How to understand the Entangled Rollup Network launched by ZKM

Author: Haotian, independent researcher Source: X, tell0211

How to understand the Entangled Rollup Network launched by @ProjectZKM? Simply put: it is an interactive and unified liquidity network built on the zkVM general execution layer. At a time when the BTC layer2 track is extremely lacking in Native cross-chain solutions, can we also regard it as a BTC layer2 solution that can achieve native cross-chain migration of assets? Next, let me talk about my understanding from a technical perspective:

1) ZKM is a General-Purpose general ZK execution layer. The separation of the computing layer and the verification layer is realized through ZK technology. The computing layer can efficiently calculate in the off-chain environment, and only uploads the Proof to the chain to verify whether the result is correct on the chain. By providing a modular ZK execution layer for each chain, ZKM can unleash the decentralized trust potential of ZK technology and make it a universal execution layer for the Zero layer. As an "upstream" technical service provider, it provides ZK technical support for various heterogeneous chains that require trust.

Entangled Rollup Network is a universal interoperable layer launched by ZKM. Based on the ZK execution layer + verification layer, a decentralized relay network is constructed to be responsible for cross-chain information communication and asset settlement between different chains.

ZKM can be regarded as an underlying hard-core technology framework, and Entangled Rollup Network will implement the execution and verification capabilities of zkVM in some cross-chain settlement and communication application scenarios.

Between EVM homogeneous chains or heterogeneous chains that support smart contracts, Entangled Rollup Network only needs a set of relay protocols to manage smart contracts on different chains to achieve unified scheduling and management of assets. However, between BTC chains that are non-EVM and do not support smart contracts, it is the key to test whether the cross-chain solution of Entangled Rollup Network can release the potential of zkVM.

2) From a longer-term perspective, Entangled Rollup Network is an interoperable network that can make Ethereum a universal settlement layer, similar to Cosmos' IBC relay network, which can realize cross-chain and communication capabilities of assets in a complex environment of the entire chain. Because it can indeed achieve "trust" between heterogeneous chains based on the modular execution layer design of zkVM.

I have specifically stated in a previous article that zkVM allows the emerging Ethereum layer2 project @MetisL2 to attach a ZK special router to OP-Rollup, a hybrid Rollup capability that can quickly withdraw. This is an innovative breakthrough that zkVM can achieve in the Ethereum ecosystem, which can enable the construction of a ZK cross-chain trust mechanism between the Ethereum mainnet and layer2.

In theory, ZKM's universal ZK execution layer capability can use Ethereum as a unified settlement (universe) center, and the Entangled Rollup Network will correspondingly become a relay network connecting a multi-chain environment, which can build a unified liquidity network center for different chains.

Apart from what ZKM and Entangled Rollup Network can achieve in the long term. From a more vertical perspective, we can also regard Entangled Rollup Network as just a BTC layer2 that can give the BTC main chain native asset migration capabilities. It provides Native BTC cross-chain services for hundreds of BTC layer2 projects and becomes a shared interoperability layer for the BTC layer2 ecosystem.

3) Taking the BTC layer2 cross-chain scenario as an example, how does Entangled Rollup Network achieve Native BTC cross-chain? How it works? As ZKM Founder @kevinliub said below, an absolutely secure BTC layer2 cross-chain solution should have two key factors:

1. Assets on the BTC mainnet should be script-controlled through multiple signatures;

2. The Sequencer of BTC layer2 should be decentralized, and there should be a challenger mechanism involving the mainnet script. Specifically:

Step 1: If a user wants to conduct cross-chain transactions with BTC layer2, he needs to first create a delegation transaction on the BTC main network, that is, a Commitment, promising to entrust the assets to the Entangled Rollup Network for "custody". The delegation transaction will be monitored and recorded by the Entangled network nodes;

Step 2: zkVM off-chain executes to generate the corresponding state root and records the state transfer process of the delegation transaction, and generates the corresponding Wrapped BTC on the Entangled network;

Step 3: The Entangled network will create a certificate transaction on the BTC main network based on the information in the user's delegation transaction, including the Proof proof and state root Hash generated by zkVM execution and saved in the Bitcoin main network OP_Return data;

Step 4: zkVM executes to generate the Proof proof and will be recorded by Proof Network conducts distributed verification to prove that the state migration data in the process is true and valid;

Step 5: Entangled Rollup Network has a completely decentralized Sequencer transaction sorting and processing system. Sequencer nodes will pledge BTC margin on the main network and pledge corresponding governance tokens in the network to participate in network governance;

Step 6: When users withdraw BTC from BTC layer2 back to the main network, after a series of state verification and confirmation, they can obtain the assets stored in the BTC main network by the Entangled node, thereby realizing the safe exit of the native assets.

4) Overall: Entangled Rollup Network allows users to realize the safe cross-chain and transfer of assets through a set of trusted and secure Peg-in and Peg-out mechanisms. The technical concept is no different from the RGB native protocol that relies on publishing the state Commitment to the main network and locking assets through the subsequent state commitment Unlock. The difference is that RGB is based on a client P2P network with no central organization, while Entangled Rollup Network needs to build a trusted relay network through a set of pledges and using zkVM.

The question is, what if the Sequencer tampers with the state migration data before Peg-out and causes the ledger to be chaotic? Therefore, the Sequencer must be decentralized, and there must be a challenger mechanism that always challenges the security and effectiveness of the Sequencer's work.

Entangled Rollup Network defines this challenge mechanism as OCP (Optimism Challenge Process). Any user and node can pass the transaction data status fragment of the layer2 network to the main network at any time to challenge the commitment locked by the main network script. If the layer2 data and the main network commitment are inconsistent, the challenge is successful, and the assets pledged by the node on the main network will be confiscated. In this way, the decentralized Sequencer will not be subjectively malicious.

That’s all.

As mentioned above, ZKM’s interoperable network can theoretically work in a full-chain environment, becoming the underlying infrastructure for a new generation of “chain abstraction”; of course, it can also work in the BTC layer2 field, which is currently thriving but has no native asset cross-chain solution. The latter is perfect for serving the BTC interest-earning track.