Ethereum (ETH) still maintains its industry leadership in terms of Total Value Locked (TVL), but there are indications that its ecosystem's momentum is waning along with decreased network activity. Ethereum is gradually losing competitiveness in both developer-friendliness and general user accessibility, and concerns are growing that if no breakthrough changes occur, it may be abandoned by builders and users who should be at the platform's core.
In this context, 'Based Applications (bApps)' are gaining attention as a new paradigm in the Ethereum ecosystem. bApp refers to all applications or services that utilize Ethereum's validator set as a base security system. They are advantageous in scalability, interoperability, and cost-efficiency by allowing direct bootstrapping from L1, and are evaluated as the key to integrating Ethereum's complex and distributed ecosystem.
Currently, most projects seeking service bootstrapping on Ethereum are choosing restaking. This involves locking validators' withdrawal keys or additional capital to secure security. However, this imposes significant burdens on both service developers and validators. The structure of locking keys and supporting new services while bearing slashing risks can create cascading risks for validators and ultimately potentially threaten the entire Ethereum network's stability.
In contrast, bApp provides developers with a third option. They can start services while connected to the validator set without high-risk capital injection like restaking. Validators can earn profits by simply participating with existing stakes, and from developers' perspective, it is efficient to utilize a verified security base at low cost. Consequently, small-scale validators and risk-averse participants can easily integrate into the ecosystem, ultimately forming a more diverse and robust validator network.
Additionally, the bApp structure provides an answer to Ethereum's scalability issues. The existing restaking-based bootstrapping method has a zero-sum game structure where one project's growth can lead to risks for another project. In contrast, bApp pursues an 'infinite sum' structure where new participants enhance the entire system's value. When a new bApp emerges, new profit opportunities open for validators, and as validators increase, the bApp's security level also improves, creating a virtuous cycle.
The bApp-based architecture is also useful for core infrastructure like rollups, oracles, and bridges. It can inherit Ethereum L1's decentralization and security without designing a separate security system, significantly reducing design complexity and costs. Moreover, such systems can be extended to L1 validator sets of other blockchains, drawing attention for their potential to develop into a security network spanning multiple chains.
For Ethereum to establish itself as a platform for a future decentralized society, a realistic solution is needed to integrate its currently fragmented ecosystem. It must provide a developer-friendly environment to developers and accessibility and stability to users. bApp is a solution that maintains Ethereum's inherent security base while lowering ecosystem entry barriers, allowing multiple new participants to innovate, and potentially restoring the ecosystem's broken solidarity.
Ethereum cannot maintain its competitiveness indefinitely by merely defending its TVL top position. What is needed now is an experience improvement for users and developers, and bApp is emerging as a practical alternative to solve such challenges. 'Based infrastructure' is more than a mere technical concept; it is also a philosophical direction for Ethereum's next-stage leap.
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