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Author: Jagjit Singh, CoinTelegraph; Compilation: Baishui, Bitchain Vision
1. Validiums
Validiums is a Layer 2 extension solution designed to optimize Ethereum’s performance by processing transactions off-chain.
Vailidiums is primarily responsible for reducing the load on the Ethereum blockchain by processing most transactions off-chain and sending only concise proofs to the main network for verification.Off-chain transaction processing methods can significantly increase throughput and reduce mainnet congestion, resulting in a more efficient and economical Ethereum experience.
With this approach, even if most of the data is processed off-chain, the security and integrity of transactions can be maintained by the on-chain proven repetitive validity proof.By verifying the accuracy of off-chain computing, these proofs ensure that state transitions follow Ethereum guidelines.
Validiums provides considerable scalability and transaction speed improvements by uninstalling transaction data from the mainnet.This is especially beneficial for high-throughput systems and decentralized applications (DApps).
2. The working principle of Validiums: step-by-step process
Validiums batch process and process transactions off-chain, submitting the proof of validity to the Ethereum mainnet for verification.
Validiums operates through a series of steps designed to optimize transaction processing and enhance scalability.These steps include:
Step 1: Transaction Submission
Users initiate transactions by submitting transactions to the validium operator responsible for managing off-chain transaction processing.
Step 2: Batch and off-chain processing
The operator collects multiple transactions and processes them in batches.Subsequently, processing of these batches is completed off-chain.This off-chain processing greatly improves transaction throughput compared to processing each transaction separately on the main network.
Operators are essential to managing the validium.They are responsible for collecting transactions, batching them together, and generating zero-knowledge proofs to validate these transaction batches.
Step 3: Generate a proof
Zero knowledge (ZK) proof is crucial for the operation of validiums.The operator generates a ZK proof after the transaction is processed.These cryptographic proofs indicate that the resulting state transition follows the Ethereum network rules and that off-chain calculations are performed correctly.Crucially, ZK proves that this is achieved while protecting privacy – i.e., no details of the transaction itself are disclosed.
Step 4: Proof Verification
The generated ZK proof is uploaded to the Ethereum main network together with the state commitment, which is an encrypted representation of the latest state of the off-chain system.The validity of the main network smart contract verification proof.By verifying whether the off-chain calculation is correct and whether the modified state complies with the blockchain regulations, this verification procedure ensures the security and finality of the transaction.
How Validiums relies on the Ethereum mainnet to ensure security
Validiums are off-chain transaction processors, but they still rely on the Ethereum mainnet for security.The operator-generated status commitment and ZK proof are submitted back to the Ethereum main network.This submission ensures verifiability and security of off-chain operations.
Validiums uses cryptographic proof to link these off-chain operations to the mainnet, thus leveraging Ethereum’s powerful security model.Combining the advantages of off-chain processing with mainnet security, this integration allows Validiums to achieve excellent scalability while ensuring the final state and integrity of transactions are protected by the Ethereum blockchain.
3. What is the difference between Volition and Validium?
While validium and volume are both Layer 2 extension solutions for Ethereum, they differ in data availability.
Volition provides users with flexibility to choose off-chain and on-chain data availability in transactions, providing enhanced security and flexibility at slightly higher costs.By contrast, validium specializes in storing data off-chain, prioritizing scalability and cost reduction, but with a slight reduction in security compared to on-chain solutions.
The following table shows the differences between voltage and validium:
4. Rollups vs. validiums
Validium and rollups are both L2 extension solutions for Ethereum; however, their security protocols and data accessibility are different.
Rollups provides enhanced security and simplified verification by processing transactions off-chain while storing data on-chain.Validium, on the other hand, reduces cost and improves scalability by keeping data off-chain optimization while maintaining slightly lower security.Their cost profile, flexibility and security are affected by this difference.
The following table shows the differences between rollups and validium:
5. The benefits of Validiums
Validium is an attractive L2 scaling solution for the Ethereum network, with several significant advantages including faster transaction speeds, lower fees, and the potential for enhanced privacy.
A key advantage is the ability to accelerate transaction processing.By processing off-chain transactions, Validium reduces the computing load on the Ethereum main network, thus shortening transaction time and improving network efficiency.This feature is especially valuable for DApps and high-throughput platforms.
In addition, Validium also significantly reduces gas costs.Since most transaction data and calculations are processed off-chain, the cost of executing transactions is greatly reduced.This cost-effectiveness makes Validium an ideal choice for users who often interact with the Ethereum network but are concerned about high transaction fees.
In addition, Validium has the potential to enhance privacy.Since validium processes off-chain data, transaction details do not need to be disclosed publicly on the Ethereum main network.Instead, they are verified using zero-knowledge proofs, which validate transactions without revealing sensitive information.This enhanced privacy is crucial for users and businesses who prioritize confidentiality in blockchain interactions.
6. Challenges faced by Validium System
Potential drawbacks of Validiums include data availability issues and centralized risks associated with operator roles.
An important issue is data availability.Since validiums stores transaction data off-chain, there is a risk of losing or inaccessible access to this data if an off-chain storage solution fails or is compromised.This may hinder the ability to verify transactions and maintain the historical integrity of the blockchain.
Another potential drawback is the centralized risks associated with operators.In the validium system, operators play a vital role in collecting transactions, generating zero-knowledge proofs, and submitting state commitments to the Ethereum mainnet.If the operator acts maliciously or fails to perform its duties correctly, this core role can cause a single point of failure, which can endanger the system.Relying on a limited number of operators will also focus power and trust in the hands of a few entities, which may undermine the decentralized spirit of blockchain technology.
These challenges underscore the importance of implementing strong security measures and risk mitigation strategies for the validium system to ensure they can successfully balance scalability and security while maintaining decentralization and trust.
