Dec 29, 2023

EigenLabs founder and CEO Sreeram Kannan joins CoinDesk TV to discuss decentralized trust.

Video transcript

Decentralized trust has two components to it. A variety of decentralized node operators and some amount of economic stake, which is backing that. Hey, my node operator is honest, they're putting it making the stake liable to punishments if the operator is not honest. And so this creates a system of, you know, positive and negative incentives. So that in a, in a pseudonymous world, which is what blockchains are, we can still maintain correctness and accuracy of these platforms with internal enforcement. So usually staking protocols have their own native tokens each, you know, a Blockchain like a salon or, or an atoll. So it has its own native token, which is what is used for staking. What we figured out is that there is a lot of protocols that want to build that may not be able to have a native token on day one or do not want to have a native token. And for all these protocols, if there is a common source of both stabbed assets, which is in this case, eat particularly in the form of either liquid stick tokens or in the form of um what we call native retaking, where the stake in Ether and then add a step in your withdrawal flow to go through the Eigen contracts. What this does is enables the Eigen contracts to add positive and negative incentives to. And, and when you do this, you're committing that you or your delegated node operator will actually run these new services and protocols that are built on top of Eigen. This enables um the decent less trust network of ehe the stake and the node operators to be more broadly accessible to anybody who wants to build new services. So every new protocol instead of having to go and start off on its own trust network can leverage and use the existing to network of Ethereum.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.