Interpretation Series on White Paper: Security Layer
Cross-chain security refers to the measures and protocols implemented to ensure the secure exchange of data and assets between different blockchain networks. As blockchain technology evolves, there is a growing need for various blockchains to communicate and interact seamlessly with each other. However, this interoperability introduces security challenges that must be addressed to maintain the integrity, confidentiality, and availability of data and assets across interconnected networks.
To ensure the interoperability security, Cycle Network innovatively introduces Security Layer.
CYCLE Technical Architecture
Cycle Network introduces the first Omni Distributed Ledger Technology (ODLT) as a solution for trustless interoperability. It can handle cross-chain transactions between individual blockchains and also meet the interoperability requirements of Layer2 networks. This feature is a result of Cycle Network’s positioning as a Rollup, rather than a traditional blockchain.
In Cycle Network’s terminology, interacting blockchains or Layer2 networks are referred to as “Extend Layer”. As the rollup of the extend layer, Cycle Network manages cross-chain transactions from these blockchains in the extend layer. It also sets up an Omni Decentralized Indexer, providing Data Availability (DA) services for all networks in the extend layer. State proofs are accurately recorded in the Omni Distributed Ledger (ODL) using the Merkle tree algorithm. At the same time, Cycle Network verifies the correctness of cross-chain messages using Zero-Knowledge Proof (ZKP) technology. By using ZKP, it achieves immediate finality, reducing interoperability latency and keeps trustless, which allows for minimal trust and maximum security.
The core feature of Cycle Network is that it can not only provide DA for the decentralized ledgers in the extend layer but also secure its network with the Security Layer which inherits security from Ethereum. This key feature makes Cycle Network superior to existing cross-chain solutions. Traditional solutions either don’t provide DA services or simply use a relay chain as DA. However, relying on a relay chain brings inherent security risks as it is a third-party blockchain, compromising the overall security of the cross-chain system.
So, how does Cycle Network ensure security through the Security Layer?
What is Security Layer
The Security Layer refers to a critical aspect of Cycle Network that is fundamental for maintaining the integrity, safety, and reliability of transactional data within the decentralized network. In essence, it serves as the backbone of Cycle Network, ensuring that transactions are securely processed and recorded while upholding the principles of decentralization and minimal trust.
At its core, the Security Layer is responsible for evaluating and implementing robust mechanisms that guarantee the safety and liveness of transaction states. Safety pertains to ensuring that transactions are accurately recorded and that no conflicting results arise from the nodes within the network. Liveness, on the other hand, refers to the timely and reliable processing of transactions, ensuring that valid transactions are included in the blockchain within an acceptable time bound.
Essentially, Cycle Network is also the rollup of the security layer. Cross-chain transactions from other networks in the extend layer are gathered in the Cycle Network. Then these transactions will be anchored to the underlying blockchain in the security layer, such as Ethereum, utilizing its robust security infrastructure. This means that Cycle Network benefits from the same level of security as the underlying blockchain under the help of the security layer, which typically includes decentralized consensus mechanisms like Proof of Work (PoW), Proof of Stake (PoS) or Practical Byzantine Fault Tolerance(Pbft), making it highly resistant to attacks.
On the other hand, Cycle Network, as the rollup, aggregates multiple cross-chain transactions from the extend layer or itself into a single data commitment, reducing the amount of data which will be stored on the security layer. These commitments are periodically submitted to the main chain, such as Ethereum, providing a cryptographic proof of the validity of the transactions. This process enhances efficiency while maintaining security by minimizing the on-chain footprint.
The Security Layer plays a pivotal role in Cycle Network by guaranteeing the safety and liveness of transaction states. It involves the evaluation and implementation of stringent security measures to protect against potential threats and vulnerabilities, thereby upholding the core principles of decentralization, trustlessness, and data integrity. By selecting Ethereum as the preferred blockchain for the Security Layer, the Cycle Network aims to establish a secure and reliable platform for decentralized transactions, paving the way for innovative applications and services in the blockchain space.
Inherit security from Ethereum
Cycle Network, as a rollup, inherits security from Ethereum primarily through its integration with Ethereum’s underlying blockchain infrastructure and through the use of Ethereum’s consensus mechanisms, programmability(smart contract), and security features(ZKP).
Consensus Mechanism: Ethereum’s consensus mechanism, currently transitioning from Proof of Work (PoW) to Proof of Stake (PoS) with Ethereum 2.0, ensures the integrity and finality of transactions on the main chain. Cross-chain transactions through Cycle Network are ultimately settled on Ethereum, benefiting from its consensus mechanism’s security and immutability.
Smart Contract Execution: Rollup implementations often utilize Ethereum smart contracts to enforce rules and validate transactions. Smart contracts on Ethereum are executed deterministically and securely, ensuring that transactions in the rollup adhere to predefined protocols and cannot be manipulated or tampered with.
Zero-Knowledge Proof (ZKP): Some rollup solutions, such as Polygon or Scroll, utilize zero-knowledge proofs (ZKP) for transaction aggregation and verification. ZKP allow rollup operators to submit succinct proofs to Ethereum, providing cryptographic guarantees of transaction validity without revealing sensitive information. Ethereum’s support for ZKP enhances rollup’s privacy and security features.
In summary, Cycle Network inherits security from Ethereum by leveraging its blockchain infrastructure, consensus mechanisms, smart contract capabilities, cryptographic features, community scrutiny, and economic incentives. This integration ensures that cross-chain transactions benefit from Ethereum’s established security model.
Conclusion
Cross-chain security is crucially important. Although there are many existing solutions, Cycle Network takes a fresh perspective by positioning itself as the rollup of all interoperable blockchains/Layer2s to ensure Data Availability. More importantly, Cycle Network introduces the Security Layer to inherit the high-level security from Ethereum. And, the interoperability process between blockchains/layer2s is guaranteed to be trustless to further enhance the cross-chain security by TCCP, which we will talk about in the following articles.
