HyperBC Will Launch the First Layer 2 Decentralized Financial Public Chain
In a short period of time, the DeFi locked has increased by dozens of times since the beginning of the year. This surge has led to high network traffic that has at times resulted in soaring fees (a scaling problem seen on previous occasions as well), $5 for a transaction on Uniswap currently. It is unaffordable for users to spend as much as 1 ETH participating in liquidity mining project.
As answers to the scaling problem, Layer 2 and sharding are the consensus. However, although ETH 2.0 has successfully entered Phase 0, sharding needs some time to technically mature and enter the practical application stage.
Layer 2, on the contrary, becomes the optimal solution of the moment. It focuses on the scalability of blockchain, while relying on the decentralized and secure Layer 1, putting a large amount of resource-consuming work on the off-chain for processing to dredge the congestion on the chain. Among the various Layer 2 paths, the Rollup series is the most promising one. ZK Rollup and Optimistic Rollup are developing smoothly in the Rollup series.
HyperBC financial chain based on Layer 2 ZK Rollup
HyperBC is currently building a safe, efficient and scalable cross-chain DeFi financial public chain based on Layer 2 technology, which aims to bring Ethereum throughput of thousands transactions per second as Visa, and guarantees that funds are as secure as Layer 1 accounts, and a high degree of censorship resistance.
HyperBC has found that although every Layer 2 technology has its own tendency, it is always a fair choice for one of the protocols. For example, the protocol for game project is in higher demand for performance but less paying attention to security, but some protocols such as the DeFi protocol that the total assets locked by exceed tens of billions of dollars, take security as the primary consideration.
HyperBC now manages more than 13,000 BTC in crypto assets, and reaches $600 million of payment scale, which is the direct reason why HyperBC choose ZK Rollup that attaches importance to security. In ZK Rollup, each status transition is verified by the Rollup smart contract. Strictly speaking, operators cannot steal funds or destroy Rollup status. ZK Rollup adopts the censorship resistance of Layer 1 just for its activity, not safety. There is no need for anyone to monitor ZK Rollup. After block verification, user funds are always guaranteed to be eventually recovered, even if the operator refuses to cooperate. Therefore, ZK Rollup more fully embodies the basic concept of the crypto world: replacing trusted parties through cryptography and game theory incentive mechanisms to achieve flexibility.
At the same time, compared with the game model that uses economic incentives, ZK Rollup relies on pure mathematics in security and is more superior in performance. Backed by ZK Rollup, the HyperBC financial chain, as the side chain of Ethereum, possesses obvious advantages in scalability and security.
In HyperBC financial chain, more operations will be performed off-chain. Participants send signed messages and transactions to each other to update the status, they will not publish them to the chain, but wait for the completion of off-chain operations and multi-party signatures to put the final result on the chain, which can greatly reduce Gas fees without trusting any third party. In an ideal state, the network throughput can be increased by hundreds of times, and users can enjoy a smoother business experience.
Based on Layer2, HyperBC’s merchant payment reaches seconds-level
BTC’s total value locked in the Lightning Network is equivalent to 0.0056% of its current total circulation, but in DeFi, it is as high as about 142,200, 140 times of that in the Lightning Network.
Such data and the status is inversely proportional to the attention and expectations given to Lightning Network.
During the development process, Bitcoin network encountered two major drawbacks, slow confirmation speed and the high miner fees, so it is the lightning network that is designed to solve the two problems. However, the Lighting network has failed as it occurs design flaws and security vulnerabilities when applying for actual practice. The Lightning Network can not tackle the occasional situation of users, and there are “time spreading attacks” and “PIN attacks”.
HyperBC will take the lead in establishing a layer2-based lightning payment network on its financial chain, enabling merchant payment and asset custody services.
In the HyperBC system, merchants and institutions can initiate on-chain transfers anytime and anywhere. There are no thresholds. Unlike other fast transfers, HyperBC uses a zero-knowledge proof algorithm to accelerate the on-chain confirmation without building a channel, so that users do not need to collateralize, and the channel collateral restrictions that exist in the Lightning Network will not occur in the HyperBC.
(Note: In the Lightning Network, assuming the route A -> B -> C, the smallest amount of channel collateral will become the bottleneck of the entire route. For example, if the collateral between AB is 10BTC, and for BC is only 1BTC, the maximum transfer between A and C can only be 1BTC instead of 10BTC.)
Conclusion
The current high Ethereum Gas fees and congestion on the chain are not conducive to the sustainable development of the DeFi ecosystem, but HyperBC financial chain can solve these problems by implementing Layer 2 ZK Rollup to achieve high throughput and low fee rates. Meanwhile, HyperBC will provide high-speed circulation of funds within the ecosystem and lightning payment functions in terms of merchant payment and assets custody to build a better business environment for users.
The future development path of HyperBC will bring new surprises to the market.
