Emily and Alvin Hsia - Shadow, and Building the Next Generation of Onchain Data
Jan 9, 2024
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Emily and Alvin Hsia, co-founders of Shadow, discuss their journey in DeFi and MEV, challenges with on-chain data, and the development of Shadow. They explore the impact of shadow forks, broader adoption ideas, and standardizing shadow events. They also touch on building a company as siblings and future plans for Shadow.
Shadow is an off-chain execution environment that provides full control over the read path and allows users to customize the data they want to access.
Shadow events address the limitations of traditional event logs on Ethereum by allowing more control over event design and data emission, leading to increased access to on-chain data.
Deep dives
Background and motivation for starting Shadow
Alvin and Emily, founders of Shadow, share their background and their journey that led them to start working on Shadow. They talk about their experience working together as siblings and their previous roles at Airbnb. They explain how they got involved in the DeFi space and their desire to contribute something meaningful to the ecosystem. They initially started with the idea of building a unified DeFi API but realized the challenges of dealing with incomplete and incorrect on-chain data. This led them to develop the concept of Shadow, a proof of concept that gained more traction and became the main focus of their work.
The concept of Shadow and its value
Alvin and Emily discuss their initial idea of building a unified DeFi API and how it evolved into the concept of Shadow. They explain that Shadow is an off-chain execution environment, which they refer to as a Shadow Fork, that mirrors the state of the mainnet in real time. It allows users to modify smart contract code to add extra data accessors like event logs and view functions. They emphasize that Shadow gives people full control over the read path and allows them to customize the data they want to access. The underlying infrastructure of Shadow is described as highly optimized for data access and provides a level of intentionality in designing and accessing on-chain data.
Challenges with current event logs and the role of Shadow
The founders discuss the limitations and challenges of traditional event logs on Ethereum. They explain that event logs are inflexible and require pre-designing events before deploying contracts, which often results in incomplete or missing data. Furthermore, emitting events on Ethereum is gas expensive, leading to constraints on the amount of on-chain data emitted. By contrast, Shadow addresses these challenges by allowing smart contract developers to have more control over event design and data emission. They highlight that Shadow events can be modified and added off-chain, providing more flexibility and reducing unnecessary gas costs. With Shadow, data consumers have the ability to be data producers themselves, leading to more aligned incentives and increased access to on-chain data.
Future prospects and possibilities for Shadow
Alvin and Emily share their goals for Shadow in the next five years. They aim to significantly increase the amount of data emitted on-chain and drive the adoption of Shadow events across different chains. They anticipate a marketplace model where users can publish and monetize their custom Shadow contracts, allowing others to access valuable data insights. They emphasize the importance of discoverability and data verifiability in a world with more data on Shadow. Alvin and Emily also discuss the potential role of on-chain data engineers and the possibilities for new types of data analysis tools and products built on top of Shadow infrastructure.
In this episode, we chat with Emily and Alvin Hsia, co-founders of Shadow. We begin with their journey working on DeFi, MEV, an early idea to unify on-chain data, and their journey to building Shadow. They walk us through the challenges with events, their solution for developers, users, and data consumers, and other details on the product such as pricing.
We dig into the impact of shadow forks, ideas for broader adoption, and their goal for standardizing shadow events with ERC 7571. We also get a glimpse of what it’s like building a company as siblings, and where Shadow goes from here.
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