While Bitcoin serves primarily as a digital store of value and medium of exchange, Ethereum expands its scope by enabling decentralized finance (DeFi) through the use of smart contracts. 

Smart contracts on Ethereum are self-executing agreements with predefined rules that automatically execute when certain conditions are met. This has allowed developers to create decentralized applications (dApps) for lending, borrowing, trading, and more, which are governed by these smart contracts. Ethereum’s programmability and flexibility have enabled DeFi protocols to operate autonomously, free from traditional intermediaries, thus revolutionizing the financial landscape. 

However, the network’s success has led to congestion and high gas fees, making it akin to an exclusive club with a prohibitively high entry fee for the average user.

Layer 2 (L2) solutions on Ethereum

Layer 2 (L2) solutions on Ethereum aim to scale the base layer by handling transactions off the main Ethereum blockchain, reducing congestion and fees. They leverage the security of Ethereum while offering higher throughput and lower costs. Prominent types of L2 solutions include Optimistic Rollups and ZK Rollups, which both utilize transaction pooling.

Consider a high-speed train (like the TGV) departing with only one passenger on board; this is highly inefficient as the operational cost is the same regardless of how many benefits. This situation is similar to executing a single transaction on the Ethereum main net without rollups—it occupies the same block space that could be used for many transactions, making it expensive.

While L2 solutions offer lower fees and faster transactions, they also introduce new challenges.

Each L2 may operate in isolation with its own liquidity pool, leading to inefficiencies and increased costs when moving assets. This fragmentation can result in less market depth and significant slippage for larger trades. Moreover, not all established DeFi protocols are available on all L2s, or they may exist as less secure forks that haven’t been as thoroughly tested as their L1 counterparts.

So, what is Layer 2 DeFi, and are there any good examples of it? Yes, there are. For example, there’s Nimbora, which is revolutionizing the game with inclusivity in mind.

Layer 2 (L2) DeFi

Nimbora is stepping into the spotlight as a middleware platform situated on L2, where users can access cross-chain DeFi at optimal rates. Instead of handling requests directly, which could result in considerable slippage, it batches multiple users’ intents. Users can match with one another, but when too many users share the same intent (like depositing a token into a yield), the batch is closed and sent to L1.

There, the liquidity is used to make the deposit in the selected yield solution and then bridged back to L2 to distribute to the participants. With one transaction executed on L1 to satisfy the needs of 5, 10, or 100 users, the gas cost is split among all participants. The more participants there are, the lower the gas fees per user.

This mechanism allows users to enjoy the scalability of L2 and the rich DeFi ecosystem of L1 with deep liquidity, combining the best of both worlds.

This wholesale transaction management becomes even better when available on multiple L2. Those batches can be combined and handled at one time on the L1, making the cost negligible. Ongoing research on cross-chain communications (storage proof is an example) could enable cross-L2 intents matching, abstracting the multiple L2 completely from a user point of view.

Can we say that the future of finance lies in L2 DeFi?

In conclusion, the future of finance in the DeFi sector appears to be intricately linked with the evolution and adoption of Layer 2 (L2) solutions. These solutions, exemplified by innovative platforms like Nimbora, are addressing the critical issues of scalability, cost, and efficiency that currently hinder the widespread adoption of decentralized finance on Layer 1 blockchains like Ethereum.

L2 DeFi platforms are not just a theoretical enhancement but a practical necessity.

They offer a promising path forward, bridging the gap between the robust, secure infrastructure of Layer 1 and the demand for faster, cheaper transactions. By enabling bulk transaction processing and leveraging cross-chain functionalities, these platforms significantly lower the entry barrier, making DeFi more accessible and appealing to a broader user base.

Moreover, the ongoing developments in cross-L2 communication and integration hint at a future where the complexities of interacting with multiple layers and chains are abstracted away. This will further streamline the user experience, making DeFi an even more attractive option for both casual users and institutional investors.

While challenges such as fragmentation, liquidity issues, and regulatory uncertainty remain, the momentum behind L2 DeFi suggests a strong potential for these platforms to shape the future of finance. As the technology matures and more users and institutions recognize its benefits, L2 DeFi could well become a dominant force in the financial landscape, offering an unprecedented level of efficiency, inclusivity, and innovation.

The post Demystifying DeFi: Understanding the Inner Workings of Top Protocols appeared first on ShiftMag.

What if you could build complex software without writing a single line of code? It sounds like fiction, but it’s now a reality. No-code platforms have transformed software development, allowing non-technical users to create solutions without coding expertise. This shift is helping businesses innovate faster and more efficiently.

In this article, we’ll explore these platforms, their impact on developer efficiency, and the features of the txSync no-code platform.

Buckle up and get ready to discover a world where anyone can build anything!

What Are No-Code Platforms?

No-code platforms are software development environments that allow users to create applications through graphical user interfaces and configuration instead of traditional computer programming. These platforms use visual development environments with simple logic and drag-and-drop features, enabling users to design and build fully functional applications without writing code.

The demand for no-code platforms has skyrocketed in recent years, driven by several factors:

1. Shortage of skilled developers
2. Increasing need for digital transformation across industries
3. The desire for rapid prototyping and iteration
4. Empowerment of citizen developers within organizations

According to a Forrester report, the no-code development platform market is expected to grow from $3.8 billion in 2017 to $50 billion by 2024, representing a compound annual growth rate (CAGR) of 41%.

The Benefits of No-Code Platforms

No-code platforms offer numerous benefits, including:

• Increased Efficiency: They enable non-technical users to create solutions quickly and efficiently, reducing the time and effort required to develop and deploy applications.
• Improved Collaboration: They facilitate collaboration between technical and non-technical teams, enabling them to work together to create solutions that meet business needs.
• Cost Savings: They reduce the need for extensive coding knowledge, resulting in cost savings on developer resources and training.
• Faster Innovation: They enable businesses to innovate faster, responding to changing market conditions and customer needs.

How No-Code Platforms Enhance Business Efficiency

Rapid Application Development

No-code platforms significantly accelerate application development. While traditional coding can take weeks or months, these solutions allow users to build functional applications in just days or hours.

Reduced Development Costs

No-code platforms not only cut development costs by reducing the need for specialized coding expertise, but they also create job opportunities for those with general digital skills. By empowering existing staff and digitally savvy individuals to build applications, these platforms minimize reliance on costly development resources, making it possible for a wider range of people to contribute to development.

Increased Productivity

They allow developers to focus on high-level problem-solving and innovation rather than getting bogged down in syntax and low-level coding tasks. This shift in focus leads to increased productivity and more efficient use of developer time.

Easier Maintenance and Updates

They simplify application maintenance and updates. Their visual interfaces allow users to easily grasp the app structure and make changes without delving into complex code, saving time and reducing errors.

Bridging the Gap Between Business and IT

These platforms facilitate better collaboration between business users and IT departments. Business users can directly contribute to application development, ensuring that the final product aligns closely with business needs and requirements.

No-Code Platforms Across Various Sectors

Below are examples of how different sectors are leveraging no-code platforms to enhance their workflows and meet specific business needs:

E-commerce

E-commerce platforms like Shopify and Webflow enable rapid online store creation without coding skills. With built-in payment processing, inventory tracking, and responsive designs, businesses can quickly launch web shops. APIs allow further customization, making these tools suitable for various business sizes.

Healthcare

Healthcare leverages platforms like QuickBase and Bubble to build patient management systems and telemedicine portals. These tools allow hospitals to streamline data management and compliance without in-house developers, enabling quicker adoption of innovations such as wearable device integration and secure patient portals.

Education

Educational institutions utilize these platforms to create Learning Management Systems (LMS) and student portals. Platforms like Adalo, OutSystems, and AppSheet enable educators to develop apps for student data management, automated grading, and class scheduling to create customized learning experiences and enhance educational accessibility without relying on external developers.

Finance and Banking

Financial institutions use no-code platforms like Betty Blocks and Unqork to create secure, compliant apps for managing customer data, automating workflows, and processing transactions.

Real Estate

Real estate companies use platforms like Bubble, Airtable, and Glide to create property listing platforms, customer relationship management (CRM) systems, and virtual tour booking apps. The flexibility of these tools allows real estate firms to adapt quickly to market demands.

Logistics and Supply Chain

Logistics companies rely on platforms like Knack and Zoho Creator to develop custom inventory tracking, warehouse management, and shipment monitoring systems. This is especially valuable for smaller companies that need agile, scalable solutions without significant development overhead.

Marketing and Advertising

Marketing agencies leverage no-code platforms like Webflow and Wix to build campaign landing pages and automate marketing workflows. These tools enable marketers to create websites, manage content, and integrate analytics without coding to facilitate rapid prototyping and A/B testing, allowing for data-driven campaign optimization.

Nonprofits

Nonprofits use platforms such as Glide and Airtable to manage donors, fundraise, and coordinate volunteers. These platforms enable the easy creation of apps and dashboards for tracking donations, managing events, and coordinating volunteers, allowing nonprofits to focus on their mission.

Human Resources

HR departments use platforms like Airtable and Zoho Creator to streamline employee management. These tools enable HR teams to automate routine tasks and generate insightful reports, enhancing HR efficiency without relying on IT support.

Media and Entertainment

Media companies leverage platforms like WordPress and Webflow to create websites and manage content efficiently. These tools enable content creators to easily build membership sites and monetize their work, streamline project management and team collaboration, boosting overall operational efficiency.

Government and Public Sector

No-code platforms enable government agencies to create citizen portals, streamline form processing, and enhance public data management. Using tools like AppSheet and Mendix, they develop apps for service requests and case management.

No-Code Solutions in Blockchain Technology

A really big deal in the world of blockchain space is Zero-Knowledge (ZK) technology, that is backed by math. One of the leading solutions that is using this technology is ZKsync, a Layer-2 protocol that scales Ethereum. ZKsync enables faster, cheaper transactions than Ethereum’s main network, without compromising decentralization and security.

What’s driving ZKsync’s adoption even further is txSync, a no-code platform making it easier for businesses and developers to integrate ZKsync technology seamlessly.

Introducing txSync

txSync is a modular platform designed to make ZKsync integration and blockchain management easier for developers and businesses. By offering a suite of user-friendly tools, txSync streamlines complex blockchain operations, ensuring a smoother experience for both technical and non-technical users within the ZKsync ecosystem.

Some of txSync core offerings include:

txSync Portal

A suite of tools for managing digital assets across the ZKsync Era network. Portal allows users to easily connect, view, and take control of their assets within ZKsync through a user-friendly interface.

txSync Bridge

A powerful tool that facilitates fast, secure, and cost-efficient fund transfers between Ethereum and ZKsync networks. By leveraging zkEVM, Bridge enables faster and cheaper transactions while maintaining Ethereum’s security.

Tsuko, the paymaster

A user-friendly tool for creating, customizing, and managing paymasters—smart contracts that handle transaction fees on behalf of users. One of the key benefits of Tsuko is the ability for users to quickly set up paymasters in just a few clicks without the need for time-consuming manual coding.

Visor

Visor is an automation tool for blockchain transactions on ZKsync. It allows users to handle tasks such as paying dividends, managing expenses, or scheduling contract interactions—all while ensuring full control over funds.

How txSync drives blockchain adoption forward

With its no-code solutions, txSync has significantly lowered the barrier to entry into the world of blockchain and ZK technology and accelerates the adoption of ZKsync. It has provided:

• Simplified Asset Management through Portal, as users can easily manage their digital assets on ZKsync without deep technical knowledge.
• Efficient Cross-Network Transactions, thanks to Bridge, make it simple for users to move funds between Ethereum and ZKsync, encouraging broader use of the ZKsync network.
• Accessible Smart Contract Functionality with Tsuko, as it allows even non-developers to create and manage paymasters, a key feature for many blockchain applications.
• Automated Blockchain Operations with Visor , which enables businesses to automate complex blockchain tasks, making ZKsync more practical for everyday use cases.

It is clear that txSync stands out as a prime example of how no-code and low-code platforms are not just a trend but a critical tool for accelerating the adoption of blockchain. As this market grows, we can expect to see more innovative no-code solutions being created across various sectors.

The post How No-Code Platforms Are Revolutionizing Developer Experience appeared first on ShiftMag.

However, thanks to innovative tools and technologies, the developer onboarding experience has become significantly easier. In this article, we will explore how txFusion’s suite of tools has simplified developer onboarding on ZKsync, a popular blockchain platform.

Why Developer Onboarding Is Crucial in Blockchain Projects

To fully grasp the importance of txFusion tools, it’s essential to first understand why developer onboarding is critical. Blockchain reshapes app development, introducing new programming methods and cryptography that can pose challenges for developers.

Effective onboarding equips developers with the knowledge of the platform and tools, easing their transition. Without a smooth onboarding process, time is wasted, frustration builds, and platform growth slows. Simplifying this process is key to success.

What is ZKsync?

Before going into the tools, it’s essential to understand what ZKsync is and why it’s pivotal for blockchain development. ZKsync is a Layer-2 scaling solution built on top of Ethereum that enables fast, low-cost transactions while maintaining security. It uses Zero-Knowledge technology (zkRollups) to bundle multiple transactions, reducing on-chain data and costs.

ZKsync enables developers to build dApps with high transaction volumes and low fees, maintaining security. This opens up a wide range of use cases, from DeFi (Decentralized Finance) platforms to NFT (Non-Fungible Token) marketplaces and beyond.

How txFusion Simplifies Developer Onboarding on ZKsync

txFusion takes ZKsync developer experience to the next level by offering a suite of tools that streamline the process of building and deploying blockchain products.

These tools remove many of the barriers that typically slow down or frustrate developers, including complex coding, managing transactions, and deploying smart contracts.

Let’s explore the tools txFusion offers to simplify the process further:

Hardhat Plugins

Hardhat is a development environment for Ethereum software. Read more about it here.

Deploying smart contracts can be complicated, especially when moving to Layer 2 solutions like ZKsync. txFusion is making this process simpler. Plugins like hardhat-zksync and hardhat-zksync-verify ensure secure contract deployment, while hardhat-zksync-ethers speeds up development. These plugins are easy to use, saving developers time learning new tools and helping them start working on the ZKsync network faster.

Check out all the Hardhat plugins that txFusion is working on.

SDKs

txFusion SDKs give developers powerful tools for building on ZKsync.

Available for languages like JavaScript, Go, Java, Swift, and Python, these SDKs let developers use the language they’re most comfortable with while still accessing ZKsync’s key features.

Check out all the SDKs here.

In addition to these tools and plugins, txFusion created txSync, an all-in-one platform for those who want to learn, use, and build on top of ZKsync. txSync is focused on innovative, no-code products that make it easier for users and developers to get started.

Tsuko: txSync paymaster tool

Tsuko, a Paymaster-as-a-Service tool (PaaS), simplifies Paymaster creation on ZKsync. It enables developers to set up and manage Paymasters effortlessly, eliminating the need for complex custom code. The txSync SDK further simplifies the process by making it easy to integrate Paymaster technology into apps, enhancing user experiences and reducing technical barriers for dApp developers.

Visor: txSync automation tool

With Visor, you can simplify blockchain tasks like salary payments, dividend management, and expense tracking. By automating these processes, Visor allows developers to focus on improving their dApps, enhancing efficiency and simplifying blockchain operations management.

How txFusion Enhances the Business Experience

txFusion drastically reduces the complexities associated with building and managing blockchain applications by enabling:

• Simplifying onboarding: One of the major barriers for new developers is the onboarding process. With txFusion, developers can get started on ZKsync quickly.
• Customization & Flexibility: Tsuko allows developers to customize and manage paymasters easily, enabling gasless transactions that enhance the user experience. This allows developers to tailor blockchain solutions to their specific needs without diving deep into complex coding.
• Automation: With Visor, developers can automate key transactions, which not only saves time but also reduces the risk of human error, ensuring that operations run smoothly.

Building blockchain applications on ZKsync doesn’t have to be complicated. With txFusion’s suite of tools, developers can manage assets, transfer funds, automate transactions, and customize paymasters with ease. So start exploring the power of txFusion’s tools today.

The post Simplifying Developer Onboarding on ZKsync: The Power of txFusion Tools appeared first on ShiftMag.

* PaaS: Paymaster as a Service

In our increasingly digital world, one revolutionary technology has been silently reshaping how we think about transactions: blockchain. You’ve probably heard of L1 (layer one) blockchains, like Bitcoin and Ethereum, but blockchain technology is much more than that. It’s a new way of storing data and executing transactions – secure, decentralized, and transparent.

However, as with any emerging technology, it has its unique challenges.

Understanding the Challenge: Gas Fees in Simple Terms

Imagine that every time you wanted to send an email, you had to pay a small fee. This fee isn’t in your regular currency but in a special kind of digital token unique to your email provider. Sounds inconvenient, right? That’s kind of what it’s like to perform transactions on blockchain platforms, like Ethereum.

These fees are called “gas fees,” and they’re essential for the operation and security of the blockchain. However, they require users to have a specific digital currency: a native token, like ETH for Ethereum, which can be a significant barrier for many, as is not always convenient or practical.

The Emergence of Paymasters as a Solution

To solve this issue, the blockchain community developed a concept called “Paymasters.” These are smart contracts (special programs) that address the gas fee problem by sponsoring these fees on behalf of users (Sponsored Paymaster) or allowing alternative methods of payment, like using the ERC20 token. (ERC20 Paymaster). This innovation has the potential to significantly enhance user experience and accessibility on blockchain platforms!

However, the creation and implementation of Paymasters, even on advanced networks like zkSynzkc, an L2 scaling protocol, can be complex and time-consuming. Dealing with Paymasters demands lengthy learning processes from developers, project founders, and even average users.

Recognizing this problem, we at txSync, developed a unique solution to simplify the process called txTsuko!

Introducing txTsuko: Paymaster as a Service

Enter txTsuko – new revolutionary product on txSync, that simplifies the entire process of building, deploying, and customizing a paymaster on zkSync with just a few clicks! txTsuko takes the concept of Paymasters to a new level by offering a Paymaster as a Service (PaaS) solution.

By developing txTsuko, we’ve significantly reduced the technical barriers typically associated with Paymaster setup and operation. This is a game-changer, because set-up, which would typically take days for zkSync veterans, or even weeks to months for newcomers, can now be accomplished in minutes with txTsuko.

It marks a significant step towards making blockchain more accessible and efficient.

How does it work?

As mentioned before, setting up a basic Paymaster involves intricate processes, including coding calculations, performing validations, and initializing transactions, all of which are crucial for creating a functional Paymaster.

We turned this complex process into an easy-to-use, intuitive interface. To build a basic Paymaster using txTsuko, follow these simple steps:

1. Go to txTsuko website
2. Connect and verify your wallet (Note: A ‘wallet’ in the blockchain context is a digital tool that allows you to interact with your blockchain account, similar to an online banking app but for cryptocurrencies.)
3. Name your paymaster
4. Choose between Sponsored or ERC20 paymaster types

e.g. If you chose ERC20 type, you need to select your ERC20 token to be used in this paymaster

5. Hit “Create Tsuko”

And that’s it! You now have a paymaster address which is ready to be used by any DApp (A decentralised application) on zkSync.

The Key Features of txTsuko

While developing txTsuko, we focused on incorporating features that would bring significant value to developers and users in the zkSync ecosystem. Two standout features of txTsuko are the Monitoring page and Restrictions.

• Monitoring page: Once your Tsuko (paymaster) is live, we instantly activate transaction monitoring. This means that every transaction that includes your Tsuko address (a unique identifier that functions like an account number) is tracked and displayed on your dashboard in real time. You’ll see total and individual transactions, ETH spent on gas fees, and user counts. This level of monitoring offers a powerful insight into how Tsuko is being used. It’s not just about numbers; it’s about understanding user behaviors, identifying usage patterns, and gaining a deeper understanding of how your Tsuko interacts with its users.
• Restrictions: Restrictions are rules that you specify for your Tsukos. With the help of Restrictions, you can have more control over who can use your Tsuko (your users), as well as which specific smart contracts or even their functions can connect to it. Additionally, you can reuse Restrictions you created in multiple different Tsukos. Basically, they’re an innovative approach to add conditions to special use case paymasters, transforming how transactions are managed in the zkSync ecosystem, making it more efficient and versatile.

In just four days since the launch, over 400 Paymasters have been created using txTsuko. This milestone is not just a number; it’s a clear indicator of the platform’s ease of use and the real need it addresses in the blockchain community!

The future of paymaster creation is here!

txTsuko aims to bring the future of paymaster creation to the present by providing a faster, easier, and more efficient way of building paymasters. The product is designed to bring paymaster usage on zkSync to everyone, and to constantly evolve by offering its users a wide palette of tools to help on this journey!

And this is just the beginning! Behind the scenes, our team is relentlessly pushing the boundaries, constantly innovating to expand txTsuko’s potential and user-friendliness.

To ensure you’re always in the loop with the latest features, updates, and announcements, be sure to follow txSync and txFusion official X (Twitter) accounts.

And if you want to dig deeper and learn even more informations about txTsuko and paymasters, make sure you check out this blog post where we explained everything you need to know.

You can also follow txSync on X (Twitter) here or join its super friendly community on Discord!

The post txTsuko (PaaS): A Game-Changer in the World of Transactions appeared first on ShiftMag.

Zero-knowledge proofs (ZKPs) is a technology gaining a lot of buzz in various fields, particularly blockchain.

Imagine this. Two people. We’d call them A and B. A is who we’d call a Prover, while B is the verifier.

The Prover can demonstrate to the verifier that a statement is accurate without providing information regarding the statement. This is done by providing proof, or a small amount of information, that can be verified by the verifier to ensure that the statement is true.

The concept of ZKPs was first introduced in a 1985 paper titled “The Knowledge Complexity of interactive proof systems” by Shafi Goldwasser, Silvio Micali, and Charles Rackoff.

The paper defined zero-knowledge protocol as “a method by which one party (the prover) can prove to another party (the verifier) that something is true, without revealing any information apart from the fact that this specific statement is true.”

zkSync, for instance, uses an off-chain prover, which generates a cryptographic proof called a SNARK (Succinct Non-interactive Argument of Knowledge) that proves the transactions are valid. zkSync is a Layer-2 scaling solution built on the Ethereum blockchain, using zero-knowledge technology. The Ethereum blockchain, which is a Layer 1, had a lot of activity, causing slow transactions and high gas fees.

Layer 2 solutions, such as zkSync, move most of this activity away from Layer-1s, offering faster transactions and cheaper gas fees while inheriting its security. ZK Rollups are the most secure of all the scaling solutions, relying purely on math to fully inherit the security of L1, which is critical to function in highly unstable environments.

Other scaling solutions rely on economic guarantees or third parties and, as a result, offer far weaker security properties. zkSync architecture also includes zkPorter – a decentralized storage option with reduced security but much lower costs. Their mission is to increase Ethereum’s throughput and fully preserve its foundational values – freedom, self-sovereignty, decentralization – at scale.

Following these three zkSync ideology concepts: freedom, self-sovereignty, and decentralization, txSync was created.

Meet txSync!

txSync is a platform, a knowledge base powered by TxFusion, for everyone who wants to learn, create and build on zkSync. Wherever you are on your zkSync journey—an enthusiast venturing into the crypto space or an experienced developer looking to dive deeper— txSync has you covered.

txSync’s goal is enhancing accessibility and usability for everyone interested in zkSync, and it has taken a huge step towards achieving that by including the official zkSync portal (now named txPortal) and official zkSync bridge (now named txBridge) into the platform.

txPortal enables you to manage your digital assets efficiently across zkSync networks, providing all the necessary tools for working with the zkSync era. You can connect, view, and take control of your digital assets with great ease.

txBridge allows you to easily transfer funds between Ethereum and zkSync Networks while providing faster, cheaper, and more efficient transactions. All without compromising on security through its use of zkEVM (Zero Knowledge Ethereum Virtual Machine)

txLearn offers useful resources, tutorials, and documentation to guide any user, with links to websites, tools, and additional educational resources.

This platform is extremely user-friendly and easy to navigate, and with more upgrades in the future, txSync is sure to stand out as an innovation in the Web3 space!

Feel free to explore it at https://www.txsync.io/!
For more information about txSync, you can check out these FAQs or this article here.
You can also follow txSync on X (Twitter) here or join its super-friendly community on Discord!

The post What in the world is Zero Knowledge? Let txSync explain appeared first on ShiftMag.

Let’s imagine we live in a country that wants to explore space! So, how does this exploration start? By having that country’s engineers do various calculations and experiments, for example, how to save fuel? What is the best launch window? What would be the best trajectory of our rocket?

To solve some of these questions, these engineers developed algorithms and programs that help give answers… They use one of the typical programming languages, let’s say, for example, Rust language!

All was fine and well until they realized that, for some calculations, they needed a supercomputer! But they don’t have such a machine!

And to add insult to injury, the only country with this supercomputer is the rival country!!

What can they do? If they send our algorithms to the rival’s supercomputer, how can they be sure there was no tampering or sabotage with the calculations?

And the answer is – unfortunately, it is not possible to know (verify) this… But wait a minute! Engineers are the ones who constantly work on inventing and building something you need, right?

Solution: Cairo Language

Fast forward a few months, and we have a solution! It is a new programming language called Cairo!

But how does this new language help?

Well, Cairo creates a provable program, meaning a cryptographic proof is generated alongside the result of the computation. But, one more thing that is very important, or crucial, is that the process of proof verification can detect cheating or malfunctioning without re-execution!! In other words, a regular computer can keep a supercomputer honest!

This is possible by relatively complex math (polynomial equations that satisfy certain constraints) and cryptography!

The Cairo language was invented by an Israeli company called Starkware as the first general-purpose provable language, and we will shortly see how Cairo can be used in other interesting ways that were not possible before!

The blockchain scaling problem

The famous blockchain scaling trilemma says that we cannot have optimal Scalability, Security, and Decentralization properties in a blockchain at the same time.

This is why various blockchains sacrifice one of these three properties in favor of the other two, based on their use cases.

The most popular blockchain, Ethereum, has sacrificed Scalability because of its design, that values decentralization and security. This resulted in very high fees during periods of high activity on Ethereum (especially during the bull market)!

On Ethereum, as we can see in the picture, a block producer creates some transactions, and then all the nodes in the network must validate these transactions!

To tackle this problem, various solutions have been considered, and it seems like one of them has emerged that solves this problem pretty nicely – the so-called Layer 2s or Rollups!

The point of “rollups” is to perform the bulk of the activity outside the original chain, meaning – process transactions off the main chain, batch, compress (replace data with computation), and deliver the transaction data to the main chain – Ethereum. This means we can take hundreds of transactions away from Ethereum to a Layer 2 chain, compress them into just one transaction, and send them back to Ethereum.

In this way, Ethereum provides Security and Decentralization, and Layer 2 chains provide Scalability!

But, you may ask, how does this story relate to our already-introduced Cairo language??

Starknet

Starkware created its own Layer 2 blockchain, Starknet, where you can write smart contracts using the new Cairo language!

Let’s see how Starknet and Cairo help scale Ethereum!

So the idea is that with the power of Cairo Smart contracts, we can do whatever we want on Layer 2 (Starknet), and when we are done, we send only one transaction to Ethereum… But this time, together with proof! If you pay attention, you will see in the picture below that it takes much less time to validate this proof than to execute the hundreds of original transactions!

This can save us a ton of money on transaction fees and enable many more transactions than was originally possible on Ethereum itself, thus helping us solve the scalability problem!

Yay!

Summary

In this article, we explored why Cairo Lang was invented, how it can help in the blockchain world, and as a general-purpose language. We learned about L2-s/rollups, particularly Starknet, and how they help scale the Ethereum blockchain.

But this is just the tip of the iceberg!
If you want to learn more about Starknet, here’s where you can start:

• Learning about Starknet – Community, Hub & Edu Resources
• Tools for developers on Starknet

The post Cairo language and Starknet: Why do they exist? appeared first on ShiftMag.