Another layer-1 blockchain has decided to enter the fray following the recent release of a flurry of Ethereum security-focused so-called "rollups."
A zero-knowledge cross-chain bridge is being introduced by Syscoin, a "dual-layered blockchain" merge-mined with Bitcoin and executing Ethereum-compatible smart contracts.
According to Syscoin, the ZKCross bridge will enable cross-chain decentralized exchange and charge low costs. In September, it is anticipated to be ready for demonstration.
After hackers stole more than $1 billion through cross-chain bridges in 2022, numerous proposals to reassure investors while transferring assets between chains proliferated.
Multi-signature or multi-party computation (MPC) was used by the cross-chain bridges that were compromised in recent years to validate their deals.
The ZK method of Syscoin allows for the operation of an off-chain automated market maker (AMM), which can be used to control liquidity and trade between different chains while avoiding vulnerable consensus processes.
Before a collection of transactions is rolled up and compressed to be settled on Syscoin's base layer, the accuracy of the transactions is confirmed with a zero-knowledge proof, which is essentially a quick and private technique to validate data.
In Syscoin's opinion, the bridge technology enables economies of scale, with the worst-case security scenario requiring users to escape to the base layer in the event that the AMM goes offline.
The (relative) low cost of zero-knowledge bridging aids in the changeover. According to Sidhu, customers will only be charged for their own CPU.
The absence of decentralization is one of the most obvious drawbacks of zero-knowledge technologies. Investors essentially trade scalability and affordability for the possibility of censorship.
Similar to the zkEVM protocol introduced by Polygon on Wednesday, Syscoin aims to develop a zero-knowledge Ethereum virtual machine (EVM), the much-hyped proof method for Ethereum smart contracts.
Sidhu stressed that all protocols will eventually need to enter the space even if he does not think anyone in crypto has yet developed a "true EVM."