OmniZK: A Secure Validation Protocol That Expands Scalability, Logic Construction and Interoperability for Bitcoin

LeverFi
LeverFi
Published in
3 min readApr 4, 2024

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We are excited to release the OmniZK Protocol, a secure validation protocol that expands scalability, logic construction and interoperability for Bitcoin.

Limitation of Bitcoin

Before we understand why OmniZK is needed, we first need to understand the limitation of Bitcoin in contrast to a Turing-complete platform like Ethereum.

Bitcoin Script is Turing-incomplete and lacks the expressive logic required to support complex computations, event handling and state updates. This does not mean that Bitcoin is flawed. For Bitcoin, being Turing-incomplete is a feature (not a bug) that improves predictable execution and consistent consensus on Bitcoin.

Nonetheless, this limitation also makes the development of native DeFi on Bitcoin highly challenging. The experience for DeFi developers going from Ethereum to Bitcoin is akin to someone who uses Excel Sheets daily, to suddenly be left with only pen and paper to do their work.

Expanding Scalability, Logic Construction and Interoperability for Bitcoin

OmniZK addresses this gap by providing secure validation for the Bitcoin network that allows developers to shift complex computations onto any EVM layer, and relay the final event outcomes back to the Bitcoin network to conduct native settlements.

OmniZK is modularly designed for developers to construct conditional, non-custodial Discreet Log Contracts (DLCs) on Bitcoin that are secured by event proofs generated by zkOracles. OmniRelayers run in a Trusted Execution Environment, which restricts Omnirelayers to only transmit and sign for verified event outcomes.

Using the OmniZK SDK, developers can easily build and deploy interoperable DLC-applications that utilize verified event data from any EVM network for contract settlement finality on Bitcoin.

OmniZK empowers a wide range of interchain Bitcoin use cases including and not limited to:

  • Non-custodial BTC liquid staking
  • Cross-chain Bitcoin DeFi markets
  • Decentralized asset bridges
  • Omnichain liquidity management

OmniZK documentation can be accessed at: https://docs.leverfi.io/omnizk

Independent of Yet Complementary to Bitcoin L2s

Applications built using OmniZK are independent of yet complementary to Bitcoin L2s, as they interact with and communicate with L2s, but with final settlements done natively on Bitcoin, outside of the L2s.

An example can be an application that issues a chain-agnostic wrapped BTC asset that can be freely minted, burned or transferred, without having the underlying BTC being custodied on a L2 multi-sig bridge.

This places OmniZK at an interesting nexus of the rapidly growing Bitcoin ecosystem and offer alternatives to developers and users who wish to build and settle within the native Bitcoin layer.

LEVER Staking and Delegation Programs

OmniRelayers who wish to participate in the security, functioning and governance of the OmniZK network are required to stake LEVER to join as operators to earn staking rewards and contract gas fees.

There will also be a delegation program for users to stake with validators and enjoy the benefits of LEVER staking.

Developers and validators who wish to explore the potential of OmniZK and start building the next generation of Bitcoin DeFi applications can reach out to register interest with Charissa, our Head of Developer Relations, at the following email: validator@leverfi.io

LeverFi: Scaling Bitcoin and Global Web3 Ecosystems

Backed by world-class investors, LeverFi is a leading web3 innovation firm that continually reimagines the boundaries of decentralized finance. With its latest roadmap, LeverFi is set to break new ground and create new possibilities for Bitcoin and global web3 ecosystems.

Stay tuned for more updates as we continue to expand to more users globally, and deliver new innovations in decentralized finance by following us on our socials:

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