The Good Tech Companies - Lumoz: A New Paradigm for Rollup Platformization

Episode Date: July 23, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/lumoz-a-new-paradigm-for-rollup-platformization. Discover Lumoz: A new paradigm in rollup platforms, enhancing Ethereum with scalable, secure ZK-Rollup solutions and innovative zkVerifier licenses. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #lumoz, #zk-rollups, #layer1, #scaling, #on-chain, #off-chain, #zero-knowledge-proofs, #good-company, and more. This story was written by: @lumoz. Learn more about this writer by checking @lumoz's about page, and for more stories, please visit hackernoon.com. ZK-Rollup uses zero-knowledge proofs to instantly verify the correctness of transactions, ensuring that transactions are almost 100% fraud-free. Rollup offers higher security compared to Optimistic Rollup and eliminates the delay in transaction confirmation caused by the challenge period. As a result, Rollup has become the fundamental direction for the future development of Layer 2.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Lumos. A new paradigm for roll-up platformization. By Lumos, formerly Opside. 1. Environmental factors driving roll-up changes. Layer 1 scaling is urgently NEEDEDA's the number of Ethereum users continues to grow, the network becomes increasingly congested, especially during initial coin offering events, causing gas fees to spike. Additionally, the rising price of $ETH has led to prohibitively high transaction fees, making small transactions impractical. Therefore, improving storage efficiency, increasing transaction throughput, and reducing transaction latency are crucial for the development of Ethereum. NN traditional Layer 1 scaling solutions generally include two forms, on-chain and off-chain.

On-chain scaling refers to updates and optimizations made directly on Layer 1, such as changing the consensus mechanism, implementing sharding, and increasing block size. Off-chain scaling, on the other hand, includes sidechain sand layer 2 solutions. The main difference between sidechains and layer 2 is that sidechains rely on their own security protocols, whereas layer 2 relies on the security protocol of the main network. Therefore, from a security perspective, layer 2 is often considered superior. In past developments, the implementation logic of Layer 2 involved processing information off-chain through centralized offline computation, then transmitting

the results back on-chain. This approach not only improved transaction processing efficiency but also leveraged the high security of the Ethereum mainnet. The current mainstream Layer 2 solutions include Channel, Plasma, and Rollup. Rollup, being an extension of the Plasma solution, offers higher security, state validity, and data verification capabilities. As a result, Rollup has become the fundamental direction for the future development of Layer 2. Which Rollup solution is superior? In optimistic Rollup, the assumption is that the transactions submitted to the main chain are valid by default. Under this assumption, there is no need to immediately verify each transaction, allowing for quick submission and processing of transactions. A challenge period,

usually about a week, is set during which other validators can challenge the transactions and provide evidence if they find any discrepancies. If a challenge is successful, the transaction will be rolled back, and the party at fault will be penalized. In contrast, ZK Rollup uses zero knowledge proofs to instantly verify the correctness of transactions, ensuring that transactions are almost 100% fraud-free. Overall, ZK Rollup offers higher security compared to Optimistic Rollup and eliminates the delay in transaction confirmation caused by the challenge period. Due to these advantages, ZK Rollup has better application prospects. This is why Vitalik Buterin has repeatedly stated that ZK Rollup is the main direction for the future development of Layer 2 solutions.

However, due to the significantly higher technical complexity of ZK Rollup compared to Optimistic Rollup, the mainstream market for rollup technology is still dominated by Optimistic Rollup. NN Arbitrum currently leads the Optimistic Rollup sector with a TVL total value locked share of 31.36%, while ZKSYN Sierra holds a much smaller share at 1.32%. Therefore, shaping a standardized ZK roll-up solution and gradually expanding its application market becomes a crucial issue. The comprehensive solution that Lumos can provide may potentially be the key to breaking through this challenge. 2. Lumos's Strong Background LUMOZ is a comprehensive ZK platform. LUMOZ network is a globally distributed

modular computing network that integrates with the DEPIN network to create a powerful, secure, and flexible computing platform. It provides computational support for ZK rollup, ZKML, machine learning, ZKP, zero knowledge proof, and other technologies. LUMOZ also focuses on ZKP, Zero Knowledge Proof, and other technologies. Lumos also focuses on ZKROS, Zero Knowledge Rollup as a service, development, aiming to offer a complete set of deployment and implementation solutions for ZK Rollup. This initiative addresses various issues such as incompatible ZK Rollup solutions, centralized computation power, and concentrated risks. NN having deep expertise in the ZK zero-knowledge domain for many years. Unlike the multitude of concept-driven projects saturating

the Web3 space, Lumosha's been deeply rooted in the ZK zero-knowledge domain for many years. Its founder, Nanfeng, has held executive positions in several top-tier technology firms and investment companies, bringing extensive technical knowledge and exceptional blockchain project management skills. It is this forward-thinking approach that has led him and his team to delve into exploration and research in the ZK field since 2018. Establishment In March 2022, Opside was founded in Hong Kong, China, aiming to become a blockchain expansion infrastructure provider specializing in ZK ROS. It helps developers create customized ZK EVM chains through one-click deployment. Seed Round Financing

In April 2023, Opside completed a $4 million seed round financing, used to accelerate project development, expand team size, and operational scale to meet growing market demands. Backslash. Rebranding and brand restructuring, in October 2023, Opside officially rebranded as Lumos. The renaming aimed to avoid confusion with optimistic roll-up and better reflect its focus on ZK technology. The new name, Lumos, is derived from Latin, Lumos, symbolizing brightness and the promising future of ZK technology. The new name, Lumos, is derived from Latin, Lumos, symbolizing brightness and the promising future of ZK technology. Backslash. Pre-series A round financing. In March 2024, Lumos completed a $6 million pre-series A round financing led by Hashkey

Capital and OKX Venture, with a valuation of up to $120 million. Backslash. Strategic Financing In May 2024, Lumos completed strategic financing with participation from IDG Blockchain, Blockchain Co-Investors, Gate Ventures, Summer Capital, EVG, 7UPDAO, Sweep Ventures, and others, achieving a valuation of up to $300 million. In addition to its high valuation, Lumos has also delivered impressive results in practical actions. In May 2023, Lumos launched its testnet, featuring 28,403 POW nodes, 16 active rollups, 470,000 ZKP submissions, and 20 million transaction instances to date. On the technical front, Lumos has launched ZK Rollup Launchbase, which includes support for ETH,

BSC, and Polygon testnets. It provides various modular components such as data availability, DA, and shared sorters. Lumos has achieved several breakthrough innovations including ZKP two-step algorithm, NCRC, ZK verifier node verification mechanism, and Lumos ROS launchbase highly compatible technology stack. Additionally, Lumos supports Merlin Chain's ZK computations at ZK Fair, facilitating initial technology implementation. 3. Unified ZK Technology Solutions. LUMOZ offers modular computing layers. Modular roll-up provides a new approach to solving the blockchain trilemma. Typically, roll-up achieves a layered structure by breaking down the blockchain system into different modules. This approach enhances transaction processing efficiency

and data management, thereby balancing decentralization, security, and scalability to some extent. Conventional roll-up structures typically include settlement layers, execution layers, consensus layers, and data availability layers. Settlement layer. Updates blockchain asset states on layer 1 to ensure asset security. Backslash dot. Execution layer. Processes transactions on rollup, records, and updates transaction status. Backslash dot. Consensus layer. Reaches consensus on transactions to ensure transaction security. Backslash dot. Data availability layer. Records and aggregates all transaction data to ensure data traceability.

Backslash dot. In addition to the four typical layers of rollup, Lumos includes a core module called the prover layer. The prover layer provides censorship-resistant distributed computing, implements zero-knowledge proofs, ZKP, and ensures the authenticity and validity of transaction states. ZK computing resources plus eigen-layer dual-staking narrative Lumos integrates powerful ZK Computing Resources plus Eigen Layer Dual Staking Narrative Lumos integrates powerful ZK Computing Resources with the Eigen Layer restaking mechanism through Lumos Oracle, ZK Prover, ZK Verifier, and Lumos Chain. This allows users to restake tokens already staked into Eigen Layer, enhancing the security of its Active Verification service, AVS. Staked tokens serve as node

collateral to mitigate malicious behavior by nodes. N, N staking and restaking. Users stake tokens on blockchain networks like Ethereum, and these tokens are restaked into Lumos' AVS through Eigenlayer's restate mechanism, enhancing the security of verification services. Backslash dot, data processing and storage. Lumos AVS Oracle retrieves and stores data from EVM compatible chains, ensuring data availability and integrity. This data serves as input for ZK Prover and provides the necessary information for verifiers verification. Backslash dot task assignment and execution. Lumos chain manages task scheduling, allocating computational tasks to ZK prover nodes. ZK prover nodes execute these tasks to generate

ZKPs. Backslash dot, result verification and confirmation. ZK verifier nodes verify the proofs generated by ZK prover to ensure the correctness of computational results. Upon successful verification, Lumos chain records the results on the blockchain and generated by ZKProvered to ensure the correctness of computational results. Upon successful verification, Lumos chain records the results on the blockchain and incentivizes participating nodes through a reward mechanism. Backslash dot. In this process, multiple verification servers are allowed to share a pool of tokens, thereby improving resource utilization and computational efficiency, which is crucial for generating ZKPs

with high computational demands. Through restaking, Lumos can better support various EVM-compatible blockchain environments such as Polygon EVM, Scroll, etc. Enhancing the platform scalability, optimizing ZKP computation and submission Mechanus MS Lumos optimizes the ZKP computation and submission mechanisms by supporting parallel computation and sequential submission of ZKPs. It decomposes ZKPs into multiple subtasks that can be computed on different ZK prover nodes and ensures the correct sequence of submission for these subtasks. Additionally, Lumos introduces a novel recursive aggregation algorithm for processing ZKPs,

which aggregates multiple ZKPs into a smaller one. This recursive approach reduces the size and complexity of ZKPs, thereby lowering the demand on blockchain storage and computational resources. NTHE Aggregator serves as the core manager within ZKProver, ensuring efficient allocation of computational tasks and precise scheduling of verification. Highly compatible ZK ROS solution from its inception, Lumos aimed to develop the easiest to deploy and most compatible ZK rollup solution. Today, the ZK ROS launch base supports all mainstream ZK EVM technologies, allowing developers to easily deploy and launch ZK rollup with just a

few simple steps. Base layer selection. Lumos supports various networks such as ETH, Polygon, Lumos Chain, etc. Backslash dot ZKEVM configuration. Choose the type of ZKEVM according to actual needs, such as Polygon ZKE VM, ZKSYNC, Scroll, and StarkNet. Backslash dot, gas token and data availability layer. Select the gas token and corresponding data availability layer according to project requirements to ensure transaction security. Backslash dot, modular customization. Lumos offers a range of functional modules that can be directly integrated into the ZK rollup as needed. Specifically, Lumos' ZK ROS platform supports multiple architectural models simultaneously. Modular compute layer. Lumos offers a modular computing layer that can support various Layer 2 solutions, including architectures like OpStack plus ZK Fraud Proof. This modular approach allows

developers to choose different base layers, ZK EVM types, data availability layers, and sorters as needed. Native Cross-Rollup Communication Lumos also supports native cross-rollup communication between different ZK rollups on the same base chain. This communication mechanism allows addresses on one rollup to directly interact with contracts on another rollup, thereby enhancing interoperability between applications. Customizable infrastructure services. Lumos offers a variety of infrastructure services including bridging interfaces, customized ZK EVM types, block explorers, decentralized exchanges, decentralized identity systems,

wallet infrastructure, and more. These services allow developers to customize various aspects of ZK rollup according to their project requirements. Backslash dot. Thanks to Lumos's contributions, the deployment of ZK rollups is transitioning from difficult to easy, potentially marking the beginning of a trend in ZKP application adoption. 4. Node Presale Seizing the Opportunity Selling ZKVERIFIER Licenses Lumos implements the ZK Verifier Certificate Mechanism, offering 100,000 licenses divided into 10 different price tiers. Only users with a license can operatessk verifier nodes and can delegate the certificates to other nodes for running and earning profits. The ZK verifier

sale event is divided into three main phases. Whitelist phase, June 17, 1500 coordinated universal time plus 8. Whitelist sale phase, June 25, 1500 coordinatedordinated Universal Time plus 8, and Public Sale Phase, July 3, 1500 Coordinated Universal Time plus 8. Users on the whitelist phase enjoy a 10% purchase discount during the whitelist sale phase, and they can also receive a 10% rebate for inviting others to purchase licenses. Unlike traditional node license sales, Lumos provides users with Lumos points distribution. Starting from June 25 until August 4, 1 million Lumos points will be distributed daily. The distribution of points will be weighted based on the staked license amount.

Participating teams can enhance their overall weight. Additionally, the earlier users purchase a license for staking, the higher their chances of earning rewards. After the TGE, users holding Lumos points can share 25% of the tokens. NN Lumos provides a refund mechanism for purchase licenses, allowing users to get 80% of the purchase funds back within a 6-month window after TGE, greatly avoiding risks. Clearly, purchasing ZK Verifier licenses is a very lucrative business opportunity, offering high returns with low risk. Therefore, the license purchase activity is exceptionally intense. As of the time of writing, 54,752 licenses have been sold, reaching stage 6 with an astounding FDV of $62,705,216. N. Token Model

The token economic model of Lumos follows a typical dual-token governance model, providing two tokens, Moz and S-Moz. Moz is the native token of the main network, serving as the core asset of the network. Moz can be used as transaction gas fees on the Lumos main network. Payment for ZKP services and AI computing power services provided by Lumos must be made in Moz. Moz can be exchanged for S-Moz at a 1 to 1 ratio. S-Moz, on the other hand, serves as the governance token for ecosystem development and maintenance on the main network. Lumos offers S-Moz as rewards to incentivize main network computing power providers and node operators. Users use S-MOS for network delegation,

enabling decentralized governance. It is worth noting that the redemption rate of S-MOS varies over time. During a 10-day redemption period, the rate is 100%. For a 7-day period, it is 70%. For a 3-day period, it is 50%. And for a 1-day period, it is 10%. This redemption mechanism helps alleviate market pressure from miners redeeming tokens and effectively prevents market disruption caused by large-scale S-Moz redemptions following hacking attacks, thus safeguarding the interests of Moz buyers. 5. Why I'm optimistic about Lumos. Back in 2022, Vitalik proposed that ZK Rollup would be the optimal solution for future of Layer 2 rollups, which has destined the vibrant development of ZK Rollup.

N, NTHE emergence of Lumos integrates the previously fragmented landscape of ZK Rollups, optimizing their construction while also creating a streamlined deployment process of ZK rollups, optimizing their construction while also creating a streamlined deployment process for ZK rollups. With rollup revolution imminent, Lumos' emergence meets the urgent demand to integrate ZK rollups and drive industry innovation. Lumos offers a modular computing layer, combined with Eigen Layer in the staking concept, enhancing mainnet security and scalability. Lumos optimizes the ZKP process, maximizing the utilization of computing resources and improving computational efficiency. Lumos provides a comprehensive set of ways to deploy ZK rollups, potentially ushering in a wave of ZK rollup project advancements. Backslash dot. Overall, Lumos's emergence will address past challenges such

as the difficulty in deploying ZK rollups, high computational resource requirements for ZKP, and issues leading to computational centralization. This marks a crucial step forward for the future development of ZK rollups. Info This article is for informational purposes only and does not constitute financial, investment, or other advice. Please conduct your own research, D-Y-O-R, before making any investment decisions. Thank you for listening to this Hackernoon story, read by Artificial Intelligence. Visit hackernoon.com to read, write, learn and publish.