Other Essential Protocols

We are developing essential use cases built on our ZKP verification layer and leveraging BitVM2 to support and expand the growing Bitcoin ecosystem.

These essential protocols include but not limited to ZK-indexers, liquidity cross-chain ZK bridge, bridgeless interoperability with Bitcoin L1, etc. Please see some high-level architecture of ZK-indexers and trust-minimized ZK bridge below.

ZK-Indexer (BRC20)

The main problem with the BRC-20 Indexer is its centralized and isolated setup, requiring users to trust an off-chain indexer. Fiamma can enable a trustless, decentralized, and unified indexer, facilitating the growth of the BRC-20 market.

Current solutions without Fiamma:

1. Centralized indexer - the value of the BRC-20 token is secured by a centralized off-line indexer, subject to manipulation;

2. Separated ledger - different projects may operate different indexers, causing a wrong token value;

Solution-1 with Fiamma (ZKIndexer):

1. Secured by Bitcoin - By integrating the Fiamma, the value of the BRC-20 token is secured by Bitcoin via Babylon and BitVM2;

2. Separated ledger - different projects may operate different indexers, causing token loss;

3. Secured by Bitcoin - By integrating the Fiamma, the value of the BRC-20 token is secured by Bitcoin via Babylon and BitVM2;

4. Unified ledger - the same ledger, the same value;

Solution-2 with Fiamma (ZKIndexer chain):

1. Secured by Bitcoin - By integrating the Fiamma, the value of the BRC-20 token is secured by Bitcoin via Babylon and BitVM2;

2. Unified ledger - the same ledger, the same value;

Trust-minimized ZK-Bridge

We want this ZK-Bridge to be trust-minimized, ensuring the protocol's safety as long as at least one committee member is honest.

The overall flow:

1. Alice peg-in 100BTC a few months ago and now she wants to peg-out to Bob;

2. The operator delegate pays 99 BTC (assuming charging transaction fee of 1 BTC) by kicking off the peg-out transaction;

3. When the peg-out transaction is finalized on Bitcoin, the operator generates proof for it;

4. The operator sends proof to Fiamma and then Fiamma returns the result;

5. The operator broadcasts the Fiamma ASSERT transaction and allocates 5 BTC as staking asset;

6. Anyone could spend the output of Fiamma ASSERT (5 BTC) if he or she could prove the operator is malicious;

7. After a fixed timelock, if the output isn't spent, the operator kicks off the TAKE transaction to get 105 BTC;