Binance Labs New Investment: What is Zircuit?

Binance Labs, the $10 billion venture capital arm of Binance, has invested in Zircuit, an Ethereum Layer 2 network developer. This investment aims to help Zircuit grow and enhance its network further. 

But what exactly is Zircuit? Let's delve into it.

What is the zkRollup Zircuit Protocol?

Zircuit is a zkRollup protocol built on the Ethereum blockchain. zkRollup stands for zero-knowledge rollup, a Layer 2 scaling solution. It bundles multiple transactions off-chain and generates cryptographic proof for their validity. This proof is then verified on the main chain, significantly reducing the workload on the Ethereum network and enabling faster, cheaper transactions.

How Does the zkRollup Zircuit Protocol Work?

Several crucial components make up Zircuit's modular architecture:

Sequencer: The sequencer orders transactions and generates cryptographic proofs. This system acts as an off-chain component, determining the sequence and batch submissions of transactions to Ethereum for complete data availability. 

By decomposing circuits and aggregating proofs, Zircuit handles larger transaction batches and speeds up proof processing. As a result of processing transactions off-chain, zkRollup Zircuit could achieve faster transaction speeds than Ethereum mainnet.

Zircuit's sequencer incorporates AI-powered security features to monitor for malicious activity. The platform's AI mechanisms constantly monitor the mempool for signs of malicious activities, including exploit contracts. Once these threats are identified and confirmed, Zircuit blocks them from entering the subsequent block.

Verifier: Running on the Ethereum main chain, the verifier validates the proofs submitted by the sequencer, assuring the accuracy and legitimacy of transactions.

Modular Architecture: Zircuit combines zero-knowledge proofs with Optimism’s Bedrock framework, reportedly increasing efficiency and EVM compatibility. Ethereum Application 

Zircuit Features

Compatibility: Zircuit supports all major Ethereum tools and wallets, allowing seamless deployment of dApps without needing new programming skills. This compatibility makes it easier for developers to adopt Zircuit without significant changes to their existing workflows.

Zircuit Staking: With Zircuit Staking, users can stake Ethereum (ETH), liquid staking tokens (LSTs), and liquid restaking tokens (LRTs) to earn Zircuit Points. This program aims to bootstrap liquidity by offering yields and points from integrated protocols such as EtherFi and Lido Finance. As per reports, users can withdraw their investments at any time without losing accumulated points and yields.

Zircuit Points: Zircuit Points are awarded to users who stake ETH, LSTs, and LRTs. These points encourage active participation on the Zircuit platform and are anticipated to be instrumental in future distributions, potentially leading to an airdrop of the Zircuit governance token.

Zircuit Mainnet Launch

The Zircuit blockchain project was founded in mid-2022 and is currently in its testnet phase. The testnet was launched at the DevConnect 2023 event in Istanbul last November, and the mainnet will be released in the coming months. 

Zircuit claims to have raised over $3.5 billion in staked assets and over 1,100 applications for its "Build to Earn" program. Ethena, Renzo, Ether.fi, KelpDAO, Elixir, Ambient, Pendle, LayerZero, and others are among its launch partners.