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Tuesday, June 11, 2024
HomeCryptoBinance Labs invests in Ethereum layer 2 network developer Zircuit

Binance Labs invests in Ethereum layer 2 network developer Zircuit

Binance Labs, the $10 billion venture capital and incubation unit of exchange Binance, has invested an undisclosed sum in Ethereum layer 2 network developer Zircuit.

According to Binance Labs on Tuesday, Zircuit is a zero-knowledge rollup* with “sequencer-level AI security.” The company added that its investment will help Zircuit further develop and grow the network.

Binance Labs’ investment in Zircuit comes ahead of the network’s mainnet launch this summer. Both companies declined to disclose the size of the investment and other terms of the deal. Zircuit is also backed by Pantera Capital and Dragonfly, according to story theirs on X.

What is Zircuit?

Zircuit is an Ethereum Virtual Machine compatible ZK rollup, comparable to similar projects like ZKsync, Scroll, and Linea.

According to Martin Derka – Zircuit co-founder and former Quantstamp executive, Zircuit’s main differentiating factor is sequencer-level security. Derka said when other blockchains receive transactions, block proponents will look for the first available block to include the transactions.

“In Zircuit, similar to other rollups, organizing transactions into multiple blocks is the responsibility of the sequencer. However, before Zircuit’s sequencer includes transactions into the block, it scrutinizes their impact. It uses artificial intelligence to check whether each transaction is hacked or not. Hacked transactions are not included in the block. Instead, they are quarantined,” Derka said.

The main purpose of sequencer-level security, Derka explained, is to detect exploits and hacks, as well as prevent them before they actually happen. Derka added:

“In this way, Zircuit promotes a safer environment for all participants – developers as well as trading users.”

Launching Zircuit mainnet

Founded in mid-2022, Zircuit is currently in its testnet phase. Derka said 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 collected more than $3.5 billion in staked assets and said its “Build to Earn” program attracted more than 1,100 applications. The project says Ethena, Renzo, Ether.fi, KelpDAO, Elixir, Ambient, Pendle, LayerZero and others are among its launch partners.

“The Zircuit staking program collects pre-committed liquidity to participate in the Zircuit and DeFi ecosystem when the mainnet goes live,” Derka said. These deposits are managed using smart contracts on layer 1, allowing users to deposit and withdraw assets at any time. He added that when the mainnet launches, users can withdraw funds or transfer to the Zircuit network using a bridge.

There are currently about 30 people working for Zircuit, and Derka is looking to hire more people in engineering, mainly application cryptographers with programming skills in Rust.

*Zero-knowledge (ZK) refers to a type of protocol in which one party can prove to the other that a statement is true without revealing any information other than the truth of the statement.

Minh Anh

According to The Block

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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