Summary

As cryptocurrencies and blockchain grow in popularity, developers are looking for ways to improve the system's ability to adapt to increased demand, allowing it to scale. Sharding, sidechains, state channels, and aggregation are all methods of scaling. Blockchain aggregation moves certain transaction processes to a secondary chain while storing transaction data on the main Layer 1 blockchain. This article will explore two types of aggregation in crypto - optimistic and zero-knowledge.

Introduction

Due to the increased demand in the crypto industry, some blockchain His abilities were tested to the limit. If the blockchain capacity is insufficient, it will lead to network congestion and expensive transaction costs. To address this issue, the industry is actively developing and testing scaling solutions in the hope of increasing transaction throughput and speed. Such solutions can be divided into two groups: Layer 1 and Layer 2.

Layer 1 scaling solutions (such as sharding) are directly implemented on the main blockchain (also known as the base blockchain or Layer 1 blockchain to make changes. Layer 2 scaling solutions are run on top of the Layer 1 blockchain. Examples of Layer 2 scaling solutions include state channels, sidechains, and blockchain aggregations.

Blockchain rollups are protocols designed to increase throughput and reduce costs. They aim to address many popular areas by bundling transactions and reducing data size problems faced by the blockchain, thereby improving the efficiency of transaction processing and storage.

What is blockchain aggregation?

Aggregation is a Layer 2 solution designed to bundle transaction data and Transfer it out of the main chain (or Layer 1 blockchain). The transaction is then executed off-chain, while the assets are held in the on-chain smart contract. The transaction data will be sent back to the main blockchain upon completion.

Theoretically, any Layer 1 solution can perform aggregation to improve transaction efficiency in terms of throughput. Through aggregation, blockchain can increase the number of transactions processed and recorded within a certain time frame.

Currently, there are two types of aggregation - optimistic aggregation and zero-knowledge (zk) aggregation.

What is optimistic summary?

Optimistic aggregation is a protocol that increases transaction output by bundling multiple transactions processed off-chain into batches. Afterwards, the transaction data is recorded on the main chain using data compression technology, which helps reduce costs and increase speed. According to Ethereum, optimistic rollups can increase scalability by 10 to 100 times.

How does optimistic summary verify transactions?

In order to improve efficiency, transactions are enabled by default. You might wonder if security is being compromised in order to speed up transaction processing. However, optimistic aggregation uses a fraud-proof mechanism that sets up a dispute resolution period called a "challenge period." During this time, anyone monitoring the aggregation can submit a challenge to verify via fraud proof that transactions were processed accurately.

If an error is found in the batch, the rollup protocol will correct the error by re-executing the erroneous transaction and updating the block. Parties that approve the execution of erroneous transactions will be subject to penalties.

Limitations of optimistic aggregation

Although optimistic aggregation does not have a transaction verification process, it does set up a challenge period that zero-knowledge aggregation does not have, which will increase the time required to complete the transaction.

The finality of the chain with optimistic aggregation is also lower than the finality of zero-knowledge aggregation. Finality is a numerical value that measures how long a user must wait to be reasonably sure that a transaction will not be reversed or changed. There will be a delay in withdrawing funds from optimistic rollups as funds will not be released until after the challenge period. In contrast, withdrawals from zero-knowledge aggregation can take effect immediately after the zero-knowledge aggregation smart contract verifies the validity proof.

Some people believe that optimistic aggregation is less efficient than zero-knowledge aggregation. When using optimistic aggregation, all transaction data must be published on-chain for transactions to be completed. For zero-knowledge aggregation, only validity proof is needed on the chain.

What is zero-knowledge (zk) summary?

Zero-knowledge aggregation is a protocol that bundles transactions and submits them to the main chain in batches. For each batch, once the transactions in the batch have been executed, the zero-knowledge rollup operator submits a summary of the required changes. The operator also has a role to produce validity certificates to prove that the changes are accurate. These proofs are much smaller than transaction data; therefore verifying them is faster and cheaper.

On Ethereum, zero-knowledge aggregation occurs when writing transactions to Ethereum as call data , which will reduce transaction data through compression technology, thereby effectively reducing user fees.

How does zero-knowledge aggregation verify transactions?

Zero-knowledge rollup uses zero-knowledge proofs (ZKP) to verify transactions. A party called the prover will use ZKP to prove to another party called the verifier and make it believe that it knows or possesses a certain message, thereby verifying the transaction.

How it works:

1. A prover provides a mathematical proof that only he or she can generate.

2. The verifier will use this mathematical proof to verify the validity of the transaction.

3. This information can be proven valid without revealing the content to the verifier.

Benefits of zero-knowledge aggregation

If implemented properly, zero-knowledge aggregation can provide users with a high degree of security. A key feature that facilitates this security is the use of zero-knowledge validity proofs. They ensure that the network can only operate in a valid state and that operators cannot steal user funds or compromise the system in any way.

Another benefit of zero-knowledge aggregation is that users do not need to monitor the network. It stores all data on-chain and requires proof of validity. Therefore, operators cannot cheat and users do not have to worry about network misconduct. Additionally, zero-knowledge rollups allow users to withdraw funds to the mainnet without having to cooperate with an operator by proving token ownership through data availability.

Similar to optimistic aggregation, zero-knowledge aggregation also implements an off-chain execution mechanism to increase transaction execution speed.

The difference between zero-knowledge aggregation and optimistic aggregation

Optimistic aggregation and zero-knowledge aggregation The main differences between knowledge summaries are as follows.

What are the prospects for zero-knowledge & optimistic aggregation?

The future of zero-knowledge and optimistic aggregation remains a question mark. As more people adopt cryptocurrencies and blockchain, aggregation may play a crucial role in making blockchain more efficient. The blockchain will likely continue to test various scaling solutions, including sharding, aggregation, and Layer 0. We can also see new solutions being created and implemented that can be used alongside or in place of aggregation.

Conclusion

As the demand for cryptocurrencies increases, the limits of blockchain are tested, and many people have proposed different scaling solutions. In this article, we explore the inherent differences between two variants of aggregation (optimistic and zero-knowledge). As rollup continues to be battle-tested, we may eventually get better versions that help us achieve scalability and ultimately mass adoption.

Extended reading

• Blockchain Layer 1 and Layer 2 extension solutions

• Detailed explanation of zk-SNARK and zk-STARK

• The concept of zero-knowledge proof and its impact on the blockchain

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