The crowded field of public blockchains
When it comes to blockchain technology, many still view it as cutting-edge and sophisticated. Just a few years ago, if someone claimed to have launched their own blockchain, they would have been considered a genius. However, today, the landscape is saturated with various blockchain projects. Just looking at Ethereum’s Layer2 projects, there are roughly over six thousand in the entire crypto industry!
It is widely known that blockchain technology faces the impossible triangle concept, where it cannot simultaneously prioritize scalability, security, and decentralization. For instance, both TBC and Ethereum’s main chain excel in security and decentralization, but they fall short in scalability. The transactions per second (TPS) for Ethereum’s main network is around 20, while Bitcoin’s main network TPS is only 7.
To address this issue, some developers have turned to Layer2 solutions, sacrificing a portion of security and decentralization to improve transaction speed and capacity. Most Layer2 solutions currently offer TPS in the thousands, which is more than sufficient for the limited mainstream applications at present.
Creating a Layer2 chain is not as challenging as one might think. There is a track called RAAS (Rollups-as-a-Service) that supports “one-click chain creation,” allowing users to create a chain in just 10 minutes. Additionally, users have the flexibility to choose from various ecosystems such as Bitcoin, Ethereum, or Solana, all while utilizing the advanced zk-rollup technology.
One such example is Lumoz, a prominent player in the RAAS field. Lumoz introduced a staking Rollup framework, which distinguishes it from other projects. Despite the technical jargon, Lumoz and similar projects are revolutionizing the blockchain space with their innovative approaches.
To understand the evolution of Layer2 technology, it is essential to explore the technical paths adopted by most Layer2 chains. These paths include State Channels, Sidechains, and Rollups, each offering unique solutions to enhance blockchain scalability and efficiency.
State Channels allow multiple parties to conduct numerous transactions off-chain before submitting the final state to the blockchain, akin to running a tab at a restaurant. Sidechains operate as independent blockchains connected to the main chain through bi-directional anchoring, with Polygon being a prominent example. Rollups, on the other hand, aggregate multiple transactions into a single data set on the main chain, improving efficiency and throughput.
Rollups can further be categorized as Optimistic (OP) or Zero-Knowledge (ZK), each with its strengths and weaknesses. While OP Rollups assume all aggregated data is valid, ZK Rollups leverage cryptographic zero-knowledge proofs to ensure data integrity without revealing sensitive information. Projects like Arbitrum and zkSync exemplify the practical application of these technologies.
The ongoing debate between OP and ZK technologies underscores the rapid evolution and diversification within the Layer2 landscape. As technological advancements continue to reshape the blockchain industry, innovative solutions like modularized approaches aim to address existing challenges and improve network efficiency.
Projects like Lumoz are at the forefront of this technological revolution, enhancing ZKP algorithms and optimizing resource utilization within their clusters. By introducing concepts like ZK-PoW and simplifying ZK-Rollup deployment, Lumoz is paving the way for broader adoption of zkEVM-based applications and facilitating large-scale network deployments.
In conclusion, Lumoz’s pioneering efforts in the Layer2 space have garnered widespread acclaim within the crypto industry. With its support for numerous Layer2 chains and its ability to streamline zk rollup deployment, Lumoz has established itself as a prominent player in the blockchain ecosystem, revolutionizing the way we perceive and utilize blockchain technology.
