🤝Settlement on Bitcoin

This section details the envisioned functionality for settling transactions via ZK proofs from Zayn Network to the Bitcoin blockchain.

Introduction to BitVM

BitVM represents a forthcoming innovation intended to enable smart contract execution and the settlement of complex transactions directly on the Bitcoin blockchain. It aims to facilitate a trust-minimized setting that capitalizes on Bitcoin’s well-established security and decentralization.

How Transactions Will Settle on Bitcoin Using ZK Proofs

Once BitVM goes to production, the process for settling Zayn Network transactions on Bitcoin will incorporate zero-knowledge proofs to ensure privacy and security:

1. Transaction Execution on Zayn Network: Users carry out transactions on Zayn Network L2, which are processed with efficiency and scalability in mind.

2. Aggregation and ZK Proof Generation: Zayn Network will aggregate multiple L2 transactions into a single batch. For each batch, a ZK proof will be generated, ensuring that all transactions are valid and comply with Bitcoin’s protocols without revealing any underlying transaction details.

3. Submitting to Bitcoin via BitVM: The batch along with its ZK proof is submitted to the Bitcoin blockchain through BitVM. This submission marks the critical phase of settling transactions on Bitcoin.

4. Verification and Storage by BitVM on Bitcoin: Once on the Bitcoin blockchain, BitVM verifies the ZK proof, ensuring it meets Bitcoin's security standards. Following verification, the proof is stored on the blockchain, providing a decentralized, immutable record of the transaction’s validity.

Benefits of Using ZK Proofs for Settlement on Bitcoin

Settling transactions with ZK proofs on Bitcoin through BitVM offers several security and privacy benefits:

• Enhanced Privacy: ZK proofs allow the validation of transactions without exposing any sensitive transaction details, preserving user privacy.

• Robust Security: By leveraging Bitcoin's security through BitVM, Zayn Network ensures that the transactions are not only secure but also benefit from the high integrity and resistance to alteration that Bitcoin offers.

• Decentralization and Immutability: Settlements recorded on Bitcoin are immutable and decentralized. ZK proofs enhance this by ensuring that data integrity and validation are maintained without central oversight.

• Trust Minimization: Using ZK proofs minimizes the need for trust among parties, as the proof itself verifies the correctness of transactions without needing to trust the data provided by any single entity.

Looking Ahead

The integration of BitVM into Zayn Network's transaction settlement process on Bitcoin, particularly through the use of zero-knowledge proofs, promises to revolutionize how transactions are verified and recorded. This approach not only secures transactions with Bitcoin’s renowned stability and security but also paves the way for privacy-centric, trust-minimized blockchain interactions.

Stay tuned to this section for updates and guidance on how to prepare for and integrate these advancements into your applications on Zayn Network once BitVM becomes operational.