways is to break things down into smaller parts to understand the function of each part
From a scientific perspective, analysis is the detailed examination of elements of an object of study.
Say you want to learn how restaking works, specifically as it relates to Eigenlayer. By spending 10 minutes on Google to find EigenLayer's description, you can list the main components of restaking:
Actively Validated Services (AVS)
operator
re-pledger
assets
Image source: Shenchao TechFlow
Of course, you can find other sections as well, but these are the main ones.
After dividing the structure into its main parts, it is important to find the relationship between each part:
AVS is a system that requires its own decentralized verification semantics for verification.
Operators are entities that help run AVS software.
Re-hypothecaters entrust their assets to the operator.
Assets include native Ethereum or LST Ethereum.
Through these four points, we can understand how each major part is connected to each other and thus have a general understanding of re-staking.
2. Try to remain skeptical and make everything look unreasonable until proven otherwise.
It is important to ask yourself questions to fully understand the topic you are studying.
Why do we need AVS if every service can be set up locally?
If re-hypothecaters can decide which services they want to protect, why do they need operators?
What happens if a malicious actor wants to cheat?
Why can restakers also deposit LST Ethereum? Aren’t there too many wrappers?
How exactly do assets protect the network?
Why can't I deposit stablecoins, but only Ethereum?
The idea is to ask yourself as many questions as possible to clearly define the function of each part and its limitations. This is why new startups are created to solve problems with existing solutions.
This is also why there are direct competitors, rather than protocols built on top of Eigenlayer:
Symbioticfi supports any mixed token as collateral for re-hypothecation (not just Ethereum).
Nektar Network provides more moddability for operators and AVS.
Exocore Network allows re-staking using multiple tokens on multiple chains.
By asking yourself more specific questions related to major parts of the product, you not only gain a better understanding of the product, but you can also find potential solutions to bugs and open problems.
3. When you feel confident in your analysis, it’s time to rebuild the system from scratch using a comprehensive approach
You've asked yourself a lot of questions and probably broken down the main parts into smaller pieces.
Image source: Shenchao TechFlow
For example, when you study how operators connect to AVS, you might learn:
penalty condition
Cryptoeconomic security
OwnPod
quorum
Now you have an idea of how everything works. The next step is to rebuild it from scratch.
From a scientific perspective, "synthesis" is combining elements into a coherent whole, taking everything you've learned and trying to reconstruct what you originally broke down.
As a kid, I used to take apart computer components to understand their characteristics and why they were important.
This develops a great learning skill: if you want to understand something, take it apart and put it back together again.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reprinted with permission from: "Deep Wave TechFlow"
Original author: Pavel Paramonov