Exploring Proof-of-Restaking with Units Network

The cryptocurrency landscape has seen significant advancements, spurred on by innovations in decentralized finance (DeFi) and blockchain technology. Within this rapidly changing environment, Sasha Ivanov, the founder of Waves, has introduced a groundbreaking initiative called Units Network. This new network serves as a foundational layer, interconnecting different ecosystem chains in a seamless and secure manner. Unique features of Units Network include the ability to restake any assets and security backed by real-world assets (RWA).

In a detailed interview, Ivanov delves into the strategic vision and technological advancements behind Units Network. He explains its critical role within the Waves ecosystem and how it impacts the broader blockchain industry. Reflecting on historical challenges, such as the depegging of Neutrino USD and the fallout from the FTX collapse, Ivanov provides valuable insights into the future of decentralized finance and blockchain innovations.

The new project, Units Network, is designed to expand the Waves ecosystem and attract new community members. It empowers users to launch their own layer-1 (L1) blockchain based on Waves staking. Fully compatible with Ethereum, the network simplifies the process of setting up a blockchain network. Interaction between networks within the ecosystem occurs through the Waves network, elevating it from a mere L1 blockchain to a layer 0 (L0) foundational level. This ease of launching and connecting blockchain networks is crucial for the mass adoption of blockchain technology.

The past two years have presented numerous challenges, but Waves has navigated through them, albeit not without difficulties. Despite the turbulent circumstances in the world, the Waves ecosystem has managed to find silver linings. Issues like the detachment of USDN and other stablecoin related challenges revealed vulnerabilities within models that rely purely on market mechanisms for stability. While these mechanisms may work 99% of the time, unforeseen scenarios can expose their fragility.

The Waves ecosystem has demonstrated resilience through its decentralized autonomous organization (DAO) model, especially during crises. After issues arose with USDN and liquidity became stuck, traditional centralized financing avenues closed off for the development of core ecosystem products. Consequently, the Waves ecosystem fully embraced decentralization, with funding channels now flowing through the Waves DAO. This transition has enabled Waves to continue evolving despite substantial challenges.

Units Network seeks to achieve what Ethereum is working toward—interconnecting layer-2 (L2) networks and the base Ethereum layer under a unified ecosystem centered on Ether staking. By converting L2 networks into “shards,” Ethereum’s sharding concept is revitalized, creating an ecosystem based on the robust economic mechanisms of a powerful L1 network. L2 networks leverage these mechanisms for internal consensus and decentralization. The L1 network evolves into a base level or L0, providing consensus and linking all networks into a cohesive ecosystem.

Units Network is set to grow the Waves ecosystem by facilitating the quick and efficient launch of Ethereum Virtual Machine (EVM) networks. This approach bypasses the need for individual validators, allowing seamless network connections within and beyond the ecosystem. The ecosystem is expected to consist of hundreds of interconnected EVM networks, anchored by the pioneering Unit0 network. The Unit0 token governs the Units DAO within the ecosystem, and a testnet campaign will soon launch, offering users the opportunity to familiarize themselves with the product and earn rewards.

Units Network aims to simplify the blockchain launch process. Originators can propose DAO governance rewards for network validators, and upon approval, their blockchain can be launched within days. These new blockchains are supported by the existing validator community and are fully interoperable with other ecosystem chains. External bridges also provide connectivity to other ecosystems.

The emphasis on real-world asset (RWA) integration is vital for future blockchain applications. RWAs can potentially transfer a large portion of the world’s financial infrastructure to blockchain technology, offering a continuous stream of new projects. Units Network will support the launch of several RWA projects within the ecosystem, illustrating the advantages in terms of launch simplicity and external ecosystem connectivity. One such project is a hybrid RWA stablecoin, which combines crypto collateral with less liquid RWA collateral to ensure stability and security.

The goal is to offer a comprehensive solution for launching and maintaining your own blockchain projects. Features include internal and external bridges, native staking of any assets, and an ecosystem DAO to help bootstrap new chains. This approach aims to make blockchain technology accessible to a wide range of projects.

Currently, testnet and liquidity campaigns are being initiated to highlight the features of the Units Network. The first ecosystem blockchain, Unit0, is set to launch this summer. The subsequent major milestone involves establishing an ecosystem DAO based on the Unit0 token, which will support the launch of additional ecosystem chains and decentralized applications (DApps). Parallel efforts include integrating zero-knowledge (ZK) proofs to enhance L0-L1 interoperability.