Aggregated Blockchains: The Solution to the Blockchain Trilemma?

Introduction to Blockchain Layers

The blockchain world is constantly evolving. We've seen the rise of powerful layer-1 blockchains like Ethereum and Bitcoin, laying the foundation for a new era of decentralised applications. Then came layer-2 blockchain solutions like Optimistic and zk-Rollups to boost speed and efficiency.

But what if there's a way to combine the strengths of both? Enter aggregated blockchains – a groundbreaking approach that could solve the long-standing L1 or L2 dilemma.

Recap the Basics

Before we dive into aggregated blockchains, let's recap what each layer of blockchain represents — they're the foundation that realises applications in Web3 and crypto.

Layer-1 Blockchains

These are the bedrock of any blockchain ecosystem, like Ethereum or Bitcoin. They handle the core functions, such as processing transactions and ensuring everyone agrees on the network's state (consensus). Think of them as the main highway of the blockchain world.

Layer-2 Solutions

Built on top of layer-1s, these solutions are like express lanes designed to improve speed and efficiency. They handle transactions off the main chain and only report back the final results, reducing congestion and costs. Popular examples include Optimistic Rollups and zk-Rollups.

Read and recap: Guide to blockchain layers

The Dilemma

While both L1s and L2s have their merits, they also present limitations. L1s can struggle with scalability as transaction volumes grow, leading to slow speeds and high fees. L2s, while faster, can lead to a fragmented ecosystem where assets and data are siloed on different chains.

Introducing Aggregated Blockchains

Aggregated blockchains present a new paradigm. Instead of simply stacking solutions on top of each other, they create a network of interconnected blockchains.

At the heart of this interconnectedness lies the Aggregation Layer (AggLayer). This functions like a universal adapter, facilitating communication and asset transfer between different blockchains. It's the key to unlocking a truly interoperable blockchain ecosystem.

Here's why Web3 and crypto communities are not sleeping on aggregated blockchains:

Enhanced interoperability: They enable seamless movement of assets and data between different blockchains, breaking down the barriers that currently exist
Improved scalability: By distributing the workload across multiple chains, they can handle a much higher volume of transactions, reducing congestion and delays
Stronger security: Connecting multiple chains can create a more robust and secure network by leveraging the strengths of each individual blockchain

How Aggregated Blockchains Work

The magic of aggregated blockchains lies in the AggLayer's ability to coordinate and validate transactions across different chains. Here's a simplified breakdown of the process:

Pre-confirmation: When a new block of transactions is created on a chain, its header (containing essential information about the block) is submitted to the AggLayer, along with a light client proof. This proof acts as a compact summary of the block's validity. Think of it as a quick check to ensure everything looks good initially.
Confirmation: Next, a more comprehensive validity proof for the block is generated and submitted to the AggLayer. This proof undergoes rigorous verification to ensure all transactions within the block are legitimate and consistent with the rules of the blockchain.
Finalisation: Once confirmed, the validity proof is combined with proofs from other chains into a single, aggregated proof. This aggregated proof is then posted to the Ethereum blockchain, serving as a permanent and immutable record of the transactions.

This process ensures that transactions across different chains are secure and reliable. Furthermore, with AI Web3 integrations, it can optimise transaction routing and validation, and enables two types of interoperability:

Asynchronous interoperability: Chains can communicate and share data without waiting for immediate confirmation on Ethereum, allowing for faster transaction speeds
Atomic interoperability: This ensures that transactions involving multiple chains are treated as a single unit. Either all transactions in the set succeed, or none of them do, preventing inconsistencies and errors.

In Closing

Aggregated blockchains hold immense promise for Web3, crypto, and AI. By enabling seamless interoperability and scalability, they pave the way for a more interconnected and user-friendly blockchain ecosystem.

Decentralised AI is another key piece of the puzzle. By integrating AI capabilities into aggregated blockchain networks, we can unlock even greater potential in resource allocation, security, and the creation of autonomous and self-governing blockchain ecosystems.

The L1/L2 dilemma may soon become a relic, replaced by a vibrant and interconnected network of aggregated blockchains.

aelf: Blazing the Trail for AI and Web3 Integration

aelf is a prime example of the integration between AI and Web3. This AI blockchain platform has successfully incorporated artificial intelligence capabilities throughout its entire ecosystem. Machine learning models optimise smart contract execution and gas usage, predict network congestion, and dynamically adjust resources for the highest performance possible.

Integrating AI not only improves aelf’s performance, it also provides a better user experience for individuals and developers. Creating a Web3 project? With aelf Playground, there’s no need to go through the hassle of coding your own smart contracts.

As we race towards a more evolved forms of AI, aelf’s potential increases by leaps and bounds — evident by its new aevatar Intelligence unveiling. The AI agent-as-a-service platform democratises AI agent building for the everyday user, with a no-code dashboard, and unlocks agent-to-agent communications with a multi-agent, multi-LLM framework.

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*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.

About aelf

aelf, an AI-enhanced Layer 1 blockchain network, leverages the robust C# programming language for efficiency and scalability across its sophisticated multi-layered architecture. Founded in 2017 with its global hub in Singapore, aelf is a pioneer in the industry, leading Asia in evolving blockchain with state-of-the-art AI integration to ensure an efficient, low-cost, and highly secure platform that is both developer and end-user friendly. Aligned with its progressive vision, aelf is committed to fostering innovation within its ecosystem and advancing Web3 and AI technology adoption.

For more information about aelf, please refer to our Whitepaper V2.0.

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Tool/Platform	What's it about
ChainGPT	An AI-powered assistant for the blockchain and crypto industry, specializing in content creation, language translation, smart contract coding, and more.
aelf	A high-performance, customisable multi-chain blockchain framework with AI-powered smart contracts and a developer-friendly environment.
Quick Intel	An AI-powered crypto security platform that helps investors avoid scams, rug pulls, and honeypots by analysing smart contracts, social sentiment, and on-chain data.
Cogwise AI News Aggregator	An AI-powered news aggregator that analyses real-time news and global trends to predict market movements in the crypto market.
OpenAI Codex	An AI system that transforms natural language into code, automating code creation for smart contracts, blockchain applications, and other development tasks.
QnA3	An AI-powered Web3 knowledge hub that provides real-time information and insights on cryptocurrencies, blockchain projects, and the broader Web3 ecosystem, with unique Solana Actions integrations.
Fetch.ai	A platform that combines AI and blockchain to create autonomous economic agents (AEAs) for various applications, including supply chain optimisation and smart city management.
Octavia	A decentralised digital identity (DID) platform for creating and managing self-sovereign digital identities, empowering users to control their data and online presence.
TensorFlow	A versatile open-source machine learning framework used for building AI models that can analyse blockchain data, enhance security, and predict market trends.
Alethea	A platform that creates 'Intelligent NFTs' (iNFTs) with unique personalities and the ability to engage in conversations, powered by AI and blockchain technology.

Chain	URL	Explorer
AELF	https://aelf-test-node.aelf.io/	https://explorer-test.aelf.io/
tDVW	https://tdvw-test-node.aelf.io/	https://explorer-test-side02.aelf.io/

Feature	Description
Inheritance	ERC-404 inherits from the interfaces IERC-404, IERC721 Receiver, and IERC165, implementing functions specified in these interfaces, behaving as both ERC20 and ERC721.
Data Structures	Mappings track balances, allowances, approvals, and ownership of tokens. Double-ended queue stores ERC721 token IDs. Data for managing ownership and indices of ERC721 tokens.
Constructor	Initialises token name, symbol, decimals, and other necessary variables for ERC20 and ERC721 tokens.
Token Minting and Burning	_mintERC20 function for minting ERC20 tokens. _retrieveOrMintERC721 function for minting ERC721 tokens and retrieving from a bank. _withdrawAndStoreERC721 function for depositing ERC721 tokens into the bank.
Transfers	Functions for transferring ERC20 and ERC271 tokens between addresses. Distinguishes between token types based on ID. _transferERC20WithERC721 function handles transfers involving both types.
ERC20 and ERC721 Interactions	Approve function handles approvals for both token types. Functions like transferFrom, safeTransferFrom, and permit handle transfers and approvals.
EIP-2612 Support	Supports EIP-2612 permit functionality for ERC20 tokens.
Interface Compatibility	Implements necessary functions for ERC-404 and ERC165 interfaces, indicating compatibility with ERC20 and ERC721 standards.

Role	Max Number
BP	2N+1, N starts from 8 in 2022
Candidate node	5*(2N+1)
Voter	No limit

Benefits	Description
Makes smart contracts 'smarter'	AI-driven smart contracts can autonomously modify terms based on predefined conditions and real-time data input, ensuring that the contracts are not just automated but also intelligent and self-improving over time.
Levelled up data analysis	Data is the new oil, and AI is the machinery that refines it. It is possible for AI to reduce large-volume blockchain data analysis time by up to 90%.
Boosts security	Through machine learning models, AI can prevent frauds and detect security threats in real time. It can identify potential breaches, predict future threats, and adapt to evolving security measures.
Lowers carbon footprint	AI algorithms help optimise energy consumption in blockchain operations, given the flak drawn by activities like Bitcoin mining.

L1 or L2? Aggregated Blockchains Could Solve the Dilemma