Validium Design is a type of Layer 2 scaling solution for blockchains that uses zero-knowledge proofs to verify transactions off-chain, while maintaining data availability off-chain as well. Unlike ZK-rollups, Validiums store transaction data with a data availability committee or other external mechanism, rather than on the main chain. This approach significantly increases transaction throughput and reduces costs. It offers a high degree of scalability with a different security model compared to other Layer 2 solutions.
Context
The trade-offs inherent in Validium Design, particularly concerning data availability and censorship resistance, are a key discussion point in the scalability debate for blockchain networks. While offering high throughput, the reliance on off-chain data availability committees presents distinct security considerations. A critical future development involves exploring hybrid models and enhanced data availability solutions to strengthen the security guarantees of Validium designs.
The decentralized arranger leverages Set Byzantine Consensus to unify transaction ordering and data availability, eliminating the centralized sequencer bottleneck.
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