Detailed Analysis of Lumoz: A New Paradigm for Rollup Platforms

Environment Driving Rollup Changes

Layer 1 Scalability is Urgent

As the number of Ethereum users continues to increase, the network becomes increasingly busy. Especially during initial coin offerings, gas fees often skyrocket. The rising price of $ETH further exacerbates the situation, making small transactions infeasible due to high fees. Therefore, improving storage efficiency, transaction throughput, and reducing transaction latency is crucial for Ethereum’s development.

Traditional Layer 1 scalability solutions typically include both On-chain and Off-chain methods. On-chain solutions involve updating and optimizing Layer 1 by changing the consensus mechanism, implementing sharding, and increasing block size. Off-chain scalability includes sidechains and Layer 2 solutions. The key difference between sidechains and Layer 2 is that sidechains rely on their own security protocols, whereas Layer 2 relies on the mainnet’s security protocol, making Layer 2 generally more secure.

In past developments, Layer 2’s implementation logic involved off-chain centralized computing to process information and then transmitting the results on-chain. This method improves transaction processing efficiency while leveraging Ethereum mainnet’s high security. The main Layer 2 solutions currently include Channel, Plasma, and Rollup. Rollup, essentially an extension of the Plasma solution, offers higher security, state validity, and data verification capabilities, making it the future direction for Layer 2 development.

Which Rollup is Superior?

Rollup has two main branches: Optimistic-Rollup and ZK-Rollup. In Optimistic-Rollup, it is assumed that transactions submitted to the main chain are optimistic, meaning they do not need to be verified immediately, allowing for fast submission and processing. A challenge period of about a week is set during which other validators can question and submit evidence.

If successful, the transaction will be rolled back, and the incorrect party will be penalized. ZK-Rollup, on the other hand, uses zero-knowledge proofs to immediately verify the correctness of transactions, ensuring nearly 100% fraud-free transactions.

Overall, ZK-Rollup offers higher security and no delayed transaction confirmations due to challenge periods, providing a better application prospect. Consequently, Vitalik Buterin has publicly stated multiple times that ZK-Rollup is the future mainline for Layer 2 development.

However, due to the higher technical difficulty of ZK-Rollup compared to Optimistic-Rollup, the mainstream market for Rollup technology is currently dominated by Optimistic-Rollup.

Arbitrum is the current leader in Optimistic-Rollup, occupying 31.36% of TVL, while zkSync Era holds only 1.32% of TVL. Therefore, how to create standardized ZK-Rollup solutions and gradually expand its market becomes a crucial issue. The comprehensive solutions provided by Lumoz may be the key to breaking this impasse.

The Strong Background of Lumoz

Lumoz is a Comprehensive ZK Platform

Lumoz Network is a globally distributed modular computing network combined with DePIN, creating a powerful, secure, and flexible computing platform that supports ZK-Rollup, ZK ML, ZKP, etc. Lumoz focuses on ZK-RaaS construction, aiming to provide a complete set of ZK Rollup deployment and implementation solutions, addressing issues such as incompatibility among current ZK-Rollup solutions, centralized computing power, and concentrated risks.

Years of Deep Involvement in the ZK Field

Unlike many Web3 projects that hype up concepts, Lumoz has been deeply involved in the ZK field for years. Its founder, Nanfeng, has held senior positions in several top tech companies and investment firms, possessing extensive technical knowledge and excellent blockchain project management capabilities. This forward-thinking led him to lead the team in exploring and researching the ZK field since 2018.

• Project Establishment: In March 2022, Opside was founded in Hong Kong, focusing on providing blockchain scaling infrastructure and specializing in ZK-RaaS, helping developers create custom zkEVM chains through “one-click deployment.”
• Seed Round Financing: In April 2023, Opside completed a $4 million seed round financing to accelerate project development, expand the team, and scale operations to meet growing market demand.
• Rebranding: In October 2023, Opside rebranded to Lumoz to avoid confusion with Optimistic Rollup and better reflect its focus on ZK technology. The new name Lumoz comes from the Latin “Lumos,” symbolizing the bright future of ZK technology.
• Pre-Series A Financing: In March 2024, Lumoz completed a $6 million Pre-Series A financing led by Hashkey Capital and OKX Ventures, valuing the company at $120 million.
• Strategic Financing: In May 2024, Lumoz completed strategic financing with participation from IDG Blockchain, Blockchain Coinvestors, Gate Ventures, Summer Capital, EVG, 7upDAO, Sweep Ventures, etc., valuing the company at $300 million.
• Node Sale: In June 2024, Lumoz started a whitelist node presale, attracting numerous investors.
• OKX Launchpad: In July 2024, Lumoz began a public node sale and launched a Launchpad event with OKX.

In addition to its high valuation, Lumoz has delivered impressive results. Since launching its testnet in May 2023, it has accumulated 28,403 POW nodes, 16 allowed Rollups, 470,000 ZKP submissions, and 20 million transactions.

On the technical side, Lumoz introduced the ZK-Rollup Launchbase, supporting ETH, BSC, and Polygon testnets, and offering modular components like data availability (DA) and shared sequencers. Breakthrough inventions include the ZKP Two-step Algorithm, NCRC, zkVerifier node verification mechanism, and Lumoz RaaS Launchbase’s highly compatible tech stack. Merlin chain’s ZK computing at ZKFair is also supported by Lumoz, showcasing early technical deployment.

Unified ZK Technical Solutions

Lumoz Provides Modular Computing Layers

Modular Rollup offers a new approach to solving the blockchain trilemma. By breaking down the blockchain system into different modules, it achieves a layered structure that enhances transaction processing and data management, thus balancing decentralization, security, and scalability. Conventional Rollups typically include settlement, execution, consensus, and data availability layers.

• Settlement Layer: Updates blockchain asset states on Layer 1, ensuring asset security.
• Execution Layer: Processes transactions on the Rollup, recording and updating transaction statuses.
• Consensus Layer: Achieves consensus on transactions, ensuring their security.
• Data Availability Layer: Records and aggregates all transaction data, ensuring data traceability.

In addition to the conventional Rollup layers, Lumoz includes a core module called the Prover Layer. The Prover Layer provides censorship-resistant distributed computing, implementing ZKP and ensuring the authenticity and validity of transaction states.

ZK Computation Resources + EigenLayer Re-staking Dual Narrative

Lumoz integrates powerful ZK computation resources with the EigenLayer re-staking mechanism through Lumoz Oracle, zkProver, zkVerifier, and Lumoz Chain. This allows users to re-stake their already staked tokens into EigenLayer, enhancing the security of its Active Validation Service (AVS). The staked tokens also act as collateral for nodes, preventing malicious behavior.

• Staking and Re-staking: Users stake tokens on blockchain networks like Ethereum, and these tokens are re-staked into Lumoz’s AVS through EigenLayer’s re-stake mechanism, enhancing the security of validation services.
• Data Processing and Storage: Lumoz AVS Oracle retrieves and stores data from EVM-compatible chains, ensuring data availability and integrity. This data provides computation input for zkProver and verification information for zkVerifier.
• Task Allocation and Execution: Lumoz Chain handles task scheduling, allocating computation tasks to zkProver nodes, which execute the tasks and generate ZKPs.
• Result Verification and Confirmation: zkVerifier nodes verify the proofs generated by zkProver, ensuring the correctness of the computation results. Once verified, Lumoz Chain records the results on the blockchain and incentivizes participating nodes through a reward mechanism.

This process allows multiple validation servers to share a set of tokens, increasing resource utilization and computational efficiency, crucial for high-computation ZKP generation. By re-staking, Lumoz can better support various EVM-compatible blockchain environments like Polygon EVM and Scroll, enhancing platform scalability.

Optimizing ZKP Computation and Submission Mechanisms

Lumoz optimizes ZKP computation and submission mechanisms, supporting parallel computation and sequential submission of ZKPs. ZKPs are broken down into multiple sub-tasks that can be computed on different zkProver nodes and submitted in the correct order.

Additionally, Lumoz introduces a novel recursive aggregation algorithm for processing ZKPs, which can aggregate multiple ZKPs into a smaller ZKP, reducing the size and complexity of ZKPs and minimizing blockchain storage and computational resource usage.

The Aggregator acts as the core manager within zkProver, ensuring efficient task allocation and precise scheduling of verifications.

Highly Compatible ZK-RaaS Solutions

Enhancing the deployment difficulty to the lowest and compatibility to the highest for ZK-Rollup solutions has been Lumoz’s goal since its inception. Now, the ZK-RaaS Launch Base supports all mainstream zkEVM technologies, enabling developers to easily deploy and launch ZK-Rollups with simple operations.

• Foundation Layer Selection: Lumoz supports multiple networks, such as ETH, Polygon, Lumoz Chain, etc.
• zkEVM Configuration: Choose zkEVM types like Polygon zkEVM, zkSync, Scroll, and StarkNet based on actual needs.
• Gas Token and Data Availability Layer: Select gas tokens and corresponding data availability layers according to project needs, ensuring transaction security.
• Modular Customization: Lumoz offers a range of functional modules that can be directly integrated into ZK-Rollup as required.

Specifically, Lumoz’s ZK-RaaS platform supports multiple architecture models.

• Modular Compute Layer: Lumoz’s modular compute layer can support various Layer 2 solutions, including Op Stack + ZK Fraud Proof architectures. This modular approach allows developers to choose different foundation layers, zkEVM types, data availability layers, and sequencers as needed.
• Native Cross-Rollup Communication: Lumoz supports native cross-Rollup communication on the same base chain, allowing addresses on one Rollup to interact directly with contracts on another Rollup, enhancing interoperability between applications.
• Customizable Infrastructure Services: Lumoz offers various infrastructure services such as bridge interfaces, custom zkEVM types, block explorers, decentralized exchanges, decentralized identity systems, wallet infrastructures, etc. These services enable developers to customize various aspects of ZK-Rollup according to their project needs.

Due to Lumoz’s contributions, deploying ZK-Rollups has transitioned from a difficult task to an easy one, potentially marking the beginning of a trend in ZKP applications.

Lumoz Node Presale Opportunity

zkVerifier License Sale

Lumoz implements a zkVerifier certificate mechanism, offering 100,000 licenses in 10 different pricing stages. Only users with licenses can run zkVerifier nodes and can delegate the certificates to other nodes to earn profits.

The zkVerifier sale event includes three phases: whitelist phase (June 17 at 15:00, UTC+8), whitelist sale phase (June 25 at 15:00, UTC+8), and public sale phase (July 3 at 15:00, UTC+8). Whitelisted users enjoy a 10% discount during the whitelist sale phase, and inviting others to purchase earns a 10% rebate.

Unlike traditional node license sales, Lumoz provides Lumoz points distribution from June 25 to August 4, with 1 million points distributed daily. Point distribution considers the weight of staked licenses, and participating teams can increase overall weight. The earlier a license is purchased and staked, the higher the potential earnings. After TGE, users with Lumoz points can share 25% of the tokens.

Lumoz offers a refund mechanism for unsold licenses, allowing users to return 80% of the purchase funds within a 6-month window post-TGE, significantly mitigating risks.

Clearly, purchasing zkVerifier licenses is a promising investment with high returns at low risk. As of the time of writing, 64,708 licenses have been sold, reaching the 7th stage, with an FDV of an astonishing $79,131,216.

OKX Launchpad Node Sale

OKX collaborates with Lumoz for the zkVerifier Launchpad event (July 11 at 10:00 to July 17 at 16:00, UTC), offering 200 Tier 3 nodes (265 USDT) and 800 Tier 4 nodes (304 USDT). During the event, participants completing tasks on the OKX website can purchase nodes at up to a 40% discount, attracting 36,352 participants so far.

Lumoz’s Token Model

Lumoz’s token economy follows a typical dual-token governance model, providing MOZ and esMOZ tokens.

• MOZ is the native token of the mainnet, serving as the core asset of the mainnet.
• MOZ can be used for Lumoz mainnet transaction gas fees.
• Lumoz’s ZKP services and AI computing services require MOZ for payment.
• MOZ can be exchanged for esMOZ at a 1:1 ratio.
• esMOZ serves as the ecosystem governance token for mainnet ecosystem construction and maintenance.
• Lumoz provides esMOZ as rewards to incentivize mainnet computing power providers and node operators.
• Users use esMOZ for network delegation to achieve decentralized governance.

Notably, the exchange ratio of esMOZ to MOZ changes over time: 100% redemption rate with a 10-day redemption period, 70% with a 7-day period, 50% with a 3-day period, and 10% with a 1-day period. This redemption mechanism alleviates market pressure from miner tokens and prevents massive esMOZ redemptions post-hack, protecting MOZ buyers’ rights.

Why Lumoz is Promising

Since Vitalik proposed in 2022 that ZK-Rollup would be the best Layer 2 Rollup solution for the future, its vigorous development was destined.

Lumoz’s emergence will integrate previously isolated ZK-Rollup solutions, optimizing ZK-Rollup construction and creating a streamlined deployment process.

• Impending Rollup Transformation: Lumoz’s emergence meets the urgent need for ZK-Rollup integration and industry update.
• Modular Compute Layer: Lumoz provides a modular compute layer, enhancing mainnet security and scalability by combining with EigenLayer’s staking concept.
• Optimized ZKP Process: Lumoz optimizes the ZKP process, ensuring efficient use of computing resources and improving computational efficiency.
• Comprehensive Deployment Methods: Lumoz offers a complete deployment method for ZK-Rollup, potentially triggering the rise of ZK-Rollup projects.

Overall, Lumoz’s emergence addresses past issues such as high ZK-Rollup deployment difficulty and centralized computation due to high ZKP computational resource requirements, making the most crucial step towards the further development of ZK-Rollup.