How Zircuit plans to mitigate hackers on Web3 (interview)

In the rapidly evolving landscape of Layer 2 networks, Zircuit aims to create a new approach to security and scalability. Co-founded by Martin Derka, a seasoned professional with a PhD in algorithms and complexity, he sat down with us for an interview during EthCC. Derka shared information about his journey, the founding of Zircuit, including the significance of the $3 billion ETH staked on the project, and most importantly, the expected launch date for Zircuit’s mainnet.

Several well-known investors have participated in the protocol’s mainnet funding round, including Binance Labs, Nomad Capital, AMBER and more.

From soccer to crypto

Martin Derka’s journey into the world of cryptography began after an unexpected turn in his career. “I have a PhD in algorithms and complexity,” explained Derka, detailing his academic background. “For many years, I was developing software for various companies when I was still a student.” His transition from academia to entrepreneurship was marked by a stint as CTO of a startup focused on car advertising photography, which he co-founded in 2013. However, after internal disputes led upon his departure in 2017, Derka sought new opportunities and eventually found his way into the cryptosphere.

“After I left the startup, I went to Argentina and Chile to clear my head,” explained Derka. “Upon returning to Canada, I connected with Leo (Leonardo Passos, Ph.D), an old soccer buddy and one of the veteran employees of crypto-audit giant Quantstamp.” This serendipitous meeting led Derka to join Quantstamp as one of its first hires in 2018, where he delved into crypto security.

The birth of Zircuit

Derka’s tenure at Quantstamp laid the groundwork for Zircuit. “At Quantstamp, we knew rollups would be key to scaling Ethereum,” noted Derka. This realization led to intensive research into rollups, which eventually led to the creation of Zircuit. “We saw an incredible opportunity to proactively improve blockchain security,” said Derka. “This is how the feature that now distinguishes Zircuit began: sequencer-level security.”

“Many uses of AI seem contrived”

Zircuit’s most striking feature is its AI-driven security mechanism, sequencer-level security, a concept Derka elaborated extensively on.

“Our sequencer evaluates each transaction for malicious intent before inclusion on the blog,” explained Derka. “We use AI to simulate transactions and assess their impact, determining if they are hacks.” This proactive approach allows Zircuit to quarantine potentially harmful transactions, improving the overall security of the blockchain.

The sequencer is a privileged node designed to collect user transactions and sort them based on predefined rules. In essence, once the transaction reaches the sequencer, it is sent to the “Maliciousness Detection” module, something the team calls an “oracle”. It is designed to determine whether a transaction is benign or potentially malicious. Those that are benign are queued for block inclusion, while those that are flagged are diverted to another module called the “Quarantine Release Criteria” module. It acts as a holding area during the time that these transactions undergo a rigorous verification process.

The following can be seen in the overview presented by Zircuit:

When asked about the prevailing AI hype, Derka acknowledged the phenomenon but remained pragmatic. “There’s a huge level of hype,” he admitted. “Many uses of AI seem contrived, and AI can be very imprecise. But failure is part of innovation. If we don’t try to apply AI in every possible area, we could miss its true potential.”

L2’s: We really need so many

Zircuit positions itself as a Layer 2 (L2) solution with a strong emphasis on security, amidst a crowded field of competitors. Derka was clear about the inevitability of multiple L2 solutions. “If we didn’t build another L2, someone else would,” he said. “The better question is why users should choose Zircuit over others, and that comes down to our unique security proposition.”

Despite the competitive market, Derka does not foresee a winner-take-all scenario.

“Technologists love to build and compete,” he said. “There will always be new players challenging the status quo.”

Zircuit: When Mainnet is launched

Zircuit’s immediate focus is the launch of its Mainnet, with major milestones already achieved. “We launched our Testnet last year, which has been very stable,” shared Derka. “We are now in the process of rolling out Mainnet, onboarding partners and making sure security measures are in place.”

The Mainnet Phase 1 release is scheduled for August to mid-July in closed mode, with a wider public release planned shortly after in mid-August. “We are also working to optimize zero-knowledge test generation to reduce operating costs and improve efficiency,” added Derka. This technical improvement is crucial to the functionality and user experience of the blockchain.

Over $3 billion in ETH staked

Derka notes the challenges of sustaining Zircuit’s early success: With over $3 billion in Ether staked (at its peak) indicating strong interest, the real test will be retaining those funds post-launch. “It’s the best signal we currently have, but it’s not a guarantee of success,” Derka cautioned. “Our job is to support the projects that develop in Zircuit, ensuring that they attract and retain capital.”

Zircuit aims to create a robust ecosystem that includes all essential blockchain features. “We want a fully functional ecosystem comparable to other chains, with lending protocols, oracles, DEX and stablecoins,” explained Derka. The security aspect remains a key differentiator, offering users and developers a more secure environment for their projects.

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