EdgeSwap, an Ethereum layer 2 trading platform that utilize ZK Rollup technology aims to improve efficiency in decentralized exchange. The testnet which has already been deployed on Rinbeky testnet includes trading on layer 2 as well as transfer of tokens between layer 2 and layer 1.
Since the formation and widespread adoption of crypto and the blockchain, Ethereum has witnessed a tremendous increase in activities. Being the originator of smartchain networks, it is the most preferred host for Dapps and similar blockchain products. Activities such as swapping yield farming and others have led to the congestion of the Ethereum network.
This congestion is perhaps the Achilles heel for Ethereum as it leads to slower transaction times and exorbitant transaction cost. To address this issue, EdgeSwap leveraged on the Zk Rollup technology to bring high scalability, better performance and security to users and developers in the Ethereum space.
Let’s get to know about EdgeSwap and the solutions they offer to usher in a better Ethereum experience.
What exactly is EdgeSwap?
EdgeSwap, created by Edge Labs, is an Ethereum-based layer 2 trading mechanism that uses the ZK Rollup technology. EdgeSwap supplies the market with high-performance, cost-effective swapping and farming services using the industry’s top-tier hardware acceleration technology and circuit optimization system. At the same time, it safeguards users’ assets and privacy by providing the highest level of security available in layer 2 scaling solutions.
EdgeSwap is a new swap protocol that is built on ZK Rollup technology. All ERC20 tokens are transferred to layer 2 using ZK Rollup technology. The consistency of the state between layers 1 and 2 is guaranteed by continuously generated zero-knowledge proofs, so that all exchanging takes place on layer 2, which has no gas cost and is in real time (no need to wait for one block confirmation).
Furthermore, EdgeSwap provides unlimited scalability, removing the limitations of TPS and block confirmation time on Ethereum, delivering a silky experience similar to CEX (Centralized Exchange), and allowing users to control the safety of their finances in real time.
Edge Labs officially began development on EdgeSwap in the summer of 2021. EdgeSwap has officially been deployed on the Rinkeby testnet after 6 months of revisions and stress testing.
Edge Labs’ core R&D team, which is made up of international top tech talent, has been researching blockchain technology for many years, covering topics such as interactive proof, privacy computing, cross-chain, scalability, web3.0, and other cutting-edge fields. The team is dedicated to developing a better Ethereum ecosystem and has achieved several industry firsts.
Issues EdgeSwap intends to address
The layer 2 system’s running costs are mostly comprised of off-chain server resources and on-chain gas usage, with the latter accounting for the lion’s share.
These charges will subsequently be included into the cost of use for users. As a result, lowering operational expenses is crucial.
There are primarily two on-chain processes in the ZK Rollup scenario:
- Commit a block (commitblock), which contains the layer-2 block’s data as well as the layer-2 transaction information.
- Verify a block (verifyblock), which is used to validate the chain’s zero-knowledge proof. A total of 0.5 to 0.6m gas must be spent in the plonk proof system.
EdgeSwap provides aggregate recursive proof technology, which checks the proofs of several layer 2 blocks by validating one aggregate proof, to minimize the gas consumption of confirming zero-knowledge proofs on the chain.
The benefit of ZK Rollup over Optimistic Rollup is that it uses zero-knowledge evidence to validate the transaction. As long as each block’s zero-knowledge proof is validated in the Layer 1 contract, every transaction in the block is legitimate. It is worth noting that when a user withdraws tokens from Layer 2 to Layer 1, the tokens are only received once the zero-knowledge proof has been validated.
As a result, the production time of zero-knowledge proofs has a direct impact on the user’s withdrawal time.
Using standard ZK protocols, withdrawal takes 6 to 8 hours. This is due, in part, to the fact that the transaction volume is not saturated and the block must wait a long time for processing.
The fundamental problem, however, is that it takes a long time to create the zero-knowledge proof. As a result, the time it takes to generate zero-knowledge proofs has a direct impact on the user experience of ZK Rollup products.
For circuit creation and zero-knowledge proof production, EdgeSwap uses the free source zero-knowledge proof library bellman_ce. However, utilizing the native bellman_ce library to build a plonk proof is extremely slow, taking 12 minutes to construct a proof for a circuit with 67 million gates, which falls well short of the business requirements. As a result, it is critical to accelerate zero-knowledge proof.
First and foremost, it is a Rollup-based layer-2 system with Data Availability capabilities.
Secondly, EdgeSwap allows for the availability of block data. When layer 2 is functioning correctly, transaction information is placed on the chain by invoking the chain’s contract. When layer 2 fails, the “Ark Mode” kicks in (emergency withdrawal).
In this mode, the system’s tools can be used to extract money from layer 2, fulfilling the promise that “funds are as safe as in layer 1.”
As a result, EdgeSwap has a higher level of security.
After researching the implementations of current open source systems, Edge Labs discovered that structural optimization is required to handle the large-scale daily transaction volume, hence ensuring the EdgeSwap system’s availability.
As a result, they created completely new system architecture. Listed below are a handful of the initiatives that have been implemented.
- The statemanager keeps a Sparse Merkel tree (SMT) alive by performing memory-based computations, and updates to the state tree are converted into incremental database actions. The state tree, according to the former, can be migrated quickly.
- Service separation improves system scalability and flexibility while also enabling message queue-based status synchronization.
- A variety of hardware acceleration clusters may be dynamically expanded using the distributed task scheduling mechanism.
The preceding efforts have enhanced the performance metrics of our layer 2 system by dozens of times when compared to existing open source solutions.
A summary of EdgeSwap’s Benefits
- The AMM payment system, built on Ethereum layer 2, focuses on liquidity pools, swaps, and so on, while also delivering second-level confirmation and 0 gas fees on layer 2.
- By improving the ZK Rollup solution, it is now possible to make withdrawals in as little as a few minutes. One can send tokens from layer 2 to layer 1 at a rate three to five times quicker resulting in a 98% reduction in gas prices.
- By improving the execution and proof of circuit environment, it enables staking and payouts on layer 2.
- When layer 2 fails, users can restore the layer 2 state tree and generating a certificate to reclaim tokens by obtaining data from the contract’s transaction records.
There are certain issues that EdgeSwap aims to tackle as an emerging technology. Cost-effective swapping, farming services as well as high level security implemented will in no doubt usher in a new age for the Ethereum ecosystem.