Validium

Published:

Validium is a Layer 2 scaling solution designed to increase the throughput and reduce the costs of blockchain transactions, particularly on networks like Ethereum. It achieves this by processing transactions off the main blockchain (off-chain) but ensuring their integrity through cryptographic proofs, typically zero-knowledge proofs (like ZK-SNARKs or ZK-STARKs), which are then submitted to and verified by the main chain (on-chain).

The key differentiator for Validium compared to other Layer 2 solutions like ZK-Rollups is that while transaction validity is ensured on-chain, the actual transaction data is stored off-chain by a trusted data availability committee or operator. This approach offers even greater scalability and lower fees than ZK-Rollups because data storage costs on the main chain are avoided. However, it introduces a data availability assumption: users must trust that the off-chain data providers will make the data available if needed. For this reason, Validium implementations require careful smart contract auditing to verify the correctness of proof verification logic and withdrawal processes. If the data is withheld, it could potentially make it difficult for users to withdraw their funds independently. Validium presents a trade-off, offering high transaction speeds and low costs in exchange for a degree of trust in off-chain data management.

Follow us on Facebook and LinkedIn to keep abreast of our latest news and articles