Global audit giant Ernst & Young released a new Ethereum L2 solution, which can reduce gas fees by nearly 90%

Recently, the global auditing giant Ernst & Young  (Ernst & Young) released its zero-knowledge proof-based Ethernet solutions Square expansion of the third iteration. Ernst & Young is trying to promote secure and private transactions on the public chain at a lower cost . This effort culminated in the release of its Ethereum expansion solution ” Nightfall 3 ” .

The company announced the news at a press conference on July 1, stating that Nightfall 3  combines zero-knowledge proof and Optimistic Rollup , called ” ZK-Optimistic Rollup “, which aims to improve transaction efficiency on Ethereum.

In fact, zk-Rollops is an L2 expansion solution developed to achieve the scalability of networks such as Ethereum. It uses batch processing to compress multiple transactions into one transaction and submit them to the chain.

In this latest iteration, the Ernst & Young team stated that Nightfall 3 is a set of tools for managing Ethereum transactions in a private manner . According to the announcement, compared with public ERC-20 token transfers, Nightfall 3  ‘s  zk-Optimistic Rollup  solution can reduce gas fees by nearly 90%.

The contents of the announcement issued by Ernst & Young are as follows:

Ernst & Young today released a new set of tools for managing transactions on the Ethereum blockchain in a private manner. The project is called “Nightfall 3”, and it combines zero-knowledge proof (ZK or ZKP) with a new model that deals with transaction verification, the Optimistic Rollup, to increase efficiency and reduce transaction costs. This combined agreement is called “ZK-Optimistic Rollup”.

Nightfall 3 aggregates ZKP transactions into transaction groups, also known as “Rollups”. These transaction groups are called “Optimistic Rollups” because the system assumes that these transactions are valid (unless proven invalid) and eliminates the process of having all participants verify all transactions.

In order to ensure that only correctly formed L2 blocks are included in the final blockchain record, this solution will economically incentivize users to challenge incorrect blocks . When a challenge is presented, the smart contract arbitrates the accuracy of the challenge, rewards the correct challenge and deletes incorrect L2 blocks.

The Ernst & Young team previously contributed the ZKP protocol to the public domain and named it “Nightfall 1”. Since the launch of this first contribution in 2019, the rapid growth of decentralized finance (DeFi) services has led to network congestion on the Ethereum blockchain and increased transaction costs (i.e. gas fees). Nightfall 3 This new agreement can achieve significant improvements in transaction efficiency and is expected to offset the recent increase in Gas fees.

Paul Brody, Head of EY Global Blockchain, said:

“According to Ernst & Young’s experience, ZK-Optimistic Rollups are currently one of the most effective methods for balancing security incentives and the mathematical efficiency of running private transactions on the public Ethereum network. As we have done in the past, we have once again combined this The code is contributed to the public domain to speed up the adoption of this technology by enterprises .”

With the help of ZK-Optimistic Rollups, Nightfall 3 can achieve a cost of approximately 8,200 Gas per transaction while maintaining privacy . This is almost one-eighth of the cost of a regular public ERC20 token transfer .

Nightfall 3 also provides developers with a standard application programming interface (API), similar to other token transfer tools, thereby reducing the learning curve required for developers to achieve privacy.

Dr. Duncan Westland, deputy director of Ernst & Young and head of global blockchain research and development, said:

“When developing a brand new ZKP (Zero Knowledge Proof) protocol, developers need to be able to directly interact with the low-level ZKP structure. If all users want is to transfer private tokens, then the application can be used to manage the ZKP interaction. In this case, if the user is very cautious about how to transfer money from L1 to L2, then a ZKP transaction can be regarded as similar to a traditional token transfer, while increasing privacy. Having a system that allows users to use this The API used in this way can speed up development.”

The Ernst & Young team has released the original code of Nightfall 3 to the public and released all ownership to simplify the acquisition by others. The code can be found at this link:

https://github.com/eyblockchain/nightfall_3

As mentioned above, by making  Nightfall 3 open source , Brody said  in a statement that Ernst & Young is doing everything it can to accelerate enterprise adoption of this technology.

As Ethereum 2.0 is still under development, L2 solutions such as ZK-Rollups and Optimistic  Rollups  continue to be considered as short-term solutions to increase the throughput of the Ethereum network, and Ernst & Young’s Nightfall 3 solution is joining the Ethereum L2 solution team. ‘S newest member.

ZK proof is not the only exploratory work of Ernst & Young on blockchain technology. In fact, the company has previously released a blockchain analysis tool  Smart Contract Analyzer that allows users to monitor smart contracts and tokens to determine known security risks. As early as April 2019, the audit giant released a beta version of the tool.

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