What is Zulu Network and Airdrop ($ZULU)?

9may...WMMw

5 May 2024

101

What is Zulu Network?

The Zulu Network introduces a pioneering two-tier architecture within the Bitcoin ecosystem, designed to significantly enhance Bitcoin's functionality and applicability.

The Zulu Network

Zulu Network (“Zulu”) stands out as the first Bitcoin Layer 2 (L2) platform to introduce a dual-layer architecture, meticulously considering both stability and innovation. Relying solely on EVM compatibility poses challenges, such as limited ecosystem innovation and application scenarios. On the other hand, exclusively retaining UTXO characteristics carries inherent risk issues. To address these concerns and facilitate the use of fast DeFi protocols on the Bitcoin Network, Zulu has ingeniously proposed a dual-layer architecture design.
This exciting approach aims to support developers in exploring innovative applications based on both the UTXO and Account models.
The Zulu Network is the first Bitcoin Layer 2 to support both UTXO and Account models in the crypto space.
Additionally, it seeks to sustain the growth of new protocols like BRC20 and ARC20, ensuring the continued prosperity of the Bitcoin ecosystem. The dual-layer architecture design is visually represented below:
Figure 1: Zulu Architecture

Layer 1:

As an L2 network implemented on the Bitcoin blockchain, Bitcoin assumes the role of a Settlement Layer. However, due to its inherent programmability limitations, running a ZKP verification program directly on Bitcoin is impractical. Nevertheless, leveraging BitVM technology enables the implementation of a trust-minimized solution, facilitating the verification of ZKP on the Bitcoin network. In fact, within the framework of trust minimization, any program executed on BitVM can undergo verification on the Bitcoin blockchain.
Simultaneously, all native assets are initially issued on the base layer. All those assets can be seamlessly moved to Zulu through different bridges. Zulu can integrate with existing bridges, such as Orbiter or Polyheldra, enabling the trustless transfer of assets from non-Bitcoin chains to Zulu. However, achieving trustless cross-chain bridges for assets on Bitcoin is challenging due to the absence of support for smart contracts on the Bitcoin blockchain. Nevertheless, trust-minimized bridges can still be realized through the BitVM + 2-way peg mechanism.

Layer 2:

The emergence of the Ordinals protocol has enabled the issuance of new tokens on Bitcoin, adhering to the BRC20 token standard. However, these tokens, constrained by their current capabilities, are limited to transfer operations. Consequently, there is an urgent need to integrate DeFi applications into Bitcoin's L2, allowing these Bitcoin-based assets to leverage decentralized applications (dApps). Given the close association of these applications with user assets, prioritizing the security and reliability of these dApps is crucial to minimizing potential asset losses for users.
In response to this imperative, Zulu will introduce an Ethereum Virtual Machine (EVM) into his Layer 2, referred to as ZuluPrime. The ZuluPrime layer will be constructed on the ZK stack of zkSync, a well-established, high-performance, and EVM-compatible Zero-Knowledge EVM (ZKEVM) solution. This EVM compatibility facilitates the seamless migration and deployment of the Ethereum ecosystem onto ZuluPrime. Once Bitcoin assets are bridged to ZuluPrime, users can fully access and benefit from these mature dApps.
Acknowledging the computational demands for Zero-Knowledge (ZK) proof operations on ZuluPrime, a Proof-of-Work (PoW) mechanism has been introduced to ensure ample computing power on the network. Unlike traditional PoW, ZuluPrime's PoW primarily focuses on calculations related to the core operators of the ZK algorithm. Considering the potential high costs associated with submitting proof for each block to the Bitcoin network, a certain number of proofs will be aggregated under normal circumstances to reduce the frequency of verification submissions to the Bitcoin Network.
However, there is a challenge when the validity of the proof has not been verified before submission to the Bitcoin Network, and the state on ZuluPrime remains unfinalized. To address this, ZuluPrime will establish a Proof-of-Stake (PoS)-based verification network to promptly verify the proof for each block. This verification occurs before the proofs are submitted to Bitcoin, instilling trust in the PoS-based verification network.

Layer 3:

As discussed in the preceding chapter, Zulu holds the belief that merely supporting the Ethereum Virtual Machine (EVM) onto the Bitcoin ecosystem does not constitute the entirety of the ecosystem. This is because users have the straightforward option of transferring assets from Bitcoin to Ethereum, achieving a comparable outcome. We have identified the Ordinals protocol and Atomical protocol as noteworthy and innovative initiatives within the native asset realm of the Bitcoin Network. As the designated Layer 2 (L2) solution for Bitcoin, it is crucial for Zulu to safeguard this fertile ground for innovation and create a platform that is more user-friendly for developers.
ZuluNexus has been conceived for precisely this purpose. Positioned on top of ZuluPrime, it functions as both the Layer 2 (L2) of ZuluPrime and Layer 3 (L3) of Bitcoin. The strategic advantage of this arrangement is that, as an innovative Layer, ZuluNexus exclusively interacts with ZuluPrime. The innovation within ZuluNexus is rooted in its Virtual Machine (VM) design. In contrast to ZuluPrime's EVM, the VM implemented in ZuluNexus is an entirely new construct, unifying BTC and ETH asset types (UTXO & Account). Simultaneously, it extends the capabilities of the UTXO type, enabling the authoring of smart contracts based on the UTXO model. Zulu incorporates insights from the designs of Aleo, Aztec, and Ola in this realm, building upon and expanding their foundations.

What is ZuluPrime(Layer 2)?

ZuluPrime operates as a Layer 2 solution for Bitcoin, focusing on EVM compatibility and offering sophisticated DeFi applications and financial services on the Bitcoin Network.

ZuluPrime is positioned as the Layer 2 (L2) solution on the Bitcoin network, presenting itself as a Zero-Knowledge EVM (ZKEVM) solution constructed on the ZK stack of zkSync.
Transactions conducted on ZuluPrime undergo bundling into blocks before execution. The Sequencer plays a crucial role in providing the world state both before and after the execution of all transactions within the current block. In the event of doubt, any individual can act as a Challenger, challenging the execution of the current block. Theoretically, these transactions require re-execution on Layer 1 (L1) to ensure confirmation at the same security level as Layer 1. However, due to Bitcoin's inability to execute smart contracts (which may originate from various smart contract calls), ensuring L2 security becomes challenging.
BitVM introduces programmability to the Bitcoin network, operating on the premise of minimum trust (1 of N level, ensuring a sufficiently large N). This, to some extent, addresses the problem described above of replaying transactions on Bitcoin. However, upon meticulous evaluation, certain challenges persist; notably, the necessity to deploy all smart contracts on BitVM. From the standpoint of verifying the validity of transaction execution, this presents an inherently inefficient solution in terms of resources, scalability, and data privacy.
Fig 2. ZuluPrime Architecture
To navigate past those challenges, we introduce the concept of Zero-Knowledge Proof (ZK). Essentially, a proof is generated for the execution of all transactions, and successful verification indicates the validity of the transaction execution. This method, from a verification standpoint, mitigates the impact of higher-level transaction types, as the ZKP verification program consistently runs on BitVM, irrespective of the transaction logic. The only variation between different blocks lies in the input of the program.
To maintain uniformity in the execution environment, the verification network bases the execution environment of the ZKP verification program on BitVM. Subsequently, Challengers have the ability to challenge the results of its execution.
ZuluPrime has a fast block generation speed, so it needs substantial computing power from different provers to generate proofs for blocks. Simultaneously, ordinary user engagement verify networks are also essential on the network. Given the low computing power requirements of the ZKP verification program, these networks facilitate swift verification of proofs, thereby ensuring system security. ZuluPrime's overarching objective is to enable users to access the verify network on their mobile phones, lowering the barrier for user participation.

What is ZuluNexus(Layer 3)?

ZuluNexus functions as Layer 3 for Bitcoin, unifying UTXO and Account asset types on the Zulu Network.

ZuluNexus is designated as Layer 3 (L3) within the Bitcoin ecosystem and will be directly deployed on ZuluPrime, interacting seamlessly with it.
However, the verification of its state changes will involve both the Verify network and the Bitcoin network, in conjunction with the proof provided by ZuluPrime. The architectural diagram of ZuluNexus is depicted below:
Figure 3. ZuluNexus Architecture
Since the state transition of ZuluNexus will be verified on ZuluPrime, there is no necessity to introduce an additional verification network on ZuluNexus. Furthermore, the interval between proof submissions on ZuluNexus and ZuluPrime can be brief, thanks to lower average transaction costs. As illustrated in Figure 3, the primary distinction between ZuluNexus and ZuluPrime stems from the design of their Virtual Machines (VMs).
ZuluNexus is constructed on a novel VM that differs from the Ethereum Virtual Machine (EVM). This VM maintains two distinct world state trees—one for the Account type and the other for the UTXO type state. In practice, a UTXO commitment tree may also be upheld. This approach is informed by the experience of recent years, where the Account type has demonstrated greater compatibility with smart contracts, evident in the success of Ethereum. Simultaneously, the UTXO type is better suited for private transactions, given that transactions based on the UTXO type are executed locally by users and subsequently verified by network nodes. Many privacy-focused projects, including Zcash, Aleo, Aztec, Ola, etc., are implemented based on the UTXO type.
Consequently, both UTXO and Account types boast distinct advantages in specific scenarios. The goal of ZuluNexus is to combine these two types, creating a programmable platform based on mixed account types. This framework enables developers to continually expand upon more innovative functionalities based on the foundation of UTXO types.

Token Economics

V1 drafted for community review in Feb 2024. Details are subject to change.

Zulu Network Quick Summary

The Zulu Network represents a ground-breaking advancement in the Bitcoin ecosystem, introducing a two-tiered architecture to expand the capabilities of the Bitcoin Network.
ZuluPrime: Acts as L2 on Bitcoin with EVM compatibility [+info].
ZuluNexus: Acts as L3 focusing on native Bitcoin format innovations [+info].
About $ZULU.
$ZULU Token Allocation.
$ZULU Token Release Schedule.

Introducing $ZULU:

The Token Powering the Ecosystem.
$ZULU serves as the native token for the Zulu Network, with different and distinct tokens for:
ZuluPrime -> $ZULU (Native token for ZuluPrime Network)
ZuluNexus -> $ZULU (Native token for ZuluNexus Network)
The Network facilitates a 1:1 swap bridge between these two tokens (Prime & Nexus).

Key Features of $ZULU

Total Supply and Max Supply: 1 billion $ZULU.
Governance: $ZULU token holders possess voting rights for network governance decisions at a later stage.
Staking: $ZULU token holders possess voting rights for network governance decisions.
Collator Delegation: $ZULU holders can choose to delegate their holdings to collators or stake $ZULU to operate their collators, enhancing network security.
Network Fees: ZuluPrime and ZuluNexus utilize $ZULU for transaction fee payments.
Native Liquidity & Collateral: $ZULU tokens serve as native liquidity and collateral within the Zulu ecosystem.

$ZULU Interoperability on ZuluPrime and ZuluNexus

The total initial supply of $ZULU at launch is 1 billion tokens. Both the ZuluPrime and ZuluNexus networks will have a representation of these 1 billion tokens. As liquidity flows between the two networks, the tokens will be locked and unlocked on liquidity pool of the ZULU bridge. The total amount of unlocked tokens from both the ZuluPrime and ZuluNexus networks determines the current circulating supply.

Efforts Towards Transparency

In the future, these metrics will be displayed through a dashboard in an effort towards transparency. Furthermore, once the contracts are deployed, they will be verified and published on-chain.

AIRDROP

How to Earn Zulu Genesis Points (ZGP)

1. Daily sign-ins: connect your wallet on testnet.zulunetwork.io to get the daily sign-in ZGP!

2. Complete Quests: Take on various quests within the platform and earn more ZGP.

3. Use Zulu Bridge: Experience the power of cross-chain interoperability by utilizing Zulu's innovative bridge feature.

Why Participate?

1. Boost Market Presence: Your active participation helps us create buzz and excitement around Zulu Network, attracting more users and investors to our ecosystem.

2. Foster Community Engagement: Join a vibrant community of blockchain enthusiasts, share your experiences, and connect with like-minded individuals from around the globe.

3. Shape Zulu's Future: Your feedback is invaluable in shaping the future of Zulu Network. Help us improve our products and services by sharing your thoughts and suggestions.
Join us in shaping the future of decentralized finance and blockchain technology. Let's make history together with Zulu Network!

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