Validium

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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. 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.

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