Liquid staking has been a raging utility in the blockchain sphere for quite some time now, and rightfully so. Users are flocking to liquid staking services due to the benefits they offer over traditional Proof-of-Stake (PoS) staking. They overcome the illiquidity associated with staking assets to secure PoS networks, making it possible to tap into the staked value and accrue additional yields in the true DeFi sense. Essentially, users get handed liquid staking tokens (LSTs) that reflect the same value as the staked assets, enabling them to grow their returns by holding them or moving them to other dApps to farm greater rewards.

Nevertheless, liquid staking, despite the advantages offered, still presents obstacles to PoS networks like Ethereum, against which the network’s proponents are voicing their concerns. A major one is the centralization of the network. Since users are turning to massively popular staking services, staked ETH is being concentrated among a few liquid staking players, giving them increasing sway over Ethereum’s consensus mechanisms. Moreover, entrusting ETH with third-party [liquid staking](https://www.ankr.com/blog/liquid-staking-risks/) providers introduces additional risks in the form of smart contract vulnerabilities. Bugs in liquid staking contracts can let hackers exploit them and walk away with users’ value.

Restaking, a novel primitive in the staking landscape, is shaping up to be the solution to liquid staking’s challenges, bringing increased decentralization and security to the ecosystem while users earn greater staking returns.

## What is Restaking?

Restaking is an innovative version of staking on Ethereum, where stakers use the same collateral staked towards securing the blockchain to secure other applications simultaneously. Basically, the resources needed to validate Ethereum transactions can now be harnessed to validate transactions on other implementations like dApps, oracles, layer-2 sidechains, and more, called AVSs (Actively Validated Services). The innovation removes the need for AVSs to build and operate their own security infrastructure and, instead, rely on Ethereum’s well-established security resources. This mechanism would not exist without EigenLayer, the cutting-edge protocol that introduced the restaking mechanism.

## EigenLayer – Revolutionizing Ethereum Staking with Restaking

EigenLayer allows ETH, and more recently ETH-based LSTs, to be restaked through its layer, operated by on-chain, decentralized smart contracts. Staking ETH this way hands the withdrawal rights of the staked assets to EigenLayer, making it possible to enforce additional slashing procedures on top of Ethereum’s slashing mechanism.
EigenLayer’s opt-in slashing feature enables AVSs to enforce validation rules to protect their networks from validators behaving dishonestly during transaction consensus or harming them in any way. Ergo, EigenLayer enables top-tier security for AVSs depending on Ethereum stakers opting into its restaking mechanism while providing monetary benefits to staking participants. The restaking protocol elevates the Ethereum network’s security to meet the needs of AVSs while increasing its decentralization.

## How Restaking Benefits the Staking Ecosystem

Staking participants such as delegators and validators staking on Ethereum over the restaking layer can gain rewards from the Ethereum blockchain and the AVSs secured via restaking. Moreover, the restaking mechanism routes the staking returns back into validator staking pools, increasing the stake size of participants and consequently compounding their staking rewards. At the same time, reintroducing rewards into staking pools increases network security. With more amounts in validator pools, validators are inclined to act honestly and keep up Ethereum’s transaction integrity.

Another benefit of restaking is the development of validator markets. These markets will comprise ETH validators who are securing AVSs that want to tap into Ethereum’s resources. Not only do the increased restaking yields attract more validators to these markets, but they even bring more delegators looking to stake through these validators for a portion of the attractive returns. This implies growing participation in Ethereum’s consensus mechanism. Increasing validator nodes further decentralizes the network, and booming ETH stakes make it more secure.

The AVSs accessing security from ETH validators will also use Ethereum’s growing validator base, benefitting from levels of security that would not be attainable if they built their own validating systems from scratch. Additionally, the costs incurred by developing their own decentralized systems would amount to more than using validating resources available on restaking markets.

Furthermore, restaking mechanisms utilize smart contracts for their functioning. Staking on Ethereum, collecting and reintroducing rewards into staking pools, and enforcing honest behavior during validation are based on user-verifiable smart contract executions, driving up transparency, which enhances security and decentralization.

## Liquid Staking and Restaking Go Hand-in-Hand.

As the restaking concept catches on with blockchain and DeFi users, growing developments combine it with the other popular staking utility – liquid staking. Users staking ETH through liquid staking services do not have to unstake their assets to indulge in restaking. Eigenlayer’s restaking mechanism lets users participate using their ETH liquid staking tokens (LSTs). Since LSTs act as receipts to users’ stakes on Ethereum through liquid staking services, they are compatible with restaking.

With that, users can help decentralize and secure the Ethereum blockchain by staking their ETH-based LSTs on EigenLayer and even other purpose-built restaking platforms like GenesisLST and InceptionLST. These platforms are constructed on EigenLayer, pushing restaking to newer possibilities by boosting liquidity.

### GenesisLST

A great example of a restaking service, GenesisLST lets users be a part of staking’s latest evolution with exciting rewards generated by restaking ETH or LSTs on Ethereum and AVSs. GenesisLST enables users to restake their assets with custom options over various levels, including choosing the AVS they want to see validated and the validators securing them.

This platform also offers users the genETH liquid restaking token (LRT) on their restaked assets. The liquidity provided to users on their restaking endeavors can be utilized on DeFi protocols on Ethereum and its layer-2 chains to attract even greater rewards. It uses the LST2 Protocol to securely move genETH tokens between the two layers and enable a composable DeFi ecosystem for its users.

Validators restaking on GenesisLST must delegate their validation keys to the platform’s Ethereum node operators. From there, the platform engages with EigenLayer, redirecting the funds through the protocol’s smart contracts to access AVS validation rewards. Users wanting to hand over the hassles of operating their own Ethereum and EigenLayer nodes can turn to GenesisLST.

### InceptionLST

InceptionLST is another platform innovating on top of the already avant-garde restaking process. The platform allows restaking LSTs to secure Ethereum and AVSs, unlike the former platform that lets users restake pure ETH and LSTs. Where it resembles GenesisLST, however, is the offering of additional liquidity balanced against the restaked LSTs in the form of the inETH2 LRT.

The LRT, like genETH, enables users to take their DeFi strategy past Ethereum to leading layer-2 blockchains where several interesting opportunities reside. InceptionLST, too, relies on the LST2 Protocol to bridge its inETH2  tokens securely between the two layers.

Where InceptionLST differs from GensisLST is in how validators use the platform. Unlike the latter, validators do not have to delegate their validation keys. Instead, they validate transactions on the Ethereum network with their own node setups while interacting with the EigenLayer for additional rewards. Those possessing technical knowledge of handling staking hardware and prefer indulging completely in Ethereum PoS staking can restake using InceptionLST.

## Is restaking the future of liquid staking?

With rapid developments at the staking end of blockchain technology, newer implementations are acting as solutions to problems with existing ones. They do so while pushing reward generation further than before. Restaking is the next step in PoS staking’s evolution, providing increased decentralization and security at the blockchain and application levels. If that was not enough, staking participants receive greater rewards than before, motivating them to make the Ethereum blockchain more robust, where restaking developments get witnessed presently.

Projects like GenesisLST and InceptionLST are implementing the restaking mechanism developed by EigenLayer, offering users the mechanism’s benefits and more. Users restaking ETH and ETH-based LSTs on these platforms are making the most out of their assets while improving Ethereum’s security upkeep. The LRTs provided to users for their restaking efforts extend the basis of liquid staking, delivering DeFi reward generation on additional levels.

EigenLayer’s restaking paradigm lets blockchain participants improve decentralized consensus while profiting larger than before. As more platforms built over EigenLayer emerge, coupling their developments with it, DeFi is on the brink of witnessing yet another novel avenue with ground-breaking outcomes called EigenFi.





Explore the transformative concept of restaking in our essential guide. Learn how it revolutionizes staking and its implications for the future.

Restaking: The Essential Guide & Future of Liquid Staking 

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Restaking: The Future of Liquid Staking 

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Diogo Costa

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We are thrilled to announce that Tencent Cloud has joined forces with Ankr to launch its first Web3-native product, Tencent Cloud Blockchain RPC, for organizations and enterprises seeking faster and more robust blockchain infrastructure access. Jointly developed by Ankr and Tencent Cloud, this new offering highlights the shared objective of both companies to provide solid and dependable Web3 infrastructure and developer services to Web3 builders. The jointly developed RPC Service strives to provide enterprise-grade blockchain node infrastructure that enables developers to stay ahead in the rapidly evolving Web3 environment.

> "The initiation of our partnership with Tencent Cloud is a pivotal moment for Ankr and indicates the leaps made by the decentralized internet in integrating with the vital infrastructure of the broader web ecosystem. It paves the way for an era of accelerated development in blockchain applications, whether from emerging Web3 initiatives or established enterprises, and creates a path for further collaboration and innovation."
– Stanley Wu, Co-Founder and CTO of Ankr

## Details of the Tencent Cloud Blockchain RPC

Now available via Tencent Cloud’s online marketplace, the Remote Procedure Call (RPC) service creates an instant portal to access essential blockchain networks for its expansive user base. The service provides developers with a convenient means of querying data and processing transactions on an assortment of blockchains, such as Ethereum Mainnet, BNB Smart Chain, and Polygon PoS.

The strategic alliance leverages technological expertise from both parties, merging Ankr's cutting-edge blockchain infrastructure with Tencent Cloud's unparalleled capabilities. The RPC Service will have a strong advantage in the market by offering high concurrency performance, supporting a regular request volume of up to 1,800 requests per second per chain, relying on Ankr’s node expertise and infrastructure stability.

Tencent Cloud Blockchain RPC will provide two versions – public, for free blockchain interaction with set features and rate limits; and premium, for Pay-as-you-Go blockchain interaction with increased request throughput and enhanced rate limits. Tencent Cloud Blockchain RPC will also launch an enterprise-exclusive version of the service, covering more use cases and major regions worldwide in the near future. In addition, new supported blockchains and an advanced API service will be gradually integrated with the public and premium versions of the service.

## A Final Note

At Ankr, we are dedicated to delivering leading-edge technology that helps our customers stay ahead in a rapidly changing industry so they can create experiences that amaze their users. By partnering with Tencent Cloud, Ankr can expand our resources, expertise, and global reach, letting us double down on our mission. As we explore more potential solutions and opportunities with our newfound partner, we share the excitement of our community in what we’ll look back on as just the beginning of the new era of the decentralized web.

## Join the Conversation on Ankr’s Channels

[Twitter](https://twitter.com/ankr) | [Telegram Announcements](https://t.me/anrknetworkann) | [Telegram English Chat](https://t.me/ankrnetwork) | [Help Desk](https://ankrnetwork.atlassian.net/servicedesk/customer/portal/10) | [Discord](http://discord.ankr.com/) | [YouTube](https://www.youtube.com/channel/UCErrNjCg6raOsq5MQ9fpIig) | [LinkedIn](https://www.linkedin.com/company/ankr/) | [Instagram](https://www.instagram.com/ankr) | [Ankr Staking](https://eth2.ankr.com/)

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Ankr and Tencent Cloud Partnership Launches To Provide Blockchain RPC for Developers

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Kevin is a business writer, journalist, and avid explorer of the blockchain and tech industry. His work has been covered across crypto and traditional media as Ankr’s Senior Writer, with topics spanning the big picture of “Web3,” tech breakthroughs, and how blockchain is changing our digital lives. Working with some of blockchain’s most talented engineers daily, Kevin gains unique insight into what advances we can expect next and the implications they hold for us all.

Technical Writer

Kevin Dwyer

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In March of this year, the CEO of BlackRock (the world's largest asset manager with over $9T) made a bold [statement](https://finance.yahoo.com/news/blackrock-ceo-says-next-generation-120411520.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAKAK-L73HI8RykmrgXwa72T5fh277ujQ-6qfS4EDbbNMexFYotDLf84jDFR9fIDDoK-skCfrr9rpqo-yktiPqUAcHJnY6qzHLNB8c2oiuqKkEfFOSZE6HOnDiY1nnofmZ6Ia_rx4ENpJxzb2EcdSBtHVWojPgy5T6t31haTPBA8W):
 “The next generation for markets, the next generation for securities, will be the tokenization of securities.” Tokenization of assets is a blockchain use case that involves representing real-world assets (RWAs), such as real estate, shares, commodities, and even loyalty points, as digital tokens. These tokens can then be traded on blockchain-based exchanges or transferred to other users.

This article looks at one of the most significant blockchain narratives of 2023 and how enterprises and Web3 organizations can prepare for the coming wave of tokenization.

## The Tokenization Timeline of 2023

Below are a few tokenization happenings that have made headlines so far this year.

- January: Goldman Sachs announces their digital assets platform GS DAP is live and issues the [first fully digital bond](https://blog.digitalasset.com/news/goldman-sachs-tokenization-platform-gs-dap-leveraging-daml-goes-live) on a private blockchain

- June: Bank of America releases a report that estimates traditional [asset tokenization reaching over $16 trillion](https://rsch.baml.com/access?q=s-i517792VNkDKydHLEioQ), transforming infrastructure and markets over the next 5-15 years.

- June: Swift, a global messaging system that connects over 11,000 financial institutions, implements a successful [tokenization pilot](https://www.swift.com/news-events/press-releases/swift-unlocks-potential-tokenisation-successful-blockchain-experiments).

- July: JPMorgan Chase announces successful [tokenization of ownership interests](https://www.jpmorgan.com/content/jpm/jpmorgan/global/US/en/solutions/treasury-payments/insights/blockchain-onyx-asset-tokenization.html) in Money Market Fund (MMF) shares as collateral.

- September: [Tokenization Advocacy Group](https://www.coindesk.com/business/2023/09/07/tokenization-advocacy-group-wants-to-bring-the-next-trillion-of-assets-to-blockchain/) by Coinbase, Circle, and Aave is founded in an effort to expedite tokenizing the “next trillion dollars of assets.”

## Why Are Institutions Buying Into Tokenization?

The world's financial and business systems rely on a complex, slow, and fragmented web of technologies that lead to operational friction and wasted time. Tokenization solves this problem by creating a standardized and interoperable way to represent assets and transactions, which can be used to automate and streamline processes across different systems.

In other words, tokenization breaks down silos between different systems, making sharing data and moving assets easier. Here are just some of the benefits:

- **Instantaneous settlement:** Tokenization can enable real-time settlement of asset transactions, reducing counterparty risk and improving efficiency by eliminating the need for many intermediaries to process and approve transactions.

- **Reduced fees:** Tokenization can automate many of the manual processes involved in trading and managing assets, leading to significant cost savings by reducing the need for paperwork, reconciliation, and other administrative tasks.

- **Increased liquidity:** Tokenized assets can be divided into smaller denominations and traded on exchanges, making them more liquid and accessible to a broader range of investors by reducing the minimum investment threshold and making it easier to trade assets.

- **Enhanced transparency:** Blockchain technology provides a public and tamper-proof ledger of all asset transactions, which can help to increase transparency and accountability in the financial system by making it easier to track and audit asset ownership and transactions.

- **Expanded access:** Tokenization can democratize access to assets by making them accessible to retail investors and those in emerging markets by reducing the barriers to entry, such as high minimum investment requirements and complex paperwork.

## Enterprise Use Cases for Tokenization

Here are some specific examples of how blockchain tokenization is being used in different industries:

- **Retail:** Tokenization enables new ways to interact, pay, create, and earn with digital tokens used to represent information and provide new frameworks for rewards, access, and ownership. From social media to eCommerce, tokenization is unlocking new experiences, investment mechanisms, and income streams for consumers and businesses alike.

- **Healthcare:** Tokenization is transforming healthcare by improving interoperability between providers and systems. Tokenized medical records and other sensitive data can be stored on a tamper-proof ledger, ensuring a higher standard of privacy and security.

- **Finance:** Tokenization is creating a new foundation for financial operations, from banking to exchanges. Enhanced on-chain ownership, tracking, transparency, and accelerated settlement are making financial transactions faster, more scalable, and more affordable. Tokenization also enables 24/7 trading of all desired digital security tokens.

- **Supply chain:** Tokenization is revolutionizing supply chains by providing transparency, traceability, and security at every step of a product's journey. Immutable record-keeping minimizes the potential for fraud or errors, optimizes supply flows, and increases trust among all participants.

- **Real estate:** Tokenization is increasing the transparency and security of title records, reducing transaction costs, and expediting property transfers. A new framework for mitigating fraud and property ownership management is emerging, providing a more efficient and equitable real estate market for all.

- **Energy:** Tokenization enables individuals and organizations to trade energy as a commodity and sell excess power back to the grid. This creates new revenue streams for energy producers and harnesses a secure and transparent means of tracking energy production and consumption.

## Enable Tokenization for Your Enterprise With Ankr

**Best Practices for Blockchain Infrastructure Behind Tokenization**

**Private:** In July of this year, Bank of America released a [Tokenization Report](https://rsch.baml.com/access?q=s-i517792VNkDKydHLEioQ) that detailed the benefits of tokenization and that blockchains such as Avalanche allowed for the modular creation of dedicated private blockchains on top of the network. A private blockchain is a blockchain network that is permissioned, meaning that only authorized participants can join the network. This can be important for enterprises that want to keep their data and transactions private.

> I’ll speak from a highly regulated U.S. bank. We are actually not allowed to do anything on a public blockchain, be it permissionless or otherwise. The rationale being safety and soundness. Most of the development you will see certainly from the U.S. banks, JP (Morgan), ourselves and many of the others, will be on a private blockchain.
– Mathew McDermott, head of Digital Assets at Goldman (source: [Ledger Insights](https://www.ledgerinsights.com/goldman-sachs-tokenization-not-public-blockchain/))

**Interoperable:** An interoperable blockchain is a blockchain network that can communicate with other blockchain networks. This is important for enterprises that want to be able to exchange data and assets with other organizations.

**Secure:** A secure blockchain is a blockchain network that is protected from unauthorized access, hacking, and fraud. This is important for enterprises that want to protect their data and assets.

**Scalable:** A scalable blockchain is a blockchain network that can handle a large number of transactions without compromising performance. This is important for enterprises that want to be able to process a high volume of transactions.

**Compliant:** A compliant blockchain is a blockchain network that complies with all applicable laws and regulations. This is important for enterprises that want to avoid regulatory scrutiny.

Ankr's customizable blockchain infrastructure is designed to deliver all of the above benefits for enterprises.

## Create Your Private Blockchain With Ankr

**[Blockchain creation as a service](https://www.ankr.com/app-chains/):** Ankr empowers enterprises by creating highly customizable private blockchains on top of various blockchain ecosystems. Ankr offers diverse options for launching your blockchains with customizability at every level for infrastructure built around your unique use case. As the approved infrastructure partner for building dedicated blockchains on ecosystems like Polygon, Avalanche, and zkSync, Ankr simplifies blockchain development for all use cases. Ankr creates blockchains for projects while satisfying every requirement for infrastructure and engineering like validators, RPC nodes, block explorers, testnets, staking platforms, and more for completely custom blockchain solutions.

Join the Conversation on Ankr’s Channels

[Twitter](https://twitter.com/ankr) | [Telegram Announcements](https://t.me/anrknetworkann) | [Telegram English Chat](https://t.me/ankrnetwork) | [Help Desk](https://ankrnetwork.atlassian.net/servicedesk/customer/portal/10) | [Discord](http://discord.ankr.com/) | [YouTube](https://www.youtube.com/channel/UCErrNjCg6raOsq5MQ9fpIig) | [LinkedIn](https://www.linkedin.com/company/ankr/) | [Instagram](https://www.instagram.com/ankr) | [Ankr Staking](https://eth2.ankr.com/)

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Tokenization’s Emergence In 2023 and Enterprise Use Cases

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Ankr is thrilled to announce that we will soon release an essential addition to our [RPC service](https://www.ankr.com/remote-procedure-call/) with the Sei blockchain. This is excellent news for developers looking to get the jump on building on top of Sei for fast and scalable dApps! Users will be able to access Sei Public and Premium RPCs, make request calls, and receive information returns that are identical to the results they would get by running a Sei full node themselves.

** If you're not familiar with RPC nodes and endpoints, check out our article on 'What Are [RPC Nodes](<a href=”https://www.ankr.com/blog/what-are-rpc-nodes-and-endpoints-the-complete-guide-2023/” target=”_blank”>) and Endpoints? The Complete Guide'

## What is Sei?

Sei seeks to be the fastest layer-1 blockchain in the industry, unlocked by its “Twin-Turbo” consensus mechanism. Additionally, the chain offers low transaction costs and throughput of 20,000 ops (orders per second). Their efforts at creating a high-performance blockchain are tailored to power modern applications and enable the mass adoption of digital assets. With their public Pacific-1 mainnet freshly launched in August, builders are excited about what the future holds for Sei.

**[Learn more about Sei](<a href=”https://www.sei.io/” target=”_blank” rel=“noopener noreferrer”>).**

## What Are Ankr’s New Sei RPC API Connections?

- Ankr’s Sei RPCs ([Remote Procedure Calls](<a href=”https://www.ankr.com/remote-procedure-call/” target=”_blank”>)) connect wallets, interfaces, and dApps with the Sei blockchain. They act as a messenger or blockchain router that relays on-chain information between Sei nodes, dApps, and ultimately end-users so they can execute necessary tasks like making transactions, populating wallet balances, fetching ownership information, and much more.

- Sei RPC endpoints are a gateway for developers to interface directly with the Sei network — a portal to communicate easily, remotely, and with no need to go through the DevOps of establishing their own Sei nodes.

- Ankr is providing a geo-distributed Sei RPC comprised of blockchain nodes running worldwide for incredibly low latency and reliable connections.

**[Find Sei endpoints soon on Ankr’s RPC service](https://www.ankr.com/rpc/).**

## How Do the Sei RPCs Help Developers?

Building with Sei is an excellent choice to create fast and scalable dApps but requires access to the information on Sei nodes to do so. Therefore, Ankr’s RPC solves the following developer troubles:

**Eliminates complex node ops** - Ankr’s Sei RPCs will completely remove the need for many developers to set up their own Sei nodes, removing hours of time spent building, calibrating, and fixing node issues.

**Grants access to advanced tools -**  Ankr’s [Premium RPC Plan](https://www.ankr.com/rpc/pricing/) instantly grants access to the best tools to build applications quickly, including:

- At least 90,000 Sei requests/min
- High request priority
- Global node locations
- Telemetry
- Debug mode
- Support Portal
- WebSockets (WS) capabilities

**Powers apps and open-source software that need access to Sei** - Connect with a cluster of high-performance nodes that holds the information you need to build and operate dApps with Sei blockchain capabilities.

**Supports the Sei network** - Ankr will strengthen the Sei network globally by offering easier development and a broader, distributed node infrastructure.

## Get Started Building On Sei Coming Soon

You will soon see Sei as a supported option on [Ankr’s RPC service](https://www.ankr.com/rpc/), with the ability to call the Sei chain using the standard EVM JSON RPC methods.

## Join the Conversation on Ankr’s Channels

[Twitter](https://twitter.com/ankr) | [Telegram Announcements](https://t.me/anrknetworkann) | [Telegram English Chat](https://t.me/ankrnetwork) | [Help Desk](https://ankrnetwork.atlassian.net/servicedesk/customer/portal/10) | [Discord](http://discord.ankr.com/) | [YouTube](https://www.youtube.com/channel/UCErrNjCg6raOsq5MQ9fpIig) | [LinkedIn](https://www.linkedin.com/company/ankr/) | [Instagram](https://www.instagram.com/ankr) | [Ankr Staking](https://eth2.ankr.com/)

Explore Ankr’s new RPC service with Sei blockchain for fast, scalable dApps. Unleash the power of Sei’s Twin-Turbo consensus mechanism.

Sei RPC: Ankr’s Latest RPC Connection for Fast and Scalable dApps

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Sei: Ankr’s Newest RPC Connection

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The longer you study technology, the more patterns you begin to see – many inspired by the natural world. You want to build a machine that flies? Look at a bird. You want to build a machine that learns? Take inspiration from the neural networks of the human brain. How about an immutable, append-only, distributed data storage mechanism capable of housing a vast amount of information replicated across as many independent cells as possible? Check out DNA!

As the web3 industry begins to see a revolution of modular solutions, an end to the scalability battle may finally be in sight. This article looks at what lessons we can take from DNA and how we can apply them to blockchain technology to push it over the edge to mass adoption.

## The similarities between blockchain and DNA

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**Source: [Emerging Approaches to DNA Data Storage](https://pubs.acs.org/doi/10.1021/acsnano.2c06748)**

Like many new technologies, there’s been some head-scratching about where blockchain best fits as an essential part of everyday life. Most are familiar with using blockchain to keep a ledger for P2P transactions and proof of ownership (even for [DNA](https://news.yale.edu/2022/06/29/blockchain-not-just-bitcoin-it-can-secure-and-store-genomes-too) or [biometrics](https://worldcoin.org/blog/worldcoin/understanding-orb-why-worldcoin-uses-biometrics)). But where blockchain really shines is similar to the purpose of DNA: providing instructions based on trusted information. Of course, the comparison isn’t perfect, and DNA is an incredibly complex subject. But here are a few areas of overlap:

**Storing critical information:** DNA’s efficient *memory* transcends individual consciousness and lifetimes to faithfully deliver a product of everything that’s come before it in a newly evolved “state” of that bloodline. Likewise, blockchain stores a complete record of all transactions and pertinent data to inform the current state of the chain, which can then inform the applications connected to it.

**Transmitting data & instructions:** DNA tells organisms how large to grow, if they should sprout horns, how long they should live, etc., based on what will be most appropriate based on past experience. That’s a simplification, but even so, we are still decoding biology’s extremely complex algorithms. The smart contracts of blockchain applications transmit instructions with easier-to-understand logic: Should address vitalik.eth receive these funds or be granted access to this site? If it holds this NFT, then yes. Blockchain provides instructions based on current and past data.

**Evolving to suit new needs:**  DNA provides instructions for new iterations of life based on a memory of events encoded and manifested in genetic information. Ex: If enough of your ancestors lived in the Himalayas, your genetic makeup has adapted to produce body heat and use oxygen more efficiently. Similarly, the architecture of blockchain systems is evolving to become stronger, more scalable, and more modular to accommodate a growing variety of use cases.

## Scaling Blockchain Like DNA

According to scientists, blockchains already “self-organize in a way similar to how [DNA organizes](https://earthsky.org/human-world/blockchains-work-like-dna-in-cells/) itself into chromosomes.” So, it can’t hurt to dive a little deeper into tips on data storage and transmission from the best in the business.

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**Source: [Celestia](https://celestia.org/learn/basics-of-modular-blockchains/modular-and-monolithic-blockchains/): Comparing Modular and Monolithic Blockchains**

- **Modularity:** As far as modularity goes, DNA is legendary. The “building blocks of life” separate tasks and build on each other to not only carry out the functions of DNA, but to keep building to the next level, from genes to chromosomes to cells and entire organisms. By the same principle of modularity, we can further distribute the tasks and computational load of web3 across different components and layers while creating a much more efficient ecosystem that is easier to evolve as needed.

- **Natural Selection:** Our DNA is the product of billions of years of evolution and selection. ****By using best practices like modularity, we can recreate the “survival of the fittest” principle when it comes to selecting desired traits of scaling solutions in Layer 2 and beyond. With modularity providing more flexibility to pick, choose, and combine the best of technologies like zero-knowledge and sharding, we can build an incredibly scalable and unified internet of blockchains. Down the road, the birth of advanced new rollups and chains could be automated to meet throughput needs or at least simplified to the point of one-click deployment.

- **Standardization & Code Reuse:** All DNA is comprised of nucleotides with four nitrogenous bases that form the same way in nearly endless combinations to program new life. Adenine (A) always pairs with Thymine (T), and Cytosine (C) always pairs with Guanine (G). The universality of genetic code among all known life forms is crucial for the function and continuation of every ecosystem. In the blockchain world, the more code is reused in a standardized system by open-source contributors, the more it can be *evolved* to become more secure, efficient, and resistant to exploits. 

## Ethereum’s Update To Modularity & What It Means

![Modular2.png](https://s3-frontend-strapi.s3.us-west-1.amazonaws.com/Modular2_75ca3a9ac9.png)

**Source: [Bankless: Next Level Ethereum Scaling: The OP Stack](https://www.youtube.com/watch?v=3tToCWmKBug)**

Ethereum is currently in the process of upgrading to a modular architecture, with EIP-4844 (proto-[danksharding](https://ethereum.org/en/roadmap/danksharding/)) expected in Q4 of this year. This upgrade will allow Ethereum to scale by the creation of new “shards” of the chain that can divide the transaction load and process transactions in parallel (like genes are transcribed to RNA molecules).

In a monolithic architecture, all of the components of a blockchain are tightly coupled together. This makes it difficult to scale the blockchain, as any change to one component can have a ripple effect on the others.

A modular architecture, on the other hand, breaks the blockchain down into smaller, independent components. This makes it easier to scale the blockchain, as changes to one component do not affect the others. Ethereum's modular upgrade will involve splitting the blockchain into three layers:

- Layer 1: This is the base layer of the blockchain, and it will handle consensus and security.
- Layer 2: This layer will handle execution and computation. It will be made up of a variety of different scaling solutions, such as rollups and sharding.
- Layer 3: This layer will provide application-specific features and functionality.

## Ankr’s Mission To Enable the Modular Multichain Future

Since Ankr’s founding, we have been dedicated to providing infrastructure for every layer of the blockchain ecosystem.

- **[RPC API Connections to every chain possible](https://www.ankr.com/remote-procedure-call/):** Ankr is building the future of distributed Web3 infrastructure, servicing dozens of Proof-of-Stake chains with an industry-leading global node delivery system, RPC aggregator, and suite of multichain development tools. Ankr currently serves over 2T transactions a year across Web3 and is the main infrastructure provider for BSC, Fantom, and Polygon chains as of 2023.

- **[Blockchain creation as a service](https://www.ankr.com/app-chains/):** Ankr empowers developers by creating highly customizable (application-specific) blockchains on top of various blockchain ecosystems. Ankr offers a diverse range of options for launching your blockchains with customizability at every level for infrastructure built around your application. As the approved infrastructure partner for building app-specific blockchains on ecosystems like the BNB Smart Chain, Polygon, Avalanche, and zkSync, Ankr simplifies blockchain development for all use cases. Ankr creates blockchains for projects while satisfying every requirement for infrastructure and engineering like validators, RPC nodes, block explorers, testnets, staking platforms, and more for completely custom blockchain solutions.

- **[Innovative validation solutions](https://www.ankr.com/staking-crypto/):** Ankr creates next-generation solutions for supporting validation on 9+ proof-of-stake chains with an industry-leading node delegation system and security. With a Total Value Locked of over $500M, Ankr is the 3rd largest Ethereum staker and go-to staking infrastructure provider for ecosystems like the BNB Smart Chain, Polygon, and more.

## Final thoughts

Slowly but surely, web3 is evolving to become a unified internet of blockchains that will soon be ready to handle the enormous throughput requirements of a larger number of use cases. The future of blockchain scalability lies in modularity and interoperability. As the industry continues to evolve, blockchain modularity could be the driving force that propels blockchain technology into the mainstream, enabling mass adoption and transforming industries across the globe.

## Join the Conversation on Ankr’s Channels

[Twitter](https://twitter.com/ankr) | [Telegram Announcements](https://t.me/anrknetworkann) | [Telegram English Chat](https://t.me/ankrnetwork) | [Help Desk](https://ankrnetwork.atlassian.net/servicedesk/customer/portal/10) | [Discord](http://discord.ankr.com/) | [YouTube](https://www.youtube.com/channel/UCErrNjCg6raOsq5MQ9fpIig) | [LinkedIn](https://www.linkedin.com/company/ankr/) | [Instagram](https://www.instagram.com/ankr) | [Ankr Staking](https://eth2.ankr.com/)

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