Fuel Labs debuts 'Ignition' rollup network with focus on parallellization, UTXO-based model

Layer 2 developer Fuel Labs has officially launched the mainnet of its flagship optimistic rollup network, Ignition — aiming to address challenges in current Ethereum rollup designs.

The FuelVM is explicitly built for blockchain execution, offering performance tailored to scale decentralized applications. According to Fuel Labs, Ignition can handle over 21,000 transactions per second per core.

“Fuel was built to provide web2-level usability via lightning-fast transactions on consumer hardware,” said Nick Dodson, CEO and co-founder of Fuel Labs. Ignition’s architecture is designed for contemporary blockchain requirements, which differ from EVM and WASM. 

Powered by the FuelVM virtual machine, the network utilizes a UTXO -based, asset-centric transaction model, providing parallelization for high throughput. According to Dodson, the network also avoids using a blocking global state tree, which can hinder scalability.

The Layer 2 solution uses the Ethereum mainnet for data availability, arguing that it’s ideal for security. Fuel Labs further emphasized that the platform is designed to remain accessible, even for users with consumer-grade hardware.

Evolution of Fuel Labs

Initially launched in 2020 as a Layer 2 optimistic rollup on Ethereum called Fuel V1, the project took a modular approach — acting as an execution layer for various Layer 2 blockchain configurations. Fuel Labs  pivoted to a “Rollup OS” strategy earlier this year.

With the rollout of Ignition, Fuel Labs is now shifting away from focusing on broad frameworks toward delivering specific product-driven solutions.

Dodson provided insight into the launch's strategic focus, explaining that Ignition is built upon the broader Fuel framework of rollup OS. However, the current focus is on Ignition as a product, positioning it as Fuel's flagship chain.

Fuel Labs raised $80 million in a September 2022 funding round led by Blockchain Capital and Stratos Technologies.