Project Research | Bitcoin Layer 2 Protocol New Solution ZKM

Content Editor: Yao Erling

Content Organizer: Yao Erling

Previous News

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ZKM announced the launch of innovative technology based on zkVM and decentralized sequencers to expand Bitcoin L2, ensuring the security of BTC native assets and providing a sustainable model for all BTC holders and ecosystem participants to benefit from.

1. Introduction to ZKM Project

ZKM is a zero-knowledge proof-based network aimed at unifying blockchains and creating a settlement layer on Ethereum. The project aims to provide faster and more convenient fund withdrawals, establish a standardized security framework for cross L2 and Alt L1 platforms, and enhance the security and integrity of IoT devices and cloud computing systems.

ZKM announced the launch of innovative technology based on zkVM and decentralized sequencers to expand Bitcoin L2, ensuring the security of BTC native assets and providing a sustainable model for all BTC holders and ecosystem participants to benefit from.

ZKM is a zero-knowledge proof-based network that also hopes to develop 2-layer protocol projects on the Bitcoin ecosystem through zk protocols, adding diversity of functionality to the project itself.

Article detailing the content of ZKM Zero Knowledge Protocol project ZKM is referred to as the "Metis sub-project."

ZKM Introduces New Bitcoin Layer 2 Protocol

ZKM's Bitcoin L2 security framework consists of native BTC multisig script control and decentralized transaction execution, introducing an "optimistic challenge process" to ensure off-chain computation.

It is supported by the entire tangled framework, including our general ZKVM and decentralized sequencers, which not only ensure local security but also provide sustainable yields without locking assets.

Unlike many short-term profit models, ZKM Bitcoin L2 focuses on long-term, sustainable income sources. Native BTC holders can protect the decentralized sequencer network to earn gas income and benefit from a dedicated mining pool consisting of 40% of the future token supply of ZKM, ensuring continuous returns and potential MEV opportunities.

Users of ZKM Bitcoin L2 will also benefit from the broader functionality of our Entangled Rollup network, which inherently unifies decentralized liquidity across blockchains and enables smooth transfer of inter-chain value without relying on inconvenient and potentially insecure third-party bridges.

This infrastructure creates a truly interconnected blockchain environment, eliminating the major barriers to wider adoption of Bitcoin-based technologies.

Multi-Chain Interoperability without Bridges Entangled Rollup Network

Interoperability in blockchains is often achieved using trusted bridges, which are separate centralized or partially decentralized intermediaries used to verify and transmit cross-chain messages.

Entangled Rollup is an architectural design where connections between two independent blockchains can be established through interactions between their corresponding Layer 2s. These interactions synchronize state changes between networks, enabling seamless exchange of information and value.

The Entangled Rollup protocol is trustless and takes a step forward in addressing liquidity fragmentation, in addition to simplifying user and developer experiences (a major adoption barrier in a multi-chain world).

In simple terms, the Entangled Rollup Network can potentially transform Ethereum into an interoperable network serving as a universal settlement layer, similar to Cosmos' IBC relay network, enabling asset cross-chain and communication capabilities in a complex chain environment.

As it can indeed enable "trust" between heterogeneous chains through a modular design based on zkVM. From a more vertically focused perspective, we can also view the Entangled Rollup Network simply as a BTC layer2 that enables migration of BTC main chain native assets.

The Entangled Rollup Network enables secure cross-chain asset transfers and movements through a set of trusted and secure Peg-in and Peg-out mechanisms.

The technical concept and RGB native protocol rely on publishing state Commitments to the mainnet and subsequently locking assets through subsequent state commitment Unlock are no different. The difference lies in RGB being based on a decentralized client P2P network, while the Entangled Rollup Network requires a set of staked and zkVM-built trustful relayer networks.

The Entangled Rollup Network defines the challenge mechanism as OCP (Optimism Challenge Process), where any user or node can challenge the transaction data state fragments of the Layer 2 network to the mainnet script lock commitment at any time. If the Layer 2 data and mainnet commitment are inconsistent, the challenge is successful, and the assets staked on the mainnet by the node will be confiscated. This ensures that the decentralized Sequencer does not engage in subjective malicious behavior.

How ZKM Drives Bitcoin Layer 2 Differently

Why did ZKM suddenly announce its entry into the Bitcoin track? In fact, when ZKM initially positioned its product, it was as a Layer 2 expansion network. Currently, many projects, including Layer 2 projects in the Ethereum ecosystem, are all introducing their own solutions for Bitcoin Layer 2, and of course, ZKM has also introduced its unique solution for the Bitcoin ecosystem.

There are already over 100 BTC L2s launched or about to be launched. The Entangled Rollup framework and zkVM level support BTC L2, allowing ZKM to provide native security and sustainable income as key features of this network.

Security Assurance

The security assurance of BTC L2 can be determined by two factors. First, assets on L1 should be controlled by native BTC multisig scripts, where any dishonest behavior will be prevented from unlocking the cheater's staked or deposited assets as long as at least one honest party is active. Second, the inclusion and finalization of L2 transactions can inherit BTC's security standards, indicating that the sequencer should be decentralized, and the execution of L2 transaction batches can be verified by BTC scripts.

ZKM introduces an optimistic challenge process mechanism (referred to as OCP) to meet these security requirements. When a user's assets are deposited into L2, they are locked into an n-of-n multisig script pre-signed, where signers can be any authorized and neutral third party or auditor. Then, the redemption script of the multisig should be activated after a specified challenge period. Subsequently, signers send assets to the target user in advance.

Sustainable Yield

Most Bitcoin holders seek sustainable and stable income rather than short-term points/airdrop rewards. For ZKM BTC L2, introducing decentralized sequencers to batch process L2 transactions provides inherent native security, so it is natural for these sequencer nodes (with BTC whitelist) to be rewarded for their contributions.

ZKM reserves 40% of its lifecycle token supply for the mining pool, specifically for sequencer node mining, liquidity staking mining, and proof-of-network mining. This ensures that sequencer nodes can earn continuous, sustainable income from the pool in addition to gas income from each batch they process. Sequencer nodes also have potential MEV opportunities as they are the fastest entities processing L2 batch transactions. Therefore, the income and benefits of ZKM BTC L2 belong to every participant in the network, whether they are node operators, equity holders, or users. Additionally, BTC L1 miners will benefit from additional L2 transactions submitted to L1.

Conclusion

ZKM's unique solution in the Bitcoin Layer 2 field brings different content to Bitcoin. It combines multisig scripts and an optimistic challenge process mechanism to ensure high security while improving transaction efficiency by introducing decentralized sequencers. More notably, ZKM focuses not only on short-term returns but on long-term sustainable income sources, through a unique

The combination of the profit model and Entangled Rollup network has opened up a new path for the development of the Bitcoin ecosystem. In conclusion, ZKM demonstrates unlimited potential and is expected to become a leader in the Bitcoin Layer2 field in the future.

At the same time, ZKM, as another project of the founder of Meits, is mainly developed for the model of the Bitcoin network's Layer2 product. Metis's marketing capabilities in the current market are sufficient, coupled with the design and product power of ZKM product development, the scale of the audience is very large, making it one of the most noteworthy projects.