Exploring the use cases of the Actively Validated Services in the Nektar Network

Nektar AVS

Nektar Network is introducing a multi-layer restaking solution platform on top of Ethereum, using a new innovative component brought forth by EigenLayer, Actively Validated Services (AVS). The most important functionality is the one that allows Ethereum’s crypto-economic security to be extensible to a much wider scope of applications and allows an entirely new distributed system to boot up with a high-trust model.

Understanding AVS in the Nektar Ecosystem

AVSs leverage the pooled security of Ethereum, allowing applications to operate under a trust model without the need to develop independent security protocols. This integration is particularly beneficial for new or expanding platforms seeking to utilize the established security of Ethereum.

Use cases

1. Rollups

Rollups are one of the scaling solutions that provide help in processing transactions outside the mainnet (Layer 1) and then posting transaction data to it. Thus, the Nektar Network can apply AVS within the rollups and enable better security and efficiency of those transactions. The AVS will be able to ensure one more validation of the roll-up so that the operations are really reliable, and the integration can reduce risk for fraud while allowing the maximum throughput of transactions.

2. Coprocessors

The need for off-chain computation increases with the complexity of decentralized application. AVS is able to act as an off-chain decentralized coprocessor with the necessary secure and trustless computing resources. This helps significantly in some applications that have intensive computation tasks that are either impossible to achieve because of the gas costs in the chain or, even if achievable, it’s not feasible due to chain speed. This allows AVS offloading those tasks to be more scalable and efficient but with the same security guarantees of the Ethereum network.

3. Cryptography

Cryptography is the rudimentary of blockchain security, and AVS has a highly potential contribution toward bringing improved cryptographic functionalities throughout the network. With AVS, Nektar can offer stronger cryptographic services, such as providing robust security measures in zero-knowledge proof generation or multi-party computation. This makes the service assure clients of uncompromised privacy, whereby the computational demand for the network is always on the rise.

4. MEV Management

MEV refers to the maximum value that can be extracted from block production in excess of the standard block rewards and gas fees. This phenomenon can lead to priority gas auctions, time-bandit attacks, and other forms of transaction reordering that compromise fairness and security. AVS can be used to manage and mitigate targeted frontrunning by ensuring that transactions are processed in a fair and transparent manner, thus preserving the integrity of the network.

5. Other use cases

Decentralized Oracles: AVS can serve as decentralized oracles, providing reliable and secure data feeds for smart contracts.

Inter-chain Security: By extending Ethereum’s security to other blockchains, AVS can facilitate secure cross-chain interactions and transactions.

Customizable Blockchain Services: Developers can leverage AVS to create tailored blockchain services with specific security, computation, or consensus requirements.

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