Layer2 controllable privacy financial network based on ZK-Rollup

Author: Kyle Liu, Bing Ventures Investment Manager

Introduction:The emergence of Tusima provides a new solution to solve the problem of privacy leakage and provide private financial services. Its powerful privacy protection function and multi-chain interoperability support will provide users with a safer, more efficient and more convenient DeFi experience.

With the emergence of more and more analysis tools and centralized platforms, the problem of privacy information leakage will become more and more serious. In the Web3.0 era, privacy protection will become a standard feature. At the same time, with the growing global demand for private finance, privacy-related computing, transactions, applications and currency projects are promoting the development of privacy technology in the Web3 era. To solve this problem, Tusima came into being.

What is Tusima

Tusima is a Layer 2 controllable privacy financial network based on ZK-Rollup. It is committed to building a multi-chain compatible private financial network based on Web3.0. The network integrates Developed zero-knowledge proof (ZKP) and multi-chain interoperability technology. Compared with existing privacy projects, Tusima has obvious advantages, with scalability, high throughput and multi-level financial privacy security protection, and can achieve tens of thousands of transactions per second, supporting modular development and zkEVM. Tusima's on-chain controllable data privacy function supports multi-chain interoperability, protects the privacy of sensitive data for DeFi users, and builds a high TPS scalable financial network, aiming to build an infrastructure for controllable privacy finance in the Web 3.0 era.

Source: Tusima

Technical Highlights

In the Tusima network, privacy protection is one of the core functions. Using zero-knowledge proof technology can achieve anonymous transactions, while using ZK-Rollup technology to achieve a balance between privacy protection and transaction efficiency. Tusima also supports multi-chain interoperability and can interoperate with other blockchain networks to achieve cross-chain asset transfer and transactions. In addition, Tusima also supports modular development and zkEVM, allowing developers to build smart contracts and DApps more conveniently.

Modular Privacy Components

Tusima is an open source underlying code that collaborates with the community and other developers by sharing modular APIs. Tusima has a complete core privacy module and SDK available to the open source community, open networks, business partners and individual developers. They can use the Tusima modular API to develop financial privacy applications.

Privacy Ecosystem

Tusima allows users to conduct private financial transactions without intermediaries. Users can use private transactions in stablecoins, DEX, lending, Staking protocols and other scenarios. Tusima will launch a staking service to maintain the decentralized network. Validators can contribute to consensus, participate in ecosystem governance, and manage the public network.

As part of the consensus mechanism, validators can earn rewards by adding and signing blocks on the private network. At the same time, on-chain token holders can directly delegate their tokens to other validators to ensure the normal operation of the network without technically running validators. Delegators can also share rewards with verification nodes as agreed.

Programmable Privacy Protection

All financial applications run securely on the Tusima network. The application’s data is encrypted using a zero-knowledge proof algorithm, ensuring that all financial activities occur in a well-protected environment. At the same time, the Tusima network is open to any developer and organization to build and scale their decentralized privacy financial applications.

Cross-chain interoperability protocol

Tusima supports inter-chain interoperability protocols, making any inter-chain communication possible, not only to achieve cross-chaining of assets, but also Realize cross-chain data and status information. This protocol aims to achieve full-chain interoperability.

Tusima Random Algorithm

Tusima Layer 2 transactions use random algorithms to hide the real transaction address and protect user privacy. A random algorithm automatically generates a similar set of 4 addresses for each transaction. User account balances can be homomorphically encrypted to generate verifiable ZK proof data, thereby hiding the actual transaction address. When a blockchain address is hidden by a random algorithm, other users cannot trace the real address.

Source: Tusima

DAO-driven privacy network

Tusima is a multi-chain compatible network based on DAO driver Privacy Network, designed to provide users with content privacy and identity isolation, and eliminate cross-chain communication barriers. Tusima's MVD design approach allows the community to reach consensus by proposing ideas. Each member is a stakeholder, both a consumer, a product driver and a test participant. Under this community-driven approach, Tusima can realize bottom-up contributions from users and launch products that are in line with the motivations and values ​​of the DAO.

In order to ensure the openness and transparency of the project, Tusima will be completely handed over to the community DAO for governance, with open system control rights, voting decision-making rights and fund allocation rights. At the same time, each module is proposed, discussed and voted on by the community, and then a consensus is reached, further promoting community participation and contribution.

There are currently several factors that may limit the development of ZK-Rollup and Layer 2 controllable privacy financial networks. One of the main factors is the complexity of implementing these solutions, which requires highly specialized technical engineering capabilities and resource integration capabilities. Another factor is the lack of standardization and interoperability between different Layer2 solutions, which can make it difficult for users to switch between different networks.

Therefore, we believe that an ideal Layer 2 controllable privacy financial network based on ZK-Rollup should have the following characteristics:

• Scalable: ZK-Rollup can greatly reduce the cost of transactions because it can package a large number of transactions into a block and then submit it to the Ethereum main chain. ZK-Rollup can greatly improve the throughput and speed of transactions because it can package a large number of transactions into a block and then submit it to the Ethereum main chain.

• Use zero-knowledge proof to ensure privacy and security: ZK-Rollup can achieve controllable privacy, that is, only both parties to the transaction can see the specific content of the transaction, and others cannot view it. At the same time, ZK-Rollup can provide the same security as the Ethereum main chain because it uses zero-knowledge proof technology.

• High interoperability: Able to interoperate with other networks and have a high degree of flexibility to adapt to different use cases and combination ideas.

On the Internet, the lack of content privacy and identity isolation, and high inter-chain communication barriers have led to problems such as large-scale surveillance and data leaks, leaving billions of people using digital Lack of trust in service. In the Web 3.0 era, privacy protection has become standard, and Tusima is built based on this requirement. Tusima's privacy protection module is expected to solve these problems and make cross-chain information sharing more secure and effective. However, the Tusima project still has some shortcomings. Its token model remains undisclosed, which may affect the project’s transparency and credibility.