Welcome back to 0xResearch. Here's what we’ve got for you today:

• Don’t call it Ethereum 3.0

• Chart: Beam Chain timeline 👎

Accelerating the Ethereum endgame

Ethereum researcher Justin Drake introduced at Devcon Bangkok a “Beam Chain” proposal to overhaul Ethereum’s consensus layer. The proposal aims to modernize Ethereum’s infrastructure while preserving decentralization.

“I want to take what may sound like a totally crazy idea and convince you that it might not be so crazy,” he said.

The Beam Chain seeks to accelerate Ethereum’s roadmap, addressing inefficiencies and clearing technical debt accumulated since the 5-year-old design of the Beacon Chain (Ethereum’s foundation for security and decentralization).

Since its launch on Dec. 1, 2020, the Beacon Chain has guided Ethereum’s transition to proof-of-stake (PoS). Originally separate, the Beacon Chain merged with the Ethereum mainnet in September 2022 under PoS consensus. But with blockchain tech rapidly advancing, especially in cryptographic tools like SNARKs (succinct non-interactive arguments of knowledge) and zk-VMs (zero-knowledge virtual machines), Ethereum’s researchers see opportunities to enhance security and efficiency.

The Beam Chain proposal focuses on three core improvements:

1. Decentralized block production: By decentralizing block-building and relays, Beam Chain boosts censorship resistance and speeds slot times to four-second blocks with faster finality. Drake explained, “Five years ago, our mindset was ‘security first’... performance wasn’t a main consideration. Now, we can maintain security while improving performance.”

2. Lower staking requirements: The proposal reduces the minimum ETH needed to validate from 32 ETH to 1 ETH, broadening staking accessibility while preserving consumer-grade hardware requirements. 

3. SNARK-based, post-quantum cryptography: Beam incorporates hash-based signatures for real-time consensus proof, aiming to future-proof Ethereum against quantum computing threats. Drake noted Beam’s zkVM SNARK implementation would remain off-chain, letting validators select different architectures for flexibility.

Drake avoided calling Beam “Ethereum 3.0,” as it doesn’t alter Ethereum’s data layer or EVM but rather focuses solely on consensus improvements.

Drake’s timeline envisions research starting in 2025, with development taking place in 2026 to allow for testing by 2028. He also aims to onboard new client teams from regions like India and South America, reinforcing Ethereum’s commitment to global decentralization.

While still a proposal, Beam represents a future for Ethereum — embracing zero-knowledge proofs and post-quantum cryptography to enhance decentralization, security and speed. The question remains: Can it arrive quickly enough to meet market demands?

— Macauley Peterson (X: @yeluacaM | Farcaster: @Macauley)

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Beam Chain timeline:

Critics argue that Justin Drake’s proposed timeline for Ethereum’s upgrades lack a clear path to scalability at the necessary scale and pace, given Ethereum’s competitive environment.

Gnosis co-founder Martin Koeppelmann pooh-poohed it as “a big refactoring” effort lacking urgency, joining a chorus of observers calling for more rapid enhancements to Ethereum’s speed.

Key components on the agenda, such as improvements to consensus and state management, are based on research proposals that may take years to implement fully, pushing tangible benefits well into the future. They may only bring marginal improvements to the status quo in the near term.

Skeptics like Max Resnick and Jon Charbonneau suggest that more immediate, radical scalability solutions are needed within the next two years if Ethereum is to remain a viable base layer for developers.

Provocateur Eric Wall responded with a single word: No.

The Avalanche network stands at a pivotal juncture with the proposal of ACP-125, which aims to reduce base transaction fees from 25 nAVAX to 1 nAVAX on the C-Chain—a 96% reduction. This research leverages recent fee reduction events across major blockchain networks, particularly focusing on Base and Optimism, to predict ACP-125's potential impact on Avalanche.

Taking the “DeFi rotation” all the way to the bank

Blockworks Research has been ahead of the curve when it comes to the burgeoning DeFi Renaissance, covering (among others) ORCA, RUNE, JITO and AERO.

For ORCA, initially reviewed in January and again in September, metrics suggest it remains undervalued despite strong fundamentals, as noted by @0xcarlosg.

RUNE, analyzed by @0xmether, is described as having significant growth potential. Recent developments on THORChain, including increased fee revenue, the launch of an application layer and new chain integrations, have laid the groundwork for its future.

JITO, highlighted by @magicdhz in May, benefits from Solana’s momentum and network upgrades, with projections suggesting potential revenue surpassing $150 million.

Lastly, AERO is praised as a standout in Base’s beta. AerodromeFi, a MetaDEX integrating features from Uniswap, Curve and others, has become the largest protocol by total value locked (TVL) on Base, surpassing $495 billion and doubling Uniswap’s Base deployment.

Links and further insights from @BlockworksRes.

• STRK staking on Starknet Mainnet begins Nov. 26, allowing users to stake as Validators (20,000 STRK minimum, full node required) or Delegators. Validators and Delegators face a 21-day unstaking lockup. A minting curve, influenced by staking rates, adjusts token inflation dynamically, with governance controlling inflation parameters for supply management.

• Coinbase has launched the Coinbase 50 Index (COIN50), a benchmark tracking the top 50 eligible digital assets on its platform. Developed with MarketVector, COIN50 — which the company says reflects Coinbase’s rigorous vetting standards — will be available to institutional and advanced users outside the US, UK and Canada via a perpetual future (COIN50-PERP).

• Agora revealed AUSD, an institutional-grade stablecoin, as the native asset for the AggLayer. The AggLayer is a cross-chain settlement solution co-developed by Polygon Labs. AUSD will enhance liquidity, interoperability and seamless transactions across integrated chains without additional stablecoin integration. Custodied by State Street, AUSD supports cross-chain payments, collateral and revenue sharing.