EigenCloud: everything you need to know about EIGEN

What is EigenCloud?

EigenCloud is an infrastructure project on Ethereum that helps developers build verifiable apps and services. This means that you can better verify whether data, computations, or results are correct, without fully trusting a single central party.

The project builds on EigenLayer, which became known for restaking. This allows existing Ethereum assets to be used to secure additional services. EigenCloud uses that foundation to enable applications around data, computing power and AI.

How does EigenCloud work?

The network works as an extra layer on top of Ethereum. Instead of processing everything directly on the blockchain, EigenCloud lets certain tasks take place outside of Ethereum while keeping the outcome verifiable.

A key component is restaking. This allows ETH and similar tokens to be restaked to secure new services. This way, these services don’t have to build their own security layer from scratch.

Within the network, so-called AVSs are running. These are services that make use of this shared security, for example for data, computing power or verification. EigenCloud brings these components together in a single environment in which developers can more easily build such applications.

The EIGEN token

EIGEN is the token of the EigenLayer ecosystem and supports the broader infrastructure on which EigenCloud is built. The token is used for staking, rewards and governance within the network.

Users can stake EIGEN to support the network and receive rewards. Additionally, the token is designed to handle errors and disputes that cannot be fully resolved with standard on-chain proof.

The initial supply was around 1.67 billion tokens. There is an annual inflation of 4% of the initial supply, unless governance adjusts this later.

The technology behind EigenCloud

The technology of EigenCloud revolves around two ideas: restaking and verifiability. Restaking makes it possible to reuse the security of Ethereum for other services. Verifiability ensures that you can better verify whether results are correct.

What sets EigenCloud apart is that it doesn’t build a single specific application, but offers a broader infrastructure layer. This enables developers to create apps that not only run but also demonstrably work correctly.

The EigenCloud ecosystem

Within the EigenCloud ecosystem you will find, among other things:

• EigenDA for data availability
• EigenCompute for verifiable computing power
• EigenAI for applications around AI
• AVSs that use shared security
• tools for developers who want to build verifiable apps

Benefits of EigenCloud

• Built on Ethereum: uses existing security and infrastructure
• Broadly deployable: supports applications around data, compute and AI
• Focus on verifiability: enables better verification of results

Disadvantages of EigenCloud

• Technically complex: concepts such as restaking and AVSs are not straightforward
• Depending on adoption: success depends on usage by developers.

Who are the founders of EigenCloud?

Sreeram Kannan is the founder of Eigen Labs and the driving force behind EigenCloud and EigenLayer. He developed the restaking model that forms the basis of the project and focuses on expanding Ethereum with additional security and verifiable services.