📝 Hello everyone, I am 𝟏𝟎, welcome back to the #BlockchainDevelopmentHistory project research series. Today, we will focus on (EigenLayer / EIGEN).

Since its launch on October 1, 2024, EigenLayer (EIGEN) has sparked heated discussions, introducing restaking. This allows users' Ethereum (ETH) to earn yields from staking while also providing security support for multiple decentralized applications (dApps), achieving multiple uses for one coin.

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1. Introduction to the EigenLayer (EIGEN) project

1 / What is EigenLayer (EIGEN)?

EigenLayer (EIGEN) is an innovative protocol built on Ethereum that brings a new way of restaking. It allows users to use already-staked ETH for multiple projects simultaneously, enhancing the security of the Ethereum network while enabling stakers to earn more rewards, achieving two goals in one!

In the past, every new project had to build its own validator team, which was time-consuming and costly. Now, with EigenLayer, projects can directly leverage Ethereum's robust security, saving significant costs and hassle. For stakers, there is no need to stake new assets; they can use their existing ETH to help other projects, truly maximizing resource utilization.

This mechanism makes the Ethereum ecosystem more tightly integrated and secure. EigenLayer lowers the entry barrier in a simple and efficient way.

The EIGEN token is a digital currency that runs EigenLayer; it can be used to earn rewards, participate in platform governance, and join various activities within the ecosystem.

2 / History of EigenLayer (EIGEN)

On June 14, 2023, EigenLabs launched EigenLayer. Founded by University of Washington Professor Sreeram Kannan in 2021, Sreeram has been conducting related research in the university's laboratory since 2017, accumulating deep technological expertise.

EigenLayer has continuously attracted funding from major investors. It has completed seed funding ($14.5 million), Series A ($50 million), and Series B ($100 million), totaling $165 million raised. This financing was supported by heavyweight investors such as Polychain Capital, Blockchain Capital, and A16z, with its valuation rising from several million to $500 million today. The $EIGEN token is officially launching on October 1, 2024.

2. How EigenLayer (EIGEN) Works

EigenLayer (EIGEN) is a security outsourcing service within the Ethereum ecosystem, allowing your ETH to support not only Ethereum but also provide security for other dapps. Through restaking, your ETH can simultaneously secure multiple projects (such as data availability, oracles, decentralized exchanges, etc.), effectively renting out your ETH to earn money.

Restaking allows staked ETH to be lent to other projects, which may face slashing risks. Modular security lets you choose specific functional modules (such as storage, financial services, etc.) to support, ensuring that ETH not only protects Ethereum but also secures these modules. Participation methods include running your own node (independent staking), delegating to others (delegated staking), or using liquidity restaking.

EigenLayer operates on Ethereum through smart contracts, ensuring everything is transparent and verifiable. Upon joining, you agree to new game rules (slashing conditions) to gain higher returns.

3. Functions of EigenLayer (EIGEN)

Its functions include custom decentralization, allowing users to use staked ETH for specific decentralized services, reducing reliance on centralized servers and lowering risks. There is also custom slashing, which means setting slashing clauses to prevent malicious actions, slashing part of their ETH, thereby improving network security. Data availability is crucial as it provides low-cost, large-scale data availability services, ensuring that application data can be accessed safely and quickly.

Light node bridges and fast mode bridging are also very useful, ensuring the accuracy and security of cross-chain data, punishing discrepancies to ensure trust. Additionally, oracles can bring off-chain data on-chain, relying on staked ETH to ensure data reliability. Finally, event-driven activators ensure accurate execution on-chain when real-world events occur, with penalties for non-compliance.

EigenLayer brings stronger security, reliability, and decentralization to decentralized applications through restaking ETH, taking the Ethereum ecosystem to the next level.

4. The Ecosystem of EigenLayer (EIGEN)

The EigenLayer ecosystem is also known as EigenDA. It is a data availability service that provides high throughput, security, and decentralization based on EigenLayer's restaking primitives. It is the first active validation service (AVS) that can run on EigenLayer, allowing participants in restaking to delegate their stakes to node operators, who then earn service fees through validation tasks.

For Rollups, it can publish data to EigenDA, making transactions cheaper and more efficient while maintaining system security and composability. It makes blockchain transactions more efficient and secure while providing strong scalability for all operators.

5. Conclusion

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