Original Title: Understanding Particle Network: A Comprehensive Overview

Author: AJC

Compiled by: Deep Tide TechFlow

Main Points

• Particle Network is developing a modular L1 blockchain that enables each user to have a single, unified on-chain address and balance across all blockchains through chain abstraction.

• Through its L1 blockchain, Particle Network achieves three core functionalities: universal accounts, universal liquidity, and universal Gas. Each functionality provides unique use cases by eliminating manual multi-chain interactions in the user experience.

• Particle Network also implements dual staking through Babylon and aggregates data availability. Dual staking secures the crypto economy with BTC, while aggregated data availability avoids single points of failure in network data availability.

• The public testnet of Particle Network went live on May 2, along with a rewards program called Particle Pioneer. As of the writing of this article, 1.3 million accounts have registered, and 6.71 billion PARTI points have been distributed.

Introduction

One of the few constants in the crypto industry is the ever-increasing number of blockchains. Whether it’s Layer-2 (L2) rollups on Ethereum, alternative L1s, or application-specific chains, it seems there’s a new blockchain launching every month. While this expanding collection of blockchains offers users a variety of customization options, the multi-chain ecosystem also has its downsides for developers and users. Developers not only have to worry about their applications or products but also consider which blockchain ecosystem to deploy on. For users, more chains mean more complexity and fragmented liquidity, making the user experience (UX) far less straightforward than Web2.

To truly compete with Web2 in terms of adoption, Web3 needs to reach a point where the average user doesn’t even know which blockchain they are transacting on—this concept is known as chain abstraction. To this end, Particle Network is developing a modular L1 blockchain that achieves chain abstraction by enabling each user to have a single, unified on-chain address and balance across all blockchains.

Background

Particle Network was announced in April 2022, co-founded by Pengyu Wang and ++Tao Pa++. Both founders have experience in mobile game development, and they created Particle Network to provide backend infrastructure for developers. To date, Particle Network has raised $25 million through four funding 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 went live, offering point rewards through the Particle Pioneer platform. The mainnet is scheduled to launch in the second half of 2024.

Network Features

Through its L1 blockchain, Particle Network achieves three core functionalities: universal accounts, universal liquidity, and universal Gas. Each functionality aims to achieve chain abstraction by eliminating manual multi-chain interactions in the user experience.

Universal Accounts

(Image source: Particle Network)

Universal accounts allow each user to have a single, unified address, balance, and interaction point, regardless of the underlying chain where the application or funds reside. Additionally, universal accounts are compatible with both EVM and non-EVM networks, including programming-limited networks like Bitcoin. Particle Network achieves this goal by using ++ERC-4337++ smart contract wallets (smart accounts) to implement this functionality. Smart accounts provide greater flexibility, programmability, and security compared to typical externally owned accounts (EOAs) by offering enhanced features. Furthermore, universal accounts improve upon typical smart accounts by making them cross-chain compatible. Thus, Particle Network users only interact with a unified balance rather than directly with accounts.

For example, suppose a user wants to mint an NFT on an L2 rollup, but all their ETH is on the Ethereum mainnet. Using an EOA, the user would need to sign the following transactions:

1. Approve the bridging contract

2. Bridge ETH from Ethereum to L2

3. Approve the minting contract

4. Mint the NFT

However, if the user is using a universal account, they only need to sign one transaction instead of four.

Particle Network is also developing a universal WaaS SDK that will allow any application to easily integrate universal accounts into their products. Additionally, universal WaaS will allow applications that have already integrated 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

Universal liquidity is the underlying layer of Particle Network's cross-chain functionality, allowing universal accounts to have a single balance across all supported chains. Simply put, universal liquidity is Particle Network's cross-chain bridging solution. Therefore, universal liquidity allows users to transact on any supported blockchain, regardless of where their funds are located.

For example, suppose a user wants to purchase an SPL token on Solana, but all their funds are on Ethereum. With Particle Network's universal account, the user only needs to sign one transaction to complete this purchase. This is because, in this case, universal liquidity handles the actual transfer of funds from Ethereum to Solana. Through Particle Network's distributed Bundler node network, these transactions (UserOperations) are executed on behalf of the user. Ultimately, universal liquidity aims to automate cross-chain activities on a transactional basis. Typically, cross-chain activities involve multiple transactions across multiple blockchains. With universal liquidity, the user experience is streamlined, allowing users to conduct cross-chain activities in a single transaction.

Universal Gas

All multi-chain frameworks must overcome the challenge of gas payments. Particle Network's universal Gas aims to address this complexity by abstracting away specific gas tokens. Through Particle Network's Paymaster, users can pay transaction gas fees using any supported token on any supported chain. For example, USDC on Ethereum can be used to pay gas fees for transactions on Solana.

When transacting through a universal account, Particle Network prompts users to select the token they wish to use to pay the associated gas fees. Users can choose multiple tokens, even tokens across multiple blockchains, to pay gas fees. These tokens are then transferred to the Paymaster, exchanged for Particle Network's native PARTI token, and then used to settle the relevant transactions on Particle Network. The Bundler nodes are then incentivized to execute the relevant transactions.

Technology

Particle Network is a modular L1 blockchain built using the Cosmos SDK and CometBFT framework. 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 custom application layers or state machines, while CometBFT is used to securely replicate that state machine across all nodes in the network. CometBFT is an application-agnostic engine that handles the network and consensus layers through two main components:

• A consensus algorithm, namely Tendermint.

• A socket protocol, namely the Application BlockChain Interface (ABCI).

Tendermint validates requests on the source chain and confirms changes on the target chain. Its consensus provides instant finality and Byzantine fault tolerance. Additionally, Particle Network adopts Berachain's ++BeaconKit++ to implement an EVM-compatible execution environment.

Modules

The core functionalities of Particle Network (universal accounts, liquidity, and Gas) are achieved through three main modules: the master key storage center, decentralized messaging network, and decentralized Bundler.

Master Key Storage Center

The master key storage center module serves as the central source of truth on Particle Network. It works by synchronizing changes in universal account states across all supported blockchains, maintaining state consistency across the network. This module records any changes that occur on Particle Network, such as when a user adds a signer to their universal account.

Decentralized Messaging Network

Particle Network's Decentralized Messaging Network (DMN) module relays successful UserOperations (transactions of universal accounts) from external blockchains to Particle Network. The DMN is supported by a system of Relayer Nodes, which act as message center nodes on Particle Network. Additionally, the DMN works in conjunction with the master key storage center to pass state data to and from supported blockchains. The DMN is powered by Hyperlane, an interoperability layer that allows supported blockchains to connect and communicate seamlessly.

Decentralized Bundler

The decentralized Bundler module is responsible for executing UserOperations, which are core components of universal liquidity. This module consists of a distributed Bundler node network. Bundler nodes execute transactions on behalf of universal accounts, such as purchasing NFTs or swapping tokens. Bundler nodes achieve this by interacting with liquidity providers. In this case, liquidity providers are not traditional decentralized exchange (DEX) liquidity providers but rather liquidity pools spanning multiple chains that can be used to bridge funds.

For example, suppose a user wants to purchase SOL on Solana, but all their funds are evenly distributed in USDC across Ethereum, Optimism, and Arbitrum. The universal account signs a single transaction that accomplishes the following:

1. Particle Network's L1 processes the UserOperations associated with the signed transaction.

2. The Bundler node relays the UserOperations to the liquidity provider, sending USDC from Ethereum, Optimism, and Arbitrum to the respective liquidity provider.

3. Upon receiving USDC, the liquidity provider sends USDC on Solana to the user's account.

4. The Bundler node executes the transaction on the Solana DEX, which represents the user swapping USDC for SOL.

Finally, Watchtower Nodes ensure that these interconnected modules are functioning correctly. They achieve this by providing execution proofs or fraud proofs for each block generated during each epoch on the Particle network.

Dual Staking

Particle Network utilizes a delegated proof-of-stake (DPoS) consensus mechanism with a dual staking system. Once launched on the mainnet, Particle Network will utilize two different sets of validating nodes: one secured by Particle Network's native token and another secured by BTC through ++Babylon++'s Bitcoin staking protocol. The two sets of validating nodes will reach consensus independently. If either group of validating nodes deems a block invalid, that block will not be finalized. The purpose of the dual staking system is to guide crypto economic security through a verified crypto asset like BTC and the network's native token.

Aggregated Data Availability

One challenge faced by blockchains is data availability. Data availability refers to ensuring that all data required to validate transactions is accessible and that all nodes can access the state of the chain. Whenever a blockchain relies on a single data availability solution, it introduces a single point of failure. If the data availability solution fails, nodes on the blockchain cannot guarantee the validity of blocks. Therefore, Particle Network leverages aggregated data availability (AggDA), a unique approach that utilizes multiple data availability networks: Celestia, Avail, and NEAR DA.

For each block generated on Particle Network, data is published randomly in the following ways:

• Selective Publishing - Data related to the block is published to only one supported data availability solution. This approach helps reduce the cost of publishing data.

• Redundant Publishing - Data related to the block is published to all supported data availability solutions. While this method is more expensive than selective publishing, it mitigates the risk of any single data availability solution failing.

Public Testnet

Particle Network's public testnet launched on May 2, 2024. The testnet showcases two core functionalities of Particle Network: universal accounts and universal Gas. Users can register for the testnet and create universal accounts using EVM wallets like MetaMask or Rainbow. Additionally, through Particle Network's BTC Connect, users can also control universal accounts using Bitcoin wallets like Unisat or OKX.

Users can test Particle Network's universal Gas functionality by depositing native tokens into supported testnet networks (such as ETH on Ethereum, BNB on BNB Smart Chain, etc.). Once deposited, these tokens are automatically converted to universal Gas (USDG). Users can use USDG to send transactions on the testnet. As of the writing of this article, there have been 9.6 million transactions utilizing USDG on Particle Network's testnet. Furthermore, the number of UserOperations associated with these transactions has exceeded 121.5 million. It is important to note that this is an early version of universal Gas implementation, and there may be differences on the mainnet.

Particle Pioneer

The Particle Pioneer program aims to encourage user participation in the Particle Network testnet. The program rewards testnet users with PARTI points, which qualify addresses for upcoming airdrops, bonuses from the People's Launchpad, and whitelist spots for various ecosystem projects. The People's Launchpad is a project within the Particle Network ecosystem designed to guide projects and applications within the ecosystem.

Addresses earn points by sending transactions and using USDG to pay gas fees. Each transaction rewards the address with 50 points, with a maximum of 100 transactions per day. Additionally, addresses can earn extra points through daily check-ins. Addresses that send transactions for consecutive days will earn even more points.

Particle Pioneer also allows addresses to earn additional points through Particle Pioneer NFTs, which are reserved for active addresses on the testnet and those that have participated in previous activities. There are three types of NFTs, with associated point boosts ranging from 2% to 30%.

As of now, 1.3 million accounts have registered to participate in the Particle Pioneer program, and 6.71 billion PARTI points have been distributed.

Roadmap

With the launch of the Particle Network testnet in May, the protocol is one step closer to the final mainnet launch. Particle Network's roadmap includes the following:

• Q2 2024 - Adding universal liquidity and modular nodes to the public testnet

• Q3 2024 - Mainnet V1 launch, including universal accounts, universal liquidity, and universal Gas

• Q4 2024 - Launch of the testnet for dual staking and aggregated data availability

• 2025 - Mainnet V2 launch, supporting dual staking and aggregated data availability

Competitive Landscape

Chain abstraction is the ultimate solution to two significant problems in the blockchain industry. The first problem is that multi-chain frameworks inevitably lead to fragmentation of liquidity and users, creating isolated ecosystems. The second problem is that externally owned accounts (EOA) wallets provide a poor user experience that cannot compete with the seamless interactions of Web2 applications. The solutions to these problems have largely been developed separately: for example, bridging protocols connect isolated blockchains, while smart contract wallets enhance user experience to feel more like Web2.

Chain abstraction integrates these solutions, combining the strengths of both into one product. Traditionally, protocols and teams have focused on one solution or the other, but newer projects like Particle Network are increasingly committed to providing both solutions simultaneously, offering 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 on NEAR to sign transactions on other chains (such as Ethereum and BNB Smart Chain) (more blockchains will be supported in the future). NEAR's account abstraction service leverages MPC networks and chain signatures, as well as a multi-chain gas relayer, which is a mechanism that allows for gas fees and transactions to be paid on other blockchains.

Instadapp's Avocado

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

XION

XION is a modular L1 blockchain designed to create a "generalized abstraction" layer for a seamless Web3 user experience. Generalized abstraction is a comprehensive infrastructure solution that directly integrates accounts, signatures, fees, and interoperability at the protocol level. XION's "Meta Accounts" product is a smart contract account solution similar to Particle Network's universal accounts. However, Meta Accounts initiate cross-chain transactions from XION's L1, while universal accounts initiate cross-chain transactions from the source blockchain, which are then relayed and further coordinated by Particle Network's L1. XION is currently in the testnet phase, with plans to launch its mainnet in 2024.

Conclusion

Particle Network meets the demand in the blockchain space by addressing the issues of liquidity fragmentation and user experience in multi-chain ecosystems. Through 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 establishment in April 2022, Particle Network has launched its incentivized L1 testnet and secured funding from notable investors. The team plans to launch the mainnet in the second half of 2024. Furthermore, the underlying technology of Particle Network includes Cosmos SDK, CometBFT, and various innovative modules that enable seamless cross-chain transactions and state synchronization.

The launch of the public testnet in May 2024 showcases the functionalities of universal accounts and universal Gas. In the future, Particle Network plans to integrate universal liquidity and modular nodes, with the mainnet set to launch in Q3 2024 and more features to be introduced in 2025. Competing with projects like NEAR, Instadapp's Avocado, and XION, Particle Network's comprehensive approach to chain abstraction and dual staking systems positions it as a strong contender in the field of chain abstraction design.