Strategic Value of Layer 2

Advancement for BaaSid Technology Commercialization

BaaSid currently operates a Merkle Tree-based data proof and reward system on Ethereum, and BAAS tokens are issued with the ERC-20 standard. However, the high fee structure and transaction processing speed of the Ethereum mainnet have limitations in terms of usability, and act as a fundamental limitation to the expansion of the participation-based ecosystem pursued by BaaSid.

Accordingly, BaaSid is planning Layer 2 expansion and will accelerate commercialization through faster transaction processing.

Strategic Value of Layer 2

Advances in AI mean more data. However, in existing Layer 1 blockchains, as more transactions occur, the network becomes more congested and fees increase. Additionally, there are limits to the scalability of various services. To improve these problems, it is necessary to apply Layer 2, and the advantages are as follows.

· • Cost reduction and speed improvement: It is a rollup-based layer 2 solution that bundles transactions and submits only the results, providing lower gas fees and faster transaction speeds compared to the Ethereum mainnet.

· • Development flexibility: Designed to build independent and customizable chains, allowing flexible configuration of gas tokens, DA layer, VM settings, etc. In particular, Stylus allows you to write smart contracts in general-purpose languages such as C, C++, and Rust, providing a familiar environment for traditional developers.

This flow shows that it is one of the strategic options in the process of expanding Web3 infrastructure. BaaSid also recognizes the need and value of such expansion, and Layer 2-based expansion can serve as the next step for BaaSid in terms of technology, governance, and user experience.

Expansion Strategy and Technology Stack

BaaSid is preparing for expansion through the following methods:

• Optimization of Merkle Tree verification structure

- Extension method: Reorganize Root and Proof based on Layer 2

- Create lightweight contracts optimized for L2: Improve cost-effectiveness of user or panel data verification by minimizing Proof verification operations

- When using Stylus-based contracts, execution speed and gas cost can be optimized by implementing Merkle verification logic in C++ or Rust.

• Maintains ERC-20 format and secures bridge possibility

BaaSid's Layer 2 expansion is more than a simple technological transition, it is a reorganization of the infrastructure for scalability and sustainability of the entire ecosystem. This means an evolution into a Web3-like data platform that provides a fast and inexpensive experience for users, a flexible architecture for developers, and real value through rewards and governance for participants.