BOBA is an optimistic rollup Layer 2 that was was developed by contributors from Artificial Intelligence company Enya and the OMG foundation (a key contributor to the OmiseGo blockchain) to provide a scalable platform for the development of applications that is completely compatible with the Ethereum network and can help developers to create at a quick pace, powerful and multifaceted problems. Boba Network is an Ethereum scaling solution that launched its mainnet beta version in 2021.
The aim of the Boba Network is to increase throughput, reduce the fees of transaction and computation, and enhance smart contract capabilities on the Ethereum network. Boba uses Optimistic Rollups (ORs) to achieve this aim. Optimistic Rollups are a Layer-2 scaling solution that assumes that unless challenged, transactions are valid. The transactions, if challenged, can be checked and thereafter verified through the use of computation. We dive deeper into how optimistic rollups work in Parts 1 and 2 of the Layer 2 Guide, so we will not get into the technicals with this article, but instead focus on what makes Boba different.
So, like every other company or idea that we may come across we have to ask the same question.
Why Boba?
Key features and principles of work of Boba Network are discussed below:
Reduced transaction costs. Boba provides a solution to the high gas fee charged by Ethereum, and is currently 2 times cheaper than both Optimism and Arbitrum, the two bigger optimistic rollups currently by TVL (Total Value Locked within the protocol) and much cheaper to those on the main network of Ethereum.
Secured by Ethereum. Boba Network avails itself of the security of Ethereum because it still uses Ethereum as a consensus layer, but moves critical computing off of the Layer 1. Ether is used for Gas fees on the Layer 2, with Boba’s native token being more governance focused.
Smart contracts scalability. Boba is EVM compatible, meaning it can help scale Ethereum smart contracts and that can ultimately help developers quickly create powerful and multifaceted applications.
NFT bridging. Boba Network enables users the space to mint, move and sell their NFT assets both between L1 and L2 and between different L2 solutions. This has created more ease and convenience in the development of NFTs, especially GameFi which combines three major markets: non-fungible tokens(NFTs), decentralized finance (DeFi), and blockchain-based games.
Fast exit. Users of Boba Network can much more quickly transfer their money both in and out of the network within a few minutes in comparison with conventional Layer 2 solutions. Boba Network reduces the Optimistic Rollup exit time to a few minutes by offering quick exits supported by liquidity pools that are driven by the community. This feature also gives incentivized yield farming opportunities to liquidity providers (LPs). As a result, users can utilize yield farming to earn interest in their digital assets.
Ease of hybrid computation. Implementation of Turing Hybrid Compute, enabling Ethereum developers to access Web2 data on chain.
What is Hybrid Computation?
Beyond its existing use cases, there is a wide array of possibilities for Boba Network including digital collectibles, gaming, identity management, supply chain, DeFi, and healthcare. The way they aim to tackle these use cases and more is through hybrid computation
Hybrid computation unlocks an plethora of possibilities for smart contract developers to peruse. For instance, developers may try utilize hybrid compute to build expansive DeFi protocols based on off-chain assets such as real estate. It can also be used to unlock new models for NFTs, such as NFT lending based on off-chain machine learning-based valuation models, or even facilitate NFTs and DAO memberships connected to off-chain identities.
On March 18, Boba Network announced the launch of their Hybrid Compute Protocol called Turing. In the press release, Boba described the protocol as follows:
[W]e reached a much-anticipated milestone: the mainnet deployment of Turing! This is a massive step forward: allowing a distributed computer, namely Ethereum, to interact seamlessly with all non-distributed computers (the Web 2 world) in a nearly plug-and-play way. This new communication pathway allows Web 3 developers to connect to existing Web 2 systems easier and faster than ever before with just a single line of code. With Turing, the possibilities are endless, and we’ve only just started to scratch the surface of what’s possible.
Developers gain the opportunity to experiment with detailed on-chain reward models to engage customers while tapping into real-time data from off-chain activities, such as social media indicators like retweets, shares, and comments, closing the gap between Web2 to Web3 and hopefully spurring adoption.
Existing solutions like oracles currently provide these solutions through secure but heavily centralized infrastructure that supports a blockchain’s interoperability with external systems. In the simplest terms, oracles expand the capabilities of smart contracts by offering a universal gateway to off-chain resources while still maintaining the security provided by the underlying blockchain. Up until recently, however, the only solutions have been those that compromise on decentralization, which is arguably the most important premise of the ethos of blockchain technology.
That’s where Boba Network comes in.
Boba’s Hybrid Compute protocols and Solidity smart contracts can execute complex algorithms such as machine learning classifiers, pull real-world or enterprise data into an atomic transaction, or sync with the latest state of a gaming engine via an external Web2 API. Besides the gains that arise from such connectivity, hybrid computation is relatively straightforward to deploy. A Solidity smart contract that can make Turing calls and an external server that can accept the calls and return data in an EVM-compliant format reflect all the required infrastructure. The result means that Web3 developers can leverage Boba’s smart contracts to incorporate machine learning algorithms, interact with real-world data, and sync with external servers.
As a result, Web3 developers will be able to build a more diverse range of dApps that can invoke code executed on Web2 infrastructure and use algorithms and functions that are either too costly or too difficult to process on-chain. When the more complex computations are finished remotely, the protocol communicates their results to the smart contract, allowing developers to build more elaborate and elegant dApps without adding extra traffic to the network or spending more on gas.
Not financial, legal or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. All opinions expressed are solely those of the individual author. This newsletter is not legal advice and does not create an attorney-client relationship. This newsletter does not constitute tax advice. Talk to your independent attorney and/or accountant for any questions specific to you. Always do your own research and use caution when interacting with smart contracts or the blockchain. At the time of writing, @AdamETH_ does not own any BOBA tokens.