Cycle Network: Bridgeless connection of all Blockchains

With the development of blockchain technology, the ecosystem coexistence of different chains continues to grow, providing users with more choices. Unlike BTC’s Proof of Work (PoW), Proof of Stake (PoS) drops the cost of network initiation and maintenance, promoting the increase of innovative projects. However, the diversity also brings about liquidity and fragmentation in usage, affecting user experience. The economic incentive measures of different projects exacerbate this phenomenon, leading developers to prefer creating new chains rather than developing on existing chains.

In Web3, Cross-Chain Interaction relies on insecure or centralized tools and lacks a unified secure and efficient management protocol. This is different from the seamless and secure communication in Web2 applications through standardized protocols such as HTTP. Cross-Chain Interaction in Web3 often requires bridges or centralized exchanges, which adds complexity and potential security risks. Cross-Chain Interaction bridges involve locking assets and minting equivalent tokens on the target on-chain, which facilitates asset transfer but also introduces operational complexity and security risks. The losses caused by Cross-Chain Interaction bridge attacks continue to increase each year. The complexity of these operations discourages new users and forces existing users to return to centralized off-chain applications. Why do chains have to rely on bridge products for interaction between chains?

To solve this problem, the concept of chain abstraction has emerged. Chain abstraction aims to enhance interoperability and user experience by providing a unified interface and tools to simplify interactions between different blockchains.

When Cycle Network was established in October 2022, the abstract concept of the chain had not been formally defined. Cycle Network is committed to solving the fragmentation of the long chain and the fragmentation of funds, hoping to improve users’ on-chain experience and provide a more secure and efficient Cross-Chain Interaction solution for users. Through bridgeless technology, Cycle Network is striving to achieve a more interconnected and user-friendly Block chain ecosystem, paving the way for future Block chain applications.

The bridgeless embedded experience is the true chain abstraction.

Although the Decentralization mechanism is the most secure Algorithm, the Decentralization mechanism has not been widely adopted due to the complex operations required by Web3. Realizing this, the Cycle Team is constantly working towards this direction, and all of this happens before the term ‘chain abstraction’.

With the spread of the concept of chain abstraction, more and more long-term projects are exploring their potential. Each project has its own innovation in chain abstraction solutions, some providing a universal account system that allows users to access long chains through a single account, while others use cross-chain bridges aggregators to integrate long cross-chain bridges protocols. The Cycle Network team adopts a Decentralization, bridgeless solution to seamlessly connect all blockchains. With the emergence of Layer 2 solutions and numerous long-term chains, this innovation ensures that end users and developers are no longer isolated or fragmented, and can share Liquidity, pay fees, and sign transactions without relying on traditional bridges.

The integration of Cycle Network is crucial for end users and developers. These two are the most critical participants in the Web3 ecosystem, and the Decentralization of Cycle Network provides them with great convenience in cross-chain transactions.

Decentralized Cross-chain Trading Process

The core technology of Cycle Network utilizes a multi-layer architecture based on Verifiable State Aggregation (VSA), combined with security layer, expansion layer, and Cycle layer, to facilitate seamless Cross-Chain Interaction transactions. The system uses zk-rollup technology to aggregate transactions into batches, which are then processed by zk-rollupNode to generate zk proofs to verify transactions without exposing their detailed information. The Verifiable Aggregation Sorter sorts and packages these batches to ensure efficient processing of transactions.

Next, the OmniState Channels Indexer (OSCI) performs Decentralization indexing to ensure the availability and verifiability of the status of each transaction. Verified transaction records are stored in the Cycle layer, making it possible to perform direct Cross-Chain Interaction data operations through a single SDK interface. Finally, updates to the Cycle layer are broadcasted back to their respective chains, reflecting asset transfers or Smart Contract executions, ensuring that the information of all Nodes in the network is consistent and up-to-date.

This method not only enhances security and integrity, but also drops Money Laundering, and supports seamless interoperability between different blockchain architectures (including EVM and non-EVM chains as well as Layer 2 solutions). The innovation of Cycle Network undoubtedly injects new vitality into the blockchain ecosystem and promotes the widespread application of Decentralization technology.

Practical Applications of Bridgeless Solutions

The decentralized non-bridge center solution of Decentralization seamlessly connects all Block chains, eliminates the intermediary steps, and drops potential security risks. This approach provides significant benefits for emerging and existing Block chain platforms, end users, and developers.

Piggy Bank is a pioneering on-chain asset management platform that leverages the Cycle Network to provide a revolutionary asset management experience. As a flagship product, Piggy Bank simplifies the use of blockchain and becomes an accessible encryption asset management tool for everyone. It provides a bridgeless experience and automates and optimizes long on-chain investment strategies through Cycle’s on-chain Liquidity sharing solution.

For end users

• Seamless user experience across the entire chain.

Piggy Bank effectively eliminates the complexity of different on-chain operations for Web3 and Web2 users. Users can easily manage, trade, invest, and mint assets without worrying about the complexities of various chains, fuel Tokens, or third-party bridge. This seamless experience allows users to handle their encryption assets as easily as managing TradFi products.

• High-yield platform gathers the entire Decentralized Finance protocol

Piggy Bank utilizes the Cycle Network to aggregate Decentralized Finance protocols from any network (such as L1, EVM, non-EVM, BTC L2, etc.). Through AI-driven analysis, Piggy Bank is able to evaluate security, yield, and stability, and recommend personalized investment strategies. Users only need to select investment options with one click to achieve higher returns through Cross-Chain Interaction aggregation and compound interest.

This innovation not only enhances the user experience, but also brings new possibilities for asset management in encryption. The successful case of Piggy Bank demonstrates the importance of bridgeless solutions in promoting the development of the blockchain ecosystem, which is highly commendable.

• Diverse asset categories

By integrating Cycle’s full-chain Decentralized Finance center, Piggy Bank demonstrates its leading innovation capabilities by supporting multiple asset categories. Users can not only manage physical assets such as real estate and art, but also access various financial derivatives (such as options, futures, leveraged tokens), and conduct asset lending and liquidity mining on-chain, reflecting its wide range of applications.

For Developers

• Shared Liquidity Pool

The integration of Piggy Bank and CycleLiquidity aggregator aggregates dispersed Liquidity resources into a shared pool, significantly enhancing overall Liquidity and capital efficiency. This approach maximizes returns and simplifies Liquidity management, providing strong support for developers.

• Safe and low cost

Cycle Network provides a unified interface and protocol for Piggy Bank, greatly simplifying blockchain operations and integration. The shared liquidity pool not only reduces the risks associated with single-chain financing, but also reduces the potential for fraud, highlighting its advantages in terms of security and cost-effectiveness.

Example: mint NFT without bridge

The highly anticipated Piggy Box event of Piggy Bank has attracted more than 246,000 accounts and nearly 190,000 assets have been minted in an on-chain manner without bridges. Users from any chain can mint assets with one click without leaving their own chain, demonstrating its seamless user experience. Transactions, fees, and signatures are seamlessly processed on-chain based on user preferences, greatly improving user convenience.

• BEVM Cooperation

The collaboration with BEVM - the first fully Decentralization EVM compatible Bitcoin L2 that uses BTC as fuel - highlights the power of Cycle Network’s bridgeless solution. In just three days, it has attracted 40K new users who can seamlessly mint BEVM Genesis Boxes without dealing with Cross-Chain Interaction operations or fees. This achievement showcases the advantages and user-friendliness of Piggy Bank in real-world applications.

• IoTeX Partnership

The collaboration with IoTeX also demonstrates the powerful functionality of Cycle Network’s bridgeless solution in practical applications. In the recent Testnet Non-fungible Token minting activity, users were able to directly mint IoTeX Testnet assets from various blockchains, and after completing the minting experience, they also received exclusive Genesis Boxes, unlocking rich rewards in the Cycle Network ecosystem. Within two days, 5,000 Non-fungible Tokens were minted through Piggy Bank, allowing users from any chain to participate and eliminating the complexity of Cross-Chain Interoperability.

• Open bridgeless SDK

Based on these successful collaborations, Cycle Network’s Decentralization bridgeless information transmission has successfully served long emerging chains, helping applications break free from the restrictions of specific chains and achieve seamless operation across long blockchains. This capability is crucial for developers seeking to expand their influence and user base. Currently, the bridgeless SDK is open to any EVM chain and DApp, allowing developers to provide users with a bridgeless experience without any transaction fee restrictions, demonstrating its leading position in the industry.

Conclusion

Cycle Network focuses on realizing chain abstraction through bridgeless Cross-Chain Interaction solutions, providing a secure and simplified alternative to effectively address the interoperability challenges of traditional Cross-Chain Interaction bridges. Using zk-rollup technology and an aggregator, Cycle Network brings developers and users a new Cross-Chain Interaction experience, meeting diverse Cross-Chain Interaction needs.

This chain-abstracted method has successfully overcome the complexity and fragmentation in the long-chain environment, providing strong support for the widespread adoption and interoperability of blockchains.

With the continuous progress of blockchain technology and the maturity of multi-chain environment, Cycle Network has shown a firm commitment to further developing chain abstraction and Cross-Chain Interaction technology, aiming to overcome existing limitations and explore new application areas. This forward-looking exploration will undoubtedly drive the development of the entire blockchain ecosystem.