Fuel…Fuel…Fuel. Let’s discuss Fuel Network, shall we?
Prior to this recent mode of designing blockchains, blockchains were usually built in such a way that one layer handles the consensus, execution and data availability functions; thereby leading to lower throughput (number of transactions capable of being carried out), i.e lower scalability. Slowly, blockchains are drifting from the conventional monolithic designs and embracing modular architecture, which specializes in performing either consensus or data availability or execution rather than all. You can learn more about monolithic and modular blockchains from my last article.
Meanwhile, one network that employs the modular design is Fuel Network (our focus in this article).
**WHAT IS FUEL NETWORK?**Fuel Network is a modular blockchain and it claims to be the world’s fastest execution layer. If you had checked the article link above, you’d note that execution involves processing and executing transactions. Fuel network is built to solely specialize in just execution as it aims to make execution of transactions as fast and efficient as possible.
PROBLEM THAT FUEL NETWORK SOLVESWe can’t discuss the main problem it solves without first mentioning that Fuel (version1) was originally deployed as a layer 2 for Ethereum in 2020. Fuel was first built as an optimistic rollup to be a scaling solution for Ethereum. However, by 2022, it was reintroduced as a modular execution layer…the first for that matter.
It has been preached that scaling solutions help improve blockchain scalability but in a case where there is a high traffic of users on the network and it becomes congested, transactions tend to be processed much slower. Fuel’s specialization on execution will ensure that blockchains are processed faster and more efficiently. Fuel Network will be able to interact with other networks like Celestia for consensus and data availability. The main goal for Fuel is to provide high throughput and maximum security.
THREE PILLARS OF FUEL TECHNOLOGY STACKThere are three pillars which Fuel operates on: parallel transaction execution, Fuel virtual machine and Sway language.
• Parallel Transaction Execution: Basically, there are two types of execution modes for transactions which are sequential transaction execution and parallel transaction execution. The sequential transaction execution is a model where transactions are validated one at a time. In the parallel transaction execution model, transactions can be validated simultaneously across multiple threads, i.e, multiple transactions can be validated at a time by multiple cores. Fuel utilizes the parallel transaction execution model which helps increase its processing capacity (throughput).
• Fuel Virtual Machine (FuelVM): Like almost all blockchain, Fuel has its own virtual machine called FuelVM. Generally, blockchain virtual machines are virtual computers that run on the blockchain. They create smart contracts and make it possible for them (smart contracts) from various sources to interact with each other. Just like other virtual machines, FuelVM is used to execute smart contracts.
One distinguishing feature of the FuelVM is that other tokens aside the network’s native token can be sent and received just as easily as it would with the network’s own token. This is in contrast to other blockchains’ virtual machines like EVM (Ethereum Virtual Machine) which only allows for transfer of tokens compatible with the corresponding blockchain.
• Sway: Just like Solidity as Ethereum’s programming language and Rust for Solana, Fuel also has its own programming language which is called Sway. Sway is Fuel’s own domain-specific programming language which aims at giving developers better development experience. Sway is believed to have combined advantages of both Solidity and Rust. Sway also comes with a toolchain, called Forc (Fuel Orchestrator) which provides developers with tools and commands for better experience.
MORE ABOUT FUEL NETWORK
• Fuel was founded by John Adler and Nick Dodson who is the current CEO.
• They have raised a total of $81.5 million in funding from a total of 14 investors. In April 2021, they raised $1.5 million from 3 investors. In September 2022, they raised another $80 million from 11 investors with Blockchain Capital and Stratos Technologies as lead investors. There was an undisclosed amount raised in their third venture round in February 2023.
• Some projects already building on Fuel are: Swaylend (the first lending protocol), Hyperlane (the first interoperability layer of Fuel), Fuelet Wallet (the leading account abstraction wallet on Fuel), Swayswap (DEX on Fuel), Spark (a central limit order book powered by Fuel), Thunder (first NFT marketplace on Fuel), Fluid Protocol (native decentralized stablecoin on Fuel) and many more.
• Fuel is yet to launch on mainnet, but they are currently in their Beta-3 public testnet which went live on March 20, 2023. To participate in the testnet, check out this guide
• NOTE: Fuel does NOT have its native token…yet.