UTXO Innovation Layer (L3)

ZuluNexus functions as Layer 3 for Bitcoin, unifying UTXO and Account asset types on the Zulu Network.


ZuluNexus, positioned on top of ZuluPrime, functions as Layer 2 for The Zulu Network and Layer 3 for Bitcoin, innovatively unifying UTXO and Account asset types and enabling smart contract authorship based on the UTXO model​​.

ZuluNexus is designated as Layer 3 (L3) within the Bitcoin ecosystem and will be directly deployed on ZuluPrime, interacting seamlessly with it.

However, the verification of its state changes will involve both the Verify network and the Bitcoin network, in conjunction with the proof provided by ZuluPrime. The architectural diagram of ZuluNexus is depicted below:

Since the state transition of ZuluNexus will be verified on ZuluPrime, there is no necessity to introduce an additional verification network on ZuluNexus. Furthermore, the interval between proof submissions on ZuluNexus and ZuluPrime can be brief, thanks to lower average transaction costs. As illustrated in Figure 3, the primary distinction between ZuluNexus and ZuluPrime stems from the design of their Virtual Machines (VMs).

ZuluNexus is constructed on a novel VM that differs from the Ethereum Virtual Machine (EVM). This VM maintains two distinct world state trees—one for the Account type and the other for the UTXO type state. In practice, a UTXO commitment tree may also be upheld. This approach is informed by the experience of recent years, where the Account type has demonstrated greater compatibility with smart contracts, evident in the success of Ethereum. Simultaneously, the UTXO type is better suited for private transactions, given that transactions based on the UTXO type are executed locally by users and subsequently verified by network nodes. Many privacy-focused projects, including Zcash, Aleo, Aztec, Ola, etc., are implemented based on the UTXO type.

Consequently, both UTXO and Account types boast distinct advantages in specific scenarios. The goal of ZuluNexus is to combine these two types, creating a programmable platform based on mixed account types. This framework enables developers to continually expand upon more innovative functionalities based on the foundation of UTXO types.

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