Podcast Summary
Understanding the Role of EVM in Ethereum and the Focus on ZK EVMs: The Ethereum Virtual Machine (EVM) is essential for interpreting and executing smart contracts on Ethereum. Recent advancements include the focus on Zero-Knowledge EVMs, which add an extra layer of privacy and security.
The Ethereum Virtual Machine (EVM) is a crucial component of Ethereum, serving as the means to interpret and execute smart contracts. It converts Solidity code into a series of numbers representing instructions, enabling the functionality of decentralized applications on Ethereum. Recently, there's been a focus on 0 knowledge EVMs, which add an extra layer of privacy and security to the EVM. During this episode of State of the Nation, Ben Jones from Optimism helped unpack the technical aspects of the ZK EVM, while Forta was discussed as a tool providing real-time monitoring to protect against smart contract exploits. With the increasing importance of security in the Web3 space, it's essential to understand the EVM and its evolving developments.
Exploring the potential of zk EVMs for Ethereum scalability: Zk EVMs enable Ethereum's EVM to run in a zero-knowledge environment, increasing scalability by allowing multiple transactions to be rolled up into one proof without significantly increasing proof size, making Ethereum more attractive for building scalable applications.
A zk EVM, or Zero Knowledge Ethereum Virtual Machine, is an exciting development because it allows the Ethereum Virtual Machine (EVM), which powers Ethereum and hosts all its applications and developers, to be run inside a zero-knowledge environment. This makes the EVM much more scalable, as it allows multiple transactions to be rolled up into one proof without increasing the proof size significantly. This is significant because the EVM is the backbone of Ethereum and is currently a limitation for zk scaling solutions. The excitement around zk EVMs comes from the potential to build applications on the Ethereum network that can take advantage of this scalability. For listeners, understanding the security properties and roadmap of these protocols is important for users, while developers should consider the practical implications of implementing zk EVMs. Additionally, the conversation touched on bridges, which are important for moving assets between different blockchains, and the security concerns surrounding them. Overall, the discussion highlighted the potential of zk EVMs to make Ethereum more scalable and the excitement surrounding this development.
Exploring Innovative Ethereum Projects: Rocket Pool, Arbitrum, and MakerDAO: Rocket Pool offers decentralized Ethereum staking, Arbitrum provides fast and cheap DeFi and NFT transactions, and MakerDAO introduces eco-friendly stablecoin creation and reforestation efforts
The crypto space is continuously evolving, with new projects and solutions emerging to enhance the Ethereum network and the overall DeFi and NFT ecosystem. Three notable projects discussed in the episode are Rocket Pool, Arbitrum, and MakerDAO, each with unique backgrounds and offerings. Rocket Pool is a decentralized Ethereum staking protocol that allows users to stake their ETH and earn rewards while also using it in DeFi. It is the only staking provider that enables anyone to join their network of validating Ethereum nodes, providing an opportunity to boost yields and contribute to the network. Arbitrum is an Ethereum layer 2 scaling solution that aims to change the way we use DeFi and NFTs by offering fast transactions with cheap fees. It is home to new and popular NFT collections and allows users to bridge assets from various exchanges to explore new opportunities in the crypto universe. MakerDAO, the OG DeFi protocol, produces the industry's most battle-tested stablecoin, DAI. It enables users to mint new money directly and has recently introduced a new feature where creating a new MakerDAO vault contributes funds to One Tree Planting, an organization dedicated to global reforestation efforts. Each of these projects represents the innovation and progress in the crypto space, showcasing the potential for increased freedom, technological advancements, and meaningful collaborations.
Scaling Ethereum with zkRollups: zkSync and Scroll: ZkSync and Scroll are two Ethereum projects that have made significant progress in scaling Ethereum through the use of zkRollups. zkSync started as a simple payments and swaps solution and later developed the KVM framework, while Scroll focuses on making zk proofs more practical and faster, enabling larger circuits and easier proving.
The discussion highlights the significant progress made in scaling Ethereum and the integration of zkRollups like zkSync and newer projects like Scroll. Three and a half years ago, Ethereum was still facing numerous challenges, including usability, security, and scalability. While solutions were emerging for the former two issues, scalability remained a major concern. However, the introduction of 0-knowledge proofs led to the development of plasma and the creation of zkSync, which aimed to bring scalability to Ethereum. zkSync started as a project called Ignis and took a year to build a fully productive Mainnet version for simple payments and swaps. Recognizing the need for a more generic and programmable solution, zkSync later developed the KVM framework. Scroll, a newer project, started one and a half years ago, with a focus on making zk proofs more practical and faster. The team, including Ye, Hai Chen, and Sandy, aimed to support larger circuits and make proving more accessible. Together, these projects represent significant strides in Ethereum's scalability journey, bringing us closer to mass adoption.
CRO Team: Scaling Ethereum with zkEVM Technology: The CRO team, with a diverse background in cryptography, engineering, and investment, is focused on scaling Ethereum using zkEVM technology and advanced research. They are confident in their unique approach and growing the team carefully to build a user and developer-friendly ZK-rollup solution.
CRO is a team of experienced individuals with diverse backgrounds in cryptography, engineering, and investment, united by a shared vision to scale Ethereum and onboard the next billion users. They are focused on solving Ethereum's scalability issue through the use of zkEVM technology and advanced research. The team is technically strong, with a majority of members having a crypto background and experience in blockchain development. They are also decentralized, with team members working remotely across various regions. Regarding the approach to scaling Ethereum, the team acknowledged that there are different strategies being taken to tackle this complex problem. They highlighted that their approach goes back to their mission of building ZiggySync and emphasized the importance of understanding the backbone of the Ethereum Virtual Machine (EVM) and doing proofs related to mass and crypto. They are confident in their unique approach and the progress they have made, despite being a relatively new team. They also emphasized the importance of growing the team carefully, with a focus on value alignment, high integrity, and the right motivation. Overall, the team is committed to building a user and developer-friendly ZK-rollup solution for Ethereum.
Accelerating mass crypto adoption with zkEVM: The team is building a Turing complete zkEVM to optimize for zero-knowledge proving, using the same interfaces as Solidity's VM for easy adoption.
The team's mission is to accelerate the mass adoption of crypto for personal sovereignty by building a Turing complete Ethereum Virtual Machine (EVM) optimized for zero-knowledge proving (zkEVM). They initially tried to create a non-Turing complete version and build a new language called ZYN, but learned it would be problematic to force people to adopt a new language and tools. Instead, they borrowed the concept of the critical path from SpaceX to find the fastest way to build the full EVM. They optimized it for efficiency under zk-SNARKs and created a virtual machine with the same interfaces as Solidity's VM. This allows users to compile Solidity code to the zkEVM target with minimal changes. The team's approach is unique as no other zkEVM team is working in this direction. They prioritize keeping the codebase exactly the same between layer 1 and layer 2 for ease of use and maintainability.
Optimizing Ethereum: Ethereum team vs Scroll: The Ethereum team and Scroll are enhancing Ethereum's capabilities, with the Ethereum team optimizing the compiler for cost efficiency and Scroll focusing on deeper implementation compatibility and decentralized infrastructure.
Both the Ethereum team and Scroll are working on optimizing the Ethereum Virtual Machine (EVM) for scalability and cost efficiency, but they approach it differently. The Ethereum team, through their work on the "optimistic rollups" compiler, aims to produce more optimal virtual machine code by using LLVM as a framework and achieving significant improvements in transaction costs. Scroll, on the other hand, focuses on deeper compatibility with Ethereum by reusing the existing EVM bytecode and the Ethereum client implementation, allowing users and developers to maintain the same UI, UX, and tooling while using Scroll. Additionally, Scroll is building a decentralized infrastructure for their network, ensuring long-term alignment with Ethereum's goals and potential future integration with Ethereum's key VM for layer 1 block proofs. Both teams are committed to enhancing Ethereum's capabilities, with the Ethereum team focusing on optimizing the compiler and Scroll focusing on deeper implementation compatibility and decentralized infrastructure.
Developing a new approach for transaction verification using zk-SNARKs: The team is implementing zk-SNARKs for transaction verification, increasing efficiency through parallel proof generation and potentially allowing miners to participate as provers, while directly using the EVM trace and implementing subcircuits for each opcode.
The team is developing a new approach for transaction verification using zk-SNARKs, a proof system that enables verifiable transactions without revealing the underlying data. This method allows for parallel proof generation, increasing efficiency and potentially allowing miners to participate as provers, creating a strategic advantage. The team is directly using the transaction trace from the Ethereum Virtual Machine (EVM) and implementing a subcircuit for each opcode to prove its correctness. These subcircuits are then composed together in the EVM circuit to prove the overall transaction validity. The team is prioritizing this innovation for both technical and strategic reasons, including potential cost savings and the ability to leverage miner resources. The discussion also touched on the performance of zk-SNARKs, with some perspectives favoring it and others considering alternative approaches for performance reasons.
Decentralizing approval process to avoid single point of failure: Teams are decentralizing approval process, using distributed parallel processing to generate proofs, focusing on optimizing cost per transaction, and writing nodes in Rust for optimal performance to maintain system security and fairness.
All teams involved in creating layer 2 solutions are working towards decentralizing the approval process to avoid being a single point of failure. Decentralization is crucial to prevent any one entity from controlling the validation of transactions or the generation of proofs in layer 2. The teams are using distributed, parallel processing to generate proofs, which will significantly reduce the cost per transaction. The focus is on optimizing the cost of proof generation divided by the number of transactions. While some teams are exploring EVM circuit compatibility, others, like Ben's team, have opted for a simpler approach. They are not relying on existing tools like Geth for transaction building and are writing their node in Rust for optimal performance. Decentralizing the approver is essential because it ensures that the validation of transactions is not controlled by a single entity, maintaining the security and fairness of the system for the average user.
Proving Cryptographic Proofs Requires More Than Just Computation: Cryptographic proofs involve using circuits like zero-knowledge proofs for succinct proof generation, adding overhead and increasing transaction costs on zk rollups. Some projects aim for EVM compatibility, while others have lower costs by avoiding data roll-up processes.
Proving something in a cryptographic context requires more than just running a computation. It involves using a circuit, such as zero-knowledge proofs, to create cryptographic steps that can be combined and aggregated into a succinct proof. This process adds overhead to computations and increases the cost of transactions on zk rollups. While some projects, like Skrull, are working on making Ethereum Virtual Machine (EVM) compatible zk rollups, others, like Alex's plasma-type solutions, do not require the same data roll-up process and therefore have lower costs. The Brave Wallet and Ledger Live are important tools for securely staking and managing crypto assets, respectively. The layer 2 era is here, and fast and efficient bridges like Across are essential for seamless interaction between layer 1 Ethereum and layer 2 solutions.
Optimism vs Across: Different Developer Experiences: Optimism prioritizes EVM equivalence for easier developer experience, while Across focuses on higher capital efficiency and compatibility with multiple networks.
Both Across and Optimism prioritize high security and low fees in their respective layer 2 solutions, but they approach the developer experience differently. Optimism aims for EVM equivalence, meaning developers can use the same execution environment as Ethereum Layer 1 and reuse all existing developer tooling. This approach makes it easier for developers to debug and analyze gas usage, ensuring long-term security and compatibility with future Ethereum Improvement Proposals (EIPs). Across, on the other hand, focuses on higher capital efficiency, layer 2 to layer 2 transfers, and compatibility with multiple networks like Ethereum, Optimism, Polygon, Arbitrum, and Boba. Both projects invite developers to join their communities and contribute to their respective ecosystems.
Providing a seamless developer experience with zkEVM: The zkEVM team aims to make the transition to their solution as smooth as using tools like Stripe, ensuring no code changes or reaudits are required for developers
The team behind the zkEVM project aims to provide a seamless developer experience by ensuring that existing tools and interfaces work with their solution out of the box. This means no code changes or reaudits are required for developers using a zkEVM-compatible chain. The goal is to make the transition as smooth as using tools like Stripe, where things just work with a single click. While there may be some limitations, such as with low-level debuggers, the team plans to make these tools compatible as well. The analogy given is that of running software written for one or operating system on another, where the options are either recompiling the code or running it in an emulator. The developer experience is crucial, as it impacts the user experience as well. Overall, it's exciting to see multiple approaches competing in the Ethereum space, and while the team believes EVM equivalence is the way to go for optimal developer experience, they acknowledge the importance of allowing different solutions to flourish.
Transitioning beyond EVM for future blockchains: Future blockchain development may require access to source code and the ability to redeploy contracts as new systems emerge, enabling the use of advanced features and a vast codebase for more powerful smart contracts.
The future of blockchain development may involve more complex systems beyond Ethereum Virtual Machine (EVM), but upgrades to these new systems will require access to source code and the ability to redeploy contracts. The speaker emphasizes the importance of gradually and smoothly converging with the world of generic computing, allowing for the reuse of tools and the compilation of multiple programming languages to low-level virtual machines. This approach will enable the utilization of a vast codebase written in expressive languages with advanced features, ultimately leading to more powerful and versatile smart contracts.
Providing EVM environment on ZkSync for Ethereum app migration: ZkSync is working on an EVM-equivalent environment for Ethereum app migration, exploring efficient virtual machines, and considering adding features to the existing EVM.
ZkSync is working on providing an Ethereum Virtual Machine (EVM) equivalent environment on their layer 2 solution to enable the migration of existing Ethereum applications. This approach is important for Ethereum's urgency to scale and solve congestion issues. However, they are also considering exploring more efficient virtual machines and adding features to the existing EVM. The complexity of supporting advanced features in LLVM, which is ideal for supporting multiple programming languages, was also discussed. Overall, each layer 2 team has its unique approach, and users ultimately determine their comfort level with an ecosystem based on its culture and branding.
Openness, collaboration, and transparency in Scroll and zkSync projects: Both Scroll and zkSync prioritize openness, collaboration, and transparency in their projects, releasing work under permissive licenses and fostering a broader community of developers.
Both Scroll and zkSync prioritize openness, collaboration, and transparency in their projects. They value building in the open source way and believe it leads to more secure and resilient code, as well as fostering a broader community of developers. Scroll emphasizes transparency in their claims and progress, while zkSync is deeply mission-driven and aligned with Ethereum's principles of freedom, resilience, and inclusivity. Both teams have experienced the benefits and challenges of complete openness and have learned from their experiences. They are committed to releasing their work under permissive software licenses and encouraging collaboration and education within the crypto community.
Managing Upgrades in Layer 2 Systems: Balancing Security and Decentralization: Layer 2 systems require careful management of upgrade keys to ensure security and decentralization. Proposed solutions include a team multisig with time locks and external approval for immediate bugs. Multiple layers of protection, such as second factor and validators, can also be used to ensure secure upgrades.
In the world of cryptocurrency and blockchain technology, the issue of controlling upgrade keys in layer 2 systems is a significant challenge. Both Ethereum and other layer 2 teams have multisig keys that can be used to upgrade their systems, but the question of when to cast these keys into the fires of Mount Doom and relinquish control is a complex one. The problem is more acute in layer 2 systems because all funds are locked into one contract on layer 1, and someone must objectively determine what code is canonical. One proposed solution is to have a team multisig that can initiate upgrades, with those upgrades subject to a time lock period. Users who disagree with the upgrades can exit using permissionless mechanisms. However, if an immediate bug needs to be addressed, external prominent members of the Ethereum community, known as a security council, can be approached for approval of an immediate upgrade. This is not a perfect solution, as it exposes these people to potential political struggles and incentives. Ultimately, the best approach is to have multiple layers of protection in the system, with all checks made before any action is taken. For example, a second factor and validators appointed by users could be used to approve transactions in a rollup. The goal is to ensure that the system is secure and that upgrades are made in a responsible and transparent manner.
Ensuring Security of Roll-up Solutions: Ongoing code auditing, in-house security teams, collaboration with external auditors, use of established implementation, community involvement, and gradual decentralization with robust security measures are key to securing roll-up solutions on Ethereum.
Ensuring the security of Scroll and other roll-up solutions on Ethereum is a top priority, and it involves a combination of measures. These include ongoing code auditing, in-house security teams, collaboration with external auditors, and the use of existing, well-established implementation. The community's involvement through open-source development and community standards also plays a crucial role in securing these systems. The decentralization of these systems will be a gradual process, with robust security measures in place before decentralization is fully implemented. Ultimately, the security of these systems can be relied upon once they have been running for an extended period with significant stakes at risk and have undergone rigorous testing and auditing.
CKEVM and Scroll are launching their Mainnets, each with unique timelines and approaches: CKEVM targets an 87-day Mainnet launch, while Scroll is in pre-alpha testing, both teams prioritize technical solutions over token releases, and joining their networks comes with risks but also exciting potential.
Both CKEVM (Alex) and Scroll (Ben) teams are focusing on launching their respective Mainnets and are at different stages in their roadmaps. CKEVM is aiming for an 87-day Mainnet launch and encourages projects to join their ArcBest network to be among the first to launch. Scroll is currently in the pre-alpha testnet stage, internally testing with real live zk proofs and preparing for a more permissionless alpha testnet where developers can deploy their smart contracts. Both teams are also considering the release of tokens in the future but are currently prioritizing building the best technical solutions. It's important to note that cryptocurrency and layer twos come with risks, and bridges also add an extra layer of risk. Despite the risks, both teams are excited about the potential of the ZK EVMs and invite the community to join them on their journeys.
