Is zkOmnichain the New Holy Grail of Web3?
zkRollup is part of the Layer 2 track. It aims at solving the Ethereum congestion problem. zkOmnichain is part of the Layer 0 track. It aims to build the entire Web3 Network. Due to the enormous volume of Ethereum, everyone’s attention is on zkRollup and zkOmnichain gets ignored. Omnichain is a pseudo-concept that is based on the zero-knowledge proof-based full chain interoperability protocol, zkOmnichain. If Ethereum’s market share can be maintained at 70% for many years then it is considered the holy grail. But Ethereum cannot maintain a market share at 70% forever. Below is the trend in the TVL ratio for Ethereum between August 2020 and February 2023. The current market share for Ethereum is 59.24%. The latest market share for Ethereum is 59.24%. This crude and inefficient method causes a lot of problems for developers in terms of deployment and operation. It also leads to severe fragmentation of liquidity on each Chain and large price differences between different Tokens. Interoperability. This intermediary chain is not used for Appplicatio. The typical representatives are the self-contained Cosmos and Polkadot, as well as Multichain, Celer and Wormhole, Thorchain and Axelar. The second path is completed by the Optimistic mechanism. This type of path subdivision is represented by Synapse and Nomad and Hyperlane. They use Optimistic Verification & Fraud Proofs and LayerZero and Across. The third path is when the application passes the entire chain based upon zero-knowledge proof. Interoperability protocol ZkOmnichain works with other chains. There is another way. Once the application has been deployed to a smart contract public chain it will be interoperable with other chains via this chain. Map Protocol and ZetaChain are two examples of typical representatives. This path is both heavy on operations and development. First, the EVM public chain must be able to align the book when it crosses heterogeneous chains. This is the same problem as the first generation. It must compete directly with existing smart contract public chains to seize Application resources because it overlaps with their functions. It must compete with the existing smart contract public chain for Application resources. In this way, we can only focus on the non-intermediate chain (consensus protocol) model, focusing on the second-generation product model opOmnichain and the third-generation product model zkOmnichain.Comparison of OP and ZK full-chain interoperability protocolsThe Layer 0 track of the full-chain interoperability protocol, like the Layer2 track of the Ethereum expansion solution, has formed two types of solutions: OP and ZK. Let’s start with the Optimistic Oracle submode in OP’s solution. LayerZero uses Chainlink Oracles in this mode. Chainlink also has its Cross-Chain Interoperability Protocol, (CCIP). The two project parties cooperate and compete. Across uses UMA as an Oracle, and UMA is part of the same team. Shared Security is the requirement that an application or token running on a particular infrastructure cannot choose its security model, but must adhere to any security requirements set by the infrastructure. All Layer 1 and 2 have Shared Security. Layer 0 should have Shared Security instead Isolated Security. This is because we can provide end users with the unified underlying security regardless of which application they use or what the program’s internal security policies are. This is the meaning and purpose of the term “basic” in infrastructure. Additionally, the Optimistic Oracle has very strict trust assumptions. End users must believe that Oracle will not randomly verify. In this mode, Oracle is a Third Trusted Partie. Users should believe that Oracle and Relayer won’t conspire to steal user assets and do evil. This type of scheme doesn’t produce Fraud Proofs or Validity proofs and there are no on-chain verification proofs. L2BEAT, Nomad and Way Network have highlighted various drawbacks and problems. We will not discuss them here. Next, let’s examine the Optimistic Verification submode in OP’s solution. This mode will generate Fraud Proofs and is more prudent and rigorous than the Optimistic Oracle. Messages are signed optimistically on the source chain. A network of off-chain Validators submits fraud proofs to target chains within the enforced Optimistic Windows (Timeout Period). During this window, fraudulent messages can be challenged. If any errors are found, the Validator can reject the message and ban fraudulent transactions. Optimistic Verification is based on the assumption that one honest verifier will be able to verify the message. This is in contrast to the assumption that a majority of the external verification network members will be honest. Optimistic verification requires only an honest Validator to initiate a Change to protect the security of the system. This window period can lead to a delay called Tradeoff. This Latency is shorter than opRollup. Instead of waiting 7 days, wait for dozens upon dozens of minutes. Nomad, for example, has set a Timeout Period to wait for 30 minutes. Like zkRollup zkOmnichain produces Validity Proofs. Calling the Sum-Check Protocol module is one of the most important steps. This module will do proof (Sum), off-chain, then verify (Check) on the chain. This rigorous mathematical and cryptographic verification ensures fairness and completeness. Groth16 can be used for further compression of the Proof Size. Groth16 can be used to further compress the Proof Size. For example, the original Proof size generated by Way Network’s ZkSpark is approximately 100KB. However, it can be reduced down to 130B using Groth16 compression. We finally saw the possibility to move from “chain” into “network” and could build an infrastructure Layer0 that can support large-scale full chain applications to smart contract public chains. What changes will zkOmnichain based full-chain apps bring? First, the Intermediate Chain is removed from the first generation cross-chain products. This reduces the operating costs of expensive verification nodes. Second, the Intermediate Token, Wrapped/Staked Token derivative tokens are also removed. Users don’t need to trust these tokens. Cross-chain Native Token transactions can be completed. The third-party trusted subject, the Oracle Oracle machine, has been removed. This move will improve the resilience of the entire network. The full-chain application based upon zkOmnichain does not depend on the intermediary chains nor on the oracle machines. It also does not have intermediary tokens or derivative tokens. It uses rigorous mathematics to verify the validity of the chain and achieve the goal decentralized, trustless, and decentralized. Full-chain applications won’t be as scarce as they are now, but will become ubiquitous. Applications built on zkOmnichain offer greater cross-chain security, lower communication cost, and faster communication speeds. This makes them more likely to succeed. Contrary to Web2, Cosmos is equivalent in building a Local Area Network, while Way Network is focused on building a Wide Area Network (WAN), and even the Internet. The standard for judging the quality of this type of product is not the number of chains that the protocol can access or other things, but whether the access method has the Nakamoto consensus, that is, Decentralized and Trustless, because this is “1”, and the others are “0”, no 1, no more 0 is useless.It is foreseeable that full-chain applications will gradually replace single-chain/multi-chain applications as the mainstream deployment mode of Web3 applications in the next three years, and zkOmnichain Interoperability Protocol is the key technical means and infrastructure to realize this process. We will soon see zkOmnichain-based full chain AMM applications, full channel Lending applications and full-chain SocialFi applications. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuHaroldCoincu NewsTags: EthereumLayer 2Web3zkOmnichainzkrollup