Socket Protocol: Liquidity Fragmentation with MOFA Mechanism Applying Chain Abstraction

Protocols and users face significant challenges in the current multi-chain ecosystem such as: fragmentation of user experience, liquidity and ecosystem across multiple blockchains; difficult choices between a wide presence of multiple chains (increasing operating costs) or a limited focus on one chain (potentially leaving users out). So Socket Protocol was born to solve this problem, let's learn about this protocol with HCCVenture through the article below!

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11/13/20244 min read

Protocols and users face significant challenges in the current multi-chain ecosystem:

For protocol:

  • Fragmentation of user experience, liquidity, and ecosystem across multiple blockchains.

  • Tough choice between a wide presence of multiple chains (increasing operating costs) or a narrow focus on one chain (potentially leaving out users).

For users:

  • Complex manual navigation across multiple chains.

  • Large number of intermediaries and steps required for cross-chain interactions.

The consequence of not having intermediaries between the target application and the user leads to fragmentation of users, assets and liquidity, and breaks the composability for which we use blockchain.

The Socket Protocol addresses these challenges by abstracting the chain to enable application-centric design. The Socket Protocol enables developers to create chain abstraction packages that execute and resolve across multiple chains, positioning applications as the primary point of contact between users and the blockchain network.

So what is Socket Protocol?

Socket Protocol is a protocol that provides infrastructure for DApp developers to seamlessly and simply interact with multiple chains. This makes it easy for users to interact on a single blockchain thanks to the application of Chain Extraction technology.

Some problems solved by Socket Protocol:

  • Liquidity dispersion as too many blockchains are developed.

  • Helps DApps avoid the choice of developing multiple chains or focusing on one chain.

  • Reduce the complexity of interacting with multiple blockchains.

Socket Protocol Design

The Socket Protocol is a framework of immutable contracts that allows application developers to customize essential areas. The main goal of the protocol is to create, execute, and finalize chain-abstracted packets (CAPs).

Main ingredients include:

  • Plugs: Applications built on the Socket Protocol, which act as smart contracts.

  • Gateways: Applications that act as entry and exit points for on-chain applications, hosted by off-chain service operators.

  • Switchboard : Smart contract that validates packages and their validity, allowing to choose different watcher services.

  • Socket (main port): The central point that connects all components, helping to standardize interactions.

The Socket Protocol facilitates seamless interactions within the decentralized ecosystem, supporting the building of powerful on-chain applications with high functionality and security.

How Socket Protocol Works

Users send requests to the DApp's Gateway. These requests are then parsed and resolved into actionable actions across multiple blockchains.


The gateway activates, selects a transmitter (the entity that executes the user request) to execute the transaction, and then transmits a chain-abstracted packet to the chains. This packet contains the user request, the transmitter response, and the signature from the Watcher - the entity that stores and monitors the DApp gateways and tracks blockchain activity.


Sockets perform Plugs, authenticating the data packet through the Switchboard. If the Switchboard authorizes the data packet, the transmitter's request and action for this network will be executed.


Once the transmitter completes the transaction on the source chain, the Gateway triggers the next step with a new signature from the Watcher.

The above steps are repeated and validated continuously across multiple networks until the entire data packet completes its execution.

Overall, Socket Protocol provides a flexible infrastructure for developers, allowing them to easily create DApps that can interact with multiple blockchains without users having to worry about the complexity behind it, making the experience seamless and convenient.

Products of Socket Protocol

The Socket Protocol provides four key technologies to support developers in building decentralized applications (DApps). These products include: Gateway, Switchboard, Watcher (mentioned earlier), and Modular Order Flow Auctions (MOFA) - the core technology that Socket Protocol develops.

Currently, blockchains with modular architectures often consist of multiple actors managing different parts of the network (such as Data Availability, sequencing, relaying, and Account Abstraction). While the modular model brings many benefits to blockchains, it can also lead to poor interoperability and the need for third parties to participate in the network structure.

MOFA was developed by Socket with the goal of partially solving these problems by creating an open marketplace where off-chain actors (called transmitters) compete to execute user transactions across multiple blockchains (Layer 1, Layer 2, Layer 3). These transmitters are also incentivized to automatically aggregate users' on-chain tasks, reducing transaction costs and limiting the risk of transaction failure.

MOFA offers solutions:

1/ Increase execution efficiency: each transmitter has its own advantage when competing with each other, users can receive faster service and lower cost.

2/ Simplify for users: Create a common interface that helps users not need to understand how each blockchain works but can still execute many transactions on it.

Applications of Socket Protocol

There are more than 100 protocols that have applied Socket Protocol technology and supported the execution of transaction volume of more than 10 billion USD, including:

  • Cryptocurrency wallets Metamask and Coinbase have integrated Socket Protocol to help users make cross-chain transactions without manually switching blockchains.

  • The Rainbow Wallet, Layer3, and Zapper platforms have also used Socket to simplify the onboarding process, making it easy for users to access the Base platform.

  • Bungee Exchange platform integrates SocketGateway to provide fast and convenient exchange solution for users.

Project Team

  • Vaibhav Chellani: CEO and Co-founder of Socker Protocol. He has many years of experience in the blockchain field, having worked at Toshblocks, Karachain, Matic Network.

  • Rishabh Khurana: Co-founder of Socker Protocol. Previously, he worked for India-based technology company InMobi.

Investors and partners

In September 2023, Socket Protocol successfully raised $5 million from major investors in the crypto market such as Coinbase Ventures, Framework Ventures, and Lightspeed.

With this investment, Socket will integrate cross-chain connectivity technology into Coinbase products like Coinbase Wallet and Base.

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Data from: data by HCCVenture compiled on Socket Protocol whitelist

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