MegaETH is an innovative Ethereum Layer 2 blockchain designed to deliver real-time transaction processing with sub-millisecond latency and over 100,000 transactions per second (TPS). It aims to create the gap between blockchain and old high-performance computing, offering near-instant transaction finality while maintaining full Ethereum Virtual Machine (EVM) compatibility.

Unlike old blockchains that often struggle with scalability, latency, and congestion issues, MegaETH utilizes cutting-edge optimizations to enhance transaction execution speed and network efficiency. By leveraging a modular architecture and an optimized execution environment, MegaETH sets a new standard for blockchain performance, making it an ideal solution for DeFi applications, gaming, high-frequency trading, and large-scale decentralized applications (dApps).

Founder and Developer

This initiative was founded in 2022 by Yilong Li, who initiated its development in mid-2024 following a successful fundraising campaign. Li aims to create a high-performance blockchain that maintains full compatibility with the Ethereum Virtual Machine (EVM), thereby enhancing Ethereum's scalability and usability. He collaborated with Lei Yang, CTO, and Co-Founder, who analyzed blockchain consensus and networking as part of his MS and PhD in Computer Science at MIT. Shuyao Kong, former Head of Global Business Development at Consensys, joined as CBO and the final Co-Founder, blending technical excellence with strategic vision.

Features of MegaETH

MegaETH stands out with its exceptional features, including high transaction throughput, vast computational capacity, and, most notably, millisecond-level response times, even under heavy network load. This enables developers to create and scale even the most demanding applications without limitations. Detailed features include

High Throughput: This project can process over 100,000 TPS, surpassing the capabilities of existing EVM chains.
Low Latency: The platform achieves sub-millisecond transaction latency, providing near-instantaneous transaction finality.
EVM Compatibility: Developers can seamlessly deploy existing Ethereum smart contracts on MegaETH without modifications.
Scalability: This project architecture is designed to handle high-demand applications, making it suitable for decentralized finance (DeFi), gaming, other resource-intensive dApps, and interactive on-chain applications.
Node Specialization Architecture: Employs specialized nodes to perform specific tasks more efficiently.

MegaETH's Design Philosophy

Like any complex computing architecture, blockchain systems encounter hold-ups across multiple interconnected components. Addressing a single hold-up in isolation often yields minimal improvements in overall system performance. This is because either the targeted hold-up is not the most critical limiting factor at that moment or optimizing one component simply shifts the performance constraints elsewhere. Many blockchain projects have focused on enhancing specific elements, achieving notable speed improvements in isolated tests. However, these optimizations frequently fail to translate into real-world, end-to-end performance gains that directly benefit users.

MegaETH adopts a more comprehensive and methodical approach to research and development, prioritizing system-wide performance enhancements. The project's design philosophy is based on two fundamental principles:

Measure, then build – MegaETH conducts in-depth performance evaluations to diagnose the fundamental inefficiencies in existing systems before implementing solutions. These insights inform the development of new techniques that simultaneously address all critical performance constraints.
Maximizing hardware potential—Instead of incremental improvements to existing infrastructure, MegaETH favors clean-slate designs that push performance to the theoretical limits of hardware capabilities. By striving to eliminate any remaining room for optimization, the project aims to shift the industry’s focus toward other adoption-related challenges rather than continued infrastructure refinements.

Mechanism and Concept Behind MegaETH

A real-time blockchain can process transactions as soon as they arrive and publish the resulting updates in real-time, supporting high transaction throughput and substantial computing capacity even during peak user demand. MegaETH addresses challenges such as high gas fees and scalability by using a more efficient consensus mechanism, which reduces the time it takes for transactions to be confirmed on the blockchain. It employs a unique architecture with specialized nodes: sequencers, full nodes, and provers. Sequencer nodes order and execute transactions with only one active sequencer at a time. Replica nodes receive state diffs from the sequencer and apply them directly to update local states without re-executing transactions. Full nodes re-execute every transaction to validate blocks, and provers validate blocks asynchronously and out-of-order.

Latest Development News

MegaETH is one of the popular Ethereum scaling solutions in this round, completing a $20 million seed round financing on June 27, 2024, with funding support from institutions and celebrities such as Dragonfly, Robot Ventures, Folius Ventures, and Vitalik Buterin. In December 2024, it conducted a community round financing on the Echo platform, achieving its $10 million financing goal in just 3 minutes, with a valuation exceeding $200 million.

MegaETH's team announced their flagship NFT collection, “The Fluffe,” on February 5, 2025. The Fluffe is a whitelist-only collection of 10,000 soulbound humanoid rabbits, which costs 1 ETH each to mint. The minting process has two phases, the first of which starts on February 12.

On-chain metrics showed an increase in new addresses interacting with the MegaETH contract, rising 30% from 1,000 to 1,300 addresses. These NFTs are non-transferable and priced at 1 ETH each, offering holders a 5% allocation of future token airdrops. In December 2024, MegaETH conducted a community funding round on the Echo platform, raising $10 million in just three minutes and valuing the project at over $200 million.

MegaETH Labs has partnered with TaskOn, offering 25 whitelist spots for "The Fluffle" NFT launch. NoiseXYZ's collaboration with MegaETH and KaitoAI aims to change how social attention can be turned into tradable assets. MegaETH also supports projects like Global Token Exchange (GTE), pioneering the fastest decentralized exchange (DEX) with CEX-level performance.

Market and Community Reaction

The announcement of raising funds through an NFT collection has made MegaETH a focal point in the crypto community. The initial market response to the MegaETH sale was positive, but technical indicators suggest caution. MegaETH's approach of moving away from airdrop farming has been noted, with the project opting for a community-focused approach.

The crypto community has reacted mixed to the MegaETH team's launch of an airdrop campaign via NFTs. Some view the NFT collection as a welcome change from unlucrative points farming, while others see it as a "cash grab." Some community members have doubts about the project, while others say the $540 million valuation is a good deal. MegaETH's victory in a vote demonstrates strong community backing and anticipation for its upcoming launch.

The synergy between MegaETH's technological advancements and community-centric initiatives has generated considerable momentum. MegaETH is positioning itself as a strong force in the blockchain ecosystem by addressing scalability challenges and involving the community in its growth.

Conclusion

MegaETH's approach to blockchain design challenges the old focus on isolated optimizations. By prioritizing deep performance analysis, clean-slate system architecture, and maximized hardware efficiency, the project aims to push blockchain technology to its theoretical limits.

This philosophy enhances scalability and transaction speed and enables the broader crypto ecosystem to shift its attention from infrastructure constraints to real-world adoption and innovation. As MegaETH continues to evolve, its commitment to end-to-end performance improvements positions it as a transformative force in the blockchain industry, setting new standards for speed, efficiency, and usability.

*This article is for informational purposes only and does not constitute investment advice

Introducing the First Real-Time Blockchain: MegaETH