The Public Blockchain Track is Overcrowded
When it comes to blockchain, many people still think of it as a cutting-edge technology. A few years ago, if someone claimed to have created a blockchain, they were considered a genius. But now, the race to create various blockchains is overcrowded. Just looking at Ethereum’s Layer2 projects, there are roughly over 6,000 projects in the entire cryptocurrency industry!
It is well known that blockchain cannot simultaneously achieve scalability, security, and decentralization. For example, both TBC and Ethereum’s main chain excel in security and decentralization, but their scalability is lacking. The transactions per second (TPS) for Ethereum’s mainnet is around 20, while Bitcoin’s mainnet TPS is only 7. To address this issue, some developers have implemented Layer2 solutions, sacrificing some security and decentralization to offload transaction data from the main chain and improve transaction speed and load. Currently, most Layer2 solutions have TPS in the thousands, which is more than sufficient for the limited application scenarios at present, where most on-chain interactions involve cryptocurrency trading.
Creating a Layer2 blockchain is now as easy as “one-click generation.” One such option is the Rollups-as-a-Service (RAAS) track, where service providers support “one-click blockchain creation.” It is said that it only takes 10 minutes to create a blockchain using this service. Moreover, you can choose from various ecosystems such as Bitcoin, Ethereum, and Solana. These options utilize the state-of-the-art zk-rollup technology. One notable example is Lumoz, which is a participant in this track.
Another well-known project in the RAAS track is AltLayer. It went live on Binance at the end of January this year and currently has a TVL of over 2 billion. AltLayer stands out for inventing a re-collateralization Rollup framework.
Now, let’s delve into the technical paths of Layer2 solutions. Currently, most Layer2 chains use one of the following three technologies:
1. State Channels: This method allows multiple parties to conduct multiple transactions off-chain and only submit the final state to the blockchain when the transactions are completed. A typical example is the Lightning Network, mainly used for Bitcoin. This solution is suitable for long-term, repetitive, and low-value payments, but it is not suitable for temporarily adding or reducing participants. Therefore, the Lightning Network is mainly used for account transfers on exchanges, with limited use in other scenarios.
2. Sidechains: Sidechains are independent blockchains with their own consensus mechanisms, but they are connected to the main chain through two-way anchoring. Sidechains can freely implement different functionalities and optimizations while the main chain maintains its primary security and stability. Polygon is a well-known project that uses this solution.
3. Rollups: The third technology solution is Rollups, which involves bundling multiple transactions into a single data entry on the main chain. This is similar to ordering 50 dishes at a restaurant but only needing to pay once. Rollups have two paths: Optimistic Rollups (OP) and Zero-Knowledge Rollups (ZK). OP rollups assume that all bundled data is valid, while ZK rollups rely on zero-knowledge proofs to cryptographically prove the validity of the data.
Recently, there has been controversy over which is more advanced: OP or ZK. Vitalik Buterin has repeatedly stated, “Short-term OP, long-term ZK.” OP has a lower entry barrier and has achieved economies of scale, but it is less secure than ZK. Therefore, some argue that ZK technology is the ultimate solution for Layer2.
However, ZK has the drawback of consuming too much computational power. The modular approach has emerged as a solution to address this issue. A Rollup can be divided into at least three modules: Data Availability (DA), Sequencer, and Prover. DA ensures that block producers publish all transaction data to the network for validators to download. Sequencer is responsible for ordering, organizing, and packaging transactions in the Layer2 network and submitting them to the Layer1 network. Prover cryptographically proves that the Layer2 data matches the data uploaded to the Layer1 network.
While significant achievements have been made in the DA and Sequencer domains, the Prover module, especially in the ZK-Rollup field, still faces high costs, and there are currently no strong competitors. Lumoz is currently the only provider of computational power in this field. The Lumoz team has improved the zero-knowledge proof algorithm, significantly increasing the utilization of machine resources in the cluster and speeding up ZKP calculations. They have reduced the average transaction confirmation time from about 5-6 minutes to approximately 3 minutes and increased ZKP generation efficiency by about 80%.
Lumoz has also introduced the concept of ZK-PoW, inviting miners to participate in maintaining zkEVM and calculating ZKPs. Their goal is to simplify the use of ZK-Rollup and promote its wider adoption, facilitating the large-scale deployment of application chains based on zkEVM.
Considering Lumoz’s impressive accomplishments, it is evident that their expertise is highly recognized in the cryptocurrency industry. They have reportedly supported over 20 Layer2 chains, including Merlin Chain, Hashkey Chain, Ultiverse, and Matr1x.
With Lumoz’s emergence, which allows for the creation of zk rollups with just one click, it is clear that they are a remarkable project. If you have been disappointed by zkSync, Lumoz can help you seek revenge. You can replicate a zkSync in just ten minutes.
