@Succinct on-chain and off-chain #succinctlabs

The structure of @Succinct is quite similar to a Layer 2, with 2 parts on-chain and off-chain:

- Offchain: The auction system, Prove Network, operates almost off-chain.

(Like L2 also performs off-chain transactions)

- Onchain: Succinct has "Settlement Contracts" on Ethereum - simply put, it is where the results of work are recorded and payments are made.

(Similarly, L2 also has this part to periodically send the chain state to Ethereum)

Mechanism of operation:

- Prover stakes $PROVE into Succinct's contract on Ethereum to participate in Prove Network.

- Similarly, the requester for proof must also send $PROVE to Succinct's contract on Ethereum.

- After that, the requester will have a credit balance displayed on Prove Network.

(This issue is very clear through testnet Stage 1, sending 10 $USDC to receive 10 credits)

- When the Prover completes the proof generation as requested, the credits will increase, while the requester's credits will decrease (the specific amount based on the bid).

- Periodically, the Prover will send the state (current credit balance) and proof to validate that state to Succinct's Settlement Contracts on Ethereum.

- When withdrawing money, the credits will be deducted, and Prove will be received back to the wallet. Because Succinct uses currency for payment.

You can visualize the above process through a casino gambling example:

- To participate, you need to exchange cash for chips at the counters at the entrance. (Ethereum)

- Then you use chips to play Poker, ... (Succinct)

- After playing, you exchange chips back for cash (Ethereum)

Through this, Ethereum is helping Succinct solve the on-chain payment issue, aiming for more transparency and security.

This article is shared by @Huy Sự Thật