Syscoin to launch a ZKCross-chain bridge to prevent bride exploits
Syscoin, the only scalable layer-1 Blockchain with Ethereum Virtual Machine (EVM) functionality, is set to launch a zero-knowledge cross-chain bridge (ZKCross) for demonstration by September. The bridge is expected to work on the principle of preventing bridge exploits while also facilitating cross-chain decentralized exchanges and lowering fees.
This year alone, hackers have managed to get away with over $1 billion, causing tension among the investors. Over the years, cross-chain bridges have been using multi-party computation (MPC) or multi-signature to authenticate trades, and this is what has fuelled the rampant cross-chain bridge attacks.
Managing liquidity and trading across multiple chains.
Syscoin’s ZKCross bridge will come as a relief to investors as it will operate an off-chain automated market maker (AMM) mechanism. The mechanisms curb all exploitable consensus protocols as well as manage trade and liquidity across multiple chains.
During the transactions, zero-knowledge proof, a fast and private data authentication, will be used before transactions are compressed and rolled up on the Syscoin base layer to ensure accuracy.
According to Syscoin, the bridge technology will aid economies of scale. However, when the AMM goes offline, the users will be required to exit to the base layer.
Syscoin lead developer, Jagdeep Sidhu said:
“If it’s not this bridge, someone else will release a zero-knowledge bridge and that’ll be the bridge solution everyone is using. I really think this is where things are headed.’’
Zero-knowledge advantage and limitations
Zero-Knowledge bridging will be cost-effective to users as the only cost the users will incur is that of their CPU. However, zero-knowledge technology has limitations with the main one being a lack of decentralization.
“All the rollups are centralized right now, we’ll start with a centralized sequencer, but the goal is to create a decentralized sequencer down the road.”
Meanwhile, Syscoin is optimistic about creating a zero-knowledge Ethereum virtual machine (EVM), which is the best proof system for Ethereum smart contracts, like the zkEVM protocol launched by Polygon. Besides, Sidhu believes that no one in the crypto industry has ever created “proper EVM” however, he noted that all protocols will eventually join the space.