In today's rapidly developing blockchain technology, Bitcoin, as the earliest and most well-known cryptocurrency, faces transaction efficiency and scalability issues. To address these challenges, ZKByte emerged as a trustless Bitcoin Layer 2 scaling solution based on Zero-Knowledge Proof (ZKP) and BitVM.
Design goals of ZKByte
The main goal of ZKByte is to build a second-layer network specifically tailored for the Bitcoin blockchain. As the demand for faster and more efficient transactions continues to grow in the Bitcoin ecosystem, Layer 2 networks are designed to alleviate congestion and reduce transaction confirmations by offloading certain transaction processing tasks on the main blockchain. the time and resources required. This design not only improves transaction efficiency, but also ensures the security and integrity of the Bitcoin network.
Introduction of BitVM: Recognizing the inherent limitations of the computing power of the Bitcoin Virtual Machine (VM), ZKByte was designed using BitVM technology. BitVM demonstrates the potential to execute smart contracts between two parties, successfully overcoming traditional limitations by providing a new way to enhance the programmability of the Bitcoin network through a challenge and response scheme.
Architecture and Technology
ZKByte's Layer 2 blockchain uses an account model, and the status of the entire blockchain is certified through zkVM, based on the Halo2 certification system. All Layer 2 states are synchronized with the Bitcoin network and verified through the Zero-Knowledge Proof (ZKP) validator implemented by BitVM. Tracing all Layer 2 status through a UTXO ensures the transparency and security of the system.
Layer 2 Committee and Trusted Oracle: In ZKByte’s architecture, a selected group of users forms the Layer 2 Committee, which is responsible for monitoring the overall operation of the network. If issues arise with the protocol, the committee can step in to stop the protocol and protect the assets of all users. In addition, trusted oracles are critical to verify the correctness of input/output UTXOs and scripts, ensuring the accuracy of the data.
Transfer from Tier 1 to Tier 2
ZKByte represents a layer 2 protocol by creating a separate taproot address on the Bitcoin network. When a UTXO is created and transferred to the taproot address, the corresponding UTXO is actually "moved" from layer 1 to layer 2. All "transfers" of "deposited" UTXO assets are handled exclusively by the protocol or committee account, ensuring the security of the assets.
Block synchronization and status verification: All Layer 2 network status is synchronized to Layer 1 in the form of blocks. Each block should provide the following information:
Transactions in a specific block: Contains new account status for these application transactions
New UTXO of current block status:Block information of the Bitcoin network: Zero-knowledge proof (proving that the state transition from the previous block to the current block is correct)
These states are recorded in a UTXO transaction history, providing users with complete transaction transparency.
Application of zero-knowledge proof
ZKP is used to verify the correctness of layer 2, ensuring the accuracy of all transactions and states. Through the challenge and response scheme, the prover can verify the accuracy of the block information and ensure the validity of the transaction.
Asset transfer mechanism: Assets can be transferred from Layer 2 to Layer 1 in two ways: withdrawal and forced withdrawal. Withdrawal transactions are triggered by Layer 2, and the ZKP circuit ensures that the transaction is processed as expected; while forced withdrawal transactions are initiated by the Bitcoin network and must be included in the next block status update.
Security of UTXO distribution: UTXO distribution will be synchronized when the block status is updated. If the protocol is stopped, all UTXOs can be applied to ensure the security of all user assets. Among these UTXOs, only the UTXOs that are withdrawn or forced to be withdrawn are signed by the protocol to ensure the integrity of the assets.
Exit mechanism for Layer 2: Once a ZKP certificate fails verification, the committee must stop and exit the protocol. At this point, the committee will sign all UTXO distributions specified in the latest block status in Layer 2. With the signature, the user can exit Layer 2 without any loss, ensuring the security of the user's assets.
in conclusion
As an innovative Bitcoin Layer 2 expansion solution, ZKByte successfully improves the scalability and security of the Bitcoin network by combining zero-knowledge proof and BitVM technology. As blockchain technology continues to develop, this solution will bring more possibilities to the Bitcoin ecosystem and drive it towards a more efficient and secure future. ZKByte is not only the future of Bitcoin, but also an important milestone in the development of blockchain technology.