Lumoz Research Report: Modular chain issuance greatly reduces ZKP computing costs

Written by: ZeY

Summary

1. Ethereum has been facing scalability issues since its birth. Capacity expansion is still the key technology to achieve Web3 Mass Adoption. Rollup is the mainstream scaling solution for Layer2. Its core idea is to publish the "packaged" transaction data blocks on the chain, thereby reducing the difficulty of transaction validity verification. According to the different data validity verification methods, Rollups can be further divided into Optimistic Rollups and ZK Rollups.

2. The pain points faced by the ZK Rollups track currently include three main points: the cost of calculating ZKP is high, and most zk rollups currently rely on centralized Prover; the complexity of zero-knowledge technology makes it difficult to build a ZK-rollup that complies with EVM; in addition, many ZK Rollups currently use third-party bridge projects when interacting, which has certainSafetyHidden danger.

3. NanFeng, co-founder and CEO of Lumoz, graduated from Tsinghua University. The core team has invested nearly five years in ZK technology since 2018. From the beginning, Lumoz has been committed to making zero-knowledge computing more efficient and accessible.

4. Lumoz has completed two rounds of incentive testnets, with a total of 282K participants, 28,137W validators, 145 PoW miners, and more than 60 ecological projects deployed. In May 2024, Lumoz announced the completion of a new round of strategic financing, with a valuation of US$300 million. So far, Lumoz has accumulated financing of up to US$14 million, with investors including OKX Venture, Hashkey Captial, Polygon, Kucoin Ventures, IDG Blockchain, Gate Ventures, SevenUpDAO, Sweep Ventures, etc.

5. Lumoz provides a modular computing layer for ZK Rollup, using a hybrid consensus mechanism of PoS and PoW. The ZK-PoW algorithm network greatly reduces the computing cost of ZKP and solves the problem of centralized Prover. At the same time, zkVerifier is introduced to verify the ZKPs generated by zkProver. The hardware configuration requirements of zkVerifier nodes are relatively low, and the Node Sale that will be launched soon will make the verification network more decentralized and censorship-resistant.

6. Lumoz RaaS Launch Base is highly compatible with the mainstream ZK Rollups technology stack, including Polygon zkEVM, zkSync, Scroll, Starknet, etc. It is the project with the widest compatibility with the ZK Rollups technology stack on the market. It can specifically solve the compatibility pain points between ZK technology and EVM in the ZK Rollup track, and one-click chain launch meets the customized ZK Rollup needs of the project. Current customers include: ZKFair, Merlin Chain, Coin98, Ultiverse, Mari1x, Fortnite (Efuse), Viction, etc.

7. The NCRC Protocol proposed by Lumoz achieves seamless cross-chain between multiple ZK Rollups through the "Native Bridge". At the same time, the user's assets do not go through any third-party protocol. The whole process isSafetyand trustless.

8. Lumoz uses dualTokenEconomic model, functionToken MOZ can be used as transaction fees, resource usage fees, and equityToken esMOZ is a reward given to participants and can also be used to delegate zkVerifier nodes. esMOZ tokens can be exchanged for MOZ tokens according to different redemption periods and redemption rates. Currently, Lumoz has not announced the latest token distribution in its project white paper.

9. Looking ahead, the RaaS track has a promising development prospect, and ZK Rollup will also become the mainstream Rollup solution. At the same time, community operation and ecosystem building may replace technology as the main challenge of building Rollup. Lumoz is expected to continue to be the leader of ZK RaaS by deepening its research in ZK technology and continue to promote the large-scale application and popularization of ZK-Rollup technology.

1. Background

1. Rollup expansion solution

Ethereum has been facing scalability issues since its birth. Capacity expansion is still the key technology to achieve Web3 Mass Adoption.

Scalability solutions built on Ethereum without any modifications to the underlying Layer 1 protocol are called Layer 2 solutions. These solutions can process transactions without interacting with the Ethereum network and are implemented through smart contracts.contractPut itSafetyIt is anchored on Ethereum’s Layer 1, as if there is an extra layer of network under the chain, so it is called Layer 2. L2 Beat data, current L2 The number of transactions processed has reached 10 times the number of transactions processed by the Ethereum mainnet, greatly expanding Ethereum's limited transaction processing capabilities.

Figure 1. Number of transactions processed by Layer2 https://l2beat.com/scaling/activity

As a highly decentralized publicBlockchain, Ethereum has become very congested and gas has become extremely expensive.因此，越来越多包括 Defi，Gamefi 等在内的去中心化应用将协议迁移至这些 Layer2 上以优化用户体验，降低运营成本。L2 Beat 的数据显示，截至 2024 年 6 月 16 日，所有 L2 的锁仓量已经达到了 1244.18 万 ETH，折contract 44.363 billion US dollars. In comparison, the locked amount on the Ethereum mainnet is 17.88 million ETH, which is equivalent tocontract 65.634 billion US dollars, that is, the locked amount of all L2 is close to 70% of the locked amount of Ethereum main network.

Figure 2 Layer2 lock-up amount https://l2beat.com/scaling/summary

Figure 3 Ethereum mainnet locked amount

https://defillama.com/chain/Ethereum?currency=USD

Rollup is the mainstream expansion solution for Layer2. Its core idea is to publish the "packaged" transaction data blocks on the chain, thereby reducing the difficulty of verifying the validity of transactions.Rollup 技术解决了之前 Plasma 暴露出的问题，提供了和以太坊 Layer 1（也就是以太坊自己）相同的数据可用性和Safety性，而且还能极大提高网络的吞吐能力，同时降低单笔交易成本。在模块化BlockchainIn the architecture, the Rollup solution actually outsources the execution layer (and other layers) of the chain.

Figure 4 Modular Stacks

https://members.delphidigital.io/reports/the-complete-guide-to-rollups

2. Two Rollup Solutions: ZK Rollups vs. Optimistic Rollups

Depending on the different methods of verifying data validity, Rollups can be further divided into Optimistic Rollups and ZK Rollups.

Optimistic Rollups rely on an “optimistic” assumption that most transactions are valid and allow for challenges and rollbacks when fraud is discovered. ZK Rollups useZero knowledge proof技术（Zero Knowledge, ZK）来确保链外处理的交易是有效且正确的，提供更高的Safety性和效率。两种 Rollup 方案的主要优缺点参见下表：

Table 1 ZK Rollups vs. Optimistic Rollups

Data source: compiled by the author based on existing literature

Although ZK-Rollup has many advantages and is seen by Vitalik as a long-term Ethereum expansion solution, the many technical challenges it faces limit its large-scale adoption at this stage. According to Defilama data, as of June 16, 2024, Optimistic Rollups such as Arbitrum, Blast, Base, and Optimism still dominate Rollups.

Figure 5 TVL pie chart of the Rollup track https://defillama.com/chains/Rollup

3. Pain points of the ZK Rollups track

Specifically, the pain points facing the ZK Rollups track are mainly

1. The cost of calculating ZKP is high, and currently most zk rollups rely on centralized Prover.

Currently, there are multiple zk-rollups running on the Ethereum mainnet, including Polygon zkEVM and zkSync era. For a ZK-Rollup, the computational cost of ZKP far exceeds the computational cost of data availability (DA), even accounting for more than 50% of the total cost. Moreover, most of these ZK-Rollup projects do not implement decentralized proof procedures. For example, in the beta mainnet of Polygon zkEVM, it relies on trusted aggregators to submit ZKPs, and the zkSync era follows a similar approach.

Figure 6: The computational cost of mainstream ZK Rollups is very high (pink in the figure)

https://l2beat.com/scaling/costs

2. The complexity of zero-knowledge technology makes it difficult to build an EVM-compliant ZK-rollup.

EVM compatibility refers to translating the smart contract code in Solidity into the specific virtual machine bytecode of ZK Rollup. EVM was not designed with compatibility in mind.Zero knowledge proofTechnology. For example, in order for any program executed by the EVM to generate valid proofs through zk-SNARKs, it is necessary to create corresponding mathematical representations and proof logic for each opcode of the EVM. This not only requires complex cryptographic transformations, but also poses challenges to the compatibility of existing smart contracts.

3. In addition, many ZK Rollups currently use third-party bridging projects when interacting, which poses certain security risks.

In this era of multiple Rollups, the coexistence of various Rollups will increase, making seamless interoperability between different Layer 2 solutions essential. Existing cross-Rollup bridging solutions typically involve deploying a new set of inter-chain contracts on the Rollup chain and leveraging multi-chain liquidity incentives to enable asset cross-chain functionality. However, these solutions are not universally applicable to message-based cross-chain interactions and are subject to centralization and trust risks. July 2023BinanceThe cross-chain bridge project Multichain stopped operating after its CEO was detained by the police. According to SlowMist monitoring, the total amount of funds flowing out of Multichain exceeded US$265 million. The collapse of the leading cross-chain bridge project in an instant shows that the risks of centralization and trust in using third-party cross-chain bridge projects should not be underestimated.

2. Background of Lumoz

Figure 7 Lumoz https://lumoz.org/

NanFeng, co-founder and CEO of Lumoz, graduated from Tsinghua University and worked at ByteDance. As a core developer, he was deeply involved in the underlying construction and later iteration of multiple projects. He is also the founder of Trustless Labs. The core team has invested nearly five years in ZK technology since 2018. Therefore, from the beginning, Lumoz has been committed to making zero-knowledge computing more efficient and accessible: "Making ZK-Rollup Within Reach".

During the development history of Lumoz, the team has gradually realized the cross-chain bridge security and centralization issues in the current Rollup track and has begun to solve them. At the same time, it has grasped the development trend of the RaaS track and launched the ZK RaaS Launch Base, successfully expanding its business territory.

Figure 8 Lumoz ecosystem related data https://lumoz.org/compute-layer

Lumoz (formerly Opside) will be officially launched on the testnet at the end of May 2023 and will be available globally.CommunityThe project has been running smoothly for five months with the continued strong participation of more than 450,000 participants. More than 140 miners and more than 28,000 nodes participated in the test. In terms of ecology, more than 100 high-quality projects applied to participate, of which 14 projects successfully launched their own zkEVM application chain through Opside ZK-Rollup LaunchBase and maintained stable operation. Lumoz is expected to be launched on the mainnet in Q3. So far, Lumoz has processed 2 million transactions, submitted more than 4.79 million ZKPs, and has 28,000+ nodes. In addition, more than 16 projects have passed official audits and generated customized zkEVM application chains on the Lumoz platform.

Figure 9 Lumoz conducts strategic round of financing, SevenUPDAO Participate

https://mirror.xyz/lumozorg.eth/Fz0dF5HVMdbbI–9lzst60KuKOp5YGbb75Z0RmxiB24

In March 2024, the modular computing layer and ZK-RaaS platform Lumoz completed its first round of financing with a valuation of US$120 million. On May 29, 2024, Lumoz officially announced the completion of a new round of strategic financing. Participating investors include IDG Blockchain、SevenUpDAO、Sweep Ventures 等。具体的资金数额尚未披露。战略轮 Lumoz 估值达 3 亿美元，甚至超过了 Altlayer 目前的 2.53 亿美元的市值，足见各方对 Lumoz 的发展前景的看好程度。此外，如果对照 Altlayer 当前市值 / 上市前轮融资估值的 1.4 倍乘数，Lumoz 上市后有望达到至少超 4.2 亿美元；如果对照 Gelato 的 3 倍乘数，则 Lumoz 上市后市值能够超 9 亿美金。

Table 2 RaaS track project financing information

Note: The above data mainly comes from Rootdata and ICO Analytics, * indicates the lead investor, and the timestamp is June 16, 2024

3. Lumoz provides a modular computing layer for ZK Rollup

Figure 10 Lumoz as a decentralized modular computing layer

https://lumoz.org/compute-layer

Rollup usually includes a settlement layer, an execution layer, a consensus layer, and a data availability layer. However, for ZK-Rollup, an additional core module is required, namely the Prover Layer.Currently, Lumoz is the only provider of modular Prover network in the field of modular Rollup. Currently, the ZKP computing power of Merlin Chain is provided by Lumoz miners. In the future, with the launch of Lumoz mainnet, Merlin Chain will be connected to Lumoz's decentralized ZK computing network.This will be a ZK-PoW algorithm network where anyone can provide computing power to Merlin Chain and receive Lumoz token rewards.

Lumoz creates an efficient and secure computing service ecosystem by combining powerful computing resources with EigenLayer's re-staking mechanism. The Lumoz computing layer architecture is a highly integrated and collaborative system with the following main components and functions:

Figure 11 Lumoz computing layer architecture

https://docs.lumoz.org/understand-lumoz/the-avs-computing-layer-based-on-eigenlayer

• On Ethereum, the Active Verification Service (AVS) is built using the EigenLayer standard to provide trust endorsement, and the security of AVS is enhanced through re-staking at the feature layer.

• EVM 链（L2）支持与以太坊虚拟机 (EVM) 兼容的多样化区块链环境，如 Polygon zkEVM、Polygon CDK、ZKStack 和 Scroll，以确保广泛的兼容性和可扩展性。

• The Lumoz AVS Oracle is responsible for retrieving and storing data from EVM-compatible chains to ensure high data availability and integrity, providing a solid data foundation for the computing layer.

• As the core management layer of the entire computing layer, Lumoz Chain is responsible for task scheduling, reward distribution, and the management of zkProver and zkVerifier, including the process of adding and deleting nodes. zkProver is a node that performs specific computing tasks, while zkVerifier is a verification node responsible for verifying the execution results.

The Lumoz architecture uses a hybrid consensus mechanism of PoS and PoW, where PoW is for zkProver, and PoS is mainly for zkVerifier (which may also serve as a Rollup sequencer).This article will first introduce Lumoz's ZK-PoW algorithm in PoW consensus, and explain how it solves the computational cost and centralization problems of ZKP currently faced by ZK Rollup. Then, this article will analyze in detail its progress in the PoS consensus mechanism.

1. Lumoz’s ZK-PoW algorithm network greatly reduces ZKP computing costs

In order to solve the computational cost and centralization problems of ZKP, Lumoz proposed the ZK-PoW algorithm. Its main features include:

PoW’s reward distribution mechanism

Lumoz provides a unified ZKP computing power market to encourage miners to generate ZKP for these zk-rollps. In the Pre-Alpha testnet stage, based on the PoW algorithm, each Rollup in the Opside block will submit a sequence according to certain rules. The PoW reward of the current block is distributed in the sequence according to the number of registered Rollup slots and the number of batches contained. Miners can freely choose to participate in the ZKP calculation of one or more Rollups. In the future, each sequence will be priced differently according to the corresponding ZK-Rollup type, the number of Rollup transactions contained, gas usage, and other factors that estimate the workload.

Miners must stake a corresponding number of tokens for the Rollup in the system contract in order to submit a ZKP for the Rollup. The rewards miners receive for submitting ZKPs will also be distributed according to their stake ratio, thus avoiding malicious behavior of miners submitting ZKPs multiple times.

ZKP’s two-step commit algorithm

First submit the Proofhash.Multiple miners are allowed to participate in the computation of ZKP within a specific time window of a given sequence. Instead of submitting the original proof directly, each miner calculates the proof hash of (proof/address) and submits it to the contract.

Then submit the ZKP.After the time window, the miner submits the original proof and it is verified against the previously submitted proof. Miners whose proofs pass the verification process are eligible for PoW rewards, which are distributed in proportion to the amount of stake they participated in.

Figure 12 ZKP’s two-step submission algorithm

https://lumoz.org/compute-layer

Lumoz's two-step submission algorithm for ZKPs cleverly adopts a model of submission first and verification later, eliminating unnecessary proofs and address aggregation calculations. Moreover, the two-step submission algorithm implements parallel ZKP calculations and sequential submissions, allowing miners to perform multiple ZKP generation tasks concurrently, significantly speeding up the generation efficiency of ZKP. The Lumoz team also made a series of optimizations to the ZKP recursive aggregation algorithm, maximizing the use of cluster resources and further improving the calculation speed of ZKP.

In a real stress test environment, the miner had a cluster of 20 machines, including 128-core CPUs and 1TB RAM. In about 40 minutes, the transaction rate of the test stabilized at around 27.8 TPS. Under the same conditions, Lumoz reduced the average confirmation time of transactions from about 5-6 minutes to about 3 minutes, thereby increasing the ZKP generation efficiency by about 80%. In the future, as more ZK-rollups and miners join the ZK computing power market, the efficiency improvement brought by Lumoz's PoW algorithm will be more obvious.

ZK-PoW V2.0 further optimizes the calculation process

Compared with V1.0, version 2.0:

• The original service is split into three sub-modules, which are responsible for proof generation, proof management, and proof submission respectively. This makes the structure clearer, less coupled, and more robust.

• The proof generation module proof Generator added a startBatch parameter to make it easier for new miners to keep up with the mining progress.

• The proof management module proof Manager has been improved compared to the old version. When the proof submission fails due to miner service restart or other reasons, the proof is resent in time to ensure the interests of miners. The resend mechanism not only solves the situation of proof submission failure, but also handles all situations where proof submission fails or is not submitted, ensuring the security of the Rollup chain.

• The proof submission module Proof Sender implements two-step transaction submission using three thread-safe priority caches. Compared with previous versions, it reduces the use of global locks, ensures that proofs of lower heights are submitted in a timely manner, and protects the interests of miners. In addition, the overall service process is clearer, reducing the number of threads and resource consumption during program execution.

Figure 13 ZK-PoW V2.0 Architecture

https://mirror.xyz/lumozorg.eth/zZy2munlvNY7D4DG6lpcccrx1IZTJ7yb3jXOwd1O9Hg

Stress test results: In version 2.0, using 10 64-core machines, 566 batches of proofs were completed in 7 hours, 38 minutes and 40 seconds, with an average of 48.62 seconds per proof. In the multi-miner scenario, compared with version 1.0, the overall efficiency of zk proof generation in version 2.0 has increased by 50%.

2. Introduce the zkVerifier node verification mechanism to establish a decentralized and censorship-resistant verification network

The Lumoz network bears the key responsibility of managing the input and output of data for the entire network. To ensure the security, accuracy and decentralization of the data processing process and its results, the Lumoz network introduces a node verification mechanism, where zkVerifier verifies the ZKPs generated by zkProver. The specific workflow is as follows:

Figure 14 zkVerifier node verification mechanism

https://docs.lumoz.org/zkVerifier-node-explained/how-do-zkverifier-node-work

First, after the proof generated by zkProver is submitted to the Lumoz chain, the Lumoz chain sends the verification task to multiple zkVerifier nodes, which independently perform distributed verification. Secondly, at least two-thirds of the zkVerifier nodes confirm the validity of the proof to ensure the authority and consistency of the verification results. Finally, the valid proof and its results are transmitted back to the Lumoz proof contract on the blockchain by the Lumoz AVS Oracle, and the task results are recorded and responded to the Lumoz chain through the task manager contract.

The zkVerifier node hardware configuration requirements are relatively low, allowing more users to participate in the Lumoz ecosystem and further enhance the decentralization of the Lumoz network.

Figure 15 zkProver node hardware configuration requirements

https://docs.lumoz.org/purchase-zkverifier-node-and-set-up/set-up-node

zkVerifier Node Sale will start soon

In terms of the access mechanism for zkVerifier nodes, Lumoz introduced a license system: the license is the official recognition of the identity of the zkVerifier node and is a necessary binding condition when setting up a zkVerifier node. These licenses exist in the form of NFTs to ensure the uniqueness and non-replicability of each license. If you do not want to run the node yourself, you can delegate ezMOZ tokens or licenses to other nodes through the delegation mechanism while continuing to receive rewards. If you need to exit, the license can also be freely transferred between users.

Figure 16 zkVerifier Node Sale https://node.lumoz.org/

The sale of zkVerifier node licenses will officially start on June 17, 2024. It is understood that zkVerifier nodes will receive 40 million Lumoz points before TGE, and 1 million points will be unlocked linearly every day from June 25 to August 4. These points can be exchanged for mainnet tokens after TGE. After TGE, the project will continue to empower zkVerifier nodes, and will continue to linearly unlock 25% Lumoz tokens in 36 months, and have the opportunity to continue to participate in potential airdrop opportunities for Lumoz ecological projects.

According to Lumoz's latest policy, the total number of licenses is 100,000, divided into 10 different price levels, and will be sold on a first-come, first-served basis. The later you buy, the higher the price, so the earlier you buy, the higher the profit. This sale is divided into three stages: pre-sale stage (starting at 2024-06-17 15:00 UTC+8), whitelist acquisition stage (starting at 2024-06-17 15:00 UTC+8), whitelist sales stage (starting at 2024-06-25 15:00 UTC+8) and public sale stage (starting at 2024-07-03 15:00 UTC+8). During the public sale stage, all users can purchase licenses.

Figure 17 Lumoz License Tiers

https://docs.lumoz.org/purchase-zkverifier-node-and-set-up/license-tiers

Team bonus system for node points activities

Figure 18 Team participation mechanism for zkVerifier node points activity

https://docs.lumoz.org/zkverifier-lumoz-points-campaign

When users stake a license, they can choose to join a team or create a team. Each team can have up to 50 people. The more licenses a team holds, the higher its level. When allocating Lumoz points, teams receive greater weight based on their level. Lumoz uses this fission design to attract more users and investors.

Refund mechanism guarantees user interests

In addition, in order to maximize the protection of globalCommunityTo protect the rights of users, Lumoz has also established a refund mechanism. The refund window will open 6 months after the start of the TGE (Token Generation Event). The duration of the window is to be determined. If the user is dissatisfied for any reason, they can apply for a refund. Lumoz will unconditionally refund 80% of the payment amount for purchasing the node. Users must return all generated tokens and nft(Non-Fungible Tokens).

Important revenue source before TGE

Lumoz 的 zkVerifer 节点销售成为了其一个重要的收入来源。在区块链项目中，早期获得收入对于项目的持续发展和成功至关重要。这不仅有助于为项目提供必要的资金支持，还可以增强投资者和社区成员对项目的信心。值得注意的是，区块链项目不能完全依赖 IEO（Initial Exchange Offering，即首次exchangeAlthough IEO is an effective way to raise funds, it is not the only way. Over-reliance on IEO may lead to a lack of flexibility in funding support for the project in subsequent development, and may also increase the risk of the project.

Specifically, the impact of Lumoz's zkVerifer node sales on project expectations is that it demonstrates the Lumoz project's confidence and commitment to future development. By selling nodes, the project sends a positive signal to the outside world that the project has sufficient funds and resources to promote its long-term development. This helps attract more investors and partners to join the project and jointly promote the success of the project.

At the same time, node sales are also a reflection of community value and community stickiness. By purchasing nodes, users become part of the project community and establish a closer connection with the project. This connection not only enhances users' sense of belonging and loyalty to the project, but also promotes communication and cooperation among community members. An active and valuable community is crucial to the long-term development of a project.

4. Lumoz RaaS Launch Base is highly compatible with the mainstream ZK Rollups technology stack

Rollup as a Service (RaaS) is a product that is used to launch customized Rollups for new blockchain applications. This product is similar to software-as-a-service (SaaS) products, and users do not need to maintain or host any part of the service product, so there is no need for complex software and hardware management.

From the perspective of whether or not it is necessary to write code, RaaS projects can be divided into two categories: SDK and no-code solutions. The SDK solution provides developers with a complete set of general software development kits, making the deployment of Rollup as simple as the deployment of smart contracts; the no-code solution, as the name implies, does not require writing a line of code to deploy Rollup (one-click chain launch). OP Stack, Rollkit, Dymension, Sovereign, Stackr, etc. are all SDK solutions. Projects that deploy Rollup without code include Lumoz, AltLayer, Eclipse and Caldera.

Figure 19 RaaS projects can be divided into two categories

https://foresightnews.pro/article/detail/27089

There are already various other projects in the RaaS track, such as Altlayer, Gelato, etc., which can launch chains without code. The highlight of Lumoz RaaS Launch Base is that Lumoz integrates mainstream Rollup solutions in the blockchain industry, such as Polygon zkEVM, zkSync, Scroll, and Starknet. It is the project on the market with the widest compatibility with the ZK Rollups technology stack, and can specifically solve the compatibility pain points between ZK technology and EVM in the ZK Rollup track.

Table 3 Technology stacks supported by various mainstream RaaS projects

Note: The data mainly comes from the official website and white paper of each project, and is also sorted out with reference to articles on the Internet

At the same time, it can be seen from the above table that Lumoz has reached cooperation with many projects at each module layer of Rollup. For example, in addition to Layer1, Lumoz has also integrated third-party DA layer projects such as Celestia, Eigenlayer, Ethstorage, Avail, Espresso, etc., and through cooperation with Espresso Systems, Radius, Metis, Astria, it can provide customers with decentralized sorter options.

According to Vitalik’s criteria, zkEVM can be divided into the following types:

Figure 20 Vitalik "Different types of zkEVM"

https://learnblockchain.cn/article/6369

• Type 1 zkEVM: Completely equivalent to Ethereum

• Type2 zkEVM: fully compatible with EVM Ethereum virtual machine (there used to be Type2.5, but now it seems to have been merged with Type2)

• Type3 zkEVM: Almost compatible with EVM Ethereum Virtual Machine

• Type4 zkEVM-like: Compatible with high-level languages

The framework supported by Lumoz includes these types of zkEVM, providing customers with more choices.

Figure 21 Classification of mainstream ZK Rollup projects

https://learnblockchain.cn/article/6369

Figure 22 Various zkEVM mainstream projects

https://learnblockchain.cn/article/6369

1. One-click chain launch to meet the project's customized ZK Rollup requirements

Users can independently select the various Layer2 components required in their Launch Base, including SDK, settlement layer, data availability layer, sorter, etc. No code is required during the operation, which greatly reduces the difficulty of issuing ZK Rollup and allows the team to focus on non-technical aspects such as ecosystem operations.

Figure 23 Lumoz ZK-RaaS Launch Base One-click chain launch

https://lumoz.org/launchbase

For example, some of the current customers using Lumoz RaaS services include:

• ZKFair is the first community ZK-L2 based on Polygon CDK and Celestia DA, and is powered by ZK-RaaS provider Lumoz. ZKFair uses the stablecoin USDC as the Gas token. ZKFair ensures 100% EVM compatibility, excellent performance, minimal fees, and strong security. ZKFair is a 100% community-owned, community-driven experimental L2 network.

• Merlin Chain is a Bitcoin Layer 2 that integrates the ZK-Rollup network, decentralized oracle network, data availability, and on-chain BTC fraud prevention modules. It is committed to empowering Bitcoin's native assets, protocols, and products on Layer 1 through its Layer 2 network, injecting vitality into the Bitcoin ecosystem.

2. Support Op Stack + ZK Fraud Proof Layer 2 architecture

Moreover, on April 18, 2024, Lumoz announced that its modular computing layer will support the Op Stack + ZK Fraud Proof Layer 2 architecture.

OP Stack is a general development stack for building L2 blockchain ecosystems.

Figure 24 Op Stack + ZK Fraud Proof Layer 2 Architecture

https://mirror.xyz/lumozorg.eth/eFpFnP40loyL3idRitTT_MNB3kW8R_6arZ7bgtmoRlc

类似于 Steven Li and AltLayer 提出的 ZK Optimistic Rollup 模型，Op Stack+ZK 欺诈证明架构是一种将基于零知识证明的有效性证明集成到乐观 Rollup 技术中的新设计。当挑战者指出排序器提交了不正确的数据时，他们向 L1 提交挑战。Sequencer 必须在有限的质疑期内生成相应的 ZK 证明，并将其提交给第一层合约进行验证。如果验证结果表明数据有效，则挑战无效;否则，挑战成功。该方案结合了 Optimistic Rollup 和 ZK Rollup 的优点，既保持了低成本的特点，又有效减少了等待时间。

5. NCRC Protocol implements ZK-Rollup without trust

Native cross-chain bridge

As mentioned above,Third-party bridges may provide a cheaper and faster cross-chain experience, but they introduce additional trust costs and security risks.In fact, each ZK-Rollup comes with an L1L2 bridge, which Lumoz calls the Native Bridge. Unlike third-party bridges that utilize liquidity-based solutions, the Native Bridge operates as a unique "mint-burn" cross-chain mechanism. It ensures security through zero-knowledge proofs while maintaining credibility. To implement NCRC between multiple Rollups, the following two prerequisites need to be met:

• These Rollups must be of type ZK-Rollup.

• These Rollups must be located on the same L1.

Rollups that meet these two conditions theoretically have the same security level as the underlying L1. Similarly, the security level of the native bridges between these Rollups is the same, and no trust is required between them. All NCRC transactions are verified by proof of validity, which is the fundamental source of NCRC security.

1. RRC contract provides data retrieval service

The fundamental reason why ZK Rollups cannot communicate with each other is that their contracts on L1 (Ethereum mainnet) are unrelated. They remain unaware of each other's existence and cannot communicate directly through the native Rollup bridge. To this end, Lumoz will deploy the RRC contract (Rollup Recognition Contract) on each L1 layer to enable Rollups to discover and identify each other. RRC is responsible for managing all participating zk-rollups in the NCRC, including the addition, suspension, and exit of Rollups. Each Rollup in the RRC is assigned a dedicated Rollup ID.

2. The process of native bridge cross-Rollup transaction hides the underlying complexity and optimizes the user experience

For users, the operation of NCRC is exactly the same as Rollup's native bridge. During the entire cross-chain process, the user's assets flow through the following path: Rollup1 -> Rollup1's L1 bridge contract -> Rollup2's L1 bridge contract -> Rollup2. In other words, the user's assets do not go through any third-party protocol, but only need to go through Rollup's native bridge. The whole process is safe and trustless.

Figure 25 The process of native bridge cross-Rollup transaction

https://mirror.xyz/lumozorg.eth/0P5S75pYf4GtjYG4tka4whLHI7a1YC-YVS0uzgaSlzI

When a user performs a cross-chain operation on Rollup1 and selects Rollup2 as the target, the technical process actually involves three entities: Rollup1, L1, and Rollup2.But users don't need to be aware of the existence of L1 in this process; their experience is just a direct jump from Rollup1 to Rollup2.The reality behind this is that cross-chain assets undergo two bridge operations on L1, creating a seamless connection from Rollup1 to Rollup2 in the user's perception. In this process, operations on L1 are automatically processed, and users do not need to perform any additional operations.From the user's perspective, their current Rollup can perform cross-chain operations to L1 and any other Rollup. This design enhances the smoothness of the user experience while hiding the underlying complexity.

6. Lumoz’s dual-token economic model

If we ignore the zkVerfier License, Lumoz can be considered to adopt a dual-token economic model.

1. Utility Token MOZ

• Transaction Fees (Gas): All transactions within the Lumoz network require MOZ tokens as transaction fees, ensuring the secure operation of the network and the smooth conduct of transactions.

• Resource usage fee: Users use the zero-knowledge proof (ZKP) computing and artificial intelligence (AI) services, they need to pay MOZ tokens as resource usage fees, providing the necessary economic incentives for the network.

2. Equity Token esMOZ

• Incentivize participation: esMOZ tokens are used as rewards for nodes that provide computing power, security, and stability to the Lumoz network, which incentivizes and attracts participants to join the network. This incentive mechanism helps to enhance the security and stability of the network.

• Delegate zkVerifier nodes: Users can use esMOZ tokens to participate in delegation, select trusted nodes for delegation voting, and obtain network rewards while promoting decentralized governance of the network.

• Redemption mechanism: esMOZ tokens can be exchanged for MOZ tokens according to different redemption periods and redemption rates, providing users with flexible redemption options. This redemption mechanism provides users with more flexibility and options.

VII. Industry Outlook

1. The development prospects of RaaS track are promising

A significant trend in the future crypto industry is the application of multiple chains and multiple Rollups. As more and more projects are added, these projects will tend to look for public chains with better performance, lower costs, and even customized services. The rise of RaaS has laid the foundation for this demand.

First of all, from the perspective of customization, RaaS enables developers to build and use Rollup-based applications more flexibly through modular Rollups. Such flexibility can meet the specific business needs of the project, thereby injecting more innovative vitality into the entire ecosystem.

Secondly, from the perspective of performance, Rollup technology, as a Layer 2 solution, can significantly improve the throughput of the Ethereum network and reduce costs. In this context, RaaSXiaobai Navigation It can ensure that developers can deploy their applications safely while reducing costs. The implementation of the Cancun upgrade has brought significant changes to Ethereum L2, especially the introduction of the "blob transaction" type, which allows L2 transactions to be stored in cheaper and larger blobs, thereby reducing the cost of each L2 transaction and further improving transaction speed and throughput.

Finally, from the perspective of business model, RaaS shows a very broad development prospect. With the continuous increase of on-chain applications, the congestion problem of Ethereum main network will become more serious, which will undoubtedly drive the continued growth of demand for Rollup and RaaS.

2. ZK Rollup will become the mainstream Rollup solution

Vitalik has repeatedly stated that ZK Rollup will replace Optimistic Rollup and become the long-term Ethereum expansion solution. The previous article has described the advantages and disadvantages of ZK Rollup compared to Optimistic Rollup. With the continuous improvement of ZK technology and better compatibility with EVM, it is foreseeable that ZK Rollup will become the mainstream Rollup solution. Of course, there may be more expansion solutions such as OP Stack+ZK Fraud Proof that take into account the advantages of both Optimistic Rollup and ZK Rollup.

3. Community operation and ecosystem building may replace technology as the main challenges in building Rollup

The rise of RaaS has enabled developers to build and use Rollups more easily and quickly, and technology is no longer the main obstacle to building Rollups (technology is still an important factor that cannot be ignored in the process of building Rollups). In addition, emerging Rollups such as Base, Manta Pacific, and Blast have successfully gained rapid market recognition by using existing tools to build Rollups at low cost and shifting the focus of the project to ecosystem construction. Some analysts pointed out that the rise of these emerging Rollups not only set a benchmark for the market, but also provided a reference example for the transformation of traditional applications to L2.

8. Risks

First of all, although Lumoz has successfully attracted widespread participation from the crypto community in the Pre-Alpha and Alpha testnet stages, the recently launched Node Sale really requires users to pay real money to enter the market. If the node sale is not well managed, it may be detrimental to the ecological development of Lumoz. Moreover, it is noted that Lumoz has not yet announced an updated token distribution plan, and it is not ruled out that participants will get too little income after purchasing the node, and need to DYOR. However, since zkVerifier nodes allow refunds, delegations, and transfers, even if there is a loss, participants can control the loss within a certain range.

IX. Conclusion

Lumoz has effectively solved the three major pain points faced by the ZK Rollup track with its modular computing layer, ZK RaaS, and NCRC native cross-chain bridge protocol, making it stand out as a pioneer and leader in the ZK Rollup industry. We are confident that Lumoz will continue to demonstrate its leadership in the future and promote the large-scale application and popularization of ZK-Rollup technology.

The article comes from the Internet:Lumoz Research Report: Modular chain issuance greatly reduces ZKP computing costs

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