The term ZK, which was once highly anticipated by the market, seems to have been born at the wrong time, as the market mood has plummeted amidst the shaky crypto market, resulting in a sharp decline in attention. Moreover, ZK protocols such as ZKsync, Polyhedra, and Taiko have been questioned by the market due to airdrop events, causing both market funds and sentiment to hit rock bottom.

Is there a new ZK project that has been overlooked during this quiet market period? Mystiko, as a Web3 infrastructure layer, was first selected as a seed project by CoinList in the summer of 2022. In March this year, Mystiko completed a seed round of financing of 18 million USD, led by Sequoia Capital India/SEA (now known as Peak XV Partners), with participation from Samsung Next, HashKey, CoinList, Naval Ravikant, among others. Both the seed round amount and the investor lineup are impressive.

What is Mystiko?

Mystiko is a foundational layer for Web3, operating as a universal ZK SDK that enhances the scalability, interoperability, and privacy of blockchains. Its SDK empowers developers to build blockchain applications that reduce costs, scale effortlessly, enable secure cross-chain interactions, and protect users’ on-chain identities (account balances, transaction history, etc.).

According to data from its official website, Mystiko has processed over $270 million in total transaction volume and facilitated over 1.26 million transactions.

In late March of this year, Mystiko’s native token, XZK, was listed on CoinList at a price of $0.15 per token. The token sale concluded with 20,260 participants, 75 million tokens sold, and $11.25 million raised.

What Can Users and Developers Do?

Many businesses and individuals are hesitant to share certain data publicly. Blockchains, as the foundation of Web3, expose all user transaction data to the public due to their transparent and traceable nature, including account balances, asset holdings, transaction history, and more. This poses significant drawbacks.

Mystiko.Network utilizes zero-knowledge proof technology to safeguard user transaction details on and between blockchains.

For users, employing wallets or dApps powered by Mystiko.Network (https://camowallet.app/) shields their on-chain payment behavior, concealing income and expenditure information, and protecting their trading strategies from being discovered by other traders.

Developers can leverage Mystiko’s universal ZK SDK to build any DApp. For blockchains, both L1 and L2 can utilize Mystiko as a ZK layer, enabling both on-chain transactions and cross-chain transfers. For cross-chain bridges, Mystiko can serve as a ZK bridge, facilitating cross-chain transactions.

Wallet providers can also leverage Mystiko to implement asset management in a trusted environment. DeFi DApps, such as DEXs, can utilize Mystiko to become ZK DEXs. Crypto payment DApps can employ Mystiko to execute C2C and C2B payments while safeguarding the recipient’s on-chain income history.

What are The Technical Highlights of Mystiko?

Mystiko employs a technique called Snark of Snark to enhance security and reduce Gas fees (see diagram below). Mystiko.Network has integrated ZK Rollup, resulting in mainnet transaction costs that are 50-90% lower than those of other major existing ZK solutions.

Mystiko also utilizes JoinSplit technology, enabling users to transfer and withdraw any amount of their total deposited assets. JoinSplit consumes one or two input (deposit) values and creates one or two output (withdrawal) values.

For instance, if a user makes three deposits on Mystiko.Network in the amounts of 10 ETH, 20 ETH, and 30 ETH on the Ethereum mainnet, they can now withdraw any amount less than 50 ETH, all while maintaining full ZK functionality. This feature enhances functional flexibility and allows users to improve their capital efficiency. Additionally, if both the sender and recipient are Mystiko users, they can transfer funds without interacting with the public chain.

Mystiko has also designed a decentralized auditing system specifically for on-chain ZK transactions and established a decentralized auditing committee to audit transaction flows from suspicious deposits made by malicious actors.

XZK Tokenomics

Mystiko’s native token, XZK, has a total supply of 1 billion tokens. The specific distribution is: 20.8% community incentives, 20% private sale, 15% core contributors/advisors, 11% developers, 10% marketing, and 10% ecosystem.

Currently, XZK’s primary utilities are staking and governance. Mystiko’s operation relies on ZK-Rollup miners and relayers, and to become either, XZK token holders must stake a certain amount of XZK. Additionally, XZK token holders can participate in network governance voting, and users with 100 million tokens can directly initiate proposals.

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