Settlement Module (Live)
Last updated
Last updated
The LayerEdge Settlement Module provides a trust-minimized mechanism for protocols to settle their computations and states on the Bitcoin blockchain. This system leverages Bitcoin’s unparalleled Proof-of-Work (PoW) security, enabling scalable, cost-effective, and verifiable settlement for protocols, rollups, and decentralized applications.
This documentation outlines how LayerEdge performs trust-minimized settlement on Bitcoin using zk-proof aggregation, OP_RETURN, and Cenotaph Rune.
1. Aggregation of zk-Proofs
Protocols (e.g., Rollups, AI Computation, DePIN, and DA solutions) submit Zero-Knowledge Proofs (ZKPs) to the LayerEdge. These proofs represent validated computations or state transitions from their respective layers.
LayerEdge aggregates multiple ZKPs into a single, compact proof using proof recursion. This aggregation significantly reduces the size of the proof and minimizes on-chain storage requirements, reducing settlement costs by up to 99%.
2. Cenotaph Rune: Proof Packaging
The aggregated ZKP is packaged into a construct called the Cenotaph Rune. This Rune acts as a single verifiable entity that contains the aggregated proof. Any validating client can independently verify the correctness of the aggregated proof.
3. Posting to Bitcoin Blockchain
The Cenotaph Rune is submitted to the Bitcoin blockchain using the OP_RETURN opcode, which allows for the storage of arbitrary data on the blockchain. This mechanism ensures:
Immutability: Once posted, the Rune becomes part of Bitcoin’s decentralized ledger.
Transparency: The settlement data is publicly accessible and verifiable by anyone.
Decentralized Trust: Leverages Bitcoin’s Proof-of-Work to secure the settlement data.
4. Verifiability and Decentralized Settlement
Once the Cenotaph Rune is stored on Bitcoin, it provides a trust-minimized settlement layer for protocols. Anyone can verify:
The aggregated ZKP for correctness.
The underlying state or computation of the protocols.
This process ensures that protocols using LayerEdge inherit Bitcoin’s security guarantees without requiring significant blockspace or introducing centralized trust assumptions.
Aggregating ZKPs reduces the cost of verifying and storing proofs on Bitcoin.
Settlement costs are distributed across multiple protocols, lowering individual expenses.
Direct integration with Bitcoin ensures decentralized trust.
The use of OP_RETURN provides immutability and transparency.
Aggregation supports high-throughput settlement without overwhelming Bitcoin’s limited blockspace.
Enables seamless scaling for zk protocols and decentralized applications.
Supports various use cases, including rollups, AI computation, data availability, and DePIN applications.
Creates a unified framework for protocols to interact and settle securely on Bitcoin.
The LayerEdge Settlement Module transforms Bitcoin into a scalable, trust-minimized settlement layer for zk protocols and decentralized applications. By combining zk-proof aggregation, Cenotaph Rune packaging, and Bitcoin’s PoW security, LayerEdge provides a modular and cost-efficient framework for the next generation of blockchain applications.
For developers and protocols looking to leverage Bitcoin’s security at a fraction of the cost, LayerEdge offers the perfect solution.
