Linea batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Linea is an L2 smart contract platform for decentralized applications on Ethereum. Linea was founded by the ConsenSys team and launched in 2023.

ConsenSys team owns and governs the protocol. ConsenSys's investors include ParaFi Capital, Microsoft, Coinbase Ventures, etc.

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Blockchains (L2)

Linea

# Linea Cost of revenue Methodology

## 1. Overview

Linea's cost of revenue measures the daily L1 settlement costs incurred by Linea's sequencer when posting transaction batches and state commitments to Ethereum mainnet. This metric captures the actual gas expenses (including EIP-4844 blob gas fees) that Linea pays to operate as a Layer 2 rollup, representing the direct infrastructure costs of maintaining the L2 network's security and data availability through Ethereum L1.

## 2. Data sources

- **Ethereum transaction data**: Complete transaction records from Ethereum mainnet, including gas usage, gas prices, and blob gas fees for EIP-4844 transactions
- **Token metadata**: WETH contract information and token details for settlement token identification
- **End-of-day price feeds**: ETH-to-USD conversion rates for standardizing settlement costs in USD terms

## 3. Step-by-step calculation

### Component A: L1 settlement transaction identification
- **Purpose**: Identifies all Ethereum transactions executed by Linea's sequencer for L1 settlement operations
- **Logic**: Filters Ethereum transaction data to include only transactions where the `from_address` matches Linea's sequencer address `0x46d2f319fd42165d4318f099e143dea8124e9e3e`. This captures all L1 settlement activities including batch submissions and state root updates. Each transaction record includes `gas_price`, `gas_used_amount`, and for post-EIP-4844 transactions, `blob_gas_price` and `blob_gas_used_amount` fields
- **Key fields**: `block_timestamp`, `transaction_hash`, `gas_price`, `gas_used_amount`, `blob_gas_price`, `blob_gas_used_amount`, and `token_address` (set to WETH address `0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`)

### Component B: Settlement cost calculation
- **Purpose**: Calculates the total L1 settlement cost for each sequencer transaction
- **Logic**: For each identified settlement transaction, computes the total gas cost as the sum of regular execution gas fees and blob gas fees (when applicable). Regular gas cost equals `gas_used_amount` multiplied by `gas_price`. Blob gas cost equals `blob_gas_used_amount` multiplied by `blob_gas_price`, with zero values used when blob gas fields are null (pre-EIP-4844 transactions). The total cost is converted from wei to ETH by dividing by 10^18
- **Key fields**: `l1_settlement_amount` representing the total ETH cost per transaction

### Component C: Daily aggregation
- **Purpose**: Aggregates individual transaction costs into daily settlement cost totals
- **Logic**: Groups settlement transactions by day using `timestamp_trunc` on `block_timestamp`. Sums all `l1_settlement_amount` values within each day to get total daily settlement costs. Assigns standard categorization fields including `chain_id` as 'ethereum', `market_sector_id` as 'blockchains_l2', and `business_segment_id` as 'blockchain'
- **Key fields**: `timestamp` (daily), `cost_of_revenue` (total daily settlement costs in ETH)

### Final aggregation
- **Currency conversion**: ETH settlement costs are converted to USD using end-of-day price feeds through the `convert_to_usd_and_correct_decimals` macro, which performs price lookup and currency conversion without additional decimal corrections
- **Time aggregation**: Data is maintained at daily granularity with `timestamp_grain` set to 'day'
- **Final calculation**: The `finalize_metric_cost_of_revenue` macro standardizes the output schema, validates dimension IDs, and applies a 'fill_zeros' strategy to ensure continuous daily time series data with zero values for days without settlement activity
- **Filtering**: Chain availability filtering is applied to ensure data completeness and consistency with Linea's operational timeline

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Expenses paid to third parties to deliver core service output.

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Cost of revenue

Cost of revenue

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