What is Opside? (sponsored)

Opside is a decentralized ZK-Rollup-as-a-Service (ZK-RaaS) network built on the modular blockchain concept.
 What is Opside?  (sponsored)
READING NOW What is Opside? (sponsored)

Opside is a decentralized ZK-Rollup-as-a-Service (ZK-RaaS) network built on the modular blockchain concept.

Opside develops a sophisticated three-layer blockchain architecture, combining the strengths of Proof-of-Stake (PoS) and Proof-of-Work (PoW) consensus mechanisms. This innovative design provides Web3 developers with a robust and feature-rich zkEVM chain that can be effortlessly created with one click.

In the area of ​​scalability, the Layer 2 (L2) concept is widely accepted. However, the limitations of L2 stem from its inability to effectively integrate various hardware resources, including data availability, zero-knowledge proof (ZKP) computing capabilities, and peer-to-peer (P2P) nodes. This has led to the emergence of the modular blockchain concept.

Things to Know About Opside

Opside’s innovative three-tier architecture is built on the L2 foundation by seamlessly combining various modules and offering an external Zero Information Collection as a Service (ZK-RaaS) platform.

L1, Public Chain: Examples include Ethereum, BNB Chain, and Polygon.

L2, Opside Chain: Opside offers comprehensive decentralized consensus, data availability, and zero-knowledge proof (ZKP) computing capabilities. All transactions and data generated on the chain are subject to verification and storage on Layer 2 (L2). As a result, transactions are processed quickly and fees are minimal.

L3, Aggregation Layer: Rollups increase scalability by off-chain resource-intensive computations. Opside offers a wide variety of Zero-Knowledge-Rounding Software Development Kits (SDKs), notably zkEVM covering Polygon Hermez, Scroll, Taiko, zkSync and more. While the decentralized Opside network provides all the necessary hardware resources, developers can effortlessly deploy their ZK-Rollup projects to Opside’s Layer 3 (L3) with one click.

The various layers are interconnected via different cross-chain bridges, allowing assets to be seamlessly transferred from Layer 1 (L1) to Layer 2 (L2) or Layer 3 (L3).

ZK-RaaS

ZK-RaaS (ZK-Rollup as a Service) refers to providing one-click production service for ZK-Rollups.

Opside provides a generic ZK-Rollups SDK that developers can use to easily deploy their ZK-Rollups projects in Opside L3. Opside L3’s ZK-Rollups are governed by a system contract, including registration, suspension and cancellation. Developers can rent a Rollup slot with a certain amount of IDE (Opside tokens) to get a ZK-Rollup. This concept is similar to Parachain slots in Polkadot, but Opside L2 and L3 share the same consensus and data availability layer, resulting in higher security, more decentralized maintenance costs and lower costs.

Developers who rent an aggregation slot get a standalone execution environment, similar to having a zkEVM chain. They have full control over ZK-Rollup and allow customization of the economic model, including gas token selection. Developers have the flexibility to adjust the gas fee or even reduce it to zero, ensuring that users are not charged any fees. Also, cross rollup communication is possible between various ZK-Rollup projects on Layer 3 (L3).

Developers do not need to incur any hardware costs. All key hardware resources such as data availability, sequencer, and zero-knowledge (ZKP) computing power are provided by the decentralized hybrid consensus of Proof-of-Stake (PoS) and Proof-of-Work (PoW) mechanisms.

PoS & PoW Hybrid Consensus

ZK-Rollup has several advantages over OP-Rollup, such as improved security, no trust requirements, and faster withdrawals. A key technical difference is that ZK-Rollup requires strong ZKP computing power to support zero-knowledge proof generation. In the future, the Opside network may consist of hundreds or thousands of ZK-Rollups forming the Aggregation Layer, which will create a significant demand for ZKP computation. To address this, it is crucial to encourage miners to participate and contribute to the ecosystem. With Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS), a large number of Ethereum miners have become obsolete, representing a market capitalization of approximately $12 billion.

As ZK-Rollup technology matures, ZKP production requires substantial hardware and mining equipment such as FPGAs and GPUs. Opside’s PoS and PoW hash consensus not only uses the PoS mechanism to motivate validators to provide data availability, but also uses PoW to incentivize miners to provide ZKP computing power.

This approach provides a comprehensive hardware solution for ZK-Rollup and represents one of Opside’s core ideas. All participants, including users, developers, node operators and miners, can benefit from the Opside economic model.

Opside aims to allow ZK-Rollup to inherit not only the security of previous layers, but also a degree of decentralization. Currently the largest decentralized network in the world, Ethereum has over 500,000 nodes and provides tremendous decentralization. Thanks to data storage technology, these nodes will also offer significant data availability in the future. This is one reason why Opside chose to develop the PoS consensus based on ETH 2.0. Opside envisions hosting over 100,000 nodes. In order to achieve a similar level of decentralization for Rollup, it is a viable strategy for Opside Chain’s block recommender to propose blocks for the Rollup Layer. This approach separates generators and recommenders for the Aggregation Layer: generators are supported by an unlicensed P2P network, and recommenders follow the Layer 2 block recommender. This eliminates the availability risks associated with a single node and offers Miner Extractable Value (MEV) and censorship resistance.

Hybrid PoS & PoW reconciliation requires the following division of labor:

Layer 2 (L2):

PoS: Opside will adopt and enhance the PoS of ETH 2.0, resulting in a consensus layer with 100,000+ validators. Anyone can stake IDE tokens to become validators. Additionally, Opside’s PoS is provable, and validators periodically send proof of PoS to Tier 1. Validators can earn block rewards and gas fees at Tier 2.

Layer 3 (L3):

PoS (Sequencer): The verifier recommends not only layer 2 blocks but also layer 3 blocks (i.e. data stack); i.e. validators are also sorters of local aggregations at layer 3. Sequencers can earn gas fees from the transaction on tier 3 transactions.

PoW (Verifier): Anyone can be a validator of a local roundup as long as they have enough computing power for the ZKP calculation. Validators generate ZK proofs for each local aggregation in layer 3. A proofer generates ZK proof for each block of tier 3 served by the sequencer according to PoW rules.

A ZK-Rollup is similar to a computer with two basic components: a hard disk and a CPU. The data availability provided by PoS is similar to the hard drive while the computing power offered by PoW is similar to the CPU. Opside aims to strike a balance between PoS and PoW by enabling each role to fully realize its value and benefit while providing enhanced performance and user experience for the large-scale ZK-Rollups network. Achieving this balance will ensure that the Opside network can efficiently support the large ZKP computing demand generated by a large number of ZK-Rollups.

Opside can effectively leverage the strengths of both PoS and PoW mechanisms to create a robust and sustainable ecosystem that meets the needs of all its participants, including users, developers, node operators and miners. As Opside continues to grow and evolve, ZK-Rollup will play an important role in promoting the adoption of technology and developing a decentralized, scalable and secure environment for blockchain applications. This comprehensive approach will contribute to the long-term success and widespread use of ZK-Rollups in the blockchain environment.

Token Supply and Demand

The allocation details for the IDE (Opside token) are as follows: A maximum of 10 billion IDEs will be issued. 10 percent is reserved for venture funding, 14 percent is reserved for the Opside team and contributors, and 15 percent is reserved for the community, which includes early testers, ecosystem project developers, and potential future airdrops. 28 percent is dedicated to the foundation to support ecosystem development, follow-up financing and other causes. The remaining 33 percent is used as rewards for validators and miners who provide data storage services, generate zero-knowledge proofs, protect blockchains and execute contracts. The token distribution table is as follows:

In accordance with hybrid PoS and PoW consensus, the block reward is divided into two parts allocated to validators and miners respectively. During the Pre-Alpha testnet phase, the temporary block reward ratio for PoS and PoW is fixed at 1:2, meaning 11 percent of the IDE is assigned to validators, while 22 percent is set for miners. In the future, this rate will be adjusted dynamically according to the demand and supply of ZKP computing power across the entire network.

Reward of PoS

As mentioned earlier, Opside uses a PoS consensus based on an enhanced version of ETH 2.0.

To participate as a validator, users must deposit a certain amount of IDE into the deposit agreement and run three separate pieces of software: execution client, consensus client, and validator. Validators are responsible for verifying the validity of new blocks propagated over the network and creating and propagating new blocks themselves from time to time. If a validator acts dishonestly or negligently, the staked IDE will be forfeited.

Under PoS, Opside has a fixed block generation rate and is divided into time slots (12 seconds) and epochs (32 time slots). In each slot, a randomly selected validator acts as the block recommender, responsible for generating new blocks and sending them to other nodes in the network. Also, in each slot, a random committee of validators is chosen to determine the validity of the proposed block using their votes. Please see ETH PoS for the exact mechanism.

Opside plans to support EIP-4844 on the Alpha testnet and use Data Availability Sampling (DAS) to enable ZK-Rollup to provide transactional data after execution without overloading individual nodes. Validators randomly sample transaction data from the blob to verify that all data is available. This technique can also enable block producers to make all their data available to secure light clients. Under the Bidder-Builder Separation (PBS), only the block generator needs to consider the entire block, while other validators use data availability sampling for validation.

Opside will differ in some specific parameters that readers can find in the codebase.

Overall, staking simplifies participation in network protection and encourages decentralization. Validation nodes can be run on standard laptops, and some proxy staking pools even allow users to stake without sufficient IDE balance.

PoW’s Awards

In Opside’s L3 or Aggregation Layer, each Web3 application can have a special ZK-Rollup. To support the extensive hardware resources required by multiple ZK-Rollups, Opside provides a unified ZKP computing marketplace as well as validators that offer data availability to create ZKPs for these ZK-Rollups. This creates Opside’s PoW mechanism.

Prize share calculation for a single roundup string

In the Pre-Alpha phase, only one sequence can be sent per Rollup in an L2 block (which may include multiple blocks of this Rollup). All sequences equally share the current block’s PoW reward based on the number of registered Gathering slots. This means that if there are currently 64 registered Gathering slots, each array in an L2 block will receive 1/64th of the PoW reward. Some rollups may not send sequences in some blocks, resulting in lower true PoW inflation.

In the future, individual arrays will be priced differently based on workload estimates, taking into account factors such as ZK-Rollup type, throughput, and gas usage.

Two-stage ZKP delivery

The PoW reward share obtained by a series is allocated according to certain rules to the senders of valid ZKPs, i.e. miners. When Rollup’s smart contract validates ZKPs, it needs original proof data, which can trigger on-chain attacks. For example, after a particular proofer calculates the ZKP, the transaction is broadcast to the transaction pool and the attacker can see the raw proof data and the attacker can set a higher gas fee for sending the transaction, thus prioritizing packing into the block to receive the PoW reward. To prevent malicious attacks, Opside proposes a two-stage submission mechanism for ZKP verification.

1) Submit the hash

For a given string, after the proof has calculated the ZKP, it calculates the (proof/address) hash and sends the hash and address to the contract; where the proof is the proof of a particular sequence and the address is the address of the proofreader who has to bet beforehand

Assuming that the first proofer sends hashes in the T block, hashes from the other proofers are accepted up to the T+10 block, with no number limit. No new validator will be accepted for hashing on and after the T+11 block.

2) Submit the ZKP

After the T+11 block, any authenticator is allowed to send ZKP as long as a ZKP passes verification, then all submitted hashes are validated. Any prover who passes the verification receives a PoW reward, which is distributed proportionally to the amount deposited by the miner.

If no ZKP passes validation by block T+20, 1,000 IDEs sent by all the hashes are lost, at which point the queue is reopened to allow new hashes to be sent.

For example, suppose the PoW reward for each L2 block in the Opside chain is 128 IDEs and there are 64 Aggregation slots in total, then the PoW reward allocated to each Aggregation thread is 2 IDEs. So the PoW reward for A, B and C is 0.4 IDE, 1 IDE and 0.6 IDE respectively.

Prover Piling and Cutting

To avoid malicious behavior towards Prover, the prover must sign up to a special system contract and stake at least 100,000 IDEs. If the current stake is less than the threshold, hash and ZKP submission will not be allowed. Prover’s reward for sending ZKP will also be distributed proportionally to the stake, thus preventing malicious behavior of the prover sending ZKP multiple times. Different levels of penalties will apply when Prover:

If the proofer sends the wrong hash, the penalty will be 10,000 IDEs.

For a string, if no corresponding ZKP is validated, all IDEs that send a hash will be truncated by 1,000.

Cut IDEs will be burned.

Readers are referred to the official documentation for more details and considerations about ZKP’s two-step application mechanism. The exact number of prover commitments and penalties may change in the future.

Rollup slot rental for developers

Opside offers a ZK-Rollup launch platform for developers, allowing them to register a Rollup slot with one click to create their own ZK-Rollup. Opside’s decentralized network provides all the necessary hardware resources for ZK-Rollup. Developers only need to pay a certain rent to the Opside network for the Rollup slot, which is then burned.

In addition to a fixed rental amount, developers can provide additional ZKP subsidies for their ZK-Rollups to encourage miners to provide computing power. This feature will be introduced on Alpha Testnet.

Readers can find specific rent and subsidy rules and parameters in official documentation or in the code base. These measures contribute to the continued growth and optimization of the Opside network, promoting a thriving ZK-Rollup-as-a-Service ecosystem.

Governance and Development

The functionality and performance of the Opside network will evolve over time with a few high priority examples outlined below:

Dynamic scaling of PoW reward allocation with PoS based on ZKP computing supply and demand across the network

Increasing data storage capacity for the entire Rollup Tier through data slicing and data availability sampling of validators, thereby adapting to the wider ZK-Rollup ecosystem

Separating the rollup’s recommender and generator allows Layer 3 to share Layer 2’s validator as the block recommender and inherit the decentralization of the previous layer.

Optimizing the staking and slashing mechanism for miners to promote the provision of consistent and stable ZKP computing power

Developers subsidize ZKP production for their own Rollups to encourage miners to provide computational power

Establishing a personalized pricing mechanism for Rollup batches based on workload estimation, taking into account factors such as ZK-Rollup type, transaction volume and gas usage.

These enhancements will significantly increase Opside’s network utilization and support the long-term development and prosperity of ZK-Rollup as a Service.

Following the launch of the Opside mainnet, an Opside DAO (Decentralized Autonomous Organization) will be established with rational processes and mechanisms to collectively determine the future of the network. All updates to the parameters and mechanisms of the Opside mainnet will be decided through the Opside DAO. It is important to emphasize that Opside represents an economy that has evolved over time and is built collaboratively. Future improvements will be in the form of DAO recommendations detailing how these solutions will benefit the long-term interests of the Opside economy and each category of participants. As the network expands, it is crucial to build an economy that can function independently and robustly without extensive tools and subsidies.

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