Scaling Baseline Hackathon 2020 Challenge

[Therecanbeonlyone1969]

Scaling Challenge

Bounty

$2,000 in Eth

Background

The Baseline Protocol uses a blockchain to deposit cryptographic proofs that confirm consistency between different record-keeping systems in business-to-business workflows, each of which consist of some set of worksteps. Typically, a public mainnet such as Ethereum is used for this purpose. The current implementation of the Baseline Protocol costs roughly 50,000 gas per workstep. If the proof of every single workstep were recorded to the public Ethereum mainnet, the network could process perhaps as many as a few million worksteps a month. There are an estimated 10 billion worksteps recorded between different businesses a day world-wide and it's likely that around two in ten of those would benefit from verified consistency between the counterparties' systems of record. Clearly this is an opportunity for a "Layer 2" (what you might call "fancy batching") approach, among other things. And baselining is particularly well suited to an L2 approach, so long as one takes care to avoid creating new problems where the batching defeats the benefit of strong enforcement of workstep ordering that a pure L1 affords. For example, if you had a workflow for purchase orders that must correctly calculate against a volume discount rate, it's important that you can be sure that each purchase order calculates one at a time, so that no two POs calculate against the same aggregate volume. Otherwise, one of those POs may be getting the wrong discount.

Description of Challenge

Scaling is a critical aspect of enterprise adoption and global innovation. The overall goal of this challenge is to reduce transaction costs to << $0.01 and throughput by >two orders of magnitude without sacrificing strong enforcement of proper sequencing of baselined worksteps.

Submission Requirements

Required Challenge:

1. Create and finalize invoices between 100 participant pairs at a sustained rate (10 min) of 1 per second and anchor the baseline transactions with one L1 (public DLT) transaction, such that

   a. each participant can run a baseline node (non-processing) and see their own invoices as baseline transactions and the Baseline transactions of the other participants but;

   i. those transactions need to shield the privacy of the other participants and the baselined invoices

2. Any participant can verify and finalize the anchored transactions on L1

Optional Challenge

Using the baselined invoices, create invoice backed investment contracts that;

1. comprise at most 1000 baselined invoices (asset-backed security) which are baselined as described above for invoices and then
2. create at least 60 security tokens that are transferred from their owners to one recipient each.
3. The transfer needs to be anchored with one L1 transaction such that the new owner can exit with their token from the Baseline operator through one L1 transaction originating from the owner.

Technical Requirements

• L2:
  • The invoice (and security contracts) baseline transactions need to be fully private
  • The token transactions do not need to be fully private. However, if you want to make them fully private that would be even better
  • At least 100 tps in L2 as ZKP transactions (non-token transactions)
  • Token transactions do not have to be Zero Knowledge Proof (ZKP) transactions. However, it is encouraged to make them ZKP transactions
  • The users need to have the ability to run a non-processing node for data visibility
  • You are free to utilize an existing general prover service language such as Zinc, Noir, or Cairo for the L2 business logic
• L1 Smart Contracts:
  • Token contracts should be implemented based on an existing ERC standard (only relevant for the Optional Scenario)
  • If anchoring with ZKP such as zk-rollup is utilized, any user should be able to verify proof of an individual transaction and proof of the transaction aggregate (zk-rollup proof) and finalize the L1 anchoring transaction
  • If anchoring does not utilize ZKP transactions, the anchoring proof needs to be able to be validated by the accessible L2 data (non-processing baseline node)
  • The smart contract architecture needs to be upgradable such that additional contracts can be added without having to remove potentially still useful existing contracts
  • The smart contract architecture has to be able to prevent DDOS attacks through e.g. permissioning, staking, limiting the number of anchoring transactions per L1 block
  • The smart contract architecture has to have an onchain governance element e.g. for upgrades, adding write and read permissions, etc.

Judging Criteria

Main Criteria:

• Code submission with Github commit hash and Github URL
• Code needs to be submitted with install instructions and test fixtures that demonstrate that all requirements are met
• Provably meet all listed technical requirements
• Provably meet all listed performance KPIs
• Provable average transaction costs for Baseline Transactions < $0.01 (Required Challenge, only)

Tiebreaker Criteria:

• Successfully complete both Required and Optional Challenge

Suggested Components

• Diamond upgrade pattern (EIP 2535)
• Matter Labs: Zinc framework and zksynch (open source)
• Aztec: Noir with rollup architecture (open source)
• Starkware: StarkEX in e.g. Volition with Cairo
• Current Baseline reference implementation BR 1-1

Winner Announcement Date

January 27, 2021

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Issue Status: 1. Open 2. Started 3. Submitted 4. Done

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This issue now has a funding of 3.4023 ETH (2000.01 USD @ $587.84/ETH) attached to it.

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[gitcoinbot]

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

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Work for 2000.0 USDC (2000.00 USD @ $1.0/USDC) has been submitted by:

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[3scava1i3r]

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