Zero-knowledge modularity can help to scale web3

For years, Web3 builders have struggled to make their methods scalable. When new applied sciences come on the scene, they’re usually launched in a monolithic trend, with every part contained in a single stack. Nevertheless, as these applied sciences mature, they change into extra specialised and completely different firms are honing completely different points of the stack to extend scalability.

That is taking place now with blockchains. Every layer within the stack is optimized in a modular trend, and Web3 builders are adopting these modular options to cut back their prices and enhance the effectivity and maintainability of their methods.

For instance, execution is more and more dealt with by L2s reminiscent of Arbitrum and Optimism, which allow a lot larger throughput and decrease prices than execution on Ethereum’s L1. Equally, the information availability layer is optimized by modular tasks reminiscent of Celestia and EigenDA.

Because the Web3 ecosystem matures, it is turning into more and more clear that the longer term lies in specialization and optimization at each layer of the stack. By enabling specialised groups to excellent completely different elements of the stack, we are able to obtain ranges of scalability and cost-efficiency that merely weren’t potential with monolithic designs.

ZK rollups as an endgame for blockchain scalability

The journey to scalability actually begins to return into focus after we contemplate the rise of ZK-based applied sciences reminiscent of zero-knowledge rollups.

ZK rollups have emerged because the optimum scaling answer for blockchains as a result of they use zero-knowledge proofs (ZKPs) to validate transactions with out revealing delicate info, however most significantly, they will additionally validate transactions quicker and with minimal fuel prices, offered that they constructed with the appropriate instruments. zkVerify, a instrument we constructed precisely for this function, is an ideal instance of this.

With a ZK rollup L2 chain, many transactions are merged on the L2 after which despatched to the L1 as one transaction. This aggregated transaction additionally accommodates cryptographic proof, which permits all the batch to be effectively verified.

ZKPs are costly and computationally intensive

Presently, the most important barrier to ZK methods is effectively verifying and dealing with the ZKPs. “Proof verification” is an important step that ensures a ZKP is cryptographically legitimate, and it’s required for ZK rollups to settle transactions on the L1.

Proof verification just isn’t required for optimistic merges as a result of they depend on one other proof system referred to as fraud proofs. By default, all transactions are assumed to be legitimate, and to make sure safety, there’s a difficult interval throughout which anybody can present proof of fraud in the event that they uncover invalid transactions. Nevertheless, the problem interval can last as long as seven days, which delays the finality of transactions. Regardless of this downside, optimistic rollups have change into the preferred answer for scaling blockchains at the moment.

However, ZK rollups ship the batch transaction together with standing information to the underlying L1 for verification. The L1 verifies the proof within the onchain and updates the merge standing so that each one transactions are legitimate and instantly ultimate. This strategy considerably will increase transaction throughput and maintains stronger safety ensures with out requiring an extended problem interval.

Modular ZKP verification is the answer

Thankfully, modularity can prolong past the bottom layer. The identical modular strategy that has considerably improved L1 chains like Ethereum may also be utilized to ZK rollups.

How does this work in observe? Simply as Celestia handles information availability on a devoted blockchain, a standalone chain can deal with the proof verification course of for ZK rollups (and generally for all methods that depend on ZKPs), whereas nonetheless protecting these batch transactions on the principle L1 chain is dealt with.

By outsourcing proof verification to a modular supplier, ZK rollups can focus solely on execution and consumer expertise. The proof verification chain works in parallel with the ZK rollup, however stays an impartial chain.

This strategy reduces prices by greater than 90% and makes them extra secure over time. As an alternative of getting a payment construction depending on Ethereum (ETH) fuel costs – which may be risky and unpredictable – ZK rollups can offload proof verification to a different layer with out these fluctuations.

Moreover, this modular proof verification layer may be upgraded past the present limits of Ethereum L1, which has sure limitations on the sorts of precompiles you should use. In layman’s phrases, because of this a modular proof verification service can combine the newest cryptographic improvements in a matter of weeks, whereas these updates might take years to change into out there on Ethereum.

Modular proof verification may also be utilized to different ZK applied sciences, together with any dApp that depends on zero-knowledge proofs. That is the fantastic thing about a modular answer: it may be utilized to any system that wants it.

By standardizing the costliest step in constructing methods that use ZKPs, all blockchains can profit, bringing us one step nearer to a scalable and interoperable future.

What occurs with out modularity?

Trying on the anticipated progress of web3 within the coming years, proof verification prices for ZK rollups are anticipated to skyrocket.

At Horizen Labs, we estimate that $47 million could have been spent on proof verification for ZK rollups on Ethereum in 2023, and all the proof verification market is anticipated to be price $1.5 billion or extra by 2028. By 2030, it’s estimated that 90 billion proofs will probably be generated by decentralized purposes alone.

The most costly step in a ZK rollup, proof verification, must be revamped, in any other case will probably be an enormous problem for ZK know-how to scale to a billion customers. There is no such thing as a motive for ZK rollups and ZK-based purposes to incur such prices, and we should always not place pointless necessities on blockchains that hinder their growth.

With modular proof verification, the price of verifying a single proof can drop from about $20 (contemplating a Groth16 proof scheme, a fuel worth of 30 gwei, and an Ethereum worth of $3000) to about $1.80. These huge price financial savings will unlock new frontiers of innovation in web3, together with new ZK apps, Bitcoin ZK rollups, testing methods, and extra. Any ZK-based chain or utility can profit from shifting proof verification to a modular answer.

As extra zero-knowledge proofs are generated in web3, these proofs may also have to be verified. And because the total Web3 panorama turns into extra modular, it solely is sensible to use that strategy to ZKPs as effectively.