ZK (Zero Knowledge) Overview

Modified on Mon, 8 Jul, 2024 at 5:28 PM

Wirex Pay harnesses the power of Zero Knowledge (ZK) technology to deliver a next-generation, non-custodial payment solution. By leveraging ZK Rollups and ValidiumWirex Pay offers a scalable, secure, and efficient platform that revolutionizes digital payments. This section delves into the technical innovations of ZK technology and how Wirex Pay integrates with the Aggregated Layer (AggLayer) to enhance its capabilities.


ZK Rollups

zkEVM option architecture

*Sequencers is responsible for batching transactions from various users into ordered blocks, and then committing to an order of those blocks. The order can be arbitrary or subject to rollup-specific constraints. The important thing is that the order is public and immutable: all rollup users at all times should agree on the relative ordering of blocks. 

* RPC - stands for remote procedure call, and RPC nodes allow applications to communicate with the blockchain. Protocols may opt for private RPC endpoints, as these can improve a blockchain application's security by offering front-running protection, shielding transactions from the public mempool. 

* Synchronizer ensures that nodes are automatically receiving all the necessary data from the peer nodes as well as it verifies the blocks and validates signatures until the blockchain is fully sychronized with the current state. 

* Prover executes the rollup's state transition function, usually some abstract machine in which transactions represent programs to execute. By executing this function, the prover computes and stores a Virtual Machine state which is a deterministic result of the ordering of blocks produced by the sequencer. 

* Aggregator indexes and aggregates blockchain data from multiple Web3 ecosystems. These platforms may use DApps, oracles, or APIs to collate data from different Web3 platforms into a single interface.



ZK Rollups are an advanced layer 2 scaling solution that significantly increase transaction throughput while maintaining the security and decentralization of the underlying blockchain. They achieve this by bundling multiple transactions into a single proof, which is then verified on the main chain. Here’s how ZK Rollups work within Wirex Pay: 

  • High Throughput: By processing numerous transactions off-chain and submitting a single proof, ZK Rollups can handle thousands of transactions per second, vastly improving scalability. 
  • Cost Efficiency: Bundling transactions reduces the amount of data processed on-chain, lowering transaction costs and enhancing efficiency. 
  • Security and Integrity: The use of Zero Knowledge proofs ensures that transaction data is verified securely without exposing sensitive information, maintaining the integrity of the blockchain.


ZK Validium

CDK validium data availability dataflow
 

*DAC (Data Availability Committee) is a trusted set of nodes that stores copies of data offline. The DAC is required to make the data available in the event of a dispute. Members of the DAC also publish on-chain attestations to prove that the said data is indeed available


ZK Validium is another key component of Wirex Pay’s ZK tech stack. It operates similarly to ZK Rollups but stores data off-chain, which provides even greater scalability. Here’s how ZK Validium enhances Wirex Pay: 

  • Off-Chain Data Storage: By keeping transaction data off-chain, Validium can process a higher volume of transactions without burdening the main chain. 
  • Scalability: This method allows for virtually unlimited scalability, making it ideal for applications that require high throughput and low latency. 
  • Privacy: Like ZK Rollups, Validium uses Zero Knowledge proofs to maintain the security and privacy of transactions.


Validium vs. Rollup

While both ZK Rollups and Validium use Zero Knowledge proofs to enhance scalability and security, they differ in their data storage approaches: 

Feature 

ZK Rollups 

ZK Validium 

Data Storage 

On-chain 

Off-chain 

Scalability 

High, limited by on-chain data availability 

Very high, due to off-chain data storage 

Cost Efficiency 

Moderate cost savings 

Significant cost savings 

Security 

Strong, with data verified on-chain 

Strong, with data integrity maintained off-chain 

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