Movement (MOVE): Ethereum's first layer 2 on the MoveVM

What is Movement (MOVE)?

Movement Network is a network of Ethereum-based blockchains that are modular thanks to the MoveVM, a virtual machine that uses the Move programming language and is compatible with the Ethereum Virtual Machine (EVM).

The project is led by Movement Labs, a San Francisco-based company founded by Rushi Manche and Cooper Scanlon. Since its launch in 2023, Movement Labs has raised a total of $41.4 million through a pre-seed round and two funding rounds.

The main product developed by Movement Labs is the Movement Mainnet, the first blockchain to join the Movement Network. This integrates the main components of the Move Stack, the framework that allows building modular Ethereum-based blockchains that will join the Movement Network.

In the following report, we will study each of these essential components to understand the value proposition of Movement:

• The Movement Network
• The Move Stack
• The Movement Mainnet

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The thesis of Movement Labs

Ethereum is often criticized for being slow and expensive, which is true when compared to other equivalent networks like Solana, Sui, or Aptos. Ethereum's performance is around 15-20 TPS (transactions per second), far behind Solana's 1100 TPS.

To solve this problem, the Ethereum Foundation has decided to favor the development of layer 2 solutions. This roadmap, called "rollup-centric," relies on the fact that users will now go through these solutions to make their transactions, while benefiting from the security and decentralization of the Ethereum main chain.

Despite this rollup-centric roadmap, Ethereum's layer 2 ecosystem remains relatively slow, especially compared to some performance-oriented blockchains. For example, including layer 2 in the performance calculation, Ethereum reached around 330 TPS in October 2024, which is far behind the 12,000 TPS that a blockchain like Aptos can reach (although in reality, it only reaches around 35 TPS due to low usage).

Faced with this observation, some initiatives have begun to emerge to rethink the system by creating rollups based on an AltVM, i.e., an alternative virtual machine to Ethereum's. The idea is to benefit from Ethereum's security and the rollup network while enjoying the performance of alternative L1s.

Movement Labs is part of this ambition by proposing an ecosystem of Ethereum layer 2 blockchains designed on a new virtual machine: the MoveVM. The first blockchain to join this ecosystem is Movement Mainnet, which we will discuss in this article.

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Architecture and technology

The Movement Network is a network of interconnected blockchains built using the same architecture. These blockchains rely on the MoveVM, a virtual machine designed with the Move programming language and compatible with the Ethereum Virtual Machine.

The Move Stack

The blockchains within the Movement Network are built with the same framework, the Move Stack. This framework consists of three main modules that we will detail in the following section: the Move Executor, the Decentralized Shared Sequencer (DSS), and the Fast Finality Settlement (FSS).

The first blockchain in the Movement Network is the Movement Mainnet, developed by the Movement Labs team. This is the flagship product that showcases the technology developed by the foundation.

In a way, the Movement Network can be compared to Optimism's Superchain: it refers to the network of blockchains designed using the same stack (Move Stack for Movement, OP Stack for Optimism).

The Move Stack is a modular framework that allows creating Move-based blockchains while being secured by Ethereum. It offers standardized tools and components for designing customizable and high-performance blockchains.

The Move Executor

One of the major advantages of the Movement Network is its ability to support smart contracts built on the MoveVM as well as those designed on the EVM. This compatibility is ensured by the Move Executor, an execution engine that acts as an integration layer between the MoveVM and the EVM, capable of processing and executing the bytecode of both environments.

To simplify, the Move Executor processes transactions from the mempool and distinguishes them based on their type, i.e., Move or EVM. They are then converted to be executed on the MoveVM and to benefit from its speed and reliability advantages. In other words, this provides a kind of "parallel EVM."

The Fast Finality Settlement (FFS)

The Fast Finality Settlement (FFS) is a transaction validation system, relatively similar to that of Ethereum or other layer 2s, which relies on a staking mechanism. However, it is designed to be particularly fast, with transaction finality in just a few seconds.

This module is probably the most complex to understand, and we invite you to consult the Movement whitepaper if you want to delve deeper. What you need to remember:

• Validators stake tokens to secure the network.
• A transaction is validated if 2/3 of the validators approve it.
• If a validator cheats, it loses its tokens (slashing).
• Transactions become final in a few seconds, unlike other systems like ZK-rollups (20-30 minutes) or Optimistic rollups (7 days).

A decentralized shared sequencer network (DSS)

The Movement Network relies on a network of decentralized and shared sequencers, which distinguishes it from most rollup solutions whose sequencers are entirely centralized in the hands of the team.

To recall, a sequencer is an entity responsible for processing, organizing, and publishing transactions made on a layer 2 before they are recorded on Ethereum. To simplify:

• It receives transactions from users and organizes them in a certain order before including them in a layer 2 block.
• These transactions are executed and create a new state specific to the layer 2.
• Finally, the sequencer groups the main transaction data into a batch before submitting it to the rollup smart contract on Ethereum.

The sequencer is a crucial element for a layer 2, and its decentralization allows countering potential vulnerabilities in the system. First, it reduces the risk of a single point of failure, since if the sequencer fails for some reason, users can no longer use the layer 2.

Additionally, it prevents transaction censorship, as a single sequencer could refuse to include certain transactions due to regulatory or government pressure, or to favor certain market players.

Of course, these are just a few examples among all the issues related to the centralization of a layer 2 sequencer, but from an ideological point of view, a decentralized sequencer is preferable.

Multi-asset staking

The FFS (transaction validation system) and the DSS (sequencer network) both use a Proof of Stake mechanism. As you know, the idea is to encourage users to stake their assets (often the native token of the network) to prove their involvement.

However, this staking mechanism is, in most cases, a "single-asset staking" model. In other words, they are forced to hold the native token of a network to contribute to its operation and security.

Movement's idea is to propose a "multi-asset staking" scheme, based on a liquidity pool (also called a staking pool) composed of multiple different tokens. The goal is to allow sequencers and validators to choose the token they prefer to secure the network.

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Focus on Movement Mainnet

Movement Mainnet is the first layer 2 blockchain designed on the Move Stack and integrated into the Movement Network. It relies on the MoveVM and offers compatibility with the EVM, with a theoretical capacity announced at 297,000 TPS.

A language tailored for performance

The Move language comes from a former project developed by Facebook and then abandoned due to regulatory issues. The team in charge of the project had time to develop its own language, and despite the project's abandonment, the language survived and was taken over by projects like Aptos, Sui, and of course Movement.

Move is a Resource-Oriented Programming (ROP) language. Unlike Solidity, which is used on Ethereum where tokens are simple entries in a registry, on Move, each asset (e.g., a token, an NFT) is a unique object with specific properties and behaviors, which has the advantage of avoiding errors:

• The token cannot be duplicated (prevents double-spending).
• The token cannot be accidentally deleted (guarantees conservation).
• The token can only be moved through explicit operations (secure transfer).

The Move language is secured by a static and formal typing system, which means that all types are checked at compilation, reducing errors during execution. To be clearer, thanks to this type of security, we avoid common errors with Solidity, such as reentrancy attacks: a common vulnerability in poorly protected smart contracts.

Additionally, Move is heavily inspired by Rust, from which it inherits efficient memory management and explicit data dependency, which defines the data needed for each transaction, making it easier to execute transactions in parallel.

Storing data elsewhere for more scalability

Some rollups choose to store data off-chain, outside the main Ethereum blockchain. This strategy carries increased risks, as it relies on a viable actor to store the data, but it also allows for significantly improved rollup scalability.

Movement Mainnet uses Celestia for transaction data storage, which would (according to Conduit) reduce storage costs by 64% compared to Ethereum.

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The limitations of Movement

Although Movement is a very promising project from a technical standpoint, it still needs to prove itself and demonstrate that it can overcome challenges such as:

1. An uncertain ecosystem

Even if Movement highlights over 150 projects on its website, this does not guarantee massive adoption. The success of a Layer 2 solution does not rely solely on its technology, but also on the interest of developers and users. The lack of major dApps and significant Total Value Locked (TVL) could limit its attractiveness compared to established Layer 2 solutions like Arbitrum or Base.

1. Limited adoption of the Move language

Despite its numerous advantages in terms of security and performance, Move remains a relatively unknown language. Blockchain developers are mostly trained in Solidity, and the transition to Move could represent a barrier to entry. Without sufficient incentives, Movement risks lacking a robust community of developers.

On this point, Movement can differentiate itself thanks to the Move Executor, which facilitates the transition of Ethereum developers by converting Solidity code into bytecode readable by the MoveVM.

1. Dependence on Celestia for data availability

Movement uses Celestia for off-chain data storage to improve scalability and reduce costs. However, this dependence on external infrastructure raises questions about the reliability and resilience of the network. Any issues related to Celestia (outages or changes in pricing) could directly impact Movement.

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Conclusion

Movement is an ambitious project that, contrary to what many might summarize, is not limited to being just another Layer 2 solution with an alternative virtual machine (AltVM) aiming to scale Ethereum. It is also an ecosystem of blockchains based on the Move language and the Move Stack, developed by Movement Labs.

By moving away from the EVM and betting on Move, Movement seeks to balance performance, security, and modularity while ensuring interoperability with Ethereum. With the Movement Network, the team aims to develop a true ecosystem of blockchains built on the same foundation as Movement Mainnet, benefiting from the scaling performance of the rollup, while allowing projects to customize key components of their infrastructure, such as data availability or the type of rollup used.

However, despite undeniable technological advantages, several challenges remain to be overcome: the adoption of the Move language, the construction of a robust ecosystem, and competition with already established Layer 2 solutions like Arbitrum, Base, or zkSync. The most important thing, in our opinion, will be its ability to build a resilient ecosystem beyond economic incentives.

If Movement manages to overcome these challenges and prove its value in real-world conditions, it could become a key player in Ethereum's rollup-centric roadmap. Otherwise, it risks remaining an ambitious project confined to a technological niche, without massive adoption.