Background and Problem
Blockchain technology has long faced scalability issues. To address this problem, the industry has proposed various Layer1 and Rollup solutions. With the implementation of these solutions, new public chains and Layer2 Rollup have developed rapidly, expanding the performance scalability of blockchains, but also facing new situations: the status data of users and decentralized applications (DApps) is no longer limited to a few blockchains, but is scattered across dozens of Layer1 and Rollup networks.
This decentralization brings new challenges, including fragmented user experience, increased barriers to use, insufficient liquidity in decentralized finance (DeFi) protocols, complexity of cross-chain DApp state synchronization, and increased governance difficulty. These problems require new solutions to cope with the increasingly complex blockchain ecosystem.
Solutions and Trends
With the evolution of blockchain technology and the improvement of infrastructure, three types of solutions/tracks have emerged in the market to address the above problems: cross-chain, omni-chain and chain abstraction.
Cross-chain: refers to the interaction and communication between different blockchains to achieve interoperability of data and assets. Cross-chain technology allows applications and users on different blockchains to interact, breaking the island effect of blockchain.
Implementation method: Realize inter-chain communication through cross-chain protocols, cross-chain bridges or other technical means.
Advantages: Enhance the connectivity and flexibility of blockchain, and expand application scenarios and ecosystems.
Typical projects/applications: cross-chain public chains represented by Polkadot and Cosmos; cross-chain bridge projects represented by Stargate, Hop Exchange, Across, and Synapse Bridge.
Omni-Chain: refers to the implementation of complete functions and applications on a single blockchain, and all operations and data are performed on this single blockchain.
Implementation method: Build a unified Layer, where all operations and data are performed on one blockchain without the need for cross-chain interaction.
Advantages: The system is simple and highly secure because all operations are performed in a trusted environment.
Typical projects/applications: Cross-chain message & asset protocols represented by LayerZero and Wormhole; Omni Network with Rollup integration; cross-chain interoperability L1 public chain ZetaChain.
Chain Abstraction: refers to abstracting and encapsulating the complexity of the blockchain system so that developers and users do not have to deal directly with the underlying technical details. Through chain abstraction, developers can use unified interfaces and tools to interact with different blockchains without having to worry about the specific implementation details of each blockchain. Users can seamlessly browse and use Web3 applications without having to pay attention to the underlying blockchain, cross-chain operations, gas payments, and other complex details.
Implementation method: Provide a unified interface through API, SDK or middleware to shield the differences in the underlying chains.
Advantages: Improve development efficiency, enhance system flexibility and scalability; improve user experience and popularity.
Typical projects/applications: Cycle Network, a trustless liquidity aggregation network; Particle Network, a modular L1 public chain.
Compared with the above three solutions, chain abstraction has obvious advantages in developer friendliness and user experience, and is also a key driving force for the future development of blockchain and the promotion of mainstream adoption. Cycle Network is a leading project in the chain abstraction track. With its unique full-chain communication technology, it has unique technical advantages in achieving asset liquidity aggregation and interoperability between different chains, bringing a more unified, convenient and secure user experience to Web3.
What is Cycle Network?
Cycle Network is a trustless aggregated liquidity network for all blockchains, based on aggregated sorters and chain abstraction. Cycle uses multi-chain zk-rollup technology to expand the traditional one-to-one native bridge between L1 and L2 to support full connectivity of all chains. This enables users to achieve trustless full-chain interoperability on Cycle.
Through Cycle Network, developers and users can experience seamless communication and value transfer across all chains, layers, and dApps.
Cycle Network is committed to liberating developers from repetitive and tedious tasks. From the underlying architecture to the synchronization and deployment of information/assets, Cycle provides a one-stop solution, allowing developers to focus on innovative exploration, without fear of the unknown, and fully tap the unlimited potential of Web3.
What is Cycle Network used for?
Cycle: Bridgeless cross-chain interoperability, easily building multi-chain applications
Cycle breaks through the barriers of the ecosystem and realizes a seamless experience of cross-chain interoperability. Whether developers choose EVM chain, non-EVM chain, L2 or other modular chains, Cycle can provide a one-stop solution to support existing or new dApps to easily integrate and automatically build cross-chain applications. Only a simple plug-in contract is needed to realize cross-layer functions without any code modification or new chain deployment.
Full-chain distributed ledger empowers developers
Cycle provides a full-chain distributed ledger, freeing developers from the hassle of cross-chain learning and deployment. No more headaches for complex consensus mechanisms or custom rule sets for each layer/blockchain. Cycle empowers developers to focus on developing innovative applications.
High speed, low cost, creating the ultimate experience
Cycle toolkit, SDK and advanced smart contract design enable developers to build efficient and low-cost multi-chain applications at low cost. Lightning speed and ultimate user experience will bring more value to your application.
Core technology architecture
To achieve the ultimate in security and trustlessness, Cycle's cross-chain communication essentially deploys itself as a ZK-Rollup for all connected chains. The ZK-Rollup bridge provides trustless two-way verification. Cycle extends this functionality from Ethereum to all external networks, anchoring multi-chain states to Cycle states through aggregated sequencers. This simplifies the state synchronization problem in distributed systems, creating a decentralized super ledger and liquidity center for all blockchains.
It consists of three parts:
The overall architecture of Cycle Network consists of three main parts:
Cycle Layer: It is the core layer of Cycle. As the ZK-Rollup of Security Layer and Extend Layer, it provides unified multi-chain state management. The core modules include:
Verifiable Aggregate Sequencer is the core module of Cycle transaction packaging, relying on the Omni State Channel Indexer (OSCI) deployed on Ethereum to package all transactions;
Omni-Ledger is the global ledger on Cycle, storing all transaction status on the Cycle Network, including cross-chain transactions and internal transactions of the Cycle Layer;
2. Extend Layer: Connects to other blockchains besides Ethereum, including all L2 and other heterogeneous L1 (Solana, TON and Bitcoin, etc.). The core modules include:
The bridge contract is used to lock the original chain assets in the Rollup contract;
ZK Verifier verifies the ZK proof generated by Cycle to prove the legitimacy of the Rollup state;
Extend DA provides data availability and ensures data immutability and security.
3. Security Layer: It is the security layer of Cycle, ensuring the security of transaction status, and using Ethereum, which has the highest security among programmable networks. The core modules include:
Omni State Channel Indexer (OSCI) is a decentralized multi-chain indexer that records the rules for Sequencer to package multi-chain Rollin and Rollout transactions;
As a special Extend Layer, the Security Layer also has a bridge contract, ZK Verifier, and DA modules.
Key Component: OSCI
The key components of Cycle Network include Omni State Channel Indexer and Verifiable State Aggregation. Based on them, Cycle Network can effectively aggregate liquidity from different networks and solve state synchronization challenges, relying on its key component Omni State Channel Indexer.
Omni State Channel Indexer
Omni State Channel Indexer is a decentralized multi-chain indexer responsible for decentralized indexing and data availability of various extension layers in Cycle Network. It interacts with multiple blockchain networks (including Bitcoin, Ethereum, etc.), tracks assets and messages on different chains, and ensures that Cycle Network can verify and record data changes on different chains.
(Omni State Channel Indexer example)
Cycle Network's new experience and application scenarios
New experience for developers and users
For developers:
Enhanced interoperability: The global status of the Cycle Network facilitates seamless interaction between different blockchain networks and creates an easy-to-use environment for developers to brainstorm and develop more functional and innovative dApps.
Reduced Complexity: By solving the multi-chain fragmentation problem with one-click deployment across all chains, Cycle Network abstracts the development process and frees developers from infrastructure centralization to focus more on functional innovation.
Improve efficiency: Cycle Network provides dApps with a toolkit that enables them to easily perform cross-chain communications and transactions, and makes the development process smoother through low latency and security upgrades, resulting in a faster and more reliable experience.
For users:
Seamless bridge-less experience: Users can enjoy a better trading and interaction experience without the burden of chain notifications or liquidity and security fragmentation.
Greater accessibility: Cycle Network’s integration across multiple chains expands access to a wide range of decentralized applications and services, providing users with more choice and flexibility.
Enhanced security and trust: Benefiting from trustless interoperability, users can enjoy enhanced security and reliability in transactions and data interactions between various blockchain networks.
Typical application scenarios of Cycle Network
Full chain account: unified account management
The full-chain account solution aims to achieve seamless cross-chain interaction and unified account management. By connecting multiple blockchains through Cycle Network, users can manage and operate cross-chain assets and transactions in one account.
Liquidity Aggregator: Efficiently Allocating Liquidity
Cycle Network acts as a liquidity interface, working with liquidity providers to integrate and efficiently distribute liquidity. dApps or chains can easily access liquidity through Cycle's Liquidity Faucet interface SDK. Even end users can act as liquidity providers, provide liquidity and receive LP rewards.
Multi-chain DeFi ecosystem: unlock more DeFi Lego
Cycle's plug-and-play compatibility will unlock more DeFi Legos and activate more derivatives such as Perp Dex, LSD, options, interest swaps, etc., injecting new vitality into the DeFi ecosystem.
Full-chain trading robot: intelligent trading, higher returns
Cycle supports full-chain trading robots, multiplying the strategies of on-chain trading robots to achieve intelligent trading and bring higher returns to users.
AI agent: full-chain data empowerment, intelligent decision-making
Cycle provides real-time synchronization of full-chain data, and AI agents can perform full-chain machine learning, enhance parameter adjustment, vault management, DAO participation and other functions, and help developers build smarter and more powerful DeFi applications.
Full-chain NFT: Play to new heights, endless excitement
Cycle supports full-chain NFTs. As more chains interact, more exciting features will be experimented on NFTs, such as showing hidden functions/features/airdrops based on specific conditions/operations, bringing users a richer and more diversified NFT experience.
Full-chain dark pool: efficient trading, low cost
Cycle supports full-chain dark pools, which can help large traders conduct large transactions with more diversified asset types, achieve low slippage, better prices, save transaction costs, and will not cause on-chain fluctuations, providing large traders with a more efficient and lower-cost trading experience.
Cycle Network Development Phase
white paper:
The first version of the Cycle Network whitepaper (v 0.5) has been officially released, sharing the detailed architecture and potential of how the Cycle Network achieves global state, covering key topics including background, detailed technical disclosure of the Cycle Network framework, and potential real-world applications that developers can deploy using the Cycle Network.
White paper URL: https://www.cyclenetwork.io/whitepaper.pdf
StarFish Testnet:
The Cycle Network Testnet 1.0 for developers "Starfish" was officially launched, introducing a breakthrough multi-chain rollup feature, and developers can use the Cycle-JS-SDK to program and build their own Omni dApps.
Squid test network:
As the second iteration in Cycle Network, TestNet Squid has strategic integration with the Bitcoin ecosystem, facilitating seamless transfers of BRC-20 assets into and out of Cycle Network. In addition to the Ethereum Layer 2 network, Cycle TestNet Squid also integrates Bitlayer TestNet — Bitcoin Layer 2 as an extension layer. It plans to integrate Nbuit, Bitcoin’s native data availability infrastructure, into Cycle Network in the near future.
JellyFish testnet:
JellyFish is the Cycle Network Testnet 2.0 network for developers. It has been officially upgraded. Based on Starfish, it optimizes the bridge service. Developers can experience smoother Cycle SDK rollin & rollout services on this network and build their own full-chain products.
Piggybank：
Piggybank is a DeFi tool built on Cycle Network that aims to leverage aggregated liquidity to facilitate small transactions and savings services across various blockchains. Users can deposit small amounts of tokens left over from various transactions into Piggybank, which will then intelligently route and exchange these tokens across multiple chains, thereby increasing the utility and efficiency of capital.
team
The Cycle Network team consists of professors and experts from the University of Illinois, University of California, Berkeley, Google, Baidu, Cobo, and the University of Bristol, with experience in cryptography, distributed ledger technology, ZK, cross-chain technology, marketing, etc.
Since 2017, the core team members of Cycle Network have been committed to the research and development of blockchain basic technologies, especially in the field of high-performance distributed ledgers and zk hardware acceleration, and focused on scalability and throughput. Their previous work has achieved remarkable results, with a peak TPS of 56,000. The team has 30+ academic papers and 50+ blockchain technology patents.
Driven by an initial commitment to pushing the boundaries of distributed ledger technology, the Cycle Network team was formed to provide scalable and efficient solutions to meet the growing needs of the blockchain industry.
By leveraging rich web3 development experience and a deep understanding of developer pain points, Cycle Network aims to enable web3 developers to focus on application-centric innovation and fully realize the potential of web3 blockchains.
Summarize
As the head project of the Chain Abstraction track, Cycle Network provides full-chain asset liquidity infrastructure and solutions for public chains and applications through three-layer architecture and verifiable state aggregation technologies, providing a seamless, safe and efficient mechanism. To manage liquidity and transfer value between multiple blockchains, it significantly enhances liquidity integration and improves user on-chain interaction experience. The dApp that integrates Cycle Chain Abstraction technology bridgeless helps users share the liquidity of the entire chain and subversively solves the fragmented user experience between different chains.
