Transitioning from L1 to L2

Launching our testnet took longer than expected due to significant infrastructure changes. Hybrid has transitioned from a custom-built Layer 1 blockchain to an Ethereum-based Layer 2 solution powered by Arbitrum Nitro and Caldera's Rollup as a Service (RaaS) using Anytrust for data availability. This blog post explains why this transition was necessary and outlines the benefits it brings to the Hybrid ecosystem.

Why the Transition?

Focus on Product Development

Hybrid's core mission is to build consumer AI products like the custom AI Agent infrastructure and Atlas. Maintaining a Layer 1 blockchain demanded extensive development resources that could be better utilized for enhancing these products. By transitioning to a Layer 2 solution, we can focus more on product innovation and less on blockchain maintenance.

Cold Start Problem of Layer 1

A Layer 1 blockchain faces the cold start problem—difficulty in gaining initial traction due to the lack of an existing ecosystem. Moving to a Layer 2 solution allows us to tap into both Ethereum's extensive ecosystem, which boasts over $62B in Total Value Locked (TVL), and Arbitrum's ecosystem with over $3B in TVL and a rich array of decentralized applications (dApps). This integration facilitates immediate access to a large user base and a mature infrastructure.

Battle-Tested Technology

Arbitrum Nitro, combined with Anytrust and Caldera, offers a robust and proven technology stack. Arbitrum Nitro powers chains with over $6 billion in TVL and has demonstrated reliability and performance. By leveraging this technology, Hybrid can ensure a secure and efficient environment for AI agent development and deployment.

Technical Infrastructure Overview

Ethereum-Based Layer 2

Hybrid's new infrastructure is based on an Ethereum Layer 2 solution, providing a scalable and cost-effective environment for transactions and data storage. The Layer 2 setup allows Hybrid to benefit from Ethereum's security while significantly reducing transaction costs and increasing throughput.

Arbitrum Nitro Stack

Arbitrum Nitro is an Optimistic Rollup technology that supports Ethereum-equivalent smart contracts and developer tools. It offers:

  • 10-100x cheaper transactions compared to Ethereum.

  • Full compatibility with Ethereum smart contracts.

  • Faster block times, as low as 250ms under high throughput.

  • Working fault proofs and optional support for WASM smart contracts via Stylus.

Anytrust Data Availability

Anytrust leverages a Data Availability Committee (DAC) to store and provide data, assuming at least two members are trustworthy. This setup allows for:

  • A further 10-100x cost reduction compared to standard rollups.

  • Efficient transaction processing with guaranteed data availability.

  • A robust infrastructure that maintains Ethereum's security framework.

Benefits of the Transition

Improved Product Focus

The transition allows Hybrid to allocate more resources to improving Atlas and launching the custom AI Agents on the testnet. This focus will enhance the overall user experience and accelerate the development of new features.

Enhanced Ecosystem

By integrating with Arbitrum's ecosystem, Hybrid can quickly onboard new teams and developers, fostering a vibrant community of builders. This integration also ensures a seamless transition to the mainnet, supporting the Hybrid native coin ($HYB) for gas fees and other utilities.

Testnet Details

As we approach the testnet launch, here are the key details:

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