GIP-57: Should Gnosis DAO support research of a zkSNARK-enabled light client and bridge?

Simple Summary

The current Gnosis bridge is a based on a multi-sig design. However, multi-sig bridges have known weaknesses, particularly their reliance on a relatively centralized set of operators--see the recent Ronin bridge and Harmony bridge hacks, in which hundreds of millions of dollars of funds were stolen by attackers who gained access to multi-sig keys. SNARK-enabled bridges--sometimes called "trustless" bridges--potentially have better security properties. We propose to build prototypes of essential infrastructure for a potential SNARK-enabled bridge for Gnosis to Eth2 bridging.

Abstract

• Build essential infrastructure that can be used in the future to create and productionize a SNARK-enabled bridge for Gnosis Chain / Eth2. Note that it is not in the scope of this specific grant to take the bridge all the way to production on mainnet—this work will allow us to assess the viability of a production bridge and build out the key infrastructure. Productionization, if it happens, would be a future project.
• Create a foundation for Gnosis’ ZK roadmap and expertise.

Motivation

To build the components of a SNARK-enabled bridge for Gnosis Chain, an Eth2 compatible light client must be implemented on the EVM. Because the EVM does not have precompiles for the BLS12-381 curve used in Eth2, implementing this directly in Solidity would result in impractically high gas costs. As a result, this approach to bridging was unexplored until it was made practical by recent advances in zero-knowledge proofs.

The 0xPARC community has developed extensive expertise in ZK-SNARKs broadly and has built several advanced ZK circuit primitives which can now enable these types of applications. We believe that we can design a circuit which significantly reduces the gas cost of running a light client on EVM by moving the verification of the aggregated BLS signature and the Merkle tree inclusion proof off-chain.

Specification

Building this SNARK-enabled bridge will require three important components:

1. A Solidity smart contract which implements the Eth2 light client spec.
2. A zkSNARK circuit that verifies the aggregated BLS signature of the sync committee, verifies the Merkle tree inclusion proofs with SSZ for serializiation, and verifies the current sync committee from the previous block header.
3. An operator node implementation which can keep the light client up to date.

Rationale

SNARK-enabled Bridge Pros & Cons

Pros:

• Security: SNARK-enabled bridges can be safer than centrally-operated multisig bridges. Funds cannot be unilaterally stolen by a small set of coordinated operators or hackers by obtaining a known set of private keys (see the $500mm Ronin bridge hack and the $100mm Harmony bridge hack). Instead, the security of a SNARK-enabled bridge relies on the honesty of a larger and regularly-shuffled sync committee as defined in the eth2 light client spec.

Cons:

• Operating expense: Our estimates suggest it will cost ~0.008 ETH per light client header update at 40 gwei gas price as well as ~0.008 ETH per withdraw operation on the bridge. The frequency of light client updates is up to the operator. In the most extreme case, updating the light client every 10 minutes for a year would cost ~420 ETH. Updating every two hours would cost ~35 ETH.

Additionally, regardless of what cryptographic mechanisms are used, bridges cannot provide security beyond the consensus mechanisms of the source and target chains. Even with the efficiencies provided by zkSNARKs, such limitations will be governed by the size of potential PoS penalties on either chain.

Implementation

Work Breakdown

Timeline: 10 weeks (July 4 - September 9) for Phase 1 and Phase 2

Phase 1:

The goal of Phase 1 will be to deliver prototypes of the three important components above. In particular, we will deliver a smart contract that implements the Eth2 light client spec with as much computation as possible moved off-chain with a zkSNARK circuit to make gas costs feasible.

The SNARK circuit will do three things:

• verify the BLS signatures of the sync committee
• verify the Merkle tree inclusion proofs using SSZ for serialization used in several places in the light client
• verify the current sync committee from the previous block header

The Solidity smart contract will generally implement the Eth2 light client spec substituting out the BLS signature verification and Merkle tree inclusion proofs with a snark verification, reducing gas costs.

We will also provide an operator node implementation which periodically updates the light client with the proof generated by the SNARK circuit.

Phase 2

In Phase 2 of the of the grant, we aim to have public-facing polished artifacts and deliverables including the smart contracts and circuits from Phase 1. The artifacts include the following:

• public open-source repo with smart contract light client and SNARK circuits with clear documentation
• ZK light client deployed to testnets (Ethereum and Gnosis Chain) with a prototype operator that generates proofs and pings contracts with block headers every 10 minutes
• public open-source repo with a prototype bridge contract that calls the light client smart contract and a prototype UI that allows for use generating inclusion proofs and bridging funds
• prototype bridge contract deployed to test nets and example of SNARK-enabled bridging on testnets
• public blog post explaining what we built: the technical architecture of a SNARK-enabled bridge, high-level technical explanation of circuits and how all the components fit together, and a precise breakdown of both security guarantees as well as risks/limitations/failure modes of a SNARK-enabled bridge.
• stretch: blog post series diving deeper into technical details of each component

Deliverables

Grant Allocation

The core team that would recieve this grant is part of the 0xPARC organization. 0xPARC is trying out a unique, experimental public-goods collective grant sharing proposal for this project. In particular, the proceeds from this grant will be split 50/50 between the core team and donations to various dependencies the project relies on (i.e. open source circuits, public goods resources) as well as the 0xPARC community.

The reason for this split is this project is only made possible by extensive open-source work by co-dependencies in the 0xPARC and broader ZK communities (such as circom, made by iden3).

This innovative model for grant-funding and support for public goods will also be mentioned in the blog post, as we want this project to push the narrative from both a technical standpoint as well as a community & grant-funding standpoint.

We are requesting a total of $600k (600k USDC) across two project phases: $300k will go to the team and $300k will go to the broader ZK community and public goods (distribution determined by core team). We expect that the project will take around 30 engineering weeks for the core team, in addition to supporting work from various dependencies and public goods that make this project possible. As described above, half of the grant will be distributed by the core team to the broader ZK community and various co-dependencies (which may include prior work by team members, as well as future ZK projects that opt into 50/50). Note that the core team, not GnosisDAO, will be deciding on the distribution of the $300k set aside for broader ZK community and public good contributions.

Phase 1: $120K for Team + $180K Public Goods/0xPARC ZK Ecosystem

The funding for this phase will be paid out in advance of work starting on Phase 1. The deliverables for this phase include the following:

• [ ] ZK circuit template for BLS signature aggregation and verification
• [ ] ZK circuit template for SSZ Merkle tree inclusion proofs
• [ ] ZK circuit for verifying the sync committee form the previous block header
• [ ] Solidity smart contract for running the light client according to the Eth2 spec on EVM
• [ ] an operator node implementation which periodically submits new headers and proofs of the ZK circuit to the light client

Phase 2: $180K for Team + $120K Public Goods/0xPARC ZK Ecosystem

The funding for this phase will be paid out after the completion of Phase 1 (as judged by Stefan and Martin of Gnosis) and before starting of Phase 2. The deliverables of this phase include the following:

• [ ] extensive documentation of all circuits, contracts, and code
• [ ] ZK light client deployed to test nets on Ethereum and Gnosis Chain with a prototype operator that generates proofs and pings contracts with block headers periodically
• [ ] prototype bridge contract + UI that can bridge assets from Gnosis Chain to Ethereum
• [ ] blog post explaining what we built ranging from the technical architecture of a SNARK-enabled bridge and how all the components fit together

The address of the SAFE to provide funds to is: 0xFeB39382FCBE6035e0bE2263Ba474390AB926eE4 https://gnosis-safe.io/app/eth:0xFeB39382FCBE6035e0bE2263Ba474390AB926eE4/home

Team

• Uma Roy
  • Summer resident at 0xPARC. Co-author of ZK-identity apps zkmessage.xyz and cabal.xyz. Co-author of circom-batch-ecdsa.
• John Guibas
  • Summer resident at 0xPARC. Co-author of circom-batch-ecdsa and has experience building smart contracts for DeFi and infrastructure for blockchain analytics.
• Jonathan Wang
  • 0xPARC grantee and co-author of circom-pairing. Number theory post-doc and elliptic curve math specialist.

Additional 0xPARC community members will be helping out with implementation. This includes individuals that helped implement many of the most advanced circuit primitives in groth16, including co-authoring of circom-bigint, circom-ecdsa, and circom-pairing.