Fuel Network is a Modular Execution Layer for Ethereum. Fuel v1 started out as a scaling solution for Ethereum using the Optimistic Rollup (ORU) model for payment purposes. Fuel v1 works on the UTXO model that allows for faster transaction processing since transactions are validated in parallel on the user’s hardware.

While Layer 2 has ushered in a reduced cost of accessing the Ethereum ecosystem, the scalability is rather modest (with both Optimistic Rollup & Zk Rollup). And in a time of high traffic on Ethereum, L2 has failed to keep costs low, often rising to several dollars per transaction.

This is because each rollup block eventually has to post data to Ethereum, which ties the fees of the L2 platforms to the Ethereum fees (Zk Rollup is more cost efficient because they only post Proof), so each Rollup platform can only expand Ethereum by a certain rate.

Fuel network proposes a different approach towards modularity, where the Executive Layer is separated from data availability and consensus (Data Availability & Consensus). This separation allows for specialization at the base layer, offering greater scalability potential.



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