ZK-Rollups powered by Ethereum: World Beaters

Look at using ZK-rollups slice Ethernet Square on how to become an unstoppable force pragmatic.

The scalable trilemma exists in all blockchain networks. The more difficult it is for the L1 network to promote scalability, the higher the minimum hardware requirements for running a full node. When the full node is not easily accessible, the network becomes more centralized. Obviously, Ethereum has long placed security and decentralization above the scalability of the base layer. As it shifts to an aggregation-centric roadmap, Ethereum is using its base layer (especially its huge full-node network) to provide strong data availability to replace L1 scalability while maintaining security and decentralization.

ZK-Rollups powered by Ethereum: World Beaters

Illustrates the scalability trilemma

The purpose of this pivot is that most of the executions (DeFi, NFT, etc.) on the Ethereum network that we are used to today will be transferred to aggregation instead of happening on the main network. Although L1’s focus on speed and security rather than decentralization is contrary to the spirit of the industry, the same trilemma does not apply to aggregation. They inherited the security of the mainnet Ethereum. By dealing with the difficult part of Ethereum, the summary can focus on the best execution layer possible.

You may have heard of Optimism and Arbitrum Now, both of which are a summary of optimism. Coming soon is another kind of rollups-ZK-rollups. There are a few cases of ZK-Summary alive, but they do not provide general-purpose computing EVM compatibility, or zkEVM. This situation won’t last long, because zkSync 2.0, Scroll, StarkNet and others are all dealing with this situation and progressing rapidly.

So why is this important? When Ethereum changed from a single chain to a modular system, it changed the dynamics of competition. As Twitter user polynya said before, the L1 smart contract blockchain no longer directly competes with Ethereum; they are competing with aggregation. I believe that the emergence of universal ZK-rollup compatible with EVM will not only lead to the obsolescence of optimistic aggregation, but also the obsolescence of all other L1 smart contract blockchains.

The reality is that with the realization of competition and the freedom to focus on execution efficiency, the summary will iterate to its best version at an extremely fast speed. Since they may all undergo rapid changes, in this article, I will not try to summarize and crown a specific ZK. On the contrary, I will emphasize the functions and possibilities of ZK-rollup in the Ethereum world after the merger and sharding.

Safety

The aggregated rich security guarantees enable some interesting dynamics.

Escape hatch ()

If you put your funds on Polygon PoS or Solana and the network is offline for some strange number of hours, you will be powerless during the downtime. Unlike the use of “side chains” or alternative smart contract chains, the mainnet summary contract includes an ” escape hatch “, which is an immutable function. Even if the summary network is offline, users can exit the summary back to the mainnet. You can always manually submit transactions to the mainnet Ethereum summary contract as needed, including using your funds to withdraw from the summary.

ZK-Rollups powered by Ethereum: World Beaters

Ideally, exiting the summary would not feel like exiting the aircraft in flight…this should be a relatively comfortable process

Centralized sequencer and prover

(And why they are not so scary)

I know that in my introduction I said that I will cover the “best” that the summary must provide…Before anyone brags here, I will clarify an obvious question: ideally a sequencer And the complete decentralization of the prover. However, this was not the case initially. Most aggregations will start with varying degrees of centralization and gradually decentralize from there. In other words, the centralized sorter in the summary is much safer than the centralized in the L1 chain. This fact is worth emphasizing.

When using centralized sequencers or summaries of provers, you will compromise on trust and censorship resistance without compromising security. Sequencer operators cannot steal your funds, and you can withdraw the mainnet Ethereum at any time. In fact, you mainly rely on the central sequencer to stay alive.

We have all heard jokes about the so-and-so blockchain being a “data center chain”. With ZK-rollups, you can actually have a data center full of ultra-high specification machines, dedicated to certification, and this will not pose a survival risk to the network.

Decentralized sequencer and prover

Fortunately, because the escape hatch can be triggered when needed and funds cannot be stolen, aggregate developers can try various solutions without worrying about catastrophic consequences. The design space of the decentralized sequencer and the prover is quite large. In the final form, I hope that the ranking and proof are generally open to the public, and various forms of economic incentive measures (tokens, equity, punishment, etc.) are adopted to ensure rational behavior. We can support multiple! More importantly, we will have a distributed network of companies, aggregate developers and hobbyists to run the prover.

Data availability

Data availability refers to the data that each Ethereum node needs to maintain. When immutability is required, data storage on the chain is very valuable, but the data capacity on Ethereum is limited and requires a lot of resources to maintain; storage is not cheap!

Once Ethereum turns to a modular system with data sharding, aggregation will enjoy a large amount of data capacity and will only increase over time. The sheer number of full nodes and validators means that Ethereum will have the highest volume of data availability.

Ethereum data sharding

Sharding is a multi-stage upgrade to Ethereum. Sharding will act as a load balancer for network data storage requirements, thereby obtaining huge scalability benefits at the aggregate execution layer. Importantly, this also avoids the high requirements for full nodes, thus keeping the network decentralized.

Initially, there will be 64 data shards or “shard chains.” In the end, there will be 1,024 data shards. Data shards do not process transactions or smart contracts; instead, they will provide additional data capacity for aggregation.

ZK-Rollups powered by Ethereum: World Beaters

Rollup acts as a form of transaction compression, occasionally issuing a single state root update to the mainnet Ethereum, which contains the results of many different transactions that occurred at the rollup layer. Because they must publish these status root updates to the mainnet, the aggregate gas cost will be subject to fluctuations in the demand for block space; it is usually passed on to the cost of the aggregate user (more on the amortization part). Once the sharding takes effect, the capacity will increase nearly 20 times. This will make aggregation operations cheaper and faster.

Synergistically, being an aggregated final chain means that Ethereum users can also benefit from alternative data availability solutions that only ZK-rollup can provide.

Volitions

Volitions is ZK-rollup, including a rollup chain and a validium instance. Volitions submit state roots and proofs to Ethereum like ZK-rollups, but their difference is that they allow users to choose whether they want or need to use volition’s rollup to take advantage of on-chain data availability or volition’s off-chain data Availability effectiveness. This is a trade-off and only applies to the ZK-rollup space; there is no Volitions for optimistic rollups .

An example of Volitions is zkSync 2.0:

ZK-Rollups powered by Ethereum: World Beaters

The validium of zkSync is called zkPorter. In this scenario, data availability is protected by the zkPorter validator. Matter Labs claims that this can achieve speeds in excess of 20,000 tp/s and reduce gas costs by 100 times. It is worth remembering that the final upper limit of transaction capacity on ZK-rollup is actually a function limited by the calculation and storage capacity of the prover. I bet that 20,000 tp/s may actually be a bearish estimate in the long run.

Adamantium

There are proposals like Adamantium, a trustless off-chain data availability solution, or TODA, which further seek innovative data availability space. It can be said that they belong to the umbrella of will. A snippet from the proposal:

” Adamantium is an autonomous data availability protocol… It retains the extended advantages of off-chain data availability while eliminating all trust assumptions for any users who are willing to download. What are they willing to do? Stay online? But if they are not online, they The funds will not be stolen and will not be frozen—on the contrary, the funds will be transferred from L2 back to the Ethereum address under the user’s control. ”

Like volitions, this solution only applies to ZK-rollups.

Transaction costs and throughput

The aggregate transaction costs are already quite low, but not low enough. Fortunately, there are more optimizations in this process, which will greatly reduce gas costs. In addition, many technologies will be deployed to improve transaction throughput.

Aggregate the army

In view of the lightweight nature of mainnet aggregation, there may be hundreds of aggregations running in parallel, each of which can support hundreds of thousands of users, and each user has its own huge throughput, all of which are supported by Ethereum And protection. If one summary is saturated (RPC or sequencer buckling under load, etc.), it would be trivial to skip to another summary and start trading. If you want, you can also fork a summary and deploy a copy of it yourself.

Validity certificate amortization (shared gas)

Validity proof amortization refers to the number of transactions in each batch of transactions on ZK-rollup, because it is related to the total cost of gas for verification.

In this case, I will provide you with a way to quickly internalize the amortization concept. Remember, for simplicity, this example is not mathematically accurate. The formula I provided is just for illustration; in fact, the breakdown of aggregate transaction costs is not that simple. In other words, in the scenario we imagined:

  • Updating the state root needs to accumulate 5,000,000 gas.
  • Just like the main network, users need to pay gas fees when performing aggregate transactions.
  • The price of each transaction follows a formula x = y / 5000000, where x is the price of each transaction and y is the number of transactions in any given batch.

You should be able to deduce:

  • The single transaction cost for 200 batches of transactions is 25,000 gas.
  • The single transaction cost of 100,000 batch transactions is 50 gas, which is basically negligible.

As more and more people submit batches, the amortized cost of transactions becomes cheaper. This is completely opposite to the overall blockchain. For example, today’s Ethereum, as the number of active users increases, the demand for block space will increase, which will cause the price of natural gas to soar.

An example of amortization: StarkEx provides a mechanism called SHARP, short for “Shared Prover”, which amortizes costs across all StarkEx deployments.

Adamantium (again)

Most of the relevant information about volitions is contained in the previous Volitions section. Nonetheless, they are related to the story of aggregate throughput, so it is worth mentioning them again. Brief review:

  • Volitions enable developers and users to take advantage of off-chain data availability in verification.
  • Although this kind of off-chain data availability is not as secure as on-chain data availability, it can greatly reduce transaction costs.
  • In addition to reducing costs, off-chain data availability also releases a large amount of additional transaction throughput.

privacy

As we all know, privacy is not inherent to Ethereum. We cannot expect ordinary people or companies to give up their financial privacy. By default, ZK-rollups is not private. The “zero-knowledge” in “ZK-rollup” refers to calculations performed outside the chain and then verified as legal on the mainnet through the zero-knowledge proof. This does not mean that “your activities will not be spied on”. However, nothing is lost. There is a lot of work to be done in terms of permission-free privacy for ZK-rollups.

Recursive proof

In the “Incomplete Aggregation Guide”, Vitalik wrote some articles about some of the main differences between Optimistic Aggregation and ZK Aggregation. One of them is how the two aggregates deal with privacy. He specifically mentioned recursive proofs. “Recursive proof” refers to the act of verifying a proof in another proof, for example, verifying a SNARK in another SNARK. This is a convenient compression technique that can increase efficiency and reduce privacy costs.

Aztec’s work is called a ZK-ZK-summary or ZK², which uses its innovative plonk proof and turbo plonk to provide transaction privacy. in short:

  • A ZK-SNARK represents the ZK² on each transaction, these are “internal” SNARKs.
  • Another ZK-SNARK, rollup SNARK, handles the work of proving the correctness of the internal SNARK.

Please note that optimistic aggregates cannot achieve this innovation because they cannot safely allow internal SNARK verification to occur outside of aggregates; data must be published on-chain. This is not to say that optimistic aggregations cannot benefit from zero-knowledge proofs, but they are always less efficient and cost-effective.

At this time, zkSync and Mina Protocol have adopted PLONKs. Over time, we can expect further innovations in recursion (including other proofs from Groth16, Marlin, Fractal, Halo2, etc.) to bring cheaper and more powerful forms of privacy to all ZK-rollups.

ZK-Rollups powered by Ethereum: World Beaters

Turbo-PLONK polynomial logic unit (specific information can be searched on Google Zero Knowledge Summit)

flexibility

ZK-rollup enjoys the freedom to innovate in many aspects without the risk of catastrophic failure caused by the L1 chain. A key principle of Ethereum’s aggregation-centric roadmap is that the free market is looking for all the best ways to build aggregations, rather than a small group of core developers assuming what should be best.

Since the development and deployment of aggregation is a license-free work, we will see many different aggregation methods in the competition for new users. This includes different styles of governance, token economics and liquidity incentives, different trade-offs within the scope of decentralization, different expressions of ideology, and even different choices of VM environments such as LLVM and custom VMs.

However, not everything mentioned in this section is unique to ZK-rollups. Although some features provided by ZK-rollups are not available, optimistic rollups have many of the same flexibility. However, other L1 smart contract blockchains cannot iterate any of them as quickly as aggregation. Remember: it is now a summary and L1 smart contract platform.

If the L1 chain tries to iterate too fast without taking proper testing and safety measures, then its users will face a high risk. All funds on these networks are always bounties. When the L1 chain fails, the loss can be catastrophic. Downtime also affects any extended execution environments (summaries, state channels, etc.) that L1 may have. There are benefits to prioritizing security and decentralization.

In the worst case, when the rollup is interrupted, manual operation is required until it is repaired. I can imagine that, similar to interacting with contracts on Etherscan, summary developers and application developers may provide portals “in emergency”, allowing users to quickly and easily manually operate summaries when needed. Fortunately, these rapid iterations are likely to be resolved early (in the grand plan), and I think their development will be done very carefully.

Different kinds

Outsourced computing (and data availability) supports many new on-chain applications that are not feasible on today’s mainnet Ethereum or any other online smart contract platform. This new paradigm also allows us to build advanced versions of any existing products on the chain.

Application-specific 

ZK-Rollup Although this article focuses on the benefits of general-purpose computing ZK-rollup, there is much to be said about the impact of application-specific ZK-rollup.

loopring exchange

The world’s first DEX to adopt ZK-rollup zero-knowledge proof (on a decentralized exchange), you only need to link your wallet to trade without permission, and it has the super privacy of the zero-knowledge proof itself. The current transaction speed can pack 2000 to 4000 transactions per second, and this transaction speed is almost indistinguishable from centralized exchanges.

In terms of security, Loopring not only has the extremely fast transaction speed, but also has the security level of the Ethereum mainnet. In addition, Loopring’s innovative social wallet function can be bound through your friends or your other wallet to help You retrieve lost assets.

Vitalik Buterin, the founder of Ethereum, once said: “To ensure asset security, hardware wallets are not good enough… mnemonics are not good enough… Multi-signatures are good… Loopringorg social wallet recovery is better!”   V God has repeatedly Mention Loopring in public.

The Loopring team and the Ethereum Foundation have reached a cooperation to jointly accelerate the development of the ZK-rollup infrastructure: “ZK-rollup EVM”. The emergence of the ZK virtual machine (EVM) will break through our current cognitive level and can be applied to centralization. Among the large-scale games, continue to accelerate the explosion of blockchain applications.

Recently, according to a report by the US financial media Benzinga,  Loopringorg and GameStop Corporation have reached a cooperation agreement. Loopringorg provides technical support to jointly develop the Layer 2 NFT trading platform with GameStop. The new NFT thing that is on the cusp of new things has stimulated the continuous rise of GameStop’s share price.

dYdX exchange

dYdX, powered by StarkEx, is a decentralized exchange that supports PERP, margin and spot transactions, as well as loans and borrowing. Since the launch of L2, dYdX has obtained liquidity comparable to FTX on its ETH USD pair. Although many of them may have hired liquidity to participate in their $DYDX token reward program, I believe that dYdX or some other ZK-rollup native DEX will one day always exceed all perp exchanges in terms of transaction volume and liquidity.

ZK-Rollups powered by Ethereum: World Beaters

In terms of user experience, you only need an Ethereum wallet and some ETH to log in and start trading on dYdX. Unlike general centralized exchanges, there is no need for KYC and no need to store your personal information to a third party. Of course, DEX is non-custodial. You do need to transfer funds to the aggregate to use the DEX, but you can control and withdraw the funds back to the mainnet when needed. dYdX users are rumored to say that it feels as sensitive as using a centralized exchange.

Certain chain stores have attracted the attention of the HFT (High Frequency Trading) crowd. Assuming that HFT is a rational and profit-driven entity, I think that over time, this activity will mainly exist on ZK-rollup.

Immutable X

Another example that quickly gained attention is Immutable X, a will to provide NFT with huge expansion advantages (also supported by StarkEx). Recently, TikTok chose Immutable X as its TikTok Top Moments NFT platform. Immutable X does not need to pay a gas cost of $100 to $1,000 to mint NFTs, but instead allows users to mint them for a dollar or even free. Excerpt from their alpha transaction announcement:

“Immutable X provides gas-free and instant transactions: For any market, game and decentralized application, Immutable X provides gas-free transactions (gas minting, trading, earning, collecting), instant NFT transactions (up to 9,000 transactions per second) Transaction) scalability without affecting the user’s custody. ”  Have you noticed what they said about 9,000 transactions per second?

Physics and game engine (when is DOOM on ZK-Rollups?)

The Twitter user guiltygyoza has shown quite a number of his experiments and physics StarkNet. I expect that as tools become more powerful and experiments continue, we will see a large number of new on-chain games that were previously unimaginable.

ZK-Rollups powered by Ethereum: World Beaters

Two-body problem in simple grid and gravitational field, running on StarkNet

Other concepts

Volitions will provide a new approach to the mission of Web 3.0. For example, things like chain-native social networks should benefit greatly from the availability of off-chain data. Jack Dorsey talked about his plan to transform Twitter into an open source distributed system, where Twitter is just a client on top of the “Twitter” protocol. Validiums (more specifically) can play a key role in this reality.

Similarly, I can imagine the open source resurrection of Vine (a short-format video hosting service for American social networks), where typical short (6 seconds or less) user-submitted videos are cast as NFTs. TikTok and their “Hot Moments” show are similar to this idea, but TikTok is ultimately a closed source entity and a little bit of destruction is by no means a bad thing.

What’s the next step in the game?

ZK-rollup brings many benefits, and Ethereum will soon let them reach their full potential. But what about the competitive chain? Being surpassed in every sense, what will happen to them? This is a good question, and there will inevitably be many complicated answers. I have some ideas about their fate.

Ethereum’s pragmatic black hole

In the past year, we have seen many “cheap and fast” EVM chains spring up like mushrooms. We also see the chain going online, promising to “beat the scalability trilemma!” At the base layer, the concept of hierarchical scaling is lingering (their real meaning is to sacrifice decentralization for speed and security).

It should now be clear that the general-purpose computing ZK-rollup will be safer, faster, more decentralized, more adaptable and flexible, and lighter than any L1 smart contract chain hopes. These facts are very important; each independent chain will bear unnecessary security expenses and risks, and at the same time is a low-quality product.

In my opinion, the pragmatic solution in the future is to let these chains give up their redundant consensus mechanism and data availability and become ZK-rollup or will. They should integrate Ethereum’s first-class security, data availability, and settlement guarantees.

Outsourcing the work of consensus and security to Ethereum will enable these chains to focus strictly on execution. In the dominant world of post-sharding and post-aggregation, this is an opportunity for them to stay relevant. Otherwise, their security burden will be too heavy to keep up. Over time, this will become a clearer reality-a very obvious reality, and it is impossible to defend over negligence.

ZK-Rollups powered by Ethereum: World Beaters

It can be said that networks like Solana, Avalanche, Fantom, and Binance Smart Chain have advantages in any potential aggregate governance token. Native tokens of these networks (and other similar networks):

  • There is time to reach a certain level of distribution.
  • Is a “known entity”.
  • There is communication support.
  • Has deep liquidity.

That is to say, giving up its redundant consensus mechanism and security overhead to become a vengeance summary does not mean that its token disappears. Instead, they can reuse tokens to adjust incentives for provers and sequencers or provide on-chain liquidity incentives. Chains do not need to sacrifice their identities, only their dangerous baggage. This is positive for everyone.

Reality

It would be foolish to assume that the architects, venture capitalists, and users of these chains would accept this reality so quickly if they wanted to. Meme is very powerful and there is no shortage of pride. Many venture capitalists have a dream. They want to continue selling to retail investors.

History tells us that the demise of the blockchain has never been a rapid process. You can observe thousands of empty blocks on Ethereum Classic and the like today, which shows a clear lack of adoption everywhere. Ethereum Classic is not alone; there are many others who like it. Still standing, standing, until one day they no longer exist. If you choose, there will be enough time for cognitive dissonance to occur before the due fee is actually charged.

time

Even if these chains choose a pragmatic approach, a lot of research, preparation, and care are needed to achieve this scale of change. It takes a long time for anyone to execute. Perhaps contrary to intuition, my intuition is that Solana will be one of the first to do this.

Disclaimer

The future of ZK-rollup may seem like a magical technical solution to all the problems in the world, but there are some things you better remember.

General

This is not an all-inclusive list.

  • According to the summary, the centralized sequencer (or the usual sequencer) may have a privileged position to execute MEV.
  • According to the implementation of volitions’ verifier’s data availability committee, the data committee verifier may maliciously freeze or refuse to update the verifier’s status. This will not affect the state of ZK-rollup in Will.
  • Many aggregations mean many places for liquidity, whether it’s trading tokens or trading NFTs. Although ZK-rollup allows fast movement between rollup and mainnet, or even rollup-to-rollup, liquid debris may cause early turbulence. dAMM aims to solve this exact problem.
  • Operational provers are computationally demanding, and we will find a good way to reduce their potential kW/h consumption while increasing their efficiency.

     

    Please note that proof is not a costly game like proof-of-work mining; it will not become more difficult over time. Therefore, in the PoW era, the energy usage of the prover is unlikely to be close to the energy usage of Ethereum.

In other words, with the exception of MEV, I expect the market to provide solutions to most problems relatively quickly. As far as MEV is concerned, this is a difficult problem. Unfortunately, no magical solution or agreement can solve it, but various methods of minimizing and democratizing MEV will help reduce its impact.

Optimism rollup

Although I don’t believe in the long-term feasibility of optimistic aggregation, they are still the best EVM compatible extension solution for Ethereum. ZK-rollup, which is compatible with general-purpose computing and EVM, has not yet been launched, and it will take some time before we can realize all the benefits I described in this article.

Optimism recently announced an exciting change to their execution environment, which will benefit both users and developers alike. Arbitrum will soon receive its Nitro upgrade, which will enhance EVM compatibility and provide faster speeds for its users. (You can log on to their official website to check the updated content)

More and more new and existing DeFi applications are deployed on these aggregates. There are billions of dollars in liquidity between the two networks. Both of these networks are worth trying and supporting. Bridging optimism and arbitrariness in just a few minutes!

I urge you to verify the validity of each URL before interacting with any website. You can double check the two configuration files at any time, the linked Optimism website’s Twitter and Arbitrum’s Twitter.

At the time of writing, Optimism only applies to the whitelist of smart contracts, but users can use any whitelisted smart contract at will. I suspect that this whitelist will be cancelled soon. Arbitrum has no whitelist; users and developers can freely trade and deploy their inner content.

Please keep in mind that withdrawing funds from Optimism and Arbitrum chain bridges requires a waiting period of 7 days (the product of optimistic aggregation of ways to deal with fraud). There is a third-party service bridge, in which you can exchange back and forth from the summary to the main network, but you need to pay. Do your own research before using any of them and always double check the slippage and rates you quote.

The third-party chain bridge applications include Anyswap, Celer Network, Synapse Protocol, and HopProtocol. These 4 chain bridges can help with fast withdrawals, and do not require you to wait 7 days, but you need to pay additional fees.

in conclusion

We are on the verge of a huge paradigm shift, which will change the crypto ecosystem forever. ZK-rollups will expand Ethereum and they will do their best. The paradigm shift is strong enough, and it very clearly marks the beginning of the end of every L1 smart contract chain-even the Ethereum as we know it today.

There are many different extension suggestions. Thousands of hours of research, implementation, success and failure are all trying to find the right way to make this well-known light bulb-of course, this work is far from over. The road ahead is full of twists and turns, but the destination has never been so clear.

I hope this article will help you shape your mental model when considering the future of this industry. I was so excited to see what was prepared for all of us.

Finally, thank you very much Canti for co-authoring.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/zk-rollups-powered-by-ethereum-world-beaters/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Leave a Reply