Environmental Factors Influencing Rollup Changes

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by Giorgi Kostiuk

2 years ago


Environmental Factors Driving Rollup Changes

Layer 1 Scaling is Urgently Required

With the continuous growth in the number of Ethereum users, the network faces increasing congestion, especially during initial coin offering events, resulting in spikes in gas fees. The escalating price of $ETH has further led to excessively high transaction fees, rendering small transactions impractical. Therefore, enhancing storage efficiency, improving transaction throughput, and reducing transaction latency are vital for the progress of Ethereum.

Traditional Layer 1 scaling solutions typically fall into two categories: on-chain and off-chain. On-chain scaling involves updates and optimizations directly on Layer 1, such as altering the consensus mechanism, implementing sharding, and increasing block size. Off-chain scaling includes sidechains and Layer 2 solutions. The key distinction between sidechains and Layer 2 is that sidechains rely on their security protocols, while Layer 2 depends on the main network's security protocol. Therefore, from a security standpoint, Layer 2 is often deemed superior.

In previous advancements, Layer 2's implementation logic entailed processing information off-chain through centralized offline computation, followed by transmitting the outcomes back on-chain. This approach not only boosted transaction processing efficiency but also leveraged the robust security of the Ethereum mainnet. The prevailing Layer 2 solutions comprise Channel, Plasma, and Rollup. Rollup, as an extension of the Plasma solution, provides heightened security, state validity, and data verification capabilities. Consequently, Rollup has emerged as the fundamental direction for the future evolution of Layer 2.

The Dominance of Rollup Solution

In Optimistic Rollup, the premise is that transactions submitted to the main chain are inherently valid. This assumption eliminates the immediate need to verify each transaction, facilitating swift submission and processing of transactions. A challenge period, typically around a week, is designated during which other validators can dispute transactions and present evidence if discrepancies are detected. A successful challenge leads to the transaction being rolled back, and the culpable party facing penalties.

Contrastingly, ZK-Rollup employs zero-knowledge proofs to instantly verify transaction correctness, ensuring transactions are nearly devoid of fraud. ZK-Rollup offers heightened security over Optimistic Rollup and eliminates the delay in transaction confirmation caused by the challenge period. Due to these advantages, ZK-Rollup holds promising application prospects. This endorsement is exemplified by Vitalik Buterin's consistent assertion that ZK-Rollup is the primary direction for Layer 2 solutions' future progression.

However, owing to the substantially greater technical intricacy of ZK-Rollup compared to Optimistic Rollup, the mainstream Rollup technology market remains predominantly influenced by Optimistic Rollup.

Lumoz's Technical Expertise

Lumoz Network stands out as a globally dispersed modular computing network that synergizes with the DePIN network to forge a potent, secure, and adaptive computing platform. It furnishes computational support for ZK-Rollup, ZK ML (Machine Learning), ZKP (Zero-Knowledge Proof), and other technologies. Lumoz concentrates on ZK-RaaS (Zero-Knowledge Rollup as a Service) evolution to provide a comprehensive suite of deployment and implementation solutions for ZK-Rollup. This initiative tackles various challenges, including incongruent ZK-Rollup solutions, centralized computational power, and concentrated risks.

Lumoz's founder, Nanfeng, brings profound expertise in the ZK (Zero-Knowledge) domain, nurtured over years of executive roles in top-tier technology enterprises and investment firms. Since 2018, Nanfeng and his team have been actively exploring and researching the ZK landscape. Lumoz's journey encapsulates significant milestones: - Establishment: Opside was established in March 2022 in Hong Kong, China, as a blockchain expansion infrastructure provider, specializing in ZK-RaaS. It aids developers in creating customized zkEVM chains through streamlined 'one-click deployment.' - Seed Round Financing: In April 2023, Opside concluded a $4 million seed round financing to hasten project development, expand team strength, and operational scope to cater to escalating market demands. - Rebranding and Brand Overhaul: In October 2023, Opside rebranded as Lumoz to circumvent confusion with Optimistic Rollup and underscore its ZK technology focus. Lumoz, inspired by Latin 'Lumos,' symbolizes brightness and the optimistic future of ZK technology. - Pre-Series A Round Financing: Lumoz accomplished a $6 million Pre-Series A round financing in March 2024, spearheaded by Hashkey Capital and OKX Venture, with a valuation reaching up to $120 million. - Strategic Financing: In May 2024, Lumoz secured strategic financing involving IDG Blockchain, Blockchain Coinvestors, Gate Ventures, Summer Capital, EVG, 7upDAO, Sweep Ventures, and other entities, attaining a valuation of up to $300 million.

Aligned with its high valuation, Lumoz has delivered remarkable results through pragmatic actions. In May 2023, Lumoz launched its testnet encompassing 28,403 POW nodes, 16 active Rollups, 470,000 ZKP submissions, and 20 million transaction instances to date. On the technical front, Lumoz unveiled ZK-Rollup Launchbase, supporting ETH, BSC, and Polygon testnets, offering diverse modular components like Data Availability (DA) and Shared Sorters. Lumoz has pioneered several breakthrough innovations encompassing ZKP Two-step Algorithm, NCRC, zkVerifier node verification mechanism, and Lumoz RaaS Launchbase highly adaptable technology stack. Additionally, Lumoz bolsters Merlin Chain's ZK computations at ZKFair, streamlining initial technology deployment.

Unified ZK Technology Solutions

Lumoz's Modular Computing Layers

Modular Rollup heralds a fresh approach to overcoming the blockchain trilemma. Typically, Rollup achieves a stratified structure by dissecting the blockchain system into diverse modules. This strategy amplifies transaction processing efficiency and data handling, thereby semblancing decentralization, security, and scalability to some extent. Traditional Rollup structures incorporate settlement layers, execution layers, consensus layers, and data availability layers. - Settlement Layer: Revamps blockchain asset states on Layer 1 to secure asset integrity. - Execution Layer: Manages transactions on Rollup, documenting and updating transaction statuses. - Consensus Layer: Attains consensus on transactions to ensure transaction security. - Data Availability Layer: Logs and amalgamates all transaction data to guarantee data traceability.

In addition to the customary four layers of Rollup, Lumoz features a pivotal module dubbed the Prover Layer. The Prover Layer furnishes censorship-resistant distributed computing, embeds Zero-Knowledge Proofs (ZKP), and assures the validity and genuineness of transaction states.

ZK Computing Resources + EigenLayer Dual Staking Narrative

Lumoz intertwines robust ZK computing resources with the EigenLayer restaking mechanism via Lumoz Oracle, zkProver, zkVerifier, and Lumoz Chain. This integration enables users to redeploy tokens already staked into EigenLayer, fortifying the security of its Active Verification Service (AVS). Staked tokens serve as node collateral to counteract malicious node conduct. - Staking and Restaking: Users stake tokens on blockchain networks like Ethereum, subsequently restaking these tokens into Lumoz's AVS through EigenLayer's restake mechanism to enhance verification service security. - Data Processing and Storage: Lumoz AVS Oracle retrieves and stores data from EVM-compatible chains to ensure data availability and integrity, serving as input for zkProver and delivering essential information for zkVerifier's verification. - Task Assignment and Execution: Lumoz Chain oversees task scheduling, assigns computational tasks to zkProver nodes, with nodes executing tasks to generate ZKPs. - Result Verification and Confirmation: zkVerifier nodes authenticate the proofs advanced by zkProver to certify computational result accuracy. Upon successful verification, Lumoz Chain records results on the blockchain, incentivizing participating nodes through a reward mechanism.

This architecture authorizes numerous verification servers to share a token pool, enriching resource utilization and computational efficacy, which are crucial for generating ZKPs with intensive computational requirements. Through restaking, Lumoz can better support varied EVM-compatible blockchain environments like Polygon EVM, Scroll, etc., intensifying the platform's scalability.

Optimizing ZKP Computation and Submission Mechanisms

Lumoz optimizes the ZKP computation and submission mechanisms by supporting parallel computation and sequential submission of ZKPs. It decomposes ZKPs into numerous sub-tasks, distributable across diverse zkProver nodes and ensures the correct sequential submission of these sub-tasks.

Moreover, Lumoz introduces a pioneering recursive aggregation algorithm for processing ZKPs, consolidating multiple ZKPs into a compact form. This recursive methodology truncates the size and complexity of ZKPs, thereby alleviating blockchain storage and computational resource demands.

ZK-RaaS Solution

Since its inception, Lumoz has championed the development of the simplest to deploy and most compatible ZK-Rollup solution. Presently, the ZK-RaaS Launch Base supports all mainstream zkEVM technologies, empowering developers to effortlessly deploy and launch ZK-Rollup in a few seamless steps. - Base Layer Selection: Lumoz backs diverse networks like ETH, Polygon, Lumoz chain, etc. - zkEVM Configuration: Opt for the desired zkEVM type based on practical requisites, like Polygon zkEVM, zkSync, Scroll, and StarkNet. - Gas Token and Data Availability Layer: Choose the gas token and corresponding data availability layer as per project prerequisites to fortify transaction security. - Modular Customization: Lumoz extends an array of functional modules that can be directly integrated into ZK-Rollup on an as-needed basis.

Notably, Lumoz's ZK-RaaS platform concurrently backs multiple architectural models. - Modular Compute Layer: Lumoz offers a modular computing layer accommodating diverse Layer 2 solutions, encompassing architectures like Op Stack + ZK Fraud Proof. This modular approach empowers developers to select distinct base layers, zkEVM types, data availability layers, and sorters as required. - Native Cross-Rollup Communication: Lumoz also supports native cross-Rollup communication amid distinctive ZK-Rollups on the same base chain. This communication conduit permits addresses on one Rollup to directly engage with contracts on another Rollup, heightening application interoperability. - Customizable Infrastructure Services: Lumoz proffers an array of infrastructure services, incorporating bridging interfaces, customized zkEVM types, block explorers, decentralized exchanges, decentralized identity systems, wallet infrastructure, and more. These services enable developers to tailor various facets of ZK-Rollup in line with their project imperatives.

Lumoz's contributions have facilitated the evolution of ZK-Rollup deployment from arduous to facile, potentially marking the genesis of a trend in ZKP application embracement.

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