Overview

Cycle Network presents an omni state solution based on Verifiable State Aggregation (VSA). From the perspective of layered blockchain architecture, the framework of Cycle can be represented as the Security Layer, the Extended Layers, and Cycle Layer.

Cycle Network Framework in Aerial View

The figure above illustrates the three primary components within the Cycle Network framework: the Security Layer, the Extended Layers, and Cycle Layer. This section offers a comprehensive overview of these parties, and their roles in global state proof, respectively.

The Security Layer is defined as a blockchain layer that provides the safety and liveness of transaction state. This layer can be either Bitcoin, Ethereum, or any other highly decentralized blockchain. The consensus mechanism of this layer guarantees state safety so that no two nodes that are functioning properly will produce conflicting results. Meanwhile, it provides some form of finality guarantees that the transactions will be finalized within a bounded time. The security Layer provides foundational security for Cycle Network as a high level decentralized blockchain through Rollup.

The security Layer should be evaluated in a conservative assessment to ensure the safety and liveness of the transaction state, therefore protecting the stable operation and data integrity of the Cycle Network. Bitcoin and Ethereum, two blockchains reputed with their high degree of decentralization and secure consensus mechanisms, have been considered to serve as the Security Layer in the Cycle Network. The Bitcoin Network is temporarily excluded since it is difficult to achieve trustless two-way communication in the Bitcoin network, which is typically addressed through multi-signatures for off-chain verification. This contrasts with the trustless goal of Cycle Network. On the contrary, the Ethereum network is programmable and capable of supporting trustless off-chain verification, making it a more suitable choice for our Security Layer. Cycle Network deploys an Endpoint, and associates with Ethereum via the implementation of zero-knowledge proofs (ZKP).

The Extended Layers refer to the source layers and destination layers where all transaction state and data state are located. This includes all Layer 1s, Layer 2s, and application blockchains. Cycle Network establishes an Endpoints on each Extended Layer for Extended Data Availability (EDA). The Omni Decentralised Indexer is deployed to achieve decentralized indexing of all Extended Layers to achieve the DA (Data Availability) for them. Essentially, Endpoints validate that received messages constitute a comprehensive set for each Extend Layer without any omissions. Synchronization takes place on Endpoints across all Extended Layers through Cycle Layer to ensure complete message retrieval.

Cycle Layer serves as a Rollup for both the Security Layer and each Extended Layer. It is constructed with a range of essential components, with particular emphasis on Omni State Channel Indexer (OSCI), the decentralized Sequencer and ZK proof model. All transactions in the Cycle Network, including the cross chain transactions across Security Layer and Extended Layers, as well as internal transactions within Cycle Layer, collectively generate the aggregate Cycle state. The root state of Cycle is generated by a zk-EVM (Zero- Knowledge Ethereum Virtual Machine) Prover. Subsequently, this proof is submitted by the Prover for validation to multiple Layer 1 blockchains and Extended Layers.

In the described process, Cycle Network functions similarly to a custodial system in a centralized exchange. However, users from different chains can trustlessly deposit their assets into Cycle Network and engage in seamless, self-custodied transactions and operations through Cycle Network. Users who employ Cycle Network for on-chain operations are unaware of the existence of multiple chains, making it easier for them to engage in more on-chain activities.