What is MetisDAO (METIS): How it Solves the Vulnerabilities of the Ethereum Network?

Even though Ethereum switched to the Proof of Stake algorithm, it still has problems like slow transactions and high gas costs.

What Does the Metis Protocol Mean?

Metis is an optimistic rollup that is built on top of Ethereum. The protocol wants to solve the scalability trilemma and provide security, scalability, and decentralization. It also wants to create an environment where applications, businesses, and the creation of decentralized autonomous organizations (DAOs) can work.

Optimistic rollup is a second-layer solution that runs transactions outside of the main network. Instead of checking each transaction, the mainnet just sends them out and assumes they are valid unless the validators say otherwise.

The protocol token is now owned by almost 14,000 different wallet addresses, and it has been used in about 50,000 transactions since it was first made.

How does it work

For an optimistic roll-up to work, it takes more than one person. This is what the Metis protocol says:

• User
• Block manufacturer
• Sequencer
• Verifier

Users send their transactions to the people who make blocks. Sequencers take requests from users for transactions, put them in order, and send them to a certain level of the blockchain. To get everyone to agree on transactions and speed up work, only one sequencer works at a time.

Verifiers read and process transactions, check that state roots are correct, and start and finish tasks to prevent fraud. Lastly, it’s up to the people who make blocks to keep the network up to date by sending blocks to other people through a peer-to-peer network.

A cryptocurrency transaction in Metis goes through the following steps:

• The user sends a transaction to the producer, who then makes blocks for L2.
• Through a peer-to-peer network, the producer gives out blocks.
• The peer-to-peer network sends the sequencer all the information about the transaction.
• The sequencer figures out how to send the data packet to the main network.

What are the Advantages of the Metis?

The main benefit of the Metis protocol is the MVM, which is a virtual machine that works with Ethereum. It looks, feels, and works the same as Ethereum, but there are fewer fees and transactions happen faster. Like the first layer of the Ethereum blockchain, the protocol supports Solidity smart contracts.

Metis can also be used by applications that are not on the blockchain. To do this, the RPC endpoint needs to be updated, and a little configuration needs to be done. This makes it easier for Ethereum-based DApps to be used in MVM.

MetisDAO: What Is It? (METIS)

MetisDao is the name of the ecosystem’s own token (METIS). It has three main jobs to do:

• Used as security to make the Metis Virtual Machine (MVM) work
• Staking out when users will work together
• Used to pay for gas

There are 10,000,000 METIS in total. 49.3% of these tokens were given to the team and early investors, 35.84% were used to build Discovery Age, 10% were made for network validators, and the rest were given to people in the project community.

At the moment, Gemini and Kucoin are two centralized exchanges that support METIS. The token can also be kept in wallets like Coinbase Wallet, Math Wallet, and MetaMask that don’t hold your money.

Several venture capital firms, such as gate.io labs, AU21 Capital, Master Ventures, and others, have put money into Metis. From November 20, 2021, to March 22, 2022, the total value of assets locked in the protocol went from $800,000 to ATH of $750 million. At the same time, the TVL of the rollup is made up of more than 50% of the native token. But there are issues with the protocol as well. Metis’s main problem is that the function for confirming fraud is not fully working. This is a big security risk because if an invalid state root is served, user funds could be stolen.

Metis also uses something called a central sequencer. This means that operators can use their position to do transactions for users.