What is Mantle (MNT)?
Mantle is a Layer-2 scaling solution for Ethereum.
What does that mean?
Mantle is built on top of the Ethereum blockchain, which allows its users and developers to benefit from Ethereum’s security.
Layer-2 scaling solutions like Mantle alleviate the mainnet from processing every individual transaction. Instead, by harnessing Optimistic Rollup technology. Mantle can securely log transactions occurring on the Layer 2 through off-chain computation, before settling the rollup of transactions on-chain.
For an in-depth discussion about the blockchain’s security, you can check out Ethereum’s official security roadmap.
Accordingly, Mantle claims to offer lower transaction fees and higher throughput than its ‘Layer-1’ base, Ethereum. According to Mantle’s developer guide, Mantle transaction fees are 80% lower than on Ethereum, and the network can achieve a transaction throughput which is 20 times greater (500 transactions per second versus Ethereum's 25 transactions per second).
So in theory, Mantle users get all of the benefits of using the Ethereum blockchain, without its primary drawbacks.
In addition, Mantle is EVM compatible. EVM stands for ‘Ethereum Virtual Machine’. This makes it easier for the network to interact with the Ethereum ecosystem. For example, Mantle can execute Ethereum smart-contracts, and any Ethereum-based dApp (decentralized application) can be easily deployed on Mantle. This significantly increases the network’s functionality, making it more attractive to developers.
What does the MNT token do?
MNT is the Mantle network’s native token.
It is used as a governance token and to settle transaction fees.
How it works
How does Mantle leverage Ethereum’s security and achieve high throughputs, all whilst keeping costs low?
Mantle attributes its ability to achieve ‘Hyperscale Performance’ to two factors:
- Roll-up technology
- Integrating with a decentralized data availability layer
Like other Layer-2 ‘roll-ups’ (such as Arbritrum and Optimism), Mantle is a modular blockchain.
This means it separates its blockchain’s function into different layers to maximize efficiency and drive down costs.
For example, rollup technology allows a Layer-2 blockchain to handle transaction execution separately from the Layer-1 blockchain (here, Ethereum) where they are eventually settled.
In this case, the Mantle Network handles transaction execution, but the transaction are validated.
By batching (or ‘rolling-up’) transactions off-chain before committing them to the Layer-1 blockchain, gas fees are considerably lessened.
Mantle takes this concept a step further by employing a unique three-layer modular architecture.
In addition to keeping transaction execution and settlement separate, Mantle has also integrated with EigenLayer, an Ethereum-based data availability layer, further streamlining activity on the network.
You can read more about the integration’s implications for users here.
Brief History
The Mantle Network launched in July 2023.
It is the first Layer-2 solution to have been launched by a DAO.
The network originated from BitDAO, famed for holding the largest DAO treasury in the crypto space.
In May 2023, the BitDAO community voted to consolidate BitDAO and Mantle into one brand.
BitDAO has since evolved into ‘Mantle Governance’.
All BIT tokens were converted to MNT tokens on a 1:1 ratio in June 2023.
Notable Partnerships
Ondo Finance’s USDY stablecoin was announced as a ‘showcase partner for RWA’ (Real-World Assets) on the Mantle Network in September 2023. This partnership supports Mantle’s mission to bring ‘sustainable yield’ to their ‘broader DeFi ecosystem’ - read all about it here.
About the founders
Mantle was launched by the efforts of a decentralized community (BitDAO) - there are no official founders!
That being said, community members ‘jacobc.eth’ and ‘Ben Zhou’ are credited with making the initial proposal to launch Mantle.
Want to dive deeper into Mantle?
To stay in the loop, check out Mantle’s Medium and Twitter pages, as well as their website, https://www.mantle.xyz/.
NOT FINANCIAL ADVICE
Please note that Uphold and its affiliates do not provide investment, tax, or legal advice. This message is for informational purposes only and takes no account of particular personal or market circumstances, and should not be relied upon as investment, tax, or legal advice. For investment, tax, or legal advice and before taking any action you should consult your own advisors. Note that digital assets such as cryptocurrencies present unique risks for investors. Please see our disclaimer regarding risks specific to holding digital assets before investing.
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