Written by: 1912212.eth, Foresight News

The term ZK, which was originally highly anticipated by the market, seems to have been born at the wrong time. With the sluggish market, the attention has plummeted. In addition, the ZK protocol ZKsync, Polyhedra, and Taiko have been questioned by the market due to airdrop incidents, and market funds and sentiment have fallen to the bottom.

Are there any new ZK projects that have been overlooked during the market's quiet cycle? As the infrastructure layer of Web3, Mystiko was selected as one of CoinList's 2022 summer seed projects. In March this year, Mystiko completed a $18 million seed round of financing, led by Sequoia Capital India/SEA (now known as Peak XV Partners), with participation from Samsung Next, HashKey, CoinList, Naval Ravikant, etc. Both the seed round amount and the investor lineup are luxurious.

What is Mystiko?

Mystiko is the foundational layer of Web3. Mystiko operates as a universal ZK SDK, enhancing blockchain scalability, interoperability, and privacy. Mystiko's SDK enables developers to build blockchain applications that reduce costs, scale easily, interact securely across chains, and protect users' on-chain identities (account balances, transaction history, etc.).

According to data from its official website, Mystiko's total transaction volume has exceeded US$2.7 billion, and the total number of transactions has exceeded 1.26 million.

At the end of March this year, Mystiko token XZK was sold on CoinList at a price of $0.15 per token. The final number of participants was 20,260, with a total of 75 million tokens sold and $11.25 million raised.

What can users and developers do?

Most companies and users do not want the public to know certain data information. Blockchain, as the foundation of Web3, exposes all users' transaction data to the public with its transparent and traceable design, including account balances, asset holdings, transaction history, etc., which brings considerable adverse effects.

Mystiko.Network uses zero-knowledge proof technology to ensure the security of detailed user transaction information on and between blockchains.

For users, using a wallet or dApp authorized by Mystiko.Network (https://camowallet.app/) will not leak the income and expenditure information exposed by their on-chain payment behavior, and will also protect their trading strategies from being discovered by some traders.

Developers can build any DApp by integrating Mystiko's universal ZK SDK. For chains, both L1 and L2 can use Mystiko as the ZK layer, which can be used for single-chain transactions or cross-chain transmissions. For cross-chain bridges, Mystiko can be used as a ZK bridge to achieve cross-chain transactions.

Wallets can also use Mystiko to manage assets in a trusted environment. DeFi DApps, such as DEX, can use Mystiko to become ZK DEX. Crypto payment DApps can use Mystiko to perform C2C ​​and C2B payments while protecting the recipient's on-chain income history.

What are the technical highlights of Mystiko?

Mystiko uses a technology called Snark of Snarks to increase its security and reduce its gas fees (see figure below). Mystiko.Network has integrated ZK Rollup, and transaction costs on the mainnet are 50-90% lower than other major existing ZK solutions.

Mystiko also uses JoinSplit technology, allowing users to transfer and withdraw any amount of deposited total assets. JoinSplit consumes one or two input (deposit) values ​​and creates one or two output (withdrawal) values.

For example, if a user makes 3 deposits on Mystiko.Network on the Ethereum mainnet with amounts of 10 ETH, 20 ETH, and 30 ETH, the user can now choose to withdraw any amount below 50 ETH with full ZK functionality. This feature enhances functional flexibility and facilitates users to improve funding efficiency. In addition, if both the sender and receiver of funds are Mystiko users, funds can be transferred without touching the public chain.

Mystiko also specifically designs a decentralized audit system for on-chain ZK transactions and establishes a decentralized audit committee that will audit transaction flows of suspicious deposits from bad actors.

XZK Token Economics

The total amount of Mystiko's native token XZK is 1 billion, with the specific distribution as follows: 20.8% for community incentives, 20% for private placement rounds, 15% for core contributors/consultants, 11% for developers, 10% for marketing, and 10% for the ecosystem.

Currently, the main utility of XZK is staking and governance. Mystiko relies on ZK-Rollup miners and relayers to operate, and to become the former two, XZK token holders need to stake a certain amount of XZK. In addition, XZK token holders can participate in network governance voting, and users who have reached 100 million tokens can directly initiate proposals.