DEFI SERIES VOL 2: Appchain Thesis; The Right Infra: Union
For crypto’s mass adoption we need the right infrastructure to accommodate such influx of normies, plebs alike into Web 3, crypto.
But, the sad truth is despite crypto’s rapid growth, blockchain suffers from liquidity fragmentation, poor UX, and product interfaces. Hence, the need for solutions to overcome these barriers.
Achieving blockchain interoperability is a priority. Union Build is priority.
Appchain thesis is simply each dapp its own chain. For these chains to communicate (to and fro of assets) they need an interoperability (connect) chain, they need Union.
In this article, we’ll dive into how modular chains are solving these problems and explore Union, the ultimate modular chain that is achieving blockchain interoperability with zero-knowledge proofs.
Modular vs Monolithic Blockchains
Blockchains can be classified into two sections: modular and monolithic chains. Monolithic chains are characterized by their ability to perform transactions in a single layer, e.g., Ethereum. In contrast, modular chains perform transactions in separate layers and rollups for higher transaction processing speed.
The rise of modular blockchains solves all the issues related to monolithic chains. Modular chains distribute transactions in separate modules, which is better for scalability. Monolithic chains, however, handle all transactions in a single system, leading to high gas fees and slow transactions. Hence, modular chains address key limitations like scalability, efficiency, and flexibility. Despite the advantages of modular chains, there's still an issue: it’s quite difficult to build a modular protocol that fulfills the blockchain trilemma—decentralization, scalability, and security.
The Problem with Current Solutions
Current interoperable solutions require huge amounts of computation to generate ZK-proofs, which developers must provide. Relying on third parties for verification undermines decentralization and has several implications, including vulnerability to hacks. However, a modular protocol is doing it differently. Union is a modular zero-knowledge interoperability layer that connects the next generation of blockchains and rollups, improving chain and payment abstractions for other projects.
Union: A Modular ZK Interoperability Layer
Union utilizes ZK-proofs to ensure a decentralized, secure, and scalable system compared to its competitors. By leveraging consensus verification, it’s decentralized and does not rely on centralized entities. This allows the protocol to operate anonymously while enabling sub-second transactions with very low gas fees.
Union's technology has ended the search for a scalable chain. It is capable of connecting assets, accounts, and contracts across chains in a permissionless manner.
Core Values
Union is developed to be a scalable powerhouse:
Fast: bridging transactions are generated and settled quickly.
Secure: abide by fork-choice rules.
Future proof: core tech is built for the next decennium.
Easy to use: high-level API usable for developers from any ecosystem.
Team, Partners & Investors
Many ZK experts and modular blockchain enthusiasts support the Union. Seeing the incredible tech, the seed round was led by Anagram, Semantic Ventures, Nascent, Tioga Capital, and other angel investors. Union has also partnered with leading ecosystems like Polygon, Berachain, Movement, Arbitrum, Scroll, Babylon, Celestia, RISC Zero, Stargaze, Xion, 0G Labs, etc.
Team
For the last two years, professionals have been building the Union protocol. All the engineers are skilled experts who have worked with Composable Finance. Other core team members are contributors with in-depth knowledge of ZK and modular blockchains. Karel Kubat (@0xkaiserkarel) the founder behind this novel project.
Union’s Innovation Compared to Other Interop Protocols
Union's unique selling proposition lies in its ability to reduce the limitations of current interoperability protocols using zero-knowledge proofs. It’s rare to see a decentralized protocol that balances decentralization, interoperability, and security. Many rely on centralized systems, creating security loopholes and inefficiencies. Union’s protocol solves this by using ZKPs to enable a decentralized, efficient system without centralized reliance.
What Are ZKPs?
ZKPs, or zero-knowledge proofs, are cryptographic methods that allow one party to prove to another that they know certain information without revealing the underlying data.
This is the technology Union uses. Its breakthrough lies in the engineering process needed to optimize the cryptographic primitive for ZK-proving systems. Union can generate ZK consensus proofs in 5 seconds, providing high scalability and performance. This translates to sub-second transfer times during interactions.
With this, most Layer 1s and 2s are preparing to integrate Union and utilize its trusted, minimized bridge.
The Union Token ($U?)
Some sources speculate that $U will likely be the ticker of the native token of Union, and its value accrual is set to occur in multiple stages. Validators in the proof generation and proof verification networks will stake $U to earn fees. $U will likely be an ERC-20 token and the gas token for the network. Sources say that some of the protocol will be used to burn supply and increase demand. Last but not least, Union is partners with leading L1s/L2s like Berachain, Movement whose mainnets are due Q1 2025. Stakers of the $U will likely be eligible for airdrops from Union’s partners.
The Union public testnet has been live since June 27, 2024, allowing users to test and interact with the ZKP-powered interoperability layer. This facilitates transfers between chains connected to the Union testnet. For instance, participants can move assets from Ethereum’s Sepolia testnet to Berachain. The transfer times are under 10 seconds, much faster than competitors.
Union outperforms competition
Union's major competitors are LayerZero, Wormhole, Axelar, Polyhedra, and Polymer. However, Union is the only modular solution that scales to thousands of chains while preserving efficiency, security, and decentralization. Due to the O(n²) complexity of point-to-point models compared to hub-and-spoke models, Union has a fundamental architectural advantage over its competitors. Use of BLS signatures and ZK also reduces latency and gas costs, allowing Union to enable bridge transfers within increased efficiency. The team expects costs to be as low as $3 between Ethereum Mainnet and IBC chains, where for most bridges this can cost up to $60.
By all metrics, it’s evident that Union outperforms its competitors, presenting significant upside to investors.
Conclusion
Union is building a solution that is desperately needed in Web3. Now is the time to explore the ecosystem, offer support, and try out the testnet to experience the future of modular blockchain interoperability with ZK proofs. Is Union the next multi-billion dollar project in disguise? Time will tell.
Disclaimer: Not sponsored or invested, just bullish and you should be!