Mantle Network is a pioneering modular Layer-2 solution designed to help scale the Ethereum network efficiently, handling more transactions faster than before. The tool achieves this by bundling transactions together using Optimistic Rollup technology, reducing gas fees and speeding up transaction times.
It's understandable why the Mantle Network and its technology has gained plenty of interest, with scalability a hot topic among crypto commentators. By providing a fast and cost-effective solution, Mantle Network aims to make decentralized applications (DApps) more accessible and user-friendly for all on Ethereum.
Could it be a catalyst that unlocks more of Ethereum’s potential? Read on as we explore Mantle Network and its functionality, the advantages it brings to the space, the role of the project's MNT token, and more.
TL;DR
Mantle Network's unique modular design improves performance and handles Ethereum's blockchain trilemma by separating execution, consensus, settlement, and storage.
Mantle Network uses Optimistic Rollup tech to speed up Ethereum transactions and reduce gas fees.
Initially called BitDAO, Mantle is now backed by Bybit. This provides financial support and EVM compatibility for seamless Ethereum contract integration.
Mantle Network aims to lower fees and boost speeds to make DApps more user-friendly and accessible by increasing scalability.
The project's native token, MNT, plays an important part in the network's security and efficiency, and supports community governance.
What is Mantle Network?
Mantle Network is an advanced Layer-2 solution for Ethereum. It uses Optimistic Rollup technology to increase transaction speeds and lower gas fees. Transactions are processed off-chain, but still settled on Ethereum to capitalize on the network's security.
Originally known as BitDAO, Mantle Network is backed by Bybit, a crypto exchange. This relationship not only provides the project with financial support but also helps attract a sizable user base, positioning Mantle Network as a strong contender in the Layer-2 ecosystem.
Mantle Network is built around a unique modular architecture. Unlike other blockchains, it separates execution, consensus, settlement, and storage into specialized modules. This modular design not only enhances scalability and performance but also maintains the network's compatibility with Ethereum Virtual Machine. As a result, existing Ethereum applications can migrate to Mantle Network with minimal modifications.
Mantle Network's Optimistic Rollup technology assumes transactions are valid and only checks for fraud if needed, improving efficiency. Meanwhile, the tool incorporates advanced data availability technologies like EigenLayer, which helps reduce the fragmentation of security on Ethereum and bolsters security for DApps using Ethereum-based modules. For Mantle Network users, this provides cheaper and more accessible data storage while inheriting Ethereum’s security.
Mantel Network's integration of governance and utility drives the ecosystem's economic model, providing network security, functionality, and the maintenance of a decentralized and efficient blockchain environment. As a consequence, the technology's unique features and strong support make it a promising contributor to Ethereum's future scalability.
How Mantle Network works, and its advantages
Mantle Network comprises a variety of advanced tools and technologies that combine at Layer-2 to boost Ethereum's scalability. Read on to understand the network's architecture and the advantages it brings.
Validator nodes and transaction compression
Validator nodes are essential to Mantle Network's operation, and they bundle user transactions into compressed blocks. This compression reduces the size of the associated data, reducing gas fees and increasing transaction throughput.
Optimistic Rollup technology
Optimistic Rollups assume transactions are valid by default and only verify them if there's a challenge. This allows Mantle Network to handle a greater volume of transactions quickly and at a lower cost. When a batch of transactions is processed, it's posted to the Ethereum mainnet as "calldata," a cheaper storage method that makes sure the data is accessible without overloading the Ethereum network.
If a user suspects a transaction is invalid, they can submit a fraud proof. The Ethereum mainnet then checks the transaction to make sure it's valid. If the transaction is fraudulent, the validator's bond is slashed, providing a strong incentive for honest behavior.
Ethereum compatibility and a modular architecture
Mantle Network supports Ethereum contracts and tools by allowing developers to quickly move their DApps to the network with minimal steps.
Meanwhile, the network's modular architecture enhances its overall efficiency by separating the execution, consensus, settlement, and data availability functions into distinct layers. This modular approach improves performance and addresses scalability, security, and decentralization challenges — often called the blockchain trilemma.
Data availability and security
Mantle Network uses EigenLayer's EigenDA to ensure accessible and secure transaction data. This advanced technique offers high throughput while protecting data integrity.
What are the drawbacks of Mantle Network?
While the functionality explored above brings a host of advantages to users of Mantle Network, there are some drawbacks to keep in mind.
Optimistic Rollups can be complex
Optimistic Rollups are complex. They assume transactions are valid, which can lead to delays if a transaction is challenged. This fraud-proofing process takes time, which can be a problem for applications that need immediate confirmation.
Centralization risks exist
One concern is the risk of centralization, especially with the control of the sequencer in Optimistic Rollups. At first, the sequencer might be centralized, posing security and operational risks.
Although Mantle Network plans to decentralize its sequencer to lower these risks, the transition process itself could still have weak points and cause a single point of failure.
Over-dependence on Ethereum
Mantle Network relies on Ethereum for security, but this can be a double-edged sword. While it benefits from Ethereum's robust security, the network has also been affected by congestion and high gas prices on the mainnet. This can hurt Mantle Network's performance and cost-effectiveness during busy times on Ethereum.
Competition within the Layer-2 space
Another challenge for Mantle Network is the competition from other Layer-2 solutions such as Arbitrum, Optimism, and zkSync. To stay competitive, Mantle Network must keep innovating and growing its ecosystem. That requires a lot of resources and a constant commitment to development to stay ahead.
Developers face a learning Curve
There's a learning curve with Mantle Network's modular architecture. Although the modular design offers flexibility, it also adds complexity. Developers might need extra time and resources to understand the network's components, potentially slowing down development and deployment.
What's the role of the MNT token in Mantle Network?
MNT is the native token of Mantle Network. It's held in the Mantle Treasury and can therefore be considered "not in circulation", according to the project website. Meanwhile, the Mantle Governance process manages token distribution.
MNT plays a variety of roles in the network.
Governance: MNT token holders can vote on important network decisions, such as upgrades, funding, and other key matters. Each token equals one vote, protecting a community-driven and decentralized Mantle Network.
Transaction fees: Mantle Network uses the MNT token to pay transaction fees. It helps keep the network running and gives the token a purpose.
Staking: You can stake MNT tokens to help secure the Mantle Network. This means locking up your tokens to support network functions like validating transactions.
Supporting ecosystem growth: MNT tokens fund ecosystem growth initiatives, including supporting new projects, grants, and other development activities that expand the Mantle Network ecosystem.
What's next for Mantle Network?
In 2024 and beyond, the Mantle Network is expected to grow and develop in several key areas.
Most notably, Mantle Network's technology will reportedly be enhanced, with a particular focus on its modular architecture. The network's modular design simplifies the process of making upgrades and scalability improvements by separating functions like execution, consensus, settlement, and data availability into distinct layers. As a result, hard forks are no longer needed.
Decentralization is also expected to be an important focus for the project going forward. Governance and decentralization are already a priority for Mantle Network. As the first DAO-based Layer-2 solution, the project emphasizes decentralized governance. Token holders decide on protocol upgrades and fund allocations, making sure any changes align with community needs. Mantle Network plans to decentralize its sequencer, making the network more resilient, secure, and less prone to censorship.
Enhancements to staking on the network are another area of development, particularly with the Mantle Liquidity Staking Protocol (LSP). With LSP, users can stake ETH for yield-bearing mETH, making the network more useful and offering further incentives to the community.
What's more, Mantle Network is expected to form new strategic partnerships aimed at enhancing interoperability and expanding the ecosystem. These collaborations should connect Mantle Network with DeFi protocols and Web3 applications, strengthening its market position.
Already we've seen Mantle Network expand to include Telegram-based mini-apps. The popularity of Catizen and other crypto games on Telegram has spotlighted gaming’s role in increasing Web3 adoption. Catizen, a flagship game on Mantle Network, demonstrates the capabilities of the Mantle blockchain in creating major decentralized games.
Mantle has built on this momentum with new mini games released on Telegram. Accessible and with attention-grabbing gameplay, these games lower the barrier to entry to the technology. By participating, users can experience the advantages of blockchain, such as digital ownership and transparent rewards. Using major platforms such as Telegram, Mantle aims to make Web3 and blockchain technology more approachable to a wider audience.
The final word
Ethereum's scalability challenges are well documented, and Mantle Network is another Layer-2 solution that aims to ease this limitation for users and developers. The tool uses Optimistic Rollup technology to speed up transactions and reduce gas fees on Ethereum, but its influence goes further still.
Mantle Network's modular architecture provides compatibility with existing Ethereum applications, while its Optimistic Rollup technology assumes transactions are valid and only checks for fraud if needed, improving efficiency further.
As the Ethereum network continues to evolve while facing competition from established and emerging projects, solutions such as Mantle Network provide a compelling reason to use and build on Ethereum.
FAQs
Mantle Network is a Layer-2 solution that uses Optimistic Rollup technology to speed up transactions and lower gas fees on Ethereum. In doing so, the technology helps to address the common scalability challenges facing the network.
Mantle Network improves Ethereum scalability by processing transactions off-chain and settling them on Ethereum. This brings greater speed to transaction finality while still benefiting from the network's robust security. This architecture helps to make decentralized applications more accessible and scalable.
Mantle Network's Optimistic Rollups assume transactions are valid and only verify them if challenged. Validator nodes compress transactions into blocks, reducing gas fees and increasing throughput. Fraud proofs improve security by letting users challenge invalid transactions.
Due to its compatibility with the Ethereum Virtual Machine, Mantle Network offers lower gas fees, faster transaction speeds, and easy migration for Ethereum applications. What's more, the network's modular architecture enables customized and efficient app development, granting developers the opportunities they need to build their vision securely and cost-effectively.
MNT, Mantle Network's native token, plays an important role in the project's governance, with MNT holders gaining voting rights. It's also used to pay for transaction fees on the network, bolstering security. Staking is another function of MNT and another way the token helps to secure the network. MNT holders are rewarded with further MNT when they put their assets to work securing the blockchain and processing transactions. Meanwhile, MNT is also used to fund new projects.
The developments set out for Mantle Network's future make it a project to keep an eye on. Future improvements have been announced for the tool's modular architecture and data availability, strengthening its core functionality. Meanwhile, the project team has taken a long-term view with plans for decentralized governance with better DAO processes and sequencer decentralization. Further ecosystem expansion is also expected, driven by the support of developers and new partners. Meanwhile, Mantle Network is aiming to involve its developers and user base more closely in the project through the launch of new resources and events.
© 2024 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less of this article may be used, provided such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state: “This article is © 2024 OKX and is used with permission.” Permitted excerpts must cite to the name of the article and include attribution, for example “Article Name, [author name if applicable], © 2024 OKX.” No derivative works or other uses of this article are permitted.
Information about: digital currency exchange services is prepared by OKX Australia Pty Ltd (ABN 22 636 269 040); derivatives and margin by OKX Australia Financial Pty Ltd (ABN 14 145 724 509, AFSL 379035) and is only intended for wholesale clients (within the meaning of the Corporations Act 2001 (Cth)); and other products and services by the relevant OKX entities which offer them (see Terms of Service). Information is general in nature and should not be taken as investment advice, personal recommendation or an offer of (or solicitation to) buy any crypto or related products. You should do your own research and obtain professional advice, including to ensure you understand the risks associated with these products, before you make a decision about them. Past performance is not indicative of future performance - never risk more than you are prepared to lose. Read our Terms of ServiceTerms of Serviceand Risk Disclosure Statement for more information.
