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Fuel Labs: Institutional Report

4 min readResearch

Fuel Labs: Institutional Report

Fuel Labs: Abbreviated Introduction

Modular blockchain architecture is a recent phenomenon that could pave the way for a paradigm shift in blockchain capabilities. Modular blockchains separate the critical elements of blockchain, i.e., execution from data availability (DA) and consensus. In a modular blockchain environment, the broader mission of Fuel is to enhance existing blockchains, such as Ethereum, as a high-performance execution layer. 

Fuel aims to be a pluggable modular execution layer, a verifiable computation system, explicitly designed for a modular blockchain environment. It also takes advantage of the flexibility offered by modularity. Fuel is able to offload DA to other modular blockchains, and the computation is fraud or validity provable. With the central elements and no DA capacity constraints (in a Modular blockchain world), Fuel could deliver quick throughput and better smart contract capabilities. It also aims to be a solution to transaction cost spikes experienced by Layer-2 networks on monolithic chains. 

The central elements of the Fuel project are: 

  • Fuel: the Fuel blockchain. 
  • FuelVM: the virtual machine powering Fuel. 
  • Sway: the domain-specific language crafted for the FuelVM; it is inspired by Rust. 
  • Forc: the build system and package manager for Sway, similar to Cargo for Rust. 

Fuel is similar to a rollup for Ethereum. The Fuel network is currently on v2, which brought the following improvements to v1.1: interoperable smart-contracts; predicate scripting; covenants; and configurable state introspection (for Ethereum-style smart contracts). The Fuel VM identifies the accounts which a transaction touches, mapping dependencies before execution. Fuel also uses a parallel transaction execution system based on an Unspent Transaction Output (UTXO) model, a unique design for a rollup. 

The project is open source and developers can build on the execution layer. It is built with Ethereum Improvement Proposals (EIP) in mind. The project has released detailed documentation on the Modular Execution Layer (MEL), aggregated in the Fuel Book on GitHub. 

Fuel Labs is a decentralized global group of passionate developers building the future of blockchain scalability technology. It currently shows over 60 contributors. The advisors of the Fuel Labs project have experience and qualifications that are very relevant to the project. 

The company has raised ~$80 million in funds from a group of well-known investors. The company has not released details on its token yet. 

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