The only constant in life is change — (Heraclitus)
Just a few decades ago, the backbone of the internet was dominated by centralized, Web2 server-based security, where a few powerful corporations held the keys to protecting the data and assets of billions.
For years, this system was sufficient until vulnerabilities within centralized servers started to become apparent. We saw high-profile hacks and data breaches that exposed the weaknesses of centralized authority: the 2013 Target breach, the 2017 Equifax hack, and the infamous SolarWinds attack in 2020, all underscored the risks of relying on a single point of failure.
These incidents not only led to the loss of personal and financial information but also severely eroded the trust that users had in centralized systems. A deeper, more systemic problem became evident: the very architecture that had been built to protect us was, in fact, exposing us to unprecedented vulnerabilities. Enter the rise of blockchain technology and, more specifically, decentralized systems.
The decentralized world has evolved, with new solutions emerging to address the ever-growing demand for security and scalability. Among the most promising innovations is restaking, a process that allows smaller decentralized networks to borrow security from larger, well-established blockchains like Ethereum.
Hold on!!!!
If the idea of restaking flew over your head as it did mine, check this out.
Now you get it?
Let’s continue.
Restaking is crucial because it reduces the need for individual networks to develop their security infrastructure, which can be costly and technically complex.
However, as the demand for decentralized security grows, so does the need for scalable and efficient mechanisms to support it. Vitalik Butterin, in his article “The Limits to Blockchain Scalability wonders if we could ever find a true consensus of the tripartite but Catalysis begs to differ.
Catalysis brings a fresh approach to security in the decentralized world. It helps make Actively Validated Services (AVSs) easier to create and manage.
AVSs are services that allow smaller networks to tap into the security of larger, trusted blockchains like Ethereum, without having to build their own.
Catalysis does this by simplifying the process of deploying these services, making it easier for developers to connect to shared security protocols. This helps scale the restaking ecosystem and ensures that decentralized services remain secure and efficient as they grow.
Yet, while Catalysis’ vision is ambitious, it raises several important questions about its future.
- Will the project be able to scale as promised?
- Does its aggregation model truly promote decentralization, or does it risk centralizing power within a few key players?
- What types of projects are likely to plug into Catalysis, and how will they interact with the broader restaking ecosystem?
This article seeks to answer these questions and more importantly, critically explore Catalysis’ potential, its challenges, and its role in the future of decentralized security.
Why Shared Security Matters
Restaking, as a mechanism for shared security, is at the heart of many decentralization strategies today, like Eigenlayer and Stafi Protocol.
For instance, Eigenlayer allows new projects to leverage the security of Ethereum by allowing users to restake their ETH to support other networks, ensuring they don’t have to build their own security infrastructure.
Similarly, Stafi Protocol provides staking services for assets beyond Ethereum, enabling them to benefit from secure, decentralized staking while enhancing the overall security of smaller networks. This shared security approach helps foster a more robust and scalable decentralized ecosystem.
The value of restaking lies in the efficiency and scalability it brings. Traditional blockchains have security measures like proof-of-stake (PoS) or proof-of-work (PoW) that are energy-intensive and costly to maintain. Through restaking, smaller networks can tap into these existing security protocols, thus saving resources and accelerating development.
However, the current shared security ecosystem is not without its limitations.
At the time of writing, there are only a few Actively Validated Services (AVSs) that support the vast pool of capital in the restaking ecosystem.
Eigenlayer, a prominent shared security protocol, currently hosts only a small number of AVSs although still growing.
It’s clear that to meet the growing demand for decentralized security, the ecosystem will need hundreds, if not thousands, of AVSs.
Without sufficient AVSs to distribute security and rewards, restaking yields could diminish, making it less attractive for stakers and operators.
In this context, the future of restaking and shared security protocols depends on expanding the supply of AVSs. This is where Catalysis comes into play.
What Makes Catalysis Different?
Catalysis is designed to address the bottleneck in the restaking ecosystem by enabling the creation and scaling of AVSs. But what makes Catalysis different from other restaking platforms?
Let’s break it down
- Aggregation and Abstraction: Catalysis makes it easier for different restaking protocols to work together. It collects demand from various platforms, helping to set fair prices and ensuring that the system can grow without issues. Catalysis also provides an easy-to-use layer that simplifies connecting to different security systems. This means developers don’t need to worry about the details of each system – they get a simple, unified experience no matter which protocol they choose.
- Catalysis SDK: The Catalysis SDK (Software Development Kit) helps developers build their projects faster by allowing them to easily connect to multiple restaking platforms. They don’t have to understand the complex technicalities of each system. With the SDK, developers can easily tap into a secure shared infrastructure, making it easier for new projects to use decentralized security.
- Economic Security: Catalysis uses a flexible approach that lets AVSs (Actively Validated Services) work across several restaking platforms. This means AVSs can choose the best features from each platform. The system can also adjust security settings in real time to balance costs and performance. This makes sure that decentralized services can remain secure and efficient as they grow.
Despite the innovative features of Catalysis, certain question arises: Is the aggregation model truly decentralized, or does it risk centralizing power within a few key players?
After some more research, I found out that while Catalysis aims to provide a more efficient and flexible solution for AVS deployment, it remains to be seen whether the aggregation layer will become a central hub that could consolidate too much control over decentralized security.
The Challenges — Scalability and Ecosystem Adoption
While Catalysis promises to simplify the deployment of AVSs and scale the shared security ecosystem, it faces significant challenges.
- Scalability
The vision of Catalysis—enabling thousands of AVSs to thrive within a decentralized security ecosystem—is ambitious.
How can Catalysis ensure that its vision of scaling the number of AVSs becomes a reality?
As the demand for decentralized services grows, so will the demand for AVSs. The project must not only attract developers but also ensure that the security infrastructure is robust enough to handle large-scale deployments.
There is also the issue of ensuring that the economic model behind Catalysis remains sustainable. If there aren’t enough AVSs to meet the demands of the ecosystem, the yields for restakers could drop, leading to a reduction in the incentives for node operators to maintain security. Without sufficient economic backing, the entire ecosystem could face a collapse.
- Ecosystem Adoption
Catalysis also faces the challenge of attracting a critical mass of developers, node operators, and restaking protocols. Restaking is still a relatively new concept, and for Catalysis to succeed, it must be able to draw in participants from all sides of the decentralized world.
How can Catalysis ensure that its approach resonates with developers already building on existing platforms like Eigenlayer, Symbiotic, or Satlayer?
The success of Catalysis depends on its ability to foster widespread adoption of its platform and convince developers that it’s a more efficient and scalable solution than existing options. But what happens if the adoption rate doesn’t meet expectations?
Can Catalysis adapt quickly enough to survive in a competitive market?
Who Will Plug Into Catalysis?
Catalysis’ approach is to simplify the process of integrating AVSs with shared security protocols. As such, it has the potential to attract a wide variety of projects, from decentralized applications (dApps) to Web2 companies seeking to decentralize parts of their infrastructure. Some potential projects that could benefit from Catalysis include
- Decentralized AI (dAI): dAI applications could plug into Catalysis to leverage decentralized security for the protection of sensitive data and AI models. As AI systems grow in complexity, the need for a robust, decentralized security layer becomes even more critical.
- Web2 Enterprises: Many Web2 companies are looking to experiment with decentralization without fully committing to the complexities of blockchain infrastructure. Catalysis offers a way for these companies to integrate decentralized security mechanisms into their existing technical stacks, such as using decentralized oracles or data availability layers.
- Existing Shared Security Projects: Eigenlayer, Satlayer, and Pell Network are just a few examples of projects that could potentially integrate with Catalysis to expand their offerings. Catalysis provides these projects with a flexible framework for cross-platform integration, allowing them to tap into new markets while maintaining their existing protocols.
However, the question remains: How seamless will these integrations be? While Catalysis promises to simplify the process of plugging into shared security protocols, the complexity of integrating diverse systems cannot be underestimated.
The Future Outlook
As we look to the future of Catalysis, several questions remain unanswered:
- Can Catalysis achieve the scale it envisions, with thousands of AVSs powering decentralized services?
- Will the aggregation model inadvertently lead to centralization, reducing the overall decentralization of the ecosystem?
- How will Catalysis adapt to the constantly evolving needs of the decentralized world, especially as new technologies and consensus mechanisms emerge?
Despite these challenges, Catalysis has the potential to play a central role in the evolution of decentralized security. However, it will need to prove that it can overcome these obstacles and foster widespread adoption across multiple sectors.
Conclusion
Catalysis represents an ambitious attempt to scale the restaking ecosystem by simplifying the deployment and management of AVSs. With its aggregation and abstraction layers, the project has the potential to make decentralized security more accessible and efficient. However, its success hinges on overcoming significant challenges related to scalability, ecosystem adoption, and decentralization.
As the decentralized world continues to evolve, projects like Catalysis will play an important role in shaping the future of security. But whether Catalysis will emerge as the dominant solution, or whether new challengers will surpass it, remains to be seen. For now, Catalysis is a project to watch closely as it seeks to redefine the future of shared security.
In our next article, we will be digging into abstraction and how Drosera and Catalysis are creating a new security layer for the web3 ecosystem.
Check out our blog for more interesting reads.
