Unraveling the Mantle Network: A Deep Dive into the new Layer-2 Scaling Solution for Ethereum

Introduction

The Mantle Network (website) is a technology stack developed to scale Ethereum, emphasizing EVM compatibility. This compatibility ensures that all contracts and tools functional on Ethereum can operate on the Mantle Network with minimal modifications. The platform offers a conducive environment for users to experiment with web3 applications, and for developers to deploy smart contracts efficiently and at a low cost. Its backbone is a modular architecture that uses an optimistic rollup combined with an innovative data availability solution. This design allows the Mantle Network to simultaneously leverage security from Ethereum and offer a more cost-effective and accessible data availability solution.

A significant relationship exists between the Mantle Network and BitDAO, two noteworthy blockchain-related projects. While the Mantle Network is a Layer 2 scaling solution established on the Ethereum blockchain, BitDAO is a Decentralized Autonomous Organization (DAO) aiming to create economic equilibrium through a decentralized, tokenized economy. BitDAO is a principal part of the $BIT Ecosystem, including the Mantle Network, and serves as the ecosystem's governance and resource management module. BitDAO's strong backing of the Mantle Network is evident, as it funnels resources to initiatives aimed at ecosystem adoption, with the Mantle Network being a recipient of this support. The Mantle EcoFund, a $200M capital pool, further fuels the network's growth by investing in top-tier Mantle applications and technology partners.

Now, as the Mantle Network prepares to make a significant stride forward with its upcoming mainnet launch, it's important to delve deeper into its unique design, functionality, and the team behind it. The mainnet launch, anticipated in July 2023, will mark a pivotal moment in the evolution of the Ethereum ecosystem, promising to offer a solution to some of the most persistent challenges in scalability and cost. This article aims to provide an in-depth look at the Mantle Network, its relationship with BitDAO, and how it aims to reshape the blockchain landscape.

Unveiling the Mantle Network

The Mantle Network is an advanced Layer-2 (L2) scalability solution, built on the Ethereum blockchain, that aims to bring hyperscale performance to Ethereum users. Its design is primarily aimed at maintaining compatibility with the Ethereum Virtual Machine (EVM), ensuring all contracts and tools currently operational on Ethereum will function with minimal changes on the Mantle Network. In simpler terms, it’s like an upgrade to Ethereum that makes it faster and cheaper to use without changing the things users already know and love.

One of the key players behind the Mantle Network's development is BitDAO, the governing body of the $BIT Ecosystem. BitDAO stands as a major supporter and backer of Mantle Network, helping to fund projects and initiatives that drive ecosystem growth and widespread adoption.

But why is the Mantle Network important, and who will use it? The platform is designed to be highly efficient, secure, and cost-effective, and these features make it appealing to a wide range of users. Developers, for instance, can leverage it to build and deploy decentralized applications (dApps) more effectively. Gaming developers, in particular, would find Mantle Network useful due to the faster and cheaper transactions it enables.

The Mantle Network also disrupts sectors like DeFi protocols and social graph protocols, making these services more scalable and affordable. In terms of the Total Addressable Market (TAM), it caters to anyone building or using dApps on Ethereum, a market that continues to grow rapidly as blockchain technology becomes more mainstream. Now, what makes the Mantle Network innovative? It's all in the architecture. Mantle Network is structured as a modular L2 blockchain, which allows it to execute and validate transactions off the Ethereum mainnet. In practical terms, it groups many transactions into one single batch, which is then committed to the Ethereum mainnet as a single on-chain transaction. This approach lessens the computational load on the Ethereum mainnet, reducing gas fees for users.

One of its key innovations is the use of EigenDA as its data availability layer. Instead of posting transaction data on the Ethereum mainnet, it posts it on EigenDA. This unique approach ensures Ethereum-grade security at impressively low costs, and offers significant gas savings compared to Layer 1.

The Builders behind the Mantle Network

The core team behind the Mantle Network is a group of 25 dedicated individuals, including key members such as Arjun Krishan Kalsy, a well-versed professional in web3 and Ethereum scaling, and Joshua Lapidus, a senior DAOplomat at Mantle.

Guiding the strategic path of the Mantle Network is an impressive roster of advisors. Among these are Ben Zhou, the CEO and co-founder of Bybit, Jacobc.eth, a strategic advisor to Mantle and founder of Game7 and HyperPlay, and Jordi Alexander, another strategic advisor to Mantle.

Financial backing for the Mantle Network is robust, given that it's a product of BitDAO, run by the $BIT community. BitDAO itself was launched in June 2021 and successfully raised $230 million in a private funding round. This funding round saw participation from notable investors like Founders Fund, Pantera Capital, Dragonfly Capital, and more. Furthermore, Mantle has proposed a hefty $200 million Web3 fund, with $100 million earmarked from BitDAO's treasury and an additional $100 million from external matching capital sourced from strategic venture partners.

In terms of partnerships, the Mantle Network enjoys f relationships with several entities. EigenLayer is one such partner, offering Mantle a front-row seat to fresh innovations in data availability and beyond. Ahead of its mainnet launch in Q2 2023, Mantle has also announced a partnership with Ankr, which will be the first remote procedure call (RPC) connection and gateway deployed on Mantle. In addition, Mantle has formed partnerships with various prominent hackathons to expedite the integration of new projects into the ecosystem.

Notably, one of the key partnerships is the recent merger between BitDAO and the Mantle Network. This strategic merger unifies governance, treasury, and technical prowess, further strengthening the ecosystem's capabilities and promoting a unified approach towards advancing blockchain technology.

Mantle Network represents an evolution in blockchain technology. As a technology stack designed for scaling Ethereum, it takes a new approach by focusing on EVM compatibility. This means that all the contracts and tools that operate on Ethereum can also function seamlessly on Mantle Network with only minimal adjustments. It opens up a realm of possibilities for users who are eager to explore the potential of web3 applications, as well as developers who want to deploy smart contracts in an efficient, low-fee environment. The strength of Mantle Network lies in its innovative core design. It's constructed on a modular architecture that incorporates an optimistic rollup coupled with a cutting-edge data availability solution. The result is a network that inherits the top-notch security of Ethereum while offering more affordable and readily available data accessibility.

The Mantle Network, while built on top of Ethereum as a Layer-2 (L2) scalability solution, is distinct in its approach. It employs validator nodes to gather transactions from users and commit them to Ethereum as a condensed block. This innovative method reduces costly gas fees and significantly increases transaction throughput. However, Mantle Network isn't just about lower fees and greater speed. It's about striking a balance between maintaining the security and common developer infrastructure inherited from Ethereum and incorporating key improvements that differentiate Mantle Network from other L2 solutions.

Mantle Network features a unique modular data availability solution, implemented via EigenLayer's EigenDA. This allows for an increase in transaction throughput beyond what traditional L2s can manage, without compromising on security or placing extra strain on node operations. Furthermore, plans are underway to decentralize the sequencer, thereby preventing single points of failure or network censorship. The network also uses a Threshold Signature Scheme (TSS) to ensure the accurate execution of off-chain transactions, which in turn shortens the challenge period for withdrawals. In contrast to traditional Optimistic Rollups (ORs) that depend on Ethereum for data availability, final settlement, and execution layer for fraud proofs, Mantle Network takes a modular approach. This enhances efficiency and cost-effectiveness, while also addressing the inherent limitations of ORs, such as high fees, throughput constraints, and long challenge periods.

By breaking down the core functions of blockchain operation (execution, consensus, settlement, data availability) into separate specialized layers, Mantle Network presents a potential solution to the long-standing blockchain trilemma of scalability, security, and decentralization. This approach allows each layer to focus on a particular task, which results in a more efficient network.

The Token Merger

The BitDAO community has cast a resounding vote in favor of a major change: the rebranding of the native BIT token to Mantle, a move proposed in BIP-21 aimed at optimizing the token in anticipation of the launch of a new Layer-2 mainnet. The proposal, aptly coined "One brand, One token," seeks to consolidate and unify the BitDAO ecosystem. This proposal won the majority vote with over 235 million BIT tokens endorsing the transition, compared to the mere 988 tokens that voted against it.

Under this approved proposal, the BitDAO ecosystem, comprised of governance (BitDAO) and the product (Mantle), will merge under the single banner of Mantle. While the current governance processes and treasury management will remain intact, BIT holders will experience a token conversion process to obtain the newly branded Mantle token. This transformation is timed to coincide with the upcoming launch of Mantle's mainnet, an Ethereum-based scaling Layer-2 protocol, due to go live in the weeks to come.

A newly created Mantle token, $MNT, will have a dual function within the Mantle ecosystem. As a governance token, each $MNT will carry an equal vote weight, enabling token holders to have their say in DAO voting and influence the decision-making process. This will reinforce a decentralized and community-led approach to driving the future of the Mantle Ecosystem. The second role of the $MNT token is as a utility token, used for gas fees on the Mantle Network, and potentially as collateral assets for Mantle Network nodes. This incentivizes participation and contributes to the security and stability of the network.

As for the distribution of $MNT tokens from the Mantle Treasury, this too will be governed by the Mantle Governance process. As of June 2023, there aren't any formal discussions concerning macro targets or limitations pertaining to the distribution of $MNT tokens. However, the expected primary categories include user incentives, technology partner incentives, core contributor team and advisors, and other opportunities.

Considerable Traction for Testnet

The Mantle Network, which is currently in its testnet phase, has shown an impressive level of engagement and adoption. As of now, the network boasts over 11,000 weekly active users, underscoring the growing interest in its offerings. Developers are also actively participating in the ecosystem, with approximately 92 applications already deployed on the testnet.

While we can't definitively confirm all the figures, data from the testnet illustrates an encouraging picture of the network's progress. The Mantle testnet has processed more than 10 million transactions and witnessed the creation of nearly 850,000 wallet addresses. These numbers highlight not only the functionality of the network but also its capacity to handle high volumes of activity, a crucial feature for a layer-2 scaling solution.

The Mantle Network is not working alone in this endeavor. It has established partnerships with several ecosystem partners, including EigenLayer, Ankr, and SpotSpreads. These strategic partnerships enhance Mantle's capabilities and broaden the range of applications and services it can support.

In addition, the Mantle Network has initiated a grants program designed to bolster open-source projects that provide utility to users and add value to the community. By offering financial support, Mantle is encouraging the development of innovative solutions that can further contribute to the network's growth and utility.

Looking ahead, the mainnet launch of Mantle Network is anticipated in July 2023. As a high-performance modular layer-2 blockchain, Mantle Network is positioning itself as the premier scaling platform on Ethereum. Its aim is to provide robust support for hyper-scaled throughput decentralized applications (dApps), thereby addressing a key pain point in the current Ethereum ecosystem. Given its promising testnet results, the upcoming mainnet launch of Mantle Network is eagerly awaited by the crypto community.

Final Thoughts

The Mantle Network emerges as a solution in the world of blockchain technology, offering a fresh take on Ethereum scaling with an emphasis on Ethereum Virtual Machine (EVM) compatibility. This compatibility promises a seamless transition for all contracts and tools currently functional on Ethereum, encouraging user experimentation and efficient deployment of smart contracts.

The relationship between the Mantle Network and BitDAO is a critical aspect of the project, with BitDAO acting as the network's major backer and an integral part of the $BIT Ecosystem. With the Mantle EcoFund and a substantial backing from BitDAO, the network is well-positioned to drive its growth and adoption. As promising as the Mantle Network appears, it's important to remember that early-stage investments in such projects are not without risk.

One particular uncertainty revolves around the upcoming token conversion, when the BIT token will be rebranded to the Mantle token. This kind of large-scale token conversion is a complex process and could potentially impact the token's price in unpredictable ways. While token conversions are not a new phenomenon in the crypto world, each situation is unique, influenced by a myriad of factors including the project's specifics, market conditions, community sentiment, and more. In this case, the outcome of the BIT to Mantle token conversion is uncertain, as it involves a large-scale change for an already established token.

The uniqueness of Mantle Network is rooted in its architecture, combining an optimistic rollup with an innovative data availability solution to enable high throughput, low-cost transactions, all while maintaining the security that the Ethereum blockchain offers. The team behind the Mantle Network is comprised of experienced professionals from the web3 and Ethereum scaling space, and enjoys strategic advisory and financial support from notable figures and organizations within the blockchain industry.

Moreover, the testnet phase data offers a positive outlook for the Mantle Network. With over 11,000 active weekly users, 92 deployed applications, and over 10 million transactions processed, the network is gaining substantial traction. The anticipation for its mainnet launch in July 2023 is certainly building. Finally, the decision by the BitDAO community to rebrand the BIT token to the Mantle token signals a significant step forward in unifying the ecosystem, ensuring a holistic approach to advancing blockchain technology. This move exemplifies the community's confidence in the Mantle Network, hinting at the promising future that lies ahead.

In essence, the Mantle Network represents a compelling evolution in the blockchain domain, characterized by its ingenious design, strong backing, strategic partnerships, and evident traction. It holds great promise in addressing the prevalent challenge of scalability in the Ethereum ecosystem. As the network inches closer to its mainnet launch, it is expected to have a significant impact on the crypto community and beyond.