What is Fuel Network?
Fuel is an innovative modular execution layer designed to address critical challenges in Ethereum’s scalability. It reimagines the virtual machine architecture with a focus on state minimization, parallel execution, and developer-friendly tools.
Background
Fuel was pioneered by the team that launched the first Optimistic rollup. It aims to create a more efficient and scalable blockchain ecosystem by tackling issues such as state growth, inefficient virtual machine architecture, and subpar user and developer experiences.
How Does It Work?
Fuel’s architecture incorporates several key elements that contribute to its enhanced performance and scalability:
- UTXO Model: Unlike account-based models, Fuel uses a UTXO (Unspent Transaction Output) model similar to Bitcoin, but adapted for smart contracts. This approach helps minimize state bloat and enables more efficient state management.
- Parallel Execution: FuelVM allows for true parallel transaction processing, significantly increasing throughput compared to sequential execution models.
- Hybrid Proving: Fuel introduces a novel “Hybrid Proving” system that combines elements of both optimistic and zero-knowledge rollups. This approach aims to provide faster finality and enhanced security.
- Fast Finality Mechanism: Fuel proposes a “check-in” based dynamic challenge window that could dramatically reduce withdrawal times compared to traditional optimistic rollups.
- Sway Programming Language: Fuel introduces Sway, a Rust-inspired domain-specific language designed for blockchain development. It aims to improve safety and efficiency in smart contract creation.
Native Assets: Fuel treats assets as first-class citizens within the protocol, reducing the state footprint associated with token standards like ERC-20.
