Key points
Validium is a scaling solution for Ethereum that specializes in processing off-chain transactions while using zero-knowledge proofs to ensure transaction validity.
Validium helps process transactions efficiently by using operators to group transactions into batches and validate transactions, thereby reducing on-chain data storage and gas fees.
While it offers benefits such as increased transaction speed and enhanced privacy, validium also faces challenges, such as data availability risks and potential model concerns concentrate.
Introduce
Over the years, blockchain technology has improved significantly but scalability is still one of the outstanding issues. In this article, we will learn about validium, how validium works, and how validium enhances Ethereum's scalability.
What is Validium?
Validium is a scaling solution for Ethereum that uses off-chain computing power and data availability to process transactions more efficiently. Unlike zero-knowledge rollups (zk-rollup) which store some data on-chain, validium lets transactions off-chain while using zero-knowledge proofs (ZKP) to verify the validity of the transaction.
How does Validium work?
Validium works by executing transactions outside of Ethereum's mainnet, using smart contracts on Ethereum to ensure validity. integrity and integrity of the transaction. Let's take a look at some key aspects of validium.
Transaction
When a user wants to make a transaction using validium, they send that transaction to an operator. Operators are nodes responsible for executing transactions on the validium chain. The Operator can be a single entity or a group of entities selected through a proof-of-stake (PoS) system.
The operator groups the transactions into a batch and then processes these transactions out-of-chain. Once the lot is ready, the operator uses a special system called a proof circuit to create a proof that the transactions were executed correctly.
Status commitment
Imagine the status (record of all accounts and account balances) of Validium as a large tree, called a Merkle tree. The root of this tree – called the state root – is like a fingerprint that represents the entire state. This state root is stored on Ethereum.
When processing a transaction, the operator will update the state root to reflect the new account balance and status. The operator then sends this new state stem along with proof that everything was done correctly to Ethereum's mainnet.
Unlike zk-rollup, block producers on validium do not need to publish all transaction information on Ethereum. If Ethereum verifies the proof, the new state is accepted and the validium is updated.
Deposit and withdraw money
Users can deposit Ethereum into validium by sending ETH or other tokens to a special contract on Ethereum. The contract will transmit this deposit to the off-chain validium and credit the user's off-chain account.
When withdrawing funds to Ethereum, the user will send a withdrawal request to the operator. This operator puts this request into a batch and once the batch is verified on Ethereum, the user can withdraw his funds.
Validium and EVM compatibility
Simple application
Validium is effective for simple applications, such as token swaps and payments because validium can quickly process many transactions without having to store all the data on Ethereum's mainnet. Therefore, validium is the ideal choice for applications with simple transactions and do not require complex calculations.
Challenges with smart contracts
Smart contracts are programs that run on the blockchain and often involve complex operations. Validium has difficulty with smart contracts because proving that complex operations have been performed correctly requires more computational power. This makes it more difficult for validium to support the many functions that smart contracts can provide.
Potential solutions
Several projects are looking to make validium more compatible with Ethereum's smart contract functionality. One method is to create special versions of programming languages like Solidity (used to write Ethereum smart contracts) that are optimized for validium. However, this can be limited as it may not support all the features of the regular Ethereum programming environment.
Benefits of validium
Performance
Validium can process up to 9,000 transactions per second (TPS), easing the data storage and computational work for Ethereum's mainnet. This is important for applications like decentralized exchanges (DEX), where speed and cost efficiency are important.
Cut the cost
Validium can significantly reduce gas fees by not posting transaction data on-chain, resulting in lower transaction costs for users.
Enhanced security
With the ability to store data off-chain, validium can increase transaction privacy and provide an additional layer of security without compromising the ability to scale.
The challenges of validium
Data availability risks
Validium's reliance on off-chain data availability also poses risks. If the operator or data availability manager retains transaction data, it may not be feasible to create the proof needed for a user to withdraw funds.
Risk of centralization
The need for specialized hardware to produce proof of validity can lead to centralization. If only a few entities are capable of providing the necessary resources, those entities can dominate the network, weakening its decentralized nature.
summary
Validium is a scaling solution designed to enhance the Ethereum network by processing off-chain transactions while ensuring transaction integrity through zero-knowledge proofs. By addressing the limitations of the on-chain data storage model, validiums can improve transaction throughput, marking an important step towards solving the blockchain scaling problem.
Read more:
What Is ZkEVM And How Can It Improve The Ethereum Ecosystem?
Rollup Optimistic And Zero-Knowledge: What's The Difference?
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