Zeeve organized a webinar titled: “Launching a Rollup & Appchain: Everything from Idea to its Implementation.” Dr. Ravi Chamria, CEO and co-founder of Zeeve, starts the webinar by briefly introducing the topic by explaining the concept behind application-specific blockchains and how they are needed to overcome the limitations of monolithic layer one blockchains, such as headers and scalability. Dr. Ravi discusses the limitations of scalability when trying to balance security and decentralization. He also explains the concept of application-specific blockchains, which offer scalability, predictability, customization, and security benefits compared to the main blockchain.

1. Driving Scalability, Security, and Performance with
Application-Specific Blockchains
The Rise of AppChains
By Dr. Ravi Chamria, Co-founder Zeeve

2. The Idea of Application-Specific Blockchains
• Application-specific blockchains are blockchains customized to
operate a single application.
• Instead of building a decentralized application on top of an
underlying blockchain like Ethereum, developers build their own
blockchain from the ground up.
• Instead of having the application part of the blockchain be a
Virtual-machine and decentralised applications built on top of it,
appchains facilitates the development of decentralised
application as the application of the blockchain itself.
• Now let’s understand why, in many cases, it makes more sense to
develop a decentralised application as an application-specific
blockchain rather than on top of a Virtual-machine blockchain.

3. The Benefits of Appchains
SCALABILITY
Applications do not have to
compete for block space in an
appchain system. This improves the
performance and throughput of the
applications, as well as reduces the
congestion and fees on the main
network.
CUSTOMIZATION
In an appchain system, developers are free to
choose a consensus mechanism, governance
structures, and economic models. This gives
developers more freedom and creativity to design
their applications.
SECURITY
The attack surface of a Virtual-machine
blockchain is large. Most of it comes
from the complexity of the
Virtual-machine itself. The security
analysis is simpler in
application-specific blockchains
because you only have to consider how
the different parts of your application
interact with each other.
Scalability, customization, and security

4. How An Application-Specific Blockchain Be Created?
Using Frameworks
(Cosmos SDK, Substrate):
Modular tools,
customization,
interoperability
Leveraging existing
app-chain solutions on L1s:
Utilize the parent chain's
security with added
scalability
Rollups - Optimistic and
zk Rollups:
Utilize the parent chain's
security with added
scalability
Three common approaches for creating such blockchains.

5. • Substrate and Cosmos are popular frameworks for
developing blockchain applications.
• These frameworks provide fundamental
components required to build a blockchain from
scratch, and you just need to blend or modify them
to match the purpose of your project.
• They are better compared to forking a blockchain
because of their high customization and flexibility.
They also have active and supportive communities
to help you test your MVP or get a Validator.
• Each framework has its strengths and weaknesses.
The best project choice will depend on each
developer’s requirements and goals.
• For example, Cosmos is focused on enabling
interoperability between different blockchain
systems, while Substrate is focused on providing a
flexible and modular platform for building custom
blockchain applications.
Using
Frameworks
Cosmos SDK, Substrate

6. • Cosmos works as the “internet of blockchains” with the Cosmos SDK
and the Tendermint consensus mechanism at its core. Appchains are
called “zones” and connect to the Cosmos main chain, creating an
interconnected web.
of chains.
• The Cosmos SDK is a development kit for building the application layer
of a Tendermint-based blockchain, composed of a number of generic
modules used for a blockchain’s most common functions, such as
creating accounts, staking, and token management.
• This open-source framework can be used for building multi-asset
public Proof-of-Stake (PoS) blockchains, like the Cosmos Hub, and
permissioned Proof-of-Authority (PoA) blockchains.
• Anyone can create a module for the Cosmos SDK, and integrating
already-built modules is as simple as importing them into your
blockchain application.
• The Cosmos SDK is a capabilities-based system that allows developers
to better reason about the security of interactions between modules.
Cosmos SDK: An Overview

7. Examples of Cosmos-based Appchains
Some examples of Appchains built on Cosmos are:
dYdX : A decentralized
exchange
dYdX is a standalone
Cosmos-based blockchain
featuring a fully decentralized,
off-chain order book and
matching engine.
$DYDX is the native token of the
app chain, which needs to be
staked by validators and used
as the gas fee payment.
Osmosis: Cosmos’ Liquidity
Backbone
The largest DEX on Cosmos
allows people to swap, earn,
and build. As a PoS network,
token holders participate in
securing the blockchain
through staking the protocol’s
native token, OSMO
Coreum: A Layer1
Coreum is a Layer-1 blockchain
designed for Real World Assets
Tokenization. But unlike dYdX or
Osmosis, which build a
blockchain for just one
application, Coreum is a
blockchain for multiple
applications that are all
contained within a sector

8. Substrate: An Overview
Simplicity with the freedom to innovate
Substrate offers creative control to build applications using
open-source modules and custom. Rust macros. Innovate with
low-level primitives.
Composing a runtime
Each pallet defines specific types, storage items, and functions to
implement a specific set of features or functionality for a runtime
Fully modular and flexible framework
Substrate is a fully modular and flexible framework that lets you
compose a chain by selecting and customizing the infrastructure
components best sited to your project
Building with custom pallets
Customize your own substrate runtime with FRAME's modular pallets.
Combine open source and custom pallets for specific app features
and functionality
Building with templates and modules
FRAME simplifies Substrate development by offering customizable
pallets for common use cases. Choose from a library of modules to
build your own runtime.

9. Examples of Substrate-based Appchains or Polkadot Parachains
Acala: A DeFi hub for the
Polkadot network
Acala is a decentralized finance
hub that offers a
multi-collateralized stablecoin, a
trustless staking derivative, and a
decentralized exchange platform. It
is an appchain built on Polkadot
using Substrate and parachains. It
has its own native token (ACA) and
governance model and leverages
the security and interoperability of
the Relay Chain.
Ternoa: Evolutionary NFT
Blockchain
Ternoa natively combines
decentralization and encryption
with TEEs to turn NFTs into secured
and private data containers. This
design creates “True Ownership” of
digital data for users. Multichain by
Design Through bridges, mirroring
and native Polkadot portability,
Ternoa allows users to merge NFTs
from all ecosystems in one place.
Moonbeam: EVM with Polkadot
Security
Moonbeam delivers complete
Ethereum compatibility within a
Polkadot parachain environment, so
developers can continue to use the
programming languages and tools
they’ve grown used to — but within
a fast-growing and scalable Layer 1
chain.

10. • This might be the best solution if you want to
leverage the benefits of app chains and love the
security of L1 public blockchains.
• These kinds of Appchains operate on top of existing
Layer 1 (L1) blockchains and take advantage of their
underlying security.
• Such solutions typically have their own token. It is
used for staking, as the application’s internal
currency, and for voting.
• Validators from the main network can help these
appchains (if they agree to allocate resources to a
particular application). Also, they can have their own
validators with specific compliance requirements.
• As of now, there are 3 major players in this segment.
Polygon Supernet, Avalanche Subnet, and BNB Side
chains.
AppChain
Solutions by L1/l2
Subnet and Supernets

11. • A Subnet is a sovereign network that defines its own rules
regarding its membership and token economics.
• It comprises a dynamic subset of Avalanche validators
working together to achieve consensus on the state of one
or more blockchains.
• Each blockchain is validated by exactly one Subnet, while a
Subnet can validate many blockchains.
• Avalanche's advantages over other blockchains include
scalability, finality, and speed.
– Avalanche has no limit on the number of subnets that can be
created
– The Snowball Algorithm processes transactions within 1-2 seconds
– Avalanche has a high throughput with more than 4500 tps
Avalanche Subnet

12. Examples of Subnet-based Appchains
Rymedi:
A healthcare platform
Rymedi is a Blockchain based healthcare
platform including personal data and clinical
management. It has been launched on
Avalanche as a subnet. The example of Rymedi
can also illustrate the extent of how
customizable and flexible subnets can be on
Avalanche.
MELD:
A DeFi Protocol and web3 Bank
MELD is a non-custodial DeFi protocol for web3
finance, providing cross-chain lending,
borrowing and staking on the MELD blockchain
supporting the six leading blockchains as well
as integrated fiat Banking.

13. • Supernets operate on the Polygon's Edge consensus client
with PolyBFT consensus.
• They leverage a native bridge to connect with an
associated rootchain, enabling them to inherit its security
and capabilities.
• Supernets extend the block space available on the
rootchain, providing scalability and interoperability for
decentralized applications.
• The Supernets ecosystem includes the most extensive suite
of premium service providers, who offer various node and
deployment infrastructure, indexers, explorers, oracles, and
many other world-class tools necessary for building and
deploying Supernets and their associated applications.
(Zeeve is one of them)
• Supernets employ a multi-faceted approach that
leverages a combination of complementary scaling
solutions to achieve maximum scalability. These solutions
include layer-2 scaling techniques, parallelization, and,
eventually, ZK technology.
Polygon Supernet

14. Gnosis Pay/ Gnosis Card: a self-custodial Visa debit
card
Gnosis Pay is a decentralized payment network, and
Gnosis Card is a self-custodial debit card. They are
utilizing a Zk-powered Supernet. It guarantees fast,
secure, and scalable transactions on the Ethereum
blockchain.
Examples of Supernet-based Appchains
OuterLife Utilizing a Zk-Powered Polygon Supernet:
PlayWay, the global gaming giant, has partnered with
GameSwift to introduce and launch OuterLife as their
entry into the web3 gaming world on Polygon Supernet.
OuterLife is a web3 gaming accelerator and incubator,
and it will allow PlayWay to integrate blockchain, NFTs
into its famous simulator titles such as Animal Shelter,
Farming Life, cafe owner simulator, and more.

15. • Ethereum rollups have emerged as a promising
solution to the blockchain scalability conundrum.
• Rollups offer a way to mitigate these problems while
maintaining the network's security and
decentralization.
• Ethereum rollups are second-layer solutions that
bundle or "roll up" multiple transactions into a single
proof, which is then submitted to the Ethereum main
chain.
• This approach allows for a significant reduction in
gas fees and an increase in transaction throughput
by offloading computation and storage from the
main chain.
• Rollups retain the security guarantees of Ethereum
by using smart contracts to enforce rules and
validate data.
Ethereum
Rollups
OP Stack, zk Rollups

16. How Ethereum Rollups Aid Scalability
• We can post two types of information on
most blockchains: transactions and data.
The storage of transaction information and
on-chain processing can be heavy for the
mainnet.
• On the other hand, data resulting from a
transaction is less heavy and remains the
same no matter the number of transactions.
• It is similar to how a cheque weighs the
same irrespective of the amount on it.
• So, instead of storing a whole transaction
and processing it, blockchain rollups process
and submit more transactions in one single
piece of data.
Rolled up Rolled up Rolled up
proveFraud()
execute_L2_tx(s2, tx2)
!=s3
Ethereum
Rollup

17. Types of
Rollups Optimistic
Rollups
ZK
Rollups
1
2
Two main types of rollups are
distinguished by their
underlying cryptographic proof
systems:

18. • Optimistic rollups rely on the assumption that all
transactions conducted outside of the main network
are valid.
• However, they provide a window for users to challenge
invalid transactions by submitting fraud proof.
• The invalid transaction is rejected if the fraud proof
is verified, and the user who submitted the proof
is rewarded.
• Optimistic Rollups offer increased throughput and
reduced gas fees but have a longer finality due to
the challenge period.
• This trade-off makes them suitable for specific
use cases where instant finality is not crucial.
The Idea of Optimistic Rollups

19. 5 Steps in Optimistic Rollups
A group of validators check the validity of the
transaction. If valid, the validator will include it in a
block.
Once a certain number of transactions have been
validated, validators aggregate them into a single
block. This block includes a proof that shows the
validators have agreed on the state of the
off-chain system.
Once the block is complete, the validators will
submit it to the Ethereum mainnet. The block
includes a single transaction that updates the
state of the Ethereum contract that corresponds
to the off-chain system.
Finality and dispute resolution
After the block has been submitted to the
Ethereum mainnet, it is finalized and cannot be
changed.
However, if there is a dispute about the validity of
a transaction, anyone can submit a fraud proof to
challenge the block's validity.
If the fraud proof is accepted, the block is reverted,
and the offending validator stake is stashed.
Off-chain validation Block aggegation
Block submission
Submitting
transaction

20. Benefits and Limitations of Optimistic Rollups
Benefits:
• Lower Gas Fees
By moving computation and data storage
off-chain, batching of transactions
• Higher Throughout
Process transactions quickly without the congestion
of the Base Layer
• Faster Confirmation Times
Instant confirmations on the L2 chain improve
transaction latency
• Compatibility with Existing Smart Contracts
and Tools
Support Solidity, EVM, ERC20, Metamask, etc.
• Security and Decentralization
Derive security and decentralization from the base
layer and fraud proofs
Challenges:
• Fraud Proof Delay
The fraud-proof delay, typically a week, impacts user
experience and security.
• Data Availability Problem
Off-chain data inaccessibility or corruption hinders
security
• Sequencer Centralization Risk
A malicious or compromised sequencer could censor,
reorder or manipulate transactions, harming users
and applications on the rollup.
• Compatibility Trade-Off
OP Rollups offer Ethereum compatibility but inherit its
limitation like high gas fees for complex computations
or storage operations

21. • ZK-Rollups (Zero-Knowledge Rollups) use
zero-knowledge proofs to validate the correctness of a
batch of transactions.
• Zero-knowledge proofs allow one party to prove to
another that a statement is true without revealing
any information other than the statement's validity.
• In ZK-Rollups, a prover generates proof for a batch of
transactions that the verifier can check quickly. This
process ensures that only valid transactions are
included in the rollup, and the main chain does not
have to spend resources on validation again.
• ZK-Rollups offer fast transaction finality, high
throughput, and low gas fees.
• However, their main drawback is the complex
cryptography involved, making implementation
more challenging.
The Concept of ZK Rollups

22. What ZK Rollups Do Differently From Optimistic Rollups
To minimize transaction sizes, ZK-rollups represent account indices, which occupy less space than full
addresses. This approach allows for the utilization of 3 bytes of memory, as opposed to 20 bytes.
Merkle Root
Hash Hash
Hash Hash
Account
0x04b64e95c4f9f7…
Account
0xa7ed2936e78…
Account
0x4ecd2fce4ea3…
Account
0x7a250d5630539
Hash Hash
Ethereum Accounts (20 bytes) ZK-Rollup Accounts Index (3 bytes)
0x04b64e95c4f9f7… 0x000000
0xa7ed2936e78… 0x000001
0x4ecd2fce4ea3… 0x000002
0x7a250d5630539 0x000003

23. Different Components of ZK Rollups
Roll-ups Full Nodes: Even though transaction information is stored on the Ethereum network, ZK-Rollups also have
full nodes. These full nodes maintain the entire state of the blockchain and enable the use of JSON-RPC API
functionally.
Layer 2 User
Initiate transactions on
the L2 zkRollup network
Sequencer
Receive and aggregate individual
transactions from users, batching them
together in a specific order to create a
single proof.
Prover
The prover, using cryptographic
tools like zk-SNARK or zk-STARKs,
generates zero-knowledge proofs
for the transaction batches.
Rollup Light Client
The Rollup light client on
L2 receives the updated
state information from
the verifier on L1.
Verifier
Verifier is a smart contract on L1 &
checks the validity of the zk proofs.
Then it updates the contract state on L1
to reflect the latest zkRollup
transactions.
Layer 1

24. Benefits and Limitations of zkRollups
Benefits:
• Lower Gas Fees
By generating zk proofs and submitting minimal
on-chain data
• Higher Throughout
Process transactions quickly without the congestion
of the Base Layer - 100x
• Faster Confirmation & Finality
Instant confirmations and finality on the L2 chain
improve transaction latency
• Privacy Features:
Enhances transaction privacy by using zk proofs to
verify on-chain without disclosing any information
• Security and Integrity
Derive security and decentralization from the base
layer
Challenges:
• Proof Generation Cost
zk Proof costs, influenced by transaction complexity
and design, can impact zk-rollups' scalability;
efficiency or incentives can mitigate this
• Circuit Complexity
Circuit complexity, determined by design and
transaction type, can impact zk-rollups' scalability;
optimization or standardization can help
• Compatibility Issues
Zk-rollups have limited Ethereum compatibility,
requiring adaptations for developers and users;
addressing this needs interoperable solutions and
education.

25. The Newest Addition to zkRollup Stack: Polygon CDK
● Polygon CDK is the evolution of Supernets. It offers projects the ability to launch ZK-powered app-specific
L2 Rollups for Ethereum.
● Its highly modular and devs can tailor-make chains according to their requirements by choosing Polygon
CDK components:
CDK Component Example Section
Virtual Machine zkEVM
Mode Validium
Data Availability DAC
Sequencer Centralized
Gas Token Custom
All chains deployed using Polygon
CDK are interoperable through a
shared ZK Bridge (LXLY) with
automatic access to the unified
liquidity of all Polygon chains, and
one-click access to the entire
liquidity of Ethereum.

26. Examples of Polygon CDK based App-chains
Canto: A neo finance project:
It has migrated to custom ZK-powered
Layer-2 designed with Polygon CDK
framework. The L2 will allow Canto to
achieve permissionless sovereignty and
shared liquidity of Polygon chains plus
Ethereum via common ZK bridges without
compromising the user's security.
Wirex: The global leader enabling
crypto payments:
It has built an app-chain focused on
handling just the payments. Wirex's initial
use cases for the CDK chain will be
non-custodial visa cards integrated with
the Account Abstraction feature. Wirex
mentioned the Polygon CDK
interoperability, unbounded scalability,
and advanced ZK proofs among their top
reasons for building with Polygon CDK.
**Capx, Aavegotchi, Gnosis pay, and Astar Network are also among the first pioneers building with Polygon CDK

27. • zkEVMs are still in their initial testing phase
and will likely see significant battle testing
through 2023. Scroll, zkSync, Polygon, and
Starknet have all launched zkEVMs running in
testnet.
• But who will win? Justin Drake, a researcher
for the Ethereum Foundation, has said,
“It turns out that in this space,
oftentimes, it is not just about
technology. Sometimes, it’s the
network effects – the culture of the
community – that is the most
important thing.”
The
Future
Ahead

28. Rollups as a Service (RaaS)
ZEEVE PRODUCT
Configurations & Flexibility
Unlimited flexibility to deploy and manage your Rollup
Enterprise-grade Node Infrastructure
Reliable nodes with load balancing, scalability and high availability
White-labeled Block Explorer
Integrated white-labeled and feature-rich Block Explorer
Cost-optimized Super Performance
Blazingly fast APIs, high throughput and scale-on-demand
Enterprise SLA
24x7 support with 99.9% uptime guarantee
Data Indexing and Data APIs
Real-time access to Data APIs with super-fast indexers
Global Cloud Coverage
Supports 9 cloud providers with 150+ regions across the world
Node Analytics and 24x7 Proactive Monitoring
Advanced analytics and 24x7 Monitoring with Alerts and Notifications
Production-Ready Stack with all components
Faucet, cross-chain bridges, wallet infrastructure, etc
Migration Assistance
Expert support for migration to your own Rollup infrastructure
“Zeeve's strong capabilities in enterprise-grade AppChain
deployments and dedication to innovation and excellence resonate
well with our values at Polygon.”
Sunny Kaiwar - Sr. Solution Architect |

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