L2 Utility Blockchains

UIP addresses scalability challenges by utilizing dedicated Layer 2 (L2) networks to store and process delivered messages. This approach reduces congestion on the Entangle Layer 1 (L1) network, improving throughput and efficiency.

L2 Blockchain

L2 blockchains are built on top of L1 blockchains and they inherit finality from the L1 blockchain they rely on. There are several methods to achieve L2 finality:

Optimistic Rollups

• Transactions are bundled and posted to the L1 blockchain as "commitments."

• A "challenge period" allows for disputes if any fraud is detected. This period can last up to a week, delaying transaction finality.

ZK Rollups

• Similar to Optimistic Rollups, but instead of a challenge period, transactions are validated using cryptographic proofs (validity proofs) before being finalized on L1.

• This approach is faster but relies on specialized technology.

Note that many L2 solutions, like rollups, use a centralized sequencer to order and bundle transactions before committing them to L1. While efficient, this method introduces trust dependency on the sequencer. On the other hand, UIP utilizes Optimistic Rollups for quick transaction rollups.

Integration with L2 Solutions

UIP integrates L2 solutions, such as Optimistic Rollups, to offload traffic from the main network. Messages from source chains are distributed across multiple L2 networks through agent groups, enabling parallel processing and faster execution. Unlike traditional L2 processes, UIP's internal utility networks bypass full block finalization for messages that do not involve value transfers, relying solely on source network finalization to speed up delivery.

Optimized Message Delivery Flow

UIP ensures efficient and scalable message delivery through a streamlined process:

• Group Splitting for High Volume: Agent groups split when transaction volume exceeds a threshold, with larger groups earning additional fees to incentivize efficiency.

• Message Assignment: Messages are randomly assigned to agent groups on the source chain and indexed to L2 utility chains for balanced workload distribution.

• Master and Sub-Master Contracts: A master contract on the L1 chain manages configurations, while sub-master contracts on L2 networks handle executor selection and fee distribution.

• Executor Selection: Executors are chosen through a two-step process, first selecting the agent group and then assigning active slots, ensuring efficient processing and avoiding double execution.

• Secure Message Handling: With a single endpoint per chain, UIP prevents double message execution, ensuring reliable and secure cross-chain delivery.

This architecture delivers a high-performance, scalable solution for cross-chain communication while maintaining security and efficiency.

Message Routing in L2 Utility Networks

Message Delivery Flow Through L2 Utility Networks

The UIP employs a structured, parallelized message delivery flow through L2 utility networks. This design ensures that even high transaction volumes do not create bottlenecks, effectively reducing queuing delays and enabling efficient, scalable omnichain communication.

Once processed by transmitter groups, messages are forwarded to L2 utility networks for consensus and coordination among transmitters. These networks bypass full block finalization, as no value transfer occurs between the Entangle Layer 1 (EIB) and the L2s, accelerating processing and minimizing the delays typically associated with L2 rollups or similar systems.

The primary functions of the L2 utility chains include facilitating message verification, managing signature exchanges, and providing transaction status updates among transmitters. To ensure balanced processing, each message is routed to a specific L2 chain based on its index at the source chain’s Endpoint, preventing any single network from becoming a bottleneck and optimizing performance across the system.