With the development of blockchain technology, the ecosystem of multi-chain coexistence continues to grow, providing users with a variety of choices. Unlike Bitcoin's Proof of Work (PoW), Proof of Stake (PoS) reduces the cost of network startup and maintenance, and promotes the increase of innovative projects. However, diversity brings fragmentation in liquidity and usage, affecting user experience. The economic incentives of different projects exacerbate this phenomenon, and developers are more inclined to create new chains rather than develop on existing chains.

In Web3, cross-chain interactions rely on insecure or centralized tools and lack a unified, secure and efficient management protocol. This is different from the seamless and secure communication in Web2 applications through standardized protocols such as HTTP. Web3's cross-chain interactions typically require bridges or centralized exchanges, which increases complexity and potential security risks. Cross-chain bridges involve locking assets and minting tokens of equivalent value on the target chain. Although this facilitates asset mobility, it also introduces operational complexity and security risks, and the losses caused by cross-chain bridge attacks continue to increase every year. The complexity of these operations discourages new users and forces existing users to return to centralized off-chain applications. Why must chains rely on bridging products?

To solve this problem, the concept of chain abstraction came into being. Chain abstraction aims to simplify the interaction between users and different blockchains by providing unified interfaces and tools, thereby enhancing interoperability and user experience.

When Cycle Network was founded in October 2022, the concept of chain abstraction had not yet been formally defined. Cycle Network is committed to solving the problems of multi-chain fragmentation and capital fragmentation, hoping to improve the user's on-chain experience and provide users with safer and more efficient cross-chain solutions. Through bridgeless technology, Cycle Network is working to achieve a more connected and user-friendly blockchain ecosystem, paving the way for future blockchain applications.

Bridgeless embedded experience is the real chain abstraction

Although decentralization is the most secure algorithm, it has not been widely adopted due to the complex operations required by Web3. Recognizing this, the Cycle Team is working towards this goal, and this is before the term "chain abstraction" was coined.

As the concept of chain abstraction spreads, more and more projects are beginning to explore its potential. Each project has its own innovations in chain abstraction solutions, some provide universal account systems that allow users to access multiple blockchains through a single account, and others use cross-chain bridge aggregators to integrate multiple cross-chain bridge protocols. The Cycle Network team adopts a decentralized, bridge-free solution to seamlessly connect all blockchains. With the emergence of Layer 2 solutions and numerous chains, this innovation ensures that end users and developers are no longer isolated or fragmented, and can share liquidity, pay fees, and sign transactions without relying on traditional bridges.

The impact of Cycle Network integration on end users and developers is crucial. These two are the most critical players in the Web3 ecosystem, and Cycle Network's decentralized bridgeless transaction process provides them with great convenience.

Decentralized bridgeless transaction process

Cycle Network's core technology utilizes a multi-layer architecture based on Verifiable State Aggregation (VSA), combining security layer, extension layer and Cycle layer to facilitate seamless cross-chain transactions. The system uses zk-rollup technology to aggregate transactions into batches, which are then processed by zk-rollup nodes, generating zk proofs to verify transactions without exposing their details. The verifiable aggregation sorter sorts and packages these batches to ensure efficient processing of transactions.

Next, the Omni State Channel Indexer (OSCI) performs decentralized indexing to ensure the availability and verifiability of each transaction status. Verified transactions are recorded on the Cycle layer, making direct cross-chain data operations possible through a single SDK interface. Finally, updates to the Cycle layer are broadcast back to the respective chains, reflecting asset transfers or smart contract executions, ensuring that all nodes in the network have consistent and up-to-date information.

This approach not only improves security and integrity, but also reduces transaction fees and supports seamless interoperability between different blockchain architectures (including EVM and non-EVM chains and Layer 2 solutions). Cycle Network's innovation has undoubtedly injected new vitality into the blockchain ecosystem and promoted the widespread application of decentralized technology.

 

Practical applications of bridgeless solutions

The decentralized, bridgeless central solution seamlessly connects all blockchains, eliminating intermediary steps and reducing potential security risks. This approach provides significant benefits to emerging and existing blockchain platforms, end users, and developers.

Piggy Bank is a groundbreaking full-chain asset management platform that fully leverages the Cycle Network to provide a revolutionary asset management experience. As a flagship product, Piggy Bank simplifies the use of blockchain and becomes a crypto asset management tool accessible to everyone. It provides a bridge-free experience, leveraging Cycle's full-chain liquidity sharing solution to automate and optimize investment strategies on multiple chains.

For end users

Full-chain bridgeless user experience

Piggy Bank effectively eliminates the complexity of different chains for Web3 and Web2 users. Users can easily manage, trade, invest, and mint assets without worrying about the complex details of various chains, fuel tokens, or third-party bridges. This seamless experience allows users to easily handle their crypto assets like managing traditional financial products.

High-yield platform brings together full-chain DeFi protocols

Piggy Bank uses Cycle Network to aggregate DeFi protocols from any network (such as L1, EVM, non-EVM, BTC L2, etc.). Through AI-driven analysis, Piggy Bank is able to evaluate security, returns, and stability, and recommend personalized investment strategies. Users only need to select investment options with one click to get higher returns due to cross-chain aggregation and compound interest.

This innovation not only improves the user experience, but also brings new possibilities for crypto asset management. The successful example of Piggy Bank demonstrates the importance of bridgeless solutions in promoting the development of the blockchain ecosystem, which is highly appreciated.

Diversified asset classes

Piggy Bank demonstrates its leading innovation capabilities by integrating Cycle's full-chain DeFi center to support multiple asset classes. Users can not only manage physical assets such as real estate and artworks, but also access various financial derivatives (such as options, futures, leveraged tokens), and conduct asset lending and liquidity mining on all chains, reflecting its wide range of application scenarios.

For Developers

Shared liquidity pool

Piggy Bank’s integration with Cycle liquidity aggregator consolidates dispersed liquidity resources into a shared pool, significantly enhancing overall liquidity and capital efficiency. This approach maximizes returns and simplifies liquidity management, providing strong support for developers.

Safe and low-cost

Cycle Network provides Piggy Bank with a unified interface and protocol, greatly simplifying blockchain operations and integration. The shared liquidity pool not only reduces the risks associated with single-chain financing, but also reduces the potential for fraud, demonstrating its advantages in security and cost-effectiveness.

Example: Minting NFTs without a Bridge

Piggy Bank's highly anticipated Piggy Box event attracted more than 246,000 accounts, and nearly 190,000 assets were minted in a bridgeless manner. Users from any chain can mint assets with one click without leaving their home chain, demonstrating its seamless user experience. Transactions, fees, and signatures are seamlessly processed on the user's preferred chain, greatly improving user convenience.

BEVM Cooperation

The collaboration with BEVM - the first fully decentralized EVM compatible with Bitcoin L2, using BTC as fuel - highlights the power of Cycle Network's bridgeless solution. In just three days, 40K new users were attracted, who were able to seamlessly mint BEVM Genesis Boxes without having to deal with cross-chain operations or fees. This achievement shows the advantages and ease of use of Piggy Bank in real-world applications.

IoTeX Collaboration

The collaboration with IoTeX also demonstrates the power of Cycle Network’s bridgeless solution in real-world applications. In a recent testnet NFT minting event, users were able to mint IoTeX testnet assets directly from various blockchains, and after completing the minting experience, they also received exclusive Genesis Boxes, unlocking rich rewards in the Cycle Network ecosystem. In two days, 5,000 NFTs were minted through Piggy Bank, allowing users from any chain to participate and eliminating the complexity of cross-chain interactions.

Based on these successful collaborations, Cycle Network's decentralized bridgeless information transmission has successfully served multiple emerging chains, helping applications break free from the limitations of specific chains and achieve seamless operations across multiple blockchains. This capability is critical for developers seeking to expand their influence and user base. Currently, the bridgeless SDK is open to any EVM chain and DApp, enabling developers to provide users with a bridgeless experience without any fee restrictions, demonstrating its leading position in the industry.

in conclusion

Cycle Network focuses on achieving chain abstraction through bridgeless cross-chain solutions, providing a secure and simplified alternative that effectively addresses the interoperability challenges of traditional cross-chain bridges. Using zk-rollup technology and aggregate sorters, Cycle Network brings a new cross-chain experience to developers and users, meeting diverse cross-chain needs.

This chain abstraction-based approach successfully overcomes the complexity and fragmentation in a multi-chain environment, providing strong support for the widespread adoption and interoperability of blockchains.

As blockchain technology continues to advance and the multi-chain environment matures, Cycle Network has demonstrated a firm commitment to further developing chain abstraction and cross-chain technology, aiming to overcome existing limitations and explore new application areas. This forward-looking exploration will undoubtedly promote the development of the entire blockchain ecosystem.