Alvaro Fernandez, the Chief Operations Officer (COO) at Lumoz, has stated that while zero-knowledge rollups have demonstrated exceptional security and scalability, the technology is still not user-friendly. To address this issue, networks should opt for ZK Rollups-as-a-Service (ZK-RaaS), as it simplifies the creation process for a single ZK Rollup. This makes them “more accessible for developers and projects to use,” Fernandez added.
Zero-Knowledge versus optimistic rollups
In his written responses sent to Bitcoin.com News via Telegram, Fernandez argued that by offering what he called “a seamless experience,” ZK-RaaS can also accelerate the “deployment of secure and scalable networks.” Although ZK-RaaS is believed to be more secure, Optimistic Rollups-as-a-Service are preferred due to their simplicity and cost-effectiveness.
As for the industry sectors best suited for ZK-RaaS, Lumoz’s COO identified decentralized finance (defi), gaming platforms and non-fungible token (NFT) marketplaces. In the field of decentralized finance, ZK-RaaS mitigates the challenges associated with the “high fees and slow transaction speeds” of traditional platforms. By leveraging ZK-RaaS, gaming platforms and NFT marketplaces can reduce transaction costs and increase transaction speed, while ensuring the security and privacy of their users’ data.
Below you will find Alvaro Fernandez’s answers to all the questions sent to him.
Bitcoin.com News (BCN): Zero-knowledge (ZK) rollups have proven highly effective at creating secure and scalable networks, but the technology is apparently not user-friendly. Can you tell our readers what these zero-knowledge rollups or ZK-RaaS are about and why they are considered critical for scalability?
Álvaro Fernandez (AF): Absolutely, while ZK-Rollups have demonstrated exceptional security and scalability, their usability has been a challenge. ZK-RaaS addresses this problem by providing an easy-to-use platform that abstracts the complexity of ZK Rollup technology.
ZK-RaaS simplifies the creation process of a single ZK rollup, making it more accessible to developers and projects. As Lumoz offers, it is a total no-code process, even ordinary people can use the ZK-RaaS launcher to generate their own ZK Rollup with bridges and explorers in minutes. One of the biggest challenges for most ZK projects is the cost of testing; usually these are the main costs of running a ZKRollup and the project requires a lot of effort and time to maintain the machines. Lumoz proposed this decentralized computing network that controls all computing power and is free for projects.
This approach is critical for scalability as it lowers the barrier to entry and encourages broader adoption of ZK Rollup technology. By providing a seamless experience, ZK-RaaS accelerates the deployment of secure and scalable networks.
BCN: There are two types of Rollups-as-a-Service: Optimistic Rollups and ZK-Rollups that are widely adopted by blockchain projects. What is the difference between the two and what are the pros and cons of each?
AF: Optimistic Rollups and ZK-Rollups are important Rollups-as-a-Service in blockchain. Optimistic Rollups assume the validity of transactions unless disputed, offering flexibility and cost-effectiveness. However, the arbitration process may involve delays. ZK-Rollups use Zero-Knowledge Proofs to authenticate private transactions and excel in privacy and security with faster finality. Still, they may have higher installation costs due to computing needs. The choice depends on project priorities: optimistic rollups for simplicity and cost-effectiveness, ZK rollups for increased privacy and security.
BCN: Your company Lumoz uses a hybrid Proof-of-Work/Proof-of-Stake network to facilitate ZK-proof mining and enable developers to generate a custom zero-knowledge EVM chain. Can you tell us how this hybrid model works and why it is necessary at all?
AF: Although proof of stake is mainly related to the DA aspect, several DA providers such as Celestia, Avail, Radius and Espresso populate the market. Projects are encouraged to freely choose any project for seamless integration, including Lumoz DA.
However, proof of work stands out as a core strength and a differentiating advantage of Lumoz. As mentioned earlier, generating zkps in all zk rollups requires computing power. Our decentralized prover network allows miners to contribute their computing power, participate in ZKP generation, and earn rewards through the POW process. Leveraging Lumoz’s extensive experience in mining, we developed this prover network to reduce the barriers for projects looking to adopt zk technology, while also facilitating miners to make valuable contributions and earn rewards received.
BCN: As more people enter the Web3 space, why do you think decentralized applications (dapps) deployed on older Layer-1 chains and Layer-2 solutions should consider using ZK-RaaS?
AF: Ethereum L1 is too busy, so Vitalik suggested the need for L2 to reduce transaction fees and increase TPS, thus improving the overall user experience. The differences between ZK and OP have been mentioned previously, with ZK being safer. Lumoz’s zk-raas addresses the issues of ZK computing power and implementation, allowing anyone to easily create custom zk rollups.
The benefits of having a zk rollup are clear: all resources in the chain serve the project and avoid conflict. This results in high TPS, low transaction costs and an excellent user experience.
BCN: How does cross-rollup interoperability work with ZK-RaaS? Can you tell us about Lumoz’s Native Cross Rollup Communication (NCRC) protocol that claims to provide a reliable solution for rollup interoperability?
AF: Cross-rollup interoperability is crucial in the ZK-RaaS framework, and Lumoz’s NCRC protocol ensures a seamless and reliable solution. This enables direct communication between ZK-Rollup chains, promoting a decentralized and secure environment without intermediaries. NCRC 2.0 improves on this by enabling cross-contract calls between second-tier networks, enabling atomic cross-rollup contract calls.
Lumoz prioritizes the user experience by seamlessly integrating the first-tier network, ensuring asset concentration without compromising decentralization. The NCRC protocol, especially in its latest version, is an example of Lumoz’s commitment to achieving reliable cross-rollup interoperability, addressing challenges and improving the connectivity of the blockchain ecosystem.
BCN: Which industry segments are most likely to benefit from ZK-RaaS? And how useful could it be for the Web2 companies looking to build their custom app chains?
AF: ZK-RaaS demonstrates its broad applicability across various industrial segments, extending its benefits beyond the blockchain domain. In the financial and decentralized finance sector, ZK-RaaS has the potential to transform transactions by ensuring security and scalability, mitigating the challenges associated with high fees and slow transaction speeds on traditional platforms.
Gaming platforms and NFT marketplaces can leverage ZK-RaaS for scalable and cost-effective transactions involving in-game assets and unique digital assets represented as NFTs. Furthermore, in identity management, ZK-RaaS can play a crucial role in authenticating users without revealing sensitive information, making it valuable for industries that need robust identity solutions.
As Web2 companies venture into building custom Appchains, ZK-RaaS is emerging as a versatile solution that offers scalability, privacy-preserving, customization, cost-effectiveness, and interoperability. This comprehensive set of features positions ZK-RaaS as a versatile choice for enhancing capabilities and meeting diverse needs in the evolving digital landscape.
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