What is FUEL

Source:https://fuel.network/

Fuel is an operating system designed specifically for Ethereum Rollup, aiming to address parallelization, state-minimized execution, and interoperability issues without compromising on security or performance.

Fuel is powered by FuelVM, supports locally verifiable, and provides an excellent development experience using the Sway language. Through parallel transaction execution and optimized native asset processing, Fuel demonstrates unprecedented scalability compared to traditional EVM Rollup.

The core component of FUEL

1. FuelVM (Fuel Virtual Machine)

FuelVM aims to provide high-performance execution capabilities and support parallel transaction processing. Unlike traditional virtual machines such as Ethereum Virtual Machine (EVM) that process transactions in serial, FuelVM allows transactions to be executed simultaneously, significantly improving network throughput. FuelVM draws on the strengths of architectures such as RISC-V, ARM ISA, Bitcoin Script, and EVM, and is optimized for blockchain applications.

Source:https://docs.fuel.network/docs/fuel-book/the-architecture/the-fuelvm/

Core Features:

• Parallel Execution: FuelVM can process multiple transactions simultaneously, improving overall execution efficiency.
• Minimized State Design: Reduce the burden on full nodes by using native assets, temporary scripts, and spending conditions.
• High transaction throughput: On high-end CPUs, each core can achieve 21,000 TPS, meeting the scaling needs of modern blockchain applications.

2. FUEL Trading Architecture

Fuel adopts the UTXO (Unspent Transaction Output) model, combining the design advantages of Bitcoin, Ethereum, Cosmos, and Solana to enhance the parallel execution capability of transactions. This architecture allows transactions to run independently, avoiding the common bottleneck issues in traditional account models.

Key Features:

• Parallel processing: Transactions can be executed concurrently across blocks to avoid network congestion.
• Flexible trading mode: supports multi-asset interaction, batch smart contract invocation, and can build advanced conditional logic through predicates.
• Efficient state management: reduce reliance on state-intensive smart contracts, optimize performance.

3. Fuel Ignition (Rollup Solution)

Fuel Ignition is the first Rollup launched by Fuel V2 on the Ethereum mainnet, which adopts a more advanced execution architecture compared to traditional EVM Rollup. In the initial stage, Ignition operates as a trust-enhanced Layer-2 (L2) solution, and is planned to gradually evolve into a Rollup that relies entirely on Ethereum security, supporting fraud proofs, decentralized sequencers, and secure multi-signature upgrade mechanisms.

Main advantages:

• Ethereum Security: Inheriting Ethereum’s powerful security mechanism to ensure the integrity and trustworthiness of transactions.
• Decentralized Ordering: Ensure fair transaction ordering and support better scalability.
• Data Availability (DA) based on Ethereum: Enhancing trustlessness and decentralization.

4. FUEL Network

As an interconnected Rollup network, Fuel enables seamless interaction between different blockchains. Unlike many ecosystems that simply replicate EVM Rollup, Fuel allows developers to customize VM configurations to provide customized solutions for different blockchain applications.

Key Features:

• Customizable VM configuration: Developers can adjust the operating environment of the FUEL virtual machine according to specific requirements.
• Shared sorting and builder network: a decentralized block production mode to ensure fair inclusion of transactions in blocks.
• Powerful interoperability: Supports efficient interaction between Fuel Rollups and other blockchains.

5. Developer Tools

Fuel focuses on developer experience and provides an optimized toolkit to help developers efficiently build blockchain applications.

Sway: A programming language designed specifically for blockchain

Sway is a domain-specific language (DSL) created by FUEL specifically for blockchain development, combining the syntax advantages of the Rust language and integrating the core concepts of smart contracts.

• For blockchain optimization: Compared to Rust (system programming) and Solidity (EVM-specific), Sway directly integrates the design principles of smart contracts.
• Complete Development Framework: Supports features such as predicates, scripts, smart contracts, libraries, testing, deployment, and indexing to meet development needs.

Other Development Tools

• Forc (Fuel Orchestrator): a command-line tool for managing the compilation, dependencies, and deployment of Sway contracts.
• Fuel Rust SDK: Provides Fuel blockchain interaction support for Rust developers, suitable for system-level development.
• Fuel Wallet SDK: Provides tools for building secure and easy-to-use wallets, ensuring asset management security in the Fuel ecosystem.
• Fuel TypeScript SDK: Helps front-end developers integrate Fuel blockchain into web applications, optimizing decentralized user experience.

The innovative features of FUEL

1. Unparalleled parallelization capability

By introducing the concept of Predicate, Fuel enables stateless execution of transactions, achieving true parallel processing. Combined with the UTXO model, Fuel ensures concurrent execution of transactions without conflicts, greatly improving throughput.

2. Native Asset Support

Fuel brings all assets into protocol-level support without the need for smart contracts, making asset management more efficient and secure, while reducing the possibility of contract vulnerabilities.

3. Higher Security

Fuel has eliminated many common attack vectors for smart contracts, such as:

• Since asset logic is integrated at the protocol level, smart contracts do not need to perform high-risk asset management operations, avoiding vulnerabilities such as reentrancy attacks.
• FUEL adopts state minimal execution, which means that only the minimum required state is accessed during transaction execution, reducing state bloat and improving overall security.

4. Developer-friendly tools

Fuel offers a full suite of developer tools, including:

• Sway Language: Used for writing smart contracts.
• Forc (Fuel Orchestrator): A command-line toolchain that supports compiling, managing dependencies, and deploying applications.
• Fuel Rust SDK: Provides Rust language support for developing Fuel-related applications.
• Fuel Wallet SDK: Used to create Fuel-compatible wallets.
• Fuel TypeScript SDK: Helps developers integrate Fuel into web applications.

FUEL Token Economic Model

1. FUEL Token Basic Information

Token symbol: FUEL
Initial Supply: 10 billion FUEL
Inflation rate: 3% per year
Token Address: 0x675b68aa4d9c2d3bb3f0397048e62e6b7192079c

2. Distribution and Release Plan of FUEL Tokens

The initial total supply of FUEL tokens is 10 billion, with 20% of the initial supply allocated to the community. The allocation eligibility will be determined based on participation in the Fuel Points program and incentivized testnet, among other factors. Over 51% of FUEL tokens will be allocated to the community, ecosystem, and Fuel technology research and development.

Source:https://docs.fuel.network/docs/fuel-token-overview/tokenomics/

• Community Expansion: 2 billion FUEL tokens, immediately released, for the incentive, plan, activities, and expansion of the Fuel community
• Ecosystem and R&D: 1.55 billion FUEL tokens, released immediately, are used to establish the Sequencer network and support the development of the ecosystem and Fuel technology.
• Ecosystem and R&D: 1.55 billion FUEL tokens will be linearly released over 24 months, and the staking rewards will only be used for ecosystem development and L2 incentives.
• Contributors: 600 million FUEL tokens, released linearly over 24 months, for past and current Fuel contributors.
• Core Project Contributors: 980 million FUEL tokens, linearly released over 48 months, for the main contributors to the core project.
• Token buyers: 3.31 billion FUEL tokens, released linearly over 24 months, for token buyers during the period from 2020 to 2022.

3. The core function of FUEL

• Ensure the security of the Fuel network: Fuel adopts the Tendermint consensus mechanism for PoS staking. FUEL token holders can delegate tokens to proposers and receive staking rewards.
• Pay on-chain resource fees:
  • FUEL is used to pay for Rollup transaction sequencing, data availability, and block inclusion fees.
  • Fuel will also support ETH as gas fees to ensure a seamless user experience.
• Eliminate user transaction fees: Fuel adopts Application-Specific Sequencing, allowing dApps to obtain gas fee exemptions by staking FUEL tokens, providing a fee-less experience similar to Web2.

Fuel vs. Other Ethereum L2

Fuel is superior to traditional Ethereum L2 solutions in terms of scalability, security, and development experience, providing developers and users with a more efficient and cost-effective on-chain experience.

Summary

As the next generation execution layer of Ethereum, Fuel provides unprecedented performance and development experience through FuelVM, Sway language, and unique parallel execution architecture. Whether you are a developer or a user, Fuel is a high-performance Ethereum L2 solution worth paying attention to. In the future, with the launch of Fuel Ignition, Fuel is expected to become an important cornerstone of the Web3 ecosystem.