A Deep Dive into Mystiko

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Last week, we announced the Mystiko Community Sale, taking place between March 28 and April 4, 2024 at 17:00 UTC.

Mystiko operates a universal ZK SDK that enhances the scalability, interoperability, and confidentiality of blockchains.

We sat down with the Mystiko team to learn more about the problems they solve, XZK token utility and growth strategy, their recent partnerships, how they differ from other ZK blockchains, and their thoughts on the future of ZK-based products.

Let’s dive in.

1. What is Mystiko and what problems does it solve?

Mystiko is the base layer of Web3. It functions as a universal ZK (zero-knowledge) SDK that makes blockchains more scalable, interoperable, and confidential. Mystiko SDK enables developers to build blockchain applications that reduce costs, scale effortlessly, cross chains securely, and protect users on-chain privacy (account balances, transaction histories, etc).

  • Problem: Blockchains need to be more scalable, interoperable and confidential for massive adoptions. Yet, standalone ZK blockchains/apps distract users’ attention and cause more user burden.
  • Solution: Mystiko SDK offers an all-in-one ZK SDK to all blockchains/apps that makes scalability, interoperability and privacy to users in a much more accessible way.  

2. What are the inherent use cases of the XZK token?

XZK(ERC20) is the utility and governance token that operates the decentralized Mystiko.Network.

XZK Operational Utility

  • XZK tokens are required to operate the network. Mystiko operations relies on ZK-Rollup miners and relayers. To run ZK-Rollup miners and relayers technically, XZK must be staked. XZK token holders stake a reasonable amount of XZK to become ZK-Rollup miners/relayers.
  • ZK-Rollup miners are operators who help batch users’ transactions into a ZK-Rollup, thus making transactions cheaper.
  • Relayers are operators who help users pay gas on the destination chain for better confidentiality.

XZK Governance Functionality

  • XZK tokens are required to vote on network governance. Mystiko is a self-governed decentralized community, in which technical/product/economic decisions are made through staked XZK token voting.

3. You note partnerships with major Web3 projects including Ethereum, BNB Chain, Polygon, Avalanche, Base, MetaMask, Wallet Connect, Gnosis Safe, LayerZero, Axelar, Celer, and many others. What do these partnerships unlock for Mystiko and what other use cases are you most excited about?

As the ZK base layer, Mystiko offers multichain ZK solutions to all layer 1, layer 2, wallets, cross-chain bridges, DEX and other Dapps.

  • Users and developers are now able to enjoy scalable confidential transactions and build ZK dapps on any L1/L2 that Mystiko supports, and with options to add cross-chain scalability via the bridges that Mystiko connects.
  • Wallet and other dApps that integrate with Mystiko will be the direct consumer facing applications that highlights scalable confidential payment, trading, and bridging experience.
  • Mystiko is expecting more Defi and dApp partners, such as Uniswap for integration in the future.

4. How does Mystiko ensure the security and privacy of user data and transactions, especially considering its focus on zero-knowledge (ZK) technology?

Mystiko leverages cutting-edge Zero-Knowledge Proof (ZKP) technology to safeguard user data and transactions. The process begins with the encryption of data submitted to Mystiko’s core contracts using a robust ZKP commitment scheme. Users then generate ZKP proofs off-chain, which are submitted to on-chain smart contracts for verification, ensuring the authenticity of each transaction. This framework allows for the confidential shielding of asset transactions on EVM-compatible blockchains.

Furthermore, the Mystiko ecosystem offers user-friendly applications that interact seamlessly with the core protocol. These applications, devoid of centralized servers for data storage or collection, ensure that all sensitive information is encrypted locally on users' devices, promoting a fully decentralized experience.

5. How does Mystiko stand out from other ZK blockchains with its ZK SDK? What technologies has Mystiko SDK pioneered?

  • Pure Layer 1 Protocol Level Secured ZK Rollup: Unlike many ZK blockchains that lean on less decentralized Layer 2 solutions, Mystiko’s protocol is designed as a purely Layer 1 protocol and Mystiko ZK Rollup is a Layer 1 ZK Rollup(not Layer 2 like Starknet, zkSync, and Scroll). This allows for seamless deployment on any EVM-compatible Layer 1 blockchain, retaining the full decentralization benefits of these established networks.
  • ZK of ZK: Unlike normal ZK blockchains that often has only one of ZK solution, the ZK-Rollups, Mystiko created a new technology called ZK of ZK(Snark of Snark) that combines ZK-Rollups with privacy ZK in the same protocol, ensuring scalability and privacy all together.
  • Cost Efficiency: Mystiko's protocol stands out for its affordability, offering privacy features at costs significantly lower than those of competitors—ranging from 2x to 5x less. This cost efficiency makes privacy accessible to a broader range of web3 users.
  • Cross-Chain Integration: The protocol boasts compatibility with most existing cross-chain bridges, enhancing privacy for asset transfers between chains. This feature allows users to benefit from Mystiko’s privacy protections while engaging in cross-chain transactions.
  • Innovative Auditing Features: To adhere to regulatory requirements, Mystiko introduces unique auditing capabilities. Utilizing decentralized auditors, the protocol can expose suspicious transaction activities upon requests from regulators or the community, maintaining transparency and security.

6. How does Mystiko empower developers to build AI and Web3 applications, and what role does its SDK play in transforming Layer 1 and Layer 2 blockchains?

There are roles that Mystiko plays:

1. SDK as a Development Tool: Mystiko's SDK functions as an off-chain library designed to facilitate the development of privacy-enabled wallets and decentralized applications. This tool allows developers to easily integrate Mystiko's privacy features into their existing applications, enhancing user privacy without the need for deploying new blockchain networks.

2. In-App and Inter-App Integration Options:

  • In-App Experience: Developers can integrate the SDK to create a seamless in-app experience, enabling users to utilize privacy features directly within the application. This approach is similar to embedding a payment functionality within an app, providing users with a smooth and integrated service.
  • Inter-App Experience: Alternatively, the SDK can be used to offer an inter-app experience, where users are redirected to Mystiko's applications or websites to access privacy features. This integration method is akin to utilizing an external payment service, like PayPal, offering users a straightforward way to engage with privacy-enhancing functionalities.

3. Future Vision with ZKP Framework: Mystiko is working towards introducing a new Zero-Knowledge Proof (ZKP) framework aimed at general computation verification. This innovative framework is set to revolutionize the way computations, such as machine learning inferences, are verified on-chain. By enabling the on-chain verification of complex computations, Mystiko's framework paves the way for the development of decentralized AI applications, opening new horizons for AI and Web3 integration.

7. What strategies does Mystiko have in place for governance and community-led growth, development, and self-sustainability?

  • Clear decentralized governance based on XZK token: 100% of Mystiko.Network’s future development, including technical, community, marketing, economic, legal, etc. will be conducted by a decentralized governance framework based on XZK token
  • Full open source: Mystiko code will be fully open sourced to everyone in the community, so that every developer could utilize Mystiko SDK to integrate with anything, anytime, at anywhere
  • All XZK distributed to the community within 4 years: Total supply of XZT, which is 1,000,000,000, will be fully distributed to the hands of all kinds of Mystiko community members during a 4-year 100% decentralization process

8. What are your thoughts on the current state of the ZK-based products that empower the future of AI & Web3 applications? How do you see this sector evolving over time?

The current landscape of ZK-based products, primarily centered on enhancing security, privacy, and scalability, has significantly propelled the adoption and development of Web3 applications. These foundational aspects—security through cryptographic proof without disclosing underlying data, privacy by safeguarding user information, and scalability by optimizing transaction throughput without compromising decentralization—form the bedrock upon which the future of Web3 and AI applications is being built.

Looking forward, the trajectory of ZK technologies is expected to transition from these foundational uses to becoming a general-purpose computational verification tool. This evolution will be pivotal in verifying the outputs of machine learning models in a decentralized manner, marking the advent of Zero Knowledge Machine Learning (zkML) as a groundbreaking innovation. zkML heralds a transformative phase where AI applications can be executed in a decentralized and trustless environment. This shift offers a compelling alternative to the prevailing centralized platforms, embodying a decentralized counterpart to systems like ChatGPT.

zkML is set to redefine the landscape of AI by enabling applications to run on decentralized networks where computations can be verified without revealing the proprietary algorithms or the sensitive data they process. This paradigm shift not only champions privacy and security but also fosters a more open and accessible AI ecosystem, devoid of monopolistic controls.

As ZK technologies evolve into a versatile tool for computational verification, their integration with AI heralds a new era of innovation. This evolution promises to unlock unprecedented opportunities for AI applications, facilitating their deployment in trustless environments. The implications for Web3 are equally profound, with zkML enhancing the capabilities of decentralized applications (dApps) by integrating advanced AI functionalities in a secure and privacy-preserving manner.

In this burgeoning landscape, the confluence of ZK technologies and AI through zkML is poised to catalyze the development of a wide array of applications, ranging from decentralized finance (DeFi) and secure voting systems to privacy-preserving data analytics and beyond. The journey ahead for zkML and ZK-based products is one of expanding frontiers, as they enable a future where AI and Web3 applications flourish in a decentralized, secure, and privacy-preserving ecosystem.

9. What is the best way to get involved in the Mystiko.Network community?
Join the Mystiko Community: Website| Twitter| Discord | Medium

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