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Imagine submitting a crucial trade on a decentralized exchange, only to watch helplessly as your wallet balance disappears. Unfortunately, this is a reality in DeFi, where billions are lost every year to hacks. According to Chainalysis, over $3.1 billion was stolen in DeFi hacks in 2022 alone, followed by another $1.1 billion in crypto hacks in 2023.
Artificial Intelligence (AI) is emerging as a transformative force, offering real-time threat detection and prevention that traditional security struggles to match. This innovation is especially critical on Layer 2, where rollups, solutions that bundle transactions to reduce fees and increase speed, have become the standard for scaling Ethereum.
But what if a Layer 2 could fight back against exploits at this fundamental level?
Zircuit is the first AI-powered L2 that has protection directly into its core, stopping threats before they can ever execute. At the heart of every rollup is a sequencer, the component that orders transactions. Zircuit's Sequencer-Level Security (SLS) monitors the pool of pending transactions, in real-time to proactively stop threats before they make it on-chain. To understand the power of SLS, it helps to look at the evolution of rollups: The first wave, Optimistic rollups, focused on scaling Ethereum. Then came ZK-rollups, which enhanced security and efficiency, and settlement times using advanced cryptography. Now, the space is seeing a rise in specialized rollups like Zircuit, tailored for offering specific ecosystem-wide features for applications building within the ecosystem.
Zircuit represents the next step in this evolution: the AI-powered rollup. But how does this AI actually function at the core of the network to protect users? It all comes down to our unique approach: Sequencer-Level Security.
Think of traditional blockchain security as an alarm system, it tells you a burglar has already broken in. Zircuit’s Sequencer-Level Security works like your personal bodyguard. It identifies and neutralizes threats before they can do harm.
At Zircuit, we believe the next frontier for L2 innovation is not only about speed or proof methods, but about embedding intelligent, preventative security at the most fundamental layer. This starts with the sequencer, the component that orders transactions before committing them to a block.
Sequencer-Level Security (SLS) sets a new standard for this L2 protection. Unlike security solutions that integrate with individual smart contracts or dApps, offering limited protection, SLS operates directly at the sequencer level. This allows Zircuit to analyze and isolate threats at an ecosystem level, before a transaction is included in a block.
This AI-powered security is designed to mitigate malicious activity in real-time. By leveraging a threat intelligence oracle trained on billions of transactions, our system can prevent threats with high accuracy. The process unfolds across three core components:
1. Malice Detection: Incoming transactions are routed to our Oracle engine, which uses AI to simulate them against the current network state. This step classifies transactions as either benign or malicious by identifying attack patterns like reentrancy vulnerabilities or anomalous large outflows.
2. Quarantine & Release: Suspicious transactions are immediately isolated in a quarantine layer. Here, they are evaluated against clear release criteria, which can be:
3. Execution: Benign or released transactions are executed and included in the next L2 block, maintaining seamless performance with the hybrid ZK-rollup architecture.
For example, consider a phishing scam where a user is tricked into signing a transaction that grants a malicious contract unlimited approval to drain their wallet. SLS simulates this transaction, recognizes the dangerous approval as a known threat signature, and immediately quarantines it. The user’s assets are protected before the malicious transaction is ever included in a block.
(For a technical deep-dive, developers can explore our RPC calls like zirc_isQuarantined in the official documentation.)
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This powerful, three-step process of detection, quarantine, and execution forms a robust security shield directly within the L2's architecture. However, building such a powerful system at the sequencer level also comes with unique responsibilities and trade-offs.
To maintain trust and transparency, it's crucial to address them head-on.
Pioneering a new security model means tackling new challenges head-on.
Transparency is one of our core values, so here’s a look at the trade-offs of SLS and how we are proactively addressing them.
By proactively managing these trade-offs, Zircuit delivers on its core promise. The result is a powerful set of tangible benefits for everyone in the ecosystem, fostering a safer and more efficient environment.
To fully appreciate why Zircuit can offer this level of protection, it’s helpful to see how our proactive, prevention-first model compares to other security approaches in the space.
Many existing AI tools focus on detection rather than active prevention. Our SLS stands out by not only detecting threats but also neutralizing them in real-time at the sequencer level.
Here’s a quick comparison:
This prevention-first approach, built directly into the sequencer, places Zircuit at the forefront of the AI and blockchain convergence. Our Sequencer-Level Security serves as a model for the future of L2 networks by embedding AI directly into the core infrastructure to prevent threats, not just detect them.
With a robust ecosystem, strategic partnerships, and a world-class team of PhDs in cryptography and AI, we continue to drive innovation.
We are exploring enhancements like predictive transaction analytics to further optimize user experiences, all grounded in our commitment to building a more secure and efficient Web3.
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