Syscoin, the only layer-1 blockchain with Ethereum Virtual Machine functionality (EVM), will launch a zero-knowledge crosschain bridge (ZKCross), for demonstration in September. It is expected that the bridge will work according to the principle of preventing exploits on bridges, while also facilitating crosschain decentralized exchanges.
Over $1 billion has been stolen by hackers this year. This has caused tension among investors. Cross-chain Bridges have used multiparty computation (MPC), or multisignature to authenticate trades over the years. This has led to a flurry of cross-chain attack.
Trading and managing liquidity across multiple chains
Syscoin’s ZKCross bridge will come as a relief to investors as it will operate an off-chain automated market maker (AMM) mechanism. The mechanisms manage trade and liquidity across multiple chain chains.
Zero-knowledge proof is a fast and private method of authentication that will be used during transactions. Transactions are then compressed and rolled up on Syscoin’s base layer to ensure accuracy.
Syscoin believes that bridge technology will increase economies of scale. The AMM will eventually go offline and users will have to return to the base layer.
Syscoin lead developer, Jagdeep Sidhu said:
“If it’s not this bridge, someone else will release a zero-knowledge bridge and that’ll be the bridge solution everyone is using. I really think this is where things are headed.’’
Limitations and zero-knowledge advantage
Zero-Knowledge bridge will cost users very little as they will only have to pay their CPU. Zero-knowledge technology does have limitations. The main one is a lack decentralization.
“All the rollups are centralized right now, we’ll start with a centralized sequencer, but the goal is to create a decentralized sequencer down the road.”
Syscoin is hopeful about creating a zero knowledge Ethereum virtual machine (EVM). This is the best proof system to support Ethereum smart contracts and is similar to the Polygon-launched zkEVM protocol. Besides, Sidhu believes that no one in the crypto industry has ever created “proper EVM” however, he noted that all protocols will eventually join the space.