Overview of LayerEdge

Introduction to LayerEdge

LayerEdge is an innovative blockchain scaling solution that offers a Layer 2 protocol combining the security of Bitcoin with the programmability of Ethereum. Its goal is to harness Bitcoin’s proof of work (PoW) security to enable off-chain verifiable computations driven by zero-knowledge proofs (ZK). With LayerEdge, Bitcoin can function as a store of value and as the foundation for a decentralized supercomputer, capable of handling large-scale computing tasks while keeping costs low. This platform is designed for financial transactions and can be applied to emerging technologies like artificial intelligence (AI) and the Internet of Things (IoT), enhancing Bitcoin’s role in the decentralized internet.

Background of LayerEdge

Rishabh Anand, a graduate of the University of Delhi in India and a former core contributor to GraphLinq Chain, is the co-founder of LayerEdge. The team includes members from Samsung’s research department, Gnosis, Goldman Sachs, Tower Research Capital, and other notable organizations.

In terms of funding, LayerEdge raised angel investment in May 2024, with participation from Blockchain Founders Fund, Founderheads.VC, BreakOrbit VC, Normie Capital, and angel investors Paul Taylor and Saushank.eth. The exact amount of funding and valuation details have not been publicly disclosed.

LayerEdge’s Vision

LayerEdge envisions transforming Bitcoin from merely a store of value into a decentralized supercomputer that can handle a variety of computational tasks. By using zero-knowledge proof (ZK) technology, LayerEdge enables efficient off-chain computations that can be verified back on-chain, leveraging Bitcoin’s proof of work (PoW) security to ensure reliable results. This setup not only lowers the costs and burdens associated with on-chain processing but also supports emerging technologies like artificial intelligence (AI) and the Internet of Things (IoT), allowing for growth beyond financial applications into other decentralized uses.

LayerEdge seeks to ensure that Bitcoin’s total supply of 21 million coins supports not only proof of stake (PoS) economies but also serves as a foundational element of the decentralized internet, providing security and trust for computational tasks. Its ultimate aim is to establish Bitcoin as a key component of global decentralized trust systems through scalable ZK protocols, offering computational and security support for the future of the Web3 ecosystem.

Source: LayerEdge

Applications of LayerEdge

LayerEdge’s technology leverages Bitcoin’s inherent security to extend its proof of work (PoW) safety to off-chain computations and verify zero-knowledge proofs (zk-proof). The main idea is to simplify the verification process, lower costs, and enable native zk-verification on Bitcoin through the aggregation of zk-proofs. LayerEdge aims to turn Bitcoin from just a store of value into a decentralized supercomputer that can support a wide array of decentralized applications.

The key mechanism behind LayerEdge is the aggregation of zk-proofs. Normally, verifying each zk-proof individually can consume a lot of on-chain resources and be quite costly. LayerEdge’s approach combines multiple zk-proofs into a single proof, which significantly cuts down on verification costs. This method not only reduces unnecessary computations but also enhances the efficiency of verification, ensuring that the system remains scalable as the complexity of zk-protocols increases. With optimizations, LayerEdge can reduce verification costs to about 3-5%, making zk-proofs much more feasible and economical.

Additionally, LayerEdge is considering the potential implementation of the OP_CAT opcode on Bitcoin. If Bitcoin were to update this opcode, verifying zk-proofs would become even simpler and more efficient. Using connection operations from the opcode, the costs for verifying zk-proofs could potentially be reduced by up to 95%. Even without OP_CAT, LayerEdge can still ensure that zk-verification operates efficiently and is natively supported through its unique aggregation technique.

Regarding the verification process, LayerEdge conducts zk-proof verification through on-chain operations within the Bitcoin network. Initially, the verifying operator submits the starting state and proposes a state change using zk-proof. After this submission, there is a challenge period during which other participants can question the proposed state change. If someone proves that the proposed change is invalid, the system will recognize the error and prevent the update; if not, the state change is deemed valid and finalized on the Bitcoin chain. This process ensures transparency and security in verification while enhancing efficiency through zk-aggregation.

LayerEdge’s verification layer incorporates Babylon’s cryptoeconomic security model, which strengthens the security of zk-proofs. Babylon operates on a proof-of-stake (PoS) mechanism, providing shared economic security for LayerEdge and ensuring that zk-verification remains decentralized and secure. By combining Bitcoin’s proof of work (PoW) with Babylon’s PoS model, LayerEdge not only achieves efficient zk-proof verification from a technical standpoint but also ensures its long-term sustainability through its economic framework.

The design of LayerEdge is highly modular and scalable, allowing it to support the verification of various zk-protocols. This modularity enables LayerEdge to meet the diverse needs of different zk-protocols, addressing the increasing demand for zk-verification and laying a strong foundation for future innovations in decentralized applications. By aggregating zk-proofs on the Bitcoin blockchain, LayerEdge provides low-cost and efficient zk-verification, facilitating significant advancements in security and efficiency for decentralized applications.

Source: Medium

In summary, LayerEdge’s zk-proof aggregation technology, combined with the security of Bitcoin’s PoW, greatly reduces the costs associated with verifying zk-proofs while enhancing Bitcoin’s role as an off-chain computing infrastructure. With LayerEdge, the Bitcoin network transforms from merely a value storage tool into a robust platform that supports zero-knowledge proof verification and decentralized computing. Looking ahead, LayerEdge is poised to become a pivotal technology for large-scale zk-protocol verification, driving the further advancement of decentralized applications.

Source: Medium

LayerEdge Use Cases

LayerEdge’s zk-proof verification layer enhances Bitcoin’s security for zero-knowledge proofs (zk-proofs) and off-chain computations, offering robust support across various industries. Here are some key use cases for LayerEdge, showcasing its potential to drive transformation in these areas:

Decentralized Identity (DID) and Privacy Protection

Decentralized Identity (DID) is a fundamental part of Web3, enabling users to have complete control over their identity information and data. In the Web3 ecosystem, DID provides a new method of authentication that does not depend on centralized authorities. Instead, it allows for self-sovereign identities through blockchain technology. With DID, users can securely store, manage, and share their identity information while ensuring privacy and data security.

Source: 7 O’Clock Capital

LayerEdge utilizes zk-proof technology to facilitate identity verification and transactions without revealing user data. This approach ensures that sensitive personal information remains secure while allowing users to verify their identities and conduct transactions on the Bitcoin network without worrying about privacy breaches. From a technical perspective, LayerEdge aggregates multiple zk-proofs to lower verification costs while preserving Bitcoin’s decentralized trust layer, which guarantees both security and affordability in identity verification. By using LayerEdge, DID can be effectively implemented on the Bitcoin network in a manner that is secure, verifiable, and privacy-protecting, ultimately providing users with a more efficient and safer service experience.

On-Chain Gaming

On-chain games utilize blockchain technology to provide players with true ownership of their in-game assets. In these games, players can own, trade, and sell NFTs representing land, equipment, and collectibles. Unlike traditional games, Web3 games offer players more freedom and ownership, allowing them to control their assets, which can also be traded in external markets.

LayerEdge offers a quick finality solution for gaming platforms that need rapid changes in game state and can handle high transaction volumes at a low cost. By aggregating zk-proofs related to gaming, LayerEdge enables the secure and verifiable processing of in-game actions on the Bitcoin network without imposing high fees that could be burdensome. This aggregation technology ensures that game outcomes can be verified on the Bitcoin network without overwhelming it, thus ensuring both security and performance.

Decentralized Physical Infrastructure (DePIN)

In the field of Decentralized Physical Infrastructure (DePIN), Internet of Things (IoT) devices generate large amounts of data every day, which often require frequent verification and processing. LayerEdge’s zk-proof technology offers a low-cost and efficient solution for IoT, allowing secure verification of off-chain computations between devices, with results settled on the Bitcoin network. This ensures that every piece of data is traceable, trustworthy, and does not depend on centralized validators.

By leveraging Bitcoin’s proof-of-work (PoW) security, LayerEdge achieves decentralized verification of IoT data at a low cost while maintaining the integrity and trustworthiness of the data. This technology enhances the security of data from IoT devices, reduces verification costs, and improves overall efficiency.

Artificial Intelligence (AI) and Machine Learning (ML)

The use of AI and ML in Web3 significantly enhances the capabilities of decentralized applications. AI can analyze user behaviors and preferences to offer personalized services, optimize the design and execution of smart contracts, and improve their efficiency and security. With its powerful data processing abilities, AI can perform real-time market analysis, risk assessment, content filtering, and recommendations, enhancing the user experience in the Web3 environment.

However, for AI and ML models to be effective in decentralized settings, they need strong verification mechanisms to build trust. LayerEdge employs zk-proofs to validate AI computations without needing to re-run the models, ensuring that AI applications are both scalable and trustworthy. This means that LayerEdge’s zk-proof verification layer can confirm the results of AI models without executing those calculations on the blockchain again, reducing the computational load while maintaining Bitcoin’s security.

These examples illustrate how LayerEdge harnesses its zk-proof aggregation technology and Bitcoin’s security to deliver scalable, secure, cost-effective verification solutions across various industries. Such solutions boost efficiency in many fields and strengthen the decentralized ecosystem’s security and trust.

Conclusion

LayerEdge greatly lowers verification costs by combining multiple zk-proofs into one single proof, which minimizes redundant calculations and enhances verification efficiency. Moreover, it enables programmability on the Bitcoin network through a system called Babylon.

As Bitcoin Layer 2 continues to develop, LayerEdge is expected to play a crucial role in supporting large-scale zk-protocol verification, further advancing decentralized applications. The vision of LayerEdge is to evolve Bitcoin from merely a value storage tool into a decentralized supercomputer capable of handling a wide array of computational tasks. By utilizing zero-knowledge proof (ZK) technology, LayerEdge can perform efficient off-chain computations and verify them back on-chain, leveraging Bitcoin’s proof-of-work (PoW) security to ensure trustworthy computational results.

This architecture not only cuts down on the costs and burdens associated with on-chain execution but also supports emerging technologies like AI and the Internet of Things (IoT), enabling growth from financial applications to a broader range of decentralized solutions.