How does MEMO help Ethereum achieve on-chain space expansion?

Transaction congestion and high gas fees are currently the biggest problems faced by Ethereum. To solve this problem, Ethereum defines the Layer 2 expansion plan as a long-term development strategy, as Vitalik Buterin has highlighted the significance of Layer 2 to Ethereum on many occasions.

Rollups is among the most anticipated Layer2 solutions. In a recent article, A step-by-step roadmap for scaling rollups with calldata expansion and sharding, a quote from Vitalik Buterin states that “rollups are in the short and medium-term, and possibly the long term, the only trustless scaling solution for Ethereum. Transaction fees on L1 have been very high for months, and there is greater urgency in doing anything required to help facilitate an ecosystem-wide move to rollups.”

The reason for this quote is to emphasize the obvious results achieved by Rollups so far. Rollups networks such as Optimism, Arbitrum, and zk-Rollups have significantly increased transaction speed and reduced gas fees.

Significant decrease in gas fee but increase in transaction data

As we all know, the most precious resource on the Ethereum chain is gas, as gas is limited on each block and the calculation steps are also limited per slot (unit time). If all transactions occur on the main chain, the limited calculation will inevitably induce the limited number of transactions per slot, which is the fundamental cause for Ethereum network congestion.

Rollups aims to solve the congestion problem by expanding the number of transactions per slot. Its working mechanism is to process transactions off-chain and package information and execution results on-chain. To expand the transaction volume per slot, data sharding is also engaged.

Sharding and Rollups are used primarily to increase transactions per slot and effectively ease congestion. However, more transactions mean more data. Although Rollups moves calculation off-chain, transaction summaries are still uploaded to the Ethereum main chain. In other words, the Ethereum main chain does not calculate all transactions, but it must store all transaction data as the main chain provides the security ground for all sharded networks and Rollups transactions.

Unlike the gas-measured computing cost, the storage overhead is highly related to the number of transactions, which means more transactions more storage overhead. Therefore, there is such a “strange” phenomenon. Although the gas fee of a single transaction on the Ethereum chain is greatly reduced through Rollups and sharding, it also greatly increases the requirements for on-chain storage space.

Who will store a huge amount of data?

Vitalik Buterin calculated the required storage space. EIP 4488 leads to a theoretical maximum chain size of ~1,262,861 bytes per 12-sec slot, 64 shards (16 MB per slot) lead to a total (virtually guaranteed) ~40 TB storage per year. The Ethereum core protocol is responsible for permanently maintaining all of the data, which means that all Ethereum nodes need to store a separate copy.

But the problem now is that 40TB per year has far exceeded the maximum load of all nodes. Because the capacity of most nodes is currently between 256 GB and 2 TB on hard drives, falling short of a single month of transaction data, let alone a year or years.

Therefore, the problem comes down to storage. It is obviously unrealistic to rely on all nodes to store data, and alternative plans must be found. Vitalik also made several recommendations, including a belief that protocol-based solutions would be the best choice as they provide incentives.

How does MEMO store this data?

MEMO is exactly a decentralized cloud storage protocol with a complete incentive mechanism. It meets two requirements in Vitalik’s optimal option: protocol and incentive. MEMO can help Ethereum securely store on-chain historical data.

Blockchain technology is a world-changing invention that will survive its temporary usability issues. In concept, MEMO’s decentralized cloud storage is very similar to Ethereum Layer 2. MEMO has always greatly valued usability and high scalability under the premise of security.

In architectural design, MEMO stores the most critical roles and smart contract information on-chain, and uses sharing economy patterns to store other data on the idle edge space off-chain. This can minimize on-chain overhead and data load and greatly improve usability and scalability.

MEMO has also developed an off-chain public verification mechanism to ensure data security. The principle is to initiate challenges and verifications through the intermediate management role “Keeper” to ensure unpredictability, security, performance, efficiency and low overhead through random verification functions.

MEMO creates a complete incentive and constraint mechanism with the three roles and smart contracts in terms of incentive mechanism. This can effectively maintain the ecological balance of the system.

Moreover, MEMO has advanced storage technology, which combines multi-copy and erasure coding in the redundancy mechanism. The mechanism can ensure user autonomy on maximizing space utilization. At the same time, MEMO’s original data recovery mechanism greatly improves its reliability. Simply put, MEMO features a collection of cutting-edge storage technology and blockchain technology.

At present, MEMO has reached strategic cooperation with Harmony and the Ethereum Layer2 Metis over on-chain data storage services. MEMO has developed an interface for partners to facilitate developers and validated nodes to store and access historical data through this interface.

Overall, MEMO can help Ethereum securely store historical data on-chain with leading architecture design, innovative verification mechanisms, complete incentive mechanisms and cutting-edge storage technology to expand the on-chain space. It can also rely on ZB-level high scalability to meet huge data storage requirements.

MEMO, is a new-gen blockchain decentralized cloud storage protocol. The mission is to build a reliable storage infrastructure for the Web3 era.

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Memo Labs

Memo Labs

MEMO, is a new-gen blockchain decentralized cloud storage protocol. The mission is to build a reliable storage infrastructure for the Web3 era.

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