Validiums and How They Work

By Ether Crunch | Ether Crunch | 13 Jun 2024

validium cryptocurrency digital art Validiums are a layer 2 scaling mechanism where transactions are sent to layer 2s to reduce congestion on the mainnet. By processing transactions and only sending a small proof to the main blockchain, validiums can reduce the load on the mainnet. This mechanism not only improves the scalability and speed of transactions but also preserves the security and integrity of transactions. The proofs sent back to the mainnet are processed to validate that the transaction was properly processed on the valdium. This whole process is composed of a series of steps:

  • Initiate Transaction: The user initiates the transaction by sending it to the validium operator, who manages the processing of transactions.
  • Off-Chain Processing: Transactions are collected and then placed into batches. While a mainnet must process transactions sequentially, the validium can process them in batches. Furthermore, the operators are necessary for batching the transactions, processing them, and generating ZK proofs.
  • Generating Proofs: Validiums require zero-knowledge (ZK) proofs to function properly. After completing a transaction, the operator generates ZK-proofs. These cryptographic proofs show that the resulting state transitions adhere to Ethereum network laws and that the off-chain calculations were executed successfully.
  • Verifying Proofs: ZK-proofs are generated and uploaded to the Ethereum mainnet, along with a state commitment, “a cryptographic representation of the off-chain system’s most recent state”. The mainnet smart contract checks the authenticity of the proofs. This verification step assures the transaction’s security and finality by ensuring that the off-chain computations were valid and that the altered state complies with blockchain standards.

If you want to learn more, check out the links below:


What are validiums, and how do they work?

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Ether Crunch
Ether Crunch

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