Introduction

Ethereum is one of the most widely used blockchains in the world, but it still struggles with congestion, slow transaction speeds, and high gas fees. While many Layer 2 (L2) solutions exist to help scale Ethereum, most are still far from achieving the performance needed for large-scale Web2-like applications.

MegaETH is a new Layer 2 blockchain built specifically to solve this. It’s designed to make Ethereum fast enough to support apps that demand real-time performance—like games, decentralized exchanges, and social platforms—without compromising security or decentralization.

Unlike other blockchains that rely on optimistic rollups or zero-knowledge proofs alone, MegaETH introduces a different approach. It focuses on maximizing throughput and minimizing latency by rethinking how blockchain nodes are structured and how data moves across the network.

What is MegaETH

MegaETH is a high-performance Layer 2 blockchain built to scale Ethereum for real-time applications. It aims to eliminate the delays and limitations often found in traditional L2 solutions by introducing a new architecture optimized for speed and efficiency.

The main goal of MegaETH is to process Ethereum-compatible transactions at extremely low latency—under one millisecond—and at high throughput, with a target of over 100,000 transactions per second (TPS). This level of performance is necessary for decentralized applications (dApps) that need instant updates, such as gaming, DeFi trading platforms, and social media tools.

MegaETH maintains compatibility with Ethereum by supporting the Ethereum Virtual Machine (EVM). This means developers can build or migrate apps using existing Ethereum tools and smart contracts without learning a new system.

What sets MegaETH apart from other Layer 2s is its “monolithic” design. Instead of separating tasks like sequencing, proving, and data availability across multiple layers or networks, MegaETH keeps everything tightly integrated. This reduces communication delays and boosts execution speed.

History of MegaETH, Origins, and Key Persons

MegaETH is developed by MegaLabs, a blockchain infrastructure company founded in early 2023. The founding team includes:

• Yilong Li: Co-founder and CEO, with a PhD in computer science.
• Shuyao Kong: Co-founder and Chief Business Officer, formerly the global head of business development at ConsenSys.
• Lei Yang: Co-founder and Chief Technology Officer.

The project was inspired by Ethereum co-founder Vitalik Buterin’s 2021 blog post, “Endgame,” which discussed the future of Ethereum scaling. MegaETH aims to address Ethereum’s scalability challenges by providing a high-throughput, low-latency Layer 2 solution.

MegaLabs has raised a total of $57.73 million across multiple funding rounds. In its seed round in June 2024, it raised $20 million, led by Dragonfly Capital. In the community Round (December 2024), MegaLabs raised $10 million in under three minutes via Cobie’s Echo platform. This round attracted approximately 3,200 investors from 94 countries, emphasizing MegaLabs’ commitment to community-driven funding. Then, in public Sale (February 2025), the company was able to raise $27.73 million through a public token sale, further expanding the project’s investor base.

MegaLabs has adopted a community-first approach to funding, aiming to minimize insider allocations and promote broader participation. This strategy aligns with Ethereum’s ethos of decentralization and community involvement. The funds raised are allocated towards accelerating MegaETH’s development, expanding its ecosystem, and supporting early-stage projects building on the platform.

How Does MegaETH Work?

MegaETH is designed as a high-performance Layer 2 (L2) solution for Ethereum, aiming to deliver real-time transaction processing with sub-millisecond latency and throughput exceeding 100,000 transactions per second (TPS) . To achieve this, MegaETH employs a specialized architecture that assigns distinct roles to different node types, optimizing for speed, scalability, and decentralization.

Node Specialization

MegaETH’s architecture revolves around four primary node types:

Sequencer Nodes: Responsible for ordering and executing transactions. MegaETH operates with a single active sequencer at any given time, eliminating consensus overhead during normal execution. The sequencer publishes blocks, witnesses, and state diffs to the network.

Prover Nodes: These nodes generate cryptographic proofs (such as zero-knowledge proofs) to validate the correctness of executed transactions. Provers operate asynchronously and do not require access to the full blockchain state, enhancing efficiency.

Full Nodes: Full nodes re-execute all transactions to validate blocks, ensuring the integrity of the blockchain. They maintain a complete copy of the blockchain state and are essential for trustless verification.

Replica Nodes: Lightweight nodes that receive state diffs from the sequencer and apply them to update their local state. Replica nodes do not re-execute transactions, allowing for lower hardware requirements and broader network participation.

Data Availability and Synchronization

MegaETH utilizes a Data Availability (DA) service to ensure that all necessary data for block validation is accessible to the network. When the sequencer produces a block, it submits associated data to the DA service, which returns a receipt confirming data availability. This mechanism ensures that replica and full nodes can maintain up-to-date states, and prover nodes can generate proofs even if the sequencer withholds data.

Key Features of MegaETH

MegaETH introduces several unique features designed to overcome the scalability, speed, and usability limitations of existing Ethereum Layer 2 (L2) networks. These features enable it to handle real-time decentralized applications (dApps) at Web2-scale performance.

Sub-Millisecond Latency

MegaETH targets under one millisecond latency, allowing for near-instant transaction confirmation. This speed is critical for real-time applications like decentralized exchanges, multiplayer games, and social platforms that require rapid feedback.

High Throughput (100,000+ TPS)
The network is built to process over 100,000 transactions per second (TPS). This is achieved through architectural changes that allow MegaETH to bypass the traditional bottlenecks of Layer 1 Ethereum and execute transactions in parallel.

EVM Compatibility
MegaETH is fully compatible with the Ethereum Virtual Machine (EVM). This allows developers to use existing Ethereum tools, smart contracts, and programming languages like Solidity without needing to learn a new system.

Specialized Node Roles
The network uses a heterogeneous node architecture with specific roles assigned to different nodes:

• Sequencers: Order and execute transactions.
• Provers: Generate cryptographic proofs of correctness.
• Full Nodes: Re-execute transactions for validation.
• Replica Nodes: Maintain up-to-date state without full re-execution.

This separation of duties improves efficiency and scalability across the network.

Streaming EVM Execution
MegaETH incorporates a custom EVM engine optimized for streaming execution, meaning transactions are continuously processed with minimal delay between block production. This allows the network to maintain real-time responsiveness.

Write-Optimized Storage and Efficient State Sync
The protocol introduces storage structures designed for high write throughput and efficient state synchronization. Nodes can stay updated with low bandwidth, making it easier for users with limited resources to run infrastructure.

Built-In Data Availability Layer
MegaETH integrates with a data availability (DA) layer to ensure that all transaction data is published and accessible, which supports decentralization and enables verifiability across the network.

Parallel Execution and Optimized Concurrency
Unlike rollups that execute transactions sequentially, MegaETH supports parallel execution with concurrency controls. This makes better use of modern multi-core processors and drastically improves processing speed.

Is MegaETH a Good Investment?

Evaluating MegaETH as an investment involves analyzing its technological innovations, market positioning, funding background, and potential risks. MegaETH aims to process over 100,000 transactions per second with sub-millisecond latency, positioning itself as a high-performance Layer 2 solution for Ethereum.

By maintaining compatibility with the Ethereum Virtual Machine (EVM), MegaETH allows developers to deploy existing smart contracts without significant modifications. The project has secured funding from notable investors and has demonstrated a commitment to community involvement through initiatives like the “Fluffle” NFT collection, which offers future token allocations to holders.

The Layer 2 space is competitive, with several projects aiming to enhance Ethereum’s scalability. MegaETH’s success will depend on its ability to differentiate itself and achieve widespread adoption. As with any technology, there are risks associated with development timelines, technical challenges, and market acceptance.

How Can You Own MegaETH?

As of May 2025, MegaETH has not launched its native token. However, there are several ways to engage with the ecosystem and position yourself for potential future token allocations.

Participate in the MegaETH Testnet

Engaging with the MegaETH testnet is a primary method to become involved. Use the MegaETH Testnet Faucet by entering your wallet address, completing a tweet, and solving a captcha to receive testnet ETH.

Acquire “The Fluffle” Soulbound NFT

MegaETH has introduced a collection of 10,000 soulbound NFTs named “The Fluffle.” Participation is limited to whitelisted addresses. Criteria include active community involvement and testnet participation.

Tokenomics of MegaETH

As of May 2025, MegaETH has not officially released its native token, and specific details regarding the token’s total supply, allocation percentages, and vesting schedules have not been publicly disclosed.

Roadmap of MegaETH

Q1–Q2 2025: Devnet and Closed Alpha Testing

• MegaETH initiated its development network (Devnet) and conducted closed alpha testing with a select group of developers and users. The focus was on stress-testing core features such as parallelized execution and data availability mechanisms.

Early Fall 2025: Public Testnet Launch

• A public testnet is scheduled for early fall 2025, allowing a broader range of developers to deploy contracts and assess performance. This phase aims to gather feedback and identify potential issues before the mainnet launch.

Q4 2025: Mainnet Launch

• Contingent upon successful testnet outcomes and security audits, MegaETH plans to launch its mainnet in Q4 2025. The mainnet will be open to end-users, exchanges, and institutional partners.

Post-Mainnet: Performance Scaling and Decentralization

• Post-launch efforts will focus on scaling transaction throughput toward the target of 100,000 TPS and achieving sub-millisecond latency. MegaETH intends to decentralize its sequencer network by introducing token-staked sequencer nodes and implementing slashing penalties to align economic incentives.

Ecosystem Development and Tooling

• The project plans to enhance developer tooling, including SDKs for Solidity and Vyper, real-time monitoring dashboards, and community programs like hackathons to foster dApp development.

Tokenomics and Governance

• At mainnet launch, MegaETH aims to issue a native token, allocating portions for sequencer staking, ecosystem grants, and a DAO treasury to facilitate community-driven protocol upgrades.

Conclusion

MegaETH is a Layer 2 blockchain built to solve Ethereum’s performance limitations by delivering sub-millisecond transaction times and supporting over 100,000 TPS. Its architecture is optimized for real-time decentralized applications and full EVM compatibility, making it attractive to both developers and users who require low latency and high throughput.

The project is led by a technically experienced team and backed by major names in the crypto industry, including Vitalik Buterin and Dragonfly Capital. Although the token has not yet launched, MegaETH has taken a community-first approach through public testnets, soulbound NFTs, and broad participation in early funding.

With a mainnet launch planned for late 2025 and a focus on long-term decentralization, MegaETH positions itself as a serious competitor in the Layer 2 space. It still faces execution risks and strong market competition, but its unique approach and clear roadmap make it a project worth monitoring.