Understanding Particle Network: A Comprehensive Overview

Key Insights

• Particle Network is developing a modular L1 blockchain to achieve chain abstraction by enabling every user to have a singular, unified onchain address and balance across all blockchains.
• Through its L1 blockchain, Particle Network enables three core functionalities: Universal Accounts, Universal Liquidity, and Universal Gas. Each functionality enables a unique use case by removing manual multichain interactions from the user experience.
• Particle Network also implements dual staking through Babylon and aggregated data availability. Dual staking bootstraps cryptoeconomic security from BTC, while aggregated data availability avoids having a single point of failure for the network’s data availability.
• Particle Network’s public testnet launched on May 2, alongside a rewards program called Particle Pioneer. As of writing, 1.3 million accounts have signed up, and 6.71 billion PARTI points have been distributed.

Introduction

One of the few constants in the crypto industry is the expanding number of blockchains. Whether it be Layer-2 (L2) rollups on Ethereum, alt-L1s, or application-specific chains, there seems to be a new blockchain launching every month. While this ever-expanding set of blockchains provides users with various tailored options, there are drawbacks for both developers and users to a multichain ecosystem. Developers must not only worry about their app or product but also consider which blockchain ecosystem to deploy on. As for users, more chains mean more complexity and liquidity fragmentation, making the user experience (UX) nowhere near as simple as Web2.

To truly rival Web2 in terms of adoption, Web3 needs to reach a point where the everyday user is unaware of which blockchain they are transacting on — a concept referred to as chain abstraction. To this end, Particle Network is developing a modular L1 blockchain to achieve chain abstraction by enabling every user to have a singular, unified onchain address and balance across all blockchains.

Background

Particle Network was announced in April 2022 and co-founded by Pengyu Wang and Tao Pan. Both founders have previous experience in mobile game development and created Particle Network to provide backend infrastructure for developers. To date, Particle Network has raised $25 million across four rounds, with notable investors including Spartan Group, Gumi Crypto, Animoca Ventures, LongHash Ventures, and Alibaba Group. On May 2, 2024, Particle Network’s incentivized L1 testnet launched, offering point rewards through the Particle Pioneer platform. Particle Network’s mainnet launch is slated for the second half of 2024.

Network Features

Through its L1 blockchain, Particle Network enables three core functionalities: Universal Accounts, Universal Liquidity, and Universal Gas. Each functionality enables a unique use case with the express purpose of achieving chain abstraction for the user by removing manual multichain interactions from the user experience.

Universal Accounts

Source: Particle Network

Universal Accounts on Particle Network allow each user to have a single, unified address, balance, and interaction point, regardless of which underlying chain the applications or funds sit on. Additionally, Universal Accounts are compatible with both EVM and non-EVM networks, even including networks with limited programmability such as Bitcoin. Particle Network achieves this through the use of ERC-4337 smart contract wallets (smart accounts). Smart accounts allow for greater flexibility, programmability, and security than a typical externally owned account (EOA). Additionally, Universal Accounts improve upon typical smart accounts by enabling them to be cross-chain compatible. As a result, Particle Network users only interact with a unified balance rather than the accounts directly.

For example, assume a user wanted to mint an NFT on an L2 rollup, but all their ETH was on Ethereum Mainnet. Using an EOA, the user would have to sign transactions for the following:

1. Approve the bridging contract
2. Bridge ETH from Ethereum to the L2
3. Approve the mint contract
4. Mint the NFT

However, If the user had used a Universal Account instead, they would only have to sign a single transaction rather than four.

Particle Network is also developing the Universal WaaS SDK(s), which would enable any application to easily integrate Universal Accounts into its product offering. Furthermore, Universal WaaS will allow for applications already integrated with either of Particle Network’s existing Wallet Abstraction services, Modular Smart Wallet-as-a-Service, or BTC Connect, to automatically upgrade any existing smart accounts to Universal Accounts.

Universal Liquidity

Source: Particle Network

Universal Liquidity is the underlying layer for the cross-chain aspects of Particle Network, enabling Universal Accounts to have a singular balance across all supported chains. In simpler terms, Universal Liquidity functions as Particle Network’s cross-chain bridging solution. As such, Universal Liquidity allows users to transact on any supported blockchain, regardless of which blockchain a user’s funds reside on.

For example, assume a user wants to buy an SPL token on Solana, but all their funds are on Ethereum. With Particle Network’s Universal Accounts, the user would only have to sign a single transaction to facilitate this purchase. This is possible because Universal Liquidity handles the actual movement of funds from Ethereum to Solana in this scenario. Achieved through Particle Network’s distributed network of Bundler Nodes, these transactions (UserOperations) are executed on behalf of the user. Ultimately, Universal Liquidity aims to automate cross-chain activities on a per-transaction basis. Typically, cross-chain activities involve multiple transactions across various blockchains. Through Universal Liquidity, the user experience is simplified, allowing users to conduct a cross-chain activity in a single transaction.

Universal Gas

Source: Particle Network

All multichain framework have to overcome the challenge of gas payments. Particle Network’s Universal Gas aims to solve this complexity by abstracting away the specific gas token used. With Particle Network’s Paymaster, users can pay the gas fee of a transaction with any supported token on any supported chain. For example, USDC on Ethereum could be used to pay the gas fee for a transaction on Solana.

When conducting a transaction through a Universal Account, Particle Network prompts the user to choose the token they would like to pay the associated gas fee with. Users have the option to choose multiple tokens, even tokens across multiple blockchains for the gas fee. These tokens are then transferred to the Paymaster, exchanged for Particle Network’s native PARTI token, and then used to settle the associated transaction(s) on the Particle Network. Bundler Nodes are then incentivized to execute the associated transaction(s).

Technology

Particle Network is a modular L1 blockchain built using the Cosmos SDK and CometBFT. The Cosmos SDK is an open-source software development kit (SDK) for building sovereign and public PoS blockchains. The Cosmos SDK is used to build a custom application layer, or state machine, while CometBFT is used to securely replicate that state machine on all nodes in the network. CometBFT, an application-agnostic engine, handles the networking and consensus layers through two main components:

• A consensus algorithm, i.e., Tendermint.
• A socket protocol, i.e., the Application Blockchain Interface (ABCI).

Tendermint validates requests on the source chain and confirms changes on the destination chain. Its consensus provides instant finality and Byzantine fault tolerance. Furthermore, Particle Network features an EVM-compatible execution environment using Berachain’s BeaconKit.

Modules

Particle Network’s core functionalities (Universal Accounts, Liquidity, and Gas) are enabled through three primary modules: Master Keystore Hub, Decentralized Messaging Network, and Decentralized Bundler.

Source: Particle Network

Master Keystore Hub

The Master Keystore Hub module serves as the central source of truth on Particle Network. It works by synchronizing state changes for Universal Accounts across all supported blockchains, maintaining state parity across networks. This module recorads any change that occurs on Particle Network, such as a user adding a signer to their Universal Account.

Decentralized Messaging Network

Particle Network’s Decentralized Messaging Network (DMN) module relays successful UserOperations (transactions from Universal Accounts) on external blockchains to Particle Network. The DMN is enabled by a system of Relayer Nodes, a message hub of nodes on Particle Network. Furthermore, the DMN works in tandem with the Master Keystore Hub to deliver state data to and from supported blockchains. DMN is powered by Hyperlane, an interoperability layer that allows supported blockchains to connect to one another and communicate seamlessly.

Decentralized Bundler

The Decentralized Bundler module is responsible for conducting UserOperations, the core component of Universal Liquidity. This module is composed of a distributed network of Bundler Nodes. Bundler Nodes carry out transactions on behalf of Universal Accounts, such as purchasing an NFT or swapping tokens. Bundler Nodes achieve this through interactions with liquidity providers. In this context, liquidity providers are not traditional decentralized exchange (DEX) liquidity providers but rather pools of liquidity spanning across multiple chains that can be used for bridging funds.

For example, assume a user wants to purchase SOL on Solana, but all their funds are in USDC split evenly on Ethereum, Optimism, and Arbitrum. A Universal Account signs a singular transaction which enables the following:

1. Particle Network’s L1 processes the UserOperations associated with the signed transaction.
2. Bundler Nodes relay the UserOperations to Liquidity Providers, sending the USDC on Ethereum, Optimism, and Arbitrum to the appropriate Liquidity Provider.
3. Upon receiving the USDC, the Liquidity Provider sends USDC on Solana to the user’s account.
4. Bundler Nodes execute the transaction on a Solana DEX which swaps USDC for SOL on behalf of the user.

Finally, Watchtower Nodes ensure that these various interconnected modules are all working properly. They achieve this by providing execution proofs or fraud proofs for each block produced per epoch on Particle Network.

Dual Staking

Particle Network uses a Delegated Proof-of-Stake (DPoS) consensus mechanism featuring a dual staking system. Once live on mainnet, Particle Network will leverage two distinct sets of validator nodes: one pool secured through Particle Network’s native token and the other secured by BTC through Babylon, a Bitcoin staking protocol. Both validator sets will independently arrive at consensus. If either of the two validator sets considers a block invalid, then that block will not be finalized. The purpose of the dual staking system is to bootstrap cryptoeconomic security through both a proven cryptoasset such as BTC and the network’s own native token.

Aggregated Data Availability

One challenge associated with blockchains is data availability. Data availability refers to ensuring that all data needed for verifying transactions and making sure all nodes can access the state of a chain. Whenever a blockchain only uses one data availability solution, it introduces a single point of failure. If the data availability solution were to fail, then the blockchain’s nodes would not be able to guarantee the validity of blocks. As such, Particle Network utilizes Aggregated Data Availability (AggDA), a unique approach that leverages multiple data availability networks: Celestia, Avail, and NEAR DA.

Source: Particle Network

For each block produced on Particle Network, data is randomly published via either:

• Selective Publishing - The data associated with a block is published to only one of the supported DA solutions. This approach helps reduce the cost associated with publishing data.

Redundant Publishing - The data associated with a block is published to all supported DA solutions. While more costly than selective publishing, this approach diversifies the risk of any individual DA solution not functioning properly.

Public Testnet

Particle Network’s public testnet launched on May 2, 2024. The testnet features two of Particle Network’s core functionalities: Universal Accounts and Universal Gas. Users can sign up for testnet and create a Universal Account using an EVM wallet such as MetaMask or Rainbow as the signer for the associated Universal Account. Furthermore, through Particle Network’s BTC Connect, users can also use a Bitcoin wallet, such as Unisat or OKX, to control a Universal Account.

Users can test out Particle Network’s Universal Gas feature by depositing native tokens from supported testnet networks (ETH for Ethereum, BNB for BNB Smart Chain, etc.). Once deposited, these tokens are automatically converted into Universal Gas (USDG). With USDG, users can send transactions on the testnet. As of writing, there have been 9.6 million transactions leveraging USDG on Particle Network’s testnet. Additionally, the UserOperations associated with these transactions have eclipsed 121.5 million transactions. Of note, this is an early version of the Universal Gas implementation, and it will likely differ on mainnet.

Particle Pioneer

The Particle Pioneer program was launched to encourage users to participate in the Particle Network testnet. The program rewards testnet users with PARTI points, which make addresses eligible for upcoming airdrops, bonuses on the People’s Launchpad, and secure whitelist spots for various ecosystem projects. The People’s Launchpad is a project within the Particle Network ecosystem designed to bootstrap projects and applications within the ecosystem.

Addresses earn points by sending transactions and paying for gas using USDG. Each transaction rewards an address with 50 points, with a max of 100 transactions per day. Furthermore, addresses get additional points for daily check-ins. The more days in a row an address sends a transaction, the more points it receives.

Particle Pioneer also allows addresses to earn boosted points through Particle Pioneer NFTs, which are reserved for power testnet addresses and those who participated in previous campaigns. There are three types of NFTs, with associated boosts ranging from 2% to 30% on points.

To date, 1.3 million accounts have signed up for the Particle Pioneer program, and 6.71 billion PARTI points have been distributed.

Roadmap

With the launch of Particle Network’s testnet in May, the protocol is one step closer to its eventual mainnet launch. Particle Network’s roadmap consists of the following:

• Q2’24 - Adding Universal Liquidity and Modular Nodes to the public testnet
• Q3’24 - Mainnet V1 launch with Universal Accounts, Universal Liquidity, and Universal Gas
• Q4’24 - Testnet launches for Dual Staking and AggDA
• 2025 - Mainnet V2 with support for Dual Staking and AggDA

Competitive Landscape

Chain abstraction is the culmination of addressing two significant issues in the blockchain industry. The first issue is that multichain frameworks inevitably fragment liquidity and users, creating isolated ecosystems. The second issue is that externally owned account (EOA) wallets offer a poor user experience, failing to rival the seamless interaction of Web2 applications. Solutions to these problems have largely been developed separately: for example, bridging protocols work to connect siloed blockchains, while smart contract wallets enhance the user experience to feel more like Web2.

Chain abstraction integrates these solutions, combining the benefits of both into a single product offering. Traditionally, protocols and teams focused on one solution or the other, but newer projects, such as Particle Network, are increasingly aiming to provide both solutions simultaneously, delivering a more cohesive and efficient user experience.

NEAR

NEAR is a multi-purpose L1 smart contract platform that offers chain abstraction services. NEAR's account abstraction service allows users with an account on NEAR to sign transactions on other chains, such as Ethereum and BNB Smart Chain (additional blockchains to be supported in the future). NEAR’s account abstraction service leverages an MPC Network and Chain Signatures, alongside the Multichain Gas Relayer, a mechanism that enables gas fee payments and transactions on other blockchains.

Avocado by Instadapp

Instadapp’s Avocado platform is a smart contract account compatible with multiple supported EVM-compatible networks, including Ethereum, Polygon, Optimism, Arbitrum, Avalanche, BNB Smart Chain, and Gnosis Chain. Similarly to Particle Network, Avocado abstracts away the underlying chain from the user experience. Additionally, Avocado implements a Paymaster gas tank, enabling users to pay all gas fees in USDC. One key difference is that Avocado only integrates with EVM networks, while Particle Network will also integrate with non-EVM networks.

XION

XION is a modular L1 blockchain that aims to create a “Generalized Abstraction” layer to enable a frictionless Web3 user experience. Generalized Abstraction is an all-encompassing infrastructure solution that integrates accounts, signatures, fees, and interoperability directly at the protocol level. XION features its “Meta Accounts” product, which is a smart contract account solution analogous to Particle Network’s Universal Accounts. However, Meta Accounts initiate cross-chain transactions from XION’s L1, whereas Universal Accounts initiate cross-chain transactions from the source blockchain, then relaying them to and further coordinating them by Particle Network’s L1. XION is currently in testnet, with plans for a mainnet launch in 2024.

Closing Summary

Particle Network is meeting a need in the blockchain landscape by addressing liquidity fragmentation and user experience issues in a multichain ecosystem. With its modular L1 blockchain, Particle Network offers Universal Accounts, Universal Liquidity, and Universal Gas to achieve chain abstraction and simplify user interactions across different blockchains. Since its inception in April 2022, Particle Network has launched its incentivized L1 testnet and secured funding from notable investors. The team aims to launch on mainnet in the second half of 2024. Also, Particle Network’s underlying technology includes the Cosmos SDK, CometBFT, and various innovative modules, enabling seamless cross-chain transactions and state synchronization.

The launch of the public testnet in May 2024 showcased the functionalities of Universal Accounts and Universal Gas. Moving forward, Particle Network plans to integrate Universal Liquidity and Modular Nodes, with a mainnet launch scheduled for Q3 2024 and additional features rolling out in 2025. Competing with projects like NEAR, Avocado by Instadapp, and XION, Particle Network's comprehensive approach to chain abstraction and dual staking system make it as a strong contender in the chain abstraction design space.

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