The Dawn of the Restaking Revolution

From October 9-11, 2024, at the Salt Palace Convention Center in Salt Lake City, Permissionless III brought together the sharpest minds in Web3 to discuss innovations reshaping the blockchain ecosystem. Among the key topics were Restaking and Actively Validated Services (AVS), both of which are transforming how decentralized networks operate and secure their applications.

I had the opportunity to participate in a panel titled "The Dawn of the Restaking Revolution", alongside leaders like Sreeram Kannan (EigenLayer), Firat Sertgoz (Nuffle Labs), and Misha Putiatin (Symbiotic). Our discussion shed light on the future of these technologies and their growing role in Web3 security.

Restaking: a new era of blockchain security

Restaking, while often associated with yield generation, offers much more than just financial incentives. The core idea is to reuse staked tokens across multiple protocols to enhance security. While it can boost returns for stakers, restaking’s real potential lies in how it allows for dynamic and scalable security models across diverse blockchain applications.

Our discussion highlighted how restaking can secure more than just smart contracts. It can support the security of layer-2 networks, data oracles, ZK and AI coprocessors, and other decentralized services. The implications are vast, as this decentralized insurance-like mechanism ensures robustness across a broader range of applications than has been possible before in the web3 paradigm.

What are AVSs (Actively Validated Services)?

AVSs, or Actively Validated Services, represent a major shift in how blockchain services can be secured. Traditionally, validators focus on securing their native blockchain, such as Ethereum. However, with AVSs, validators can extend their security role to applications, providing cryptoeconomic security for services like data availability, ZK coprocessors and oracles.

EigenLayer’s approach, for instance, allows validators to provide economic security to new services without overhauling existing security architectures. This makes it easier for developers to build cryptoeconomically secure applications while leveraging the security of existing validator networks. As the technology matures, we expect AVSs to become foundational in Web3’s infrastructure.

Building networks at Permissionless III

One of the most valuable takeaways from Permissionless III was the opportunity to build strong networks within the Web3 ecosystem. The event brought together founders and top executives, creating a highly concentrated environment for high-value conversations. Beyond the panels, these discussions are where the next collaborations and innovations often take root.

We co-hosted a VIP dinner with EigenLayer and another major sponsor, where many top teams and investors gathered to discuss future projects. These opportunities for face-to-face discussions are a major reason why we attend these events, as they help us align on the future of blockchain technology.

What’s next?

As we look forward, DevCon 2024 in Bangkok is our next major event. From November 12-15, we’ll continue the conversation on restaking, AVS, and their role in the evolving Web3 landscape. Join our Telegram channel https://t.me/layer_xyz for updates, or follow us on Twitter x.com/layeroneth to connect and plan future collaborations.

The Path Forward for Web3 Security

Permissionless III underscored that restaking and AVSs are no longer theoretical ideas but essential tools for securing the future of decentralized applications. As these innovations gain traction, they will become critical components in building a secure and scalable Web3 ecosystem.