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What is "Sunrise DA" - A DA Layer with Proof of Liquidity

Hi, I'm Kyohei, CEO of ARM3rd.
This article introduces an overview of the Layer 1 blockchain "Sunrise DA."

Self Introduction

At Sunrise, I focus on the Japanese market with the following responsibilities:

  • Working as a Solution Architect to develop killer use cases for enterprise clients
  • Launching and operating "MyLayer", our custom blockchain development service
  • Planning and executing buidler acquisition strategies
  • Various content marketing initiatives

What is Sunrise DA

Sunrise DA is the world's first Data Availability Layer (DA Layer) that supports Proof of Liquidity and off-chain blobs.

It's gaining attention as a next-generation infrastructure that dramatically improves the scalability and accessibility of modular blockchains.

Since its initial testnet launch in July 2024, it has achieved global growth despite being a Japan-originated blockchain, surpassing 100,000 active users within 3 weeks and 200,000 within 6 weeks.

Background Knowledge: The "Modular Blockchain" Paradigm

Traditional blockchains like Ethereum and Bitcoin adopt a monolithic architecture where a single chain handles all functionalities, hence they are called "monolithic blockchains."

In contrast, "modular blockchains" have been gaining attention recently.

A modular blockchain is an architecture that divides blockchain functionality into multiple layers and builds chains by combining them like modules. By optimally combining layers specialized for specific functions, it can achieve over 100 times the scalability compared to monolithic blockchains. Furthermore, chains can be flexibly customized according to enterprise-specific requirements.

Modular chains classify blockchain into four layers:

  1. Execution Layer The layer that executes transactions
  2. Settlement Layer The layer that finalizes transaction execution results and monitors consistency between bridges
  3. Consensus Layer The layer that uniquely determines transaction order and acceptance
  4. Data Availability Layer (DA Layer) The layer that stores and manages transaction data

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Sunrise DA's Role in Modular Blockchain: DA Layer

Among these, Sunrise DA functions as the data availability layer blockchain.

Specifically, it is responsible for securely storing transaction data from other blockchains (Layer 2) and ensuring its availability.

(In simple terms, "Sunrise DA blockchain is a component for building other blockchains")

Unlike traditional general-purpose blockchains, Sunrise DA is not designed for directly deploying smart contracts or minting NFTs.

Instead, Layer 2s built on top of Sunrise DA (e.g., Gluon) provide such application functionalities.

Key Features of Sunrise DA

Let me introduce the following three key features:

  1. Proof of Liquidity
  2. Data Availability Verification Mechanism with Off-chain Blobs
  3. Native Support for IBC (Inter-Blockchain Communication)

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1. Proof of Liquidity

Sunrise DA adopts "Proof of Liquidity" (PoL) as its consensus mechanism.

While "Proof of Stake" (PoS) used by Ethereum is currently the most mainstream consensus mechanism, Proof of Liquidity is a new concept to replace PoS.

The main drawback of PoS is that "it doesn't directly generate economic activity."

While locking tokens for rewards makes economic sense from individual validators' perspectives, the economic effect on the entire ecosystem is limited.

In contrast, PoL creates a positive feedback loop for the entire network by granting voting power to substantial economic activities (e.g., providing liquidity to Sunrise L1 native liquidity pools). This series of positive feedback loops is called "The Liquidity Flywheel."

2. Data Availability Verification Mechanism with Off-chain Blobs

Sunrise DA enables "big block L2s" which were difficult to achieve with traditional DA Layers. This is because Sunrise DA, unlike other DA Layers, adopts off-chain blobs.

For example, traditional DA Layers like Celestia require writing blob data on-chain when proving data availability, which becomes a bottleneck for data processing capacity.

In contrast, Sunrise DA writes data to off-chain distributed storage like Arweave.

This enables the realization of full on-chain AI and blockchain games (BCG) that exceed the data processing capabilities of traditional L2s.

3. Native IBC Support

IBC (Inter-Blockchain Communication) is an interoperability standard born from the Cosmos ecosystem that enables communication and asset transfer between independent blockchains.

Sunrise DA natively supports IBC at the chain level, inheriting assets from the Cosmos ecosystem.

Furthermore, L2s built on Sunrise DA using frameworks like OPStack can also support IBC.

Sunrise DA has a technical partnership with Datachain, a company researching and developing interoperability solutions. L2s on Sunrise DA can support the IBC standard through Datachain's LCP (Light Client Proxy).

Sunrise DA Use Cases

Using Sunrise DA as the DA (Data Availability) layer enables various blockchain architectures such as:

Reducing L2 Data Storage Costs

  • Significant gas cost reduction by storing L2 chain data on Sunrise while interacting with existing L1 smart contracts like Ethereum

Improving L1 Scalability

  • For relatively gas-efficient L1s like Oasis, using Sunrise as L2 data storage:
    • Prevents L1 capacity overflow
    • Increases the number of L2s that can operate on a single L1

Supporting L3 Chains

  • Functions as data storage for L3 chains built on L2s like Optimism, Arbitrum, and Soneium, reducing L3 operation costs

Enabling Sovereign Rollups

  • Build independent L2s without depending on specific L1s
  • Achieve independent governance while maintaining L1-level security (tamper resistance, fault tolerance)

Contact Information

Consultation for Custom Chain Development

Sunrise offers a comprehensive package supporting enterprises in building custom chains, from planning to development, operation, and ecosystem creation.

We have extensive R&D experience in chain interoperability, with experts including CEO&CTO Yu Kimura and Solution Architect Kyohei Ito, who have served as technical advisors for multiple Web3 companies.

We provide broad support for enterprises interested in chain development. Feel free to consult with us from the planning stage.

Free consultation here: https://forms.gle/V5LniyGBDorRQcNb6

Investment and Validator Participation

VCs and companies considering direct investment in Sunrise DA or validator participation, please contact us here:

https://forms.gle/V5LniyGBDorRQcNb6

Educational Activities for Modular Chains and Interoperability

Sunrise is committed to contributing to Web3 educational activities for enterprises and educational institutions to promote modular chains and interoperability.

Interested enterprises and universities, please contact us here:

https://forms.gle/V5LniyGBDorRQcNb6

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Social Links

Website: https://sunriselayer.io/
MyLayer: https://business.sunriselayer.io/
Sunrise v2 campaign: https://testnet.app.sunriselayer.io/v2/
X(Twitter): https://x.com/SunriseLayer
Discord: https://sunriselayer.io/
Docs: https://sunriselayer.io/
Medium: https://sunriselayer.medium.com/
Facebook: https://www.facebook.com/SunriseLayer/
Instagram: https://www.instagram.com/SunriseLayer/

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