What is BOBA Network? Governance, Staking, and Unique Layer-2 Features

What is Boba Network?

Boba Network is one of the layer 2 scaling solutions designed to boost blockchains’ efficiency and scalability by increasing their transaction throughput and lowering network fees. It is an augmenting-compute-focused multi-chain platform serving some of the biggest blockchain ecosystems like Ethereum, Avalanche, and Binance Smart Chain. Boba delivers a fast, cheap, and robust experience for decentralized finance and other applications by utilizing scaling technologies such as optimistic roll-up and a hybrid computing system. These features allow transparency and decentralization of the network while also maintaining its security and energy consumption. 

Though Boba is based on Optimistic roll-up technology that was developed by Optimism, it adds some other features like cross-chain messaging, a separate gas price logic, a swap-based system, NFT bridges, and more to enhance its layer-2 capabilities further.

History of Boba Network

The idea of the Boba network was conceived into reality by OMG Foundation and Enya back in 2021. They launched OMGX- an L2 scaling platform (which was renamed to present Boba Network) to improve the overall scalability of the Ethereum network by increasing its speed, lower transaction fees, and enhancing smart contract capabilities.

OMG Foundation is a non-profit organization focused on the scalability of the Ethereum ecosystem and has previously built layer-2 scaling projects like OmiseGO (later rebranded to OMG Network in 2020). OMG network was built on top of the Ethereum blockchain and utilized a plasma scaling solution to improve network throughput and speed.

Enya Labs is an AI tech company founded by Alan Chiu- CEO and founder of Boba Network, with Jan Liphardt in 2018. Chiu holds a Master’s in Management from Stanford University and BASc in computer engineering from the University of British Columbia. He has previously been an investor, partner, and co-founder at several companies like Listo Unlimited, XSeed Capital, AtScale, etc.

Read On: Guide to Ethereum Layer 2 Solutions

How does the Boba Network work?

As discussed earlier, Boba Network mainly uses optimistic roll-ups to reduce gas fees and increase the network’s transaction speed.

Optimistic roll-ups is an L2 scaling solution that takes transactions and data off-chain and relays it back to the main layer after processing. Doing so reduces the load on the main network, improving transaction throughput and lowering gas fees. Boba uses EVM– equivalent roll-up that supports the majority of Ethereum smart contracts used for interacting with layer 1 blockchain. These roll-ups are referred to as “optimistic” because they pre-assume all transactions to be valid within a roll-up (batch of thousands of transactions), and a transaction is verified only when someone challenges its authenticity. This reduces the time associated with verifying each transaction, thus giving instant confirmation. However, the Boba network doesn’t just rely on the layer-1 chain for the security of transactions, it implements a security model based on fraud proofs, where users or validators are paid to identify and report fraudulent transactions on the L2 chain.

Boba Network’s Layer-2 Solutions and Features

• Boba network reduces the high network gas fee of the Ethereum blockchain to a hundred times lower, approx 10 gwei, making it an ideal solution for users and developers.
• It lets users transfer in and exit their money out of the network in minutes (faster) compared to typical layer-2 solutions.
• Its Hybrid compute mechanism acts as a pipe connecting web3 systems to off-chain data servers. This feature empowers developers to execute codes on web2 infrastructures, enabling use cases for Artificial Intelligence, gaming, metaverse, and more. 
• It allows users to mint and transfer non-fungible tokens (NFTs) between layer-1 and layer-2 at low transaction fees.
• BOBA is a native asset of the Boba network that serves for DAO governance participation, staking to earn rewards and other utility purposes.
• It has a dual token economy model- one can pay gas fees with Boba network’s BOBA token or the underlying protocol’s native asset. 
• Boba’s Bridge allows the transfer of tokens from layer-1 to layer-2 and between different layer-2s as well.

Read More: Arbitrum Scaling Solutions Explained

Pros & Cons of BOBA network

Pros:

• It enables fast and cheap transactions.
• It is secured by the underlying blockchain.
• It extends the functionalities of smart contracts with Hybrid compute.
• Supports multi-chains, including Ethereum, Avalanche, Moonbeam, etc.
• It offers a developer-friendly interface and a set of tools for creating dApps.

Cons:

• It inherits security risks from the underlying blockchain.
• Expanding on more layer 1 networks for broader adoption in the competitive market is crucial.

Use cases of Boba Network & Boba Crypto Airdrop.

Boba network’s economy is powered by its native token BOBA. It has a total supply of 500 million BOBA tokens, and approx 29.97 million tokens will be unlocked every quarter till June 2025. The BOBA tokens ( 28% or 140 million tokens) were initially airdropped to OMG token holders in a 1:1 ratio; out of total supply, 42% of tokens were allocated to the treasury, 10% to strategic investors, and 20% to its future team members. At present, there are around 171.62 million BOBA tokens in circulation with a market cap of $23.55 million, as per CoinMarketCap.

Here are the primary use cases of BOBA tokens:

• BOBA holders receive rights to participate in Boba DAO, where they can vote on proposals to shape the project’s future direction. One staked token is equivalent to one vote, and holders can delegate their votes to others.
• Users are rewarded with a share of network transaction fees for staking their BOBA tokens in the network.
• BOBA token is also used to fund the network’s infrastructure development through incentives, developer grants, etc.

Future of Boba Network

With a plethora of Layer-2 solutions rolling out in the market, the Boba network has caught the eyes of many with its unique features like Hybrid compute technology, Dynamic NFTs, and more. Its team is continually working to expand the network, with hundreds of gaming, multi-chain, and ecosystem partnerships and user-friendly platforms. Investors are advised to do their own research, apply risk management strategies and diversify their portfolios while investing in crypto markets.

How to Buy Boba Network (BOBA)?

You can invest in the Boba network and several other crypto projects quickly, securely, and safely with the CoinDCX app. You just have to download the CoinDCX app from the app store and follow the below steps to kickstart your crypto investing journey:

• Once you have downloaded the app
• Enter your details to register
• Complete KYC, verify mobile and email
• Once your profile is verified, add funds to your wallet and buy BOBA tokens.