Crosschain interactions today suck - why should I worry about bridging when I'm sending crypto across chains? @Agglayer ❄️ is combatting bad crosschain transfers through a unified settlement layer. How does Agglayer work and how will it further enhance blockchain? A thread

What is a unified settlement layer? Normally L2s process transactions by bundling them together into Rollups and sending them to a L1 like Ethereum for settlement. @Agglayer ❄️ created a system where instead of just sending Rollups directly to the L1, they go through an aggregation layer and get combined into a single proof before being settled on the L1. How does this create crosschain compatibility? Through Agglayer’s Unified Bridge.

The Unified Bridge acts as an access point for all the chains connected to @Agglayer ❄️ All incoming transactions are verified through the Agglayer Node for accuracy, and the bridge tracks their states to know exactly which chain has what assets. This is done using Local Exit Trees that organize and store the data. By combining transaction data from all the chains connected to Agglayer, it becomes much easier to facilitate any crosschain interactions through smart contracts built into the bridge.

To ensure no chain gets away with submitting false transactions, @Agglayer ❄️ uses a system of Pessimistic Proofs. Whenever a transaction is submitted to withdraw/transfer money, it’s assumed the chain submitting it might be lying. These proofs let the chain prove that they actually have that money within the Unified Bridge so that it can be withdrawn. This means that the chains connected to the Agglayer don’t have to trust one another and can instead use this system to verify each outgoing transaction to be legitimate.

Let’s go through a sample transaction between Polygon zkEVM and OKX Layer X, 2 chains connected to Agglayer. Let’s say I wanted to move 10 ETH from Polygon to OKX. Without Agglayer, I would have to convert that ETH into WETH, bridge it to OKX, and convert it back to ETH, all while worrying about gas fees and making sure the bridge I’m using has enough liquidity to process my transaction. Here’s how that transaction would look with @Agglayer ❄️ : swap ETH from Polygon to OKX in one trade. Minimal gas fees, no bridging hassle.

Here’s how it would look BTS: 1. Polygon takes my transaction and adds it to a ZK proof 2. The Agglayer Node verifies this proof to be accurate using a Pessimistic Proof 3. The Unified Bridge updates the Local Exit Trees of both chains to reflect the funds moving from Polygon to OKX 4. Polygon generates a Rollup of transactions (including yours) which is then settled on Ethereum

Aside from interoperability, @Agglayer ❄️ increases scalability and decreases costs for L2s. ZK proofs are highly efficient at cutting costs by bundling transactions, and aggregating proofs from multiple chains will bring that cost down even further - all the Rollups are submitted as one proof instead of having one submission per chain.

A unified experience is critical for further blockchain adoption among users, developers, and any business wanting to use blockchain. Moving assets between chains should feel as simple as navigating between websites online today, and I believe that protocols like @Agglayer ❄️ are fundamental for making this possible.

If you liked this explanation, check out http://dcft.site where I have a full blockchain course completely for free. No sign up required! To learn more about ZK proofs and PLONKY3 (the type of ZK proof Polygon uses for Agglayer), check out this thread: https://x.com/_dcft_/status/1902139102352265385…