What is Layerium?

Layerium (LYUM) is a next-generation Layer 2 blockchain solution that strives to enhance the scalability and privacy of existing Ethereum Virtual Machine (EVM) blockchains. It was introduced to address the limitations of previous systems, offering a new perspective on smart contracts. Layerium enables parties to create smart contracts by utilizing code to define the behavior of a virtual machine (VM) that executes the contract's functionalities. It employs mechanism design to incentivize off-chain consensus among parties regarding the expected behavior of a VM. Layerium miners only need to verify digital signatures to confirm that parties have reached an agreement on the VM's behavior. In cases where unanimous agreement cannot be reached off-chain, Layerium still allows honest parties to progress the VM state on-chain.

How does Layerium work?

Layerium operates by moving the verification of VM behavior off-chain, which results in improvements in scalability and privacy. It introduces a novel approach where verifiers only track the hash of the VM's state, rather than the complete state. To foster agreement among managers, Layerium incentivizes them to reach consensus on the VM's behavior through external communication. Verifiers accept any state change endorsed by all managers, as long as it doesn't exceed the VM's funds. In the event that two managers disagree on the VM's actions, verifiers employ a bisection protocol to narrow down the disagreement to the execution of a single instruction. One manager then submits a simple proof of that one-instruction execution, which verifiers can efficiently verify. The manager who provided incorrect information incurs a financial penalty, acting as a deterrent against disagreements.

What are the potential use cases for Layerium?

Layerium aims to provide a scalable and efficient solution for executing smart contracts on top of any EVM blockchain. It enables the implementation of complex protocols and the utilization of monetary features embedded within smart contracts. Layerium can be used to create intricate multi-party protocols with minimal counterparty risk. It also allows for the creation and execution of VMs without revealing their code or execution details, except for the content and timing of the messages and payments they send, as well as hashed versions of their state. This makes Layerium a choice for applications that require privacy and security in their operations. Furthermore, Layerium's design aims to be consensus-agnostic, meaning it strives to integrate with any consensus mechanism, making it a versatile solution for a wide range of blockchain applications.

What is the history of Layerium?

Layerium was developed by a team of blockchain developers, including André Gybson, Robert Artem, and Ericc Weiss. Layerium was designed to manage contracts at a lower cost. When parties act in accordance with their incentives, Layerium verifiers only need to verify a few digital signatures for each contract. Layerium aims to enable contracts to execute privately by publishing only saltable hashes of contract states. The Layerium protocol aims to ensure trust in any scenario: if at least one honest manager exists, they can ensure that the VM adheres to its specified code. Layerium strives to be consensus-agnostic, assuming the existence of a consensus mechanism that publishes transactions. The Layerium design aims to integrate with any consensus mechanism, including a single centralized publisher, a quorum-based consensus system, or Nakamoto consensus as seen in Bitcoin.