'Security by design' is one of the guiding principles at ZKEX.
Security is implemented at every level: the wallet, deposits, withdrawals, computations and consensus of transactions.
By removing token bridges, mathematically verifying transactions, and implementing multiple fail safes, the danger of malicious behaviour done by anyone (including the ZKEX team) is virtually eliminated.
Transactions are mathematically verified to ensure every trade completes as expected, or is rejected.
When you connect your browser wallet to ZKEX and 'deposit' funds into ZKEX for trading, your assets are temporarily 'locked' in your browser wallet, and only moved when a transaction is successfully completed.
This ensures you retain custody in your own wallet, and there are no assets on ZKEX to attack.
Moving your assets to trade on ZKEX is safe and secure, as no bridges are involved.
Instead, an L2 network is built natively on top of each connected blockchain, which makes it quick and easy to 'move' assets into ZKEX to trade from your browser wallet.
ZKEX applies a two-step security guarantee of verification + judgment.
Applying ZK-ProofsZero Knowledge is a branch of cryptography that uses mathematics to calculate something called a 'zero-knowledge proof' (ZK-Proof) - which is like 'a seal of approval' to check if a given statement is true.When applying ZK-proofs to cryptocurrency trading, a proof is generated from the transaction data using an algorithm. This ZK-Proof is a one-way calculation of the transaction, that cannot be reverse engineered to reveal the details of that transaction or any details of the people involved.This proof can be sent to a 'verifier', who checks that the proof is correct using another special algorithm.
Step 1: VerificationIn the case of a multi-chain transaction (say from Ethereum to Avalanche), there are assets moving between two different blockchains, so we actually have two ZK-Proofs. By further calculating these two ZK-Proofs together, we create something called a ‘ZK-recursive-proof’.In the end, we have one single calculation to verify the entire multi-chain transaction. This single ‘ZK-recursive-proof’ can be verified if transactions happened and completed successfully — and if so, can be published on both blockchains.
Step 2: JudgementTo double-check the verification was correct, an independent network of juries (that is on LayerZero) judges the consistency of the two generated 'ZK-proofs' sent to each connected blockchain.This additional check by an independent third-party gives peace of mind and guarantees consistency, while keeping the details of the trade completely private.
ZKEX allows an emergency withdrawal function - giving users the ability to unlock their assets in case of an extreme situation.
For more technical information about our security stack, please see:
A security audit is currently under way and will be published on our website.
In future, a security review will be conducted before every update.
After launch, we will offer a bug bounty program, with generous rewards to participants.
During the development phase, ZKEX is operating as non-custodial, centrally operated entity. As the project progresses, we will further decentralise all parts of our infrastructure and organization.