In this article, we’re diving into one of the most ambitious and innovative blockchain projects to date, a project that echoes Bitcoin’s original philosophy in a world flooded with speculative cryptocurrencies focused primarily on enriching insiders and venture capitalists.
If you miss the spirit of the cyberpunk community, fair competition through mining, and a commitment to usability, you’re in the right place. Allow me to introduce Nockchain.
Let’s start with an overview of the project before we dive deeper into its unique features.
Nockchain main features
Nockchain is a smart contract platform, similar to Ethereum, but with a strong focus on zk (zero-knowledge proof) technology. Unlike traditional zk rollups that operate on layer 2 by interacting with a layer 1 network, Nockchain is entirely layer 1, offering zk functionality natively.
Where Ethereum employs an account-based model, Nockchain follows a UTXO structure (like Bitcoin) and uses a zk proof-of-work consensus protocol. In this approach, network computational power is applied to zk proofs rather than random hash calculations, aligning network incentives with useful work.
Nockchain also employs Nock—a deterministic minimalist programming language first developed for Urbit, a decentralized computing project. This language adds simplicity and predictability to the blockchain’s operations.
In essence, Nockchain combines the best of technologies: useful proof of work, deterministic smart contracts, zero-knowledge proofs, and UTXOs, creating a highly scalable layer 1 platform.
Let’s explore these points in detail.
What are Zero-Knowledge Proofs, and Why Do They Matter?
Zero-knowledge proofs (zk proofs) allow verification of information without revealing its content. For example, you can prove you’ve voted without disclosing your choice, or publicly prove you know the answer to a puzzle without revealing what the answer is.
This capability allows individuals and companies to share only necessary information without compromising privacy. Imagine proving you’re over 18 without revealing your birthdate or that your income qualifies for a loan without exposing the exact amount.
With selective verification, zero-knowledge proofs open up a broad range of applications, making them essential for future privacy-focused technologies.
Why Perform zk Proofs on Layer 1 Rather Than Layer 2?
Ethereum wasn’t originally designed to accommodate zk proofs; instead, zk rollups emerged as a layer 2 solution to improve Ethereum’s scalability by processing transactions off-chain and submitting proofs to the main network. However, since Ethereum uses an account-based model, interacting with zk rollups can be complex and less efficient.
A UTXO model, however, lends itself better to parallel processing, making zk proof submissions on a layer 1 UTXO network both simpler and more effective. Nockchain’s use of the Nock language—a minimalist and deterministic language—ensures high security and seamless zk proof integration.
The Future of zk Proof Technology
Currently, Ethereum hosts two main types of rollups: optimistic and zk rollups. Optimistic rollups assume all transactions are valid unless challenged, providing simplicity but at the cost of speed and security. Zk rollups, on the other hand, offer immediate validation with cryptographic proofs, though they require more computational resources.
In the short term, optimistic rollups are expected to dominate, but zk rollups are predicted to lead long-term as zk technology advances. Even Ethereum’s co-founder Vitalik Buterin has expressed this vision, as seen in his recent articles and social media posts: example 1, example 2.
Useful Proof of Work
A key innovation in Nockchain is its alignment of incentives. On Ethereum, zk proofs are often generated by centralized rollup sequencers, which is hard to decentralize. In contrast, Nockchain uses a decentralized mining model from the start, akin to Bitcoin’s approach. Here, miners manage computational tasks necessary for scalability, so the network’s power directly correlates with usage.
This approach incentivizes miners based on network demand, promoting scalability. In the future, computationally demanding tasks, such as AI model training, could even be handled on Nockchain, where miners could process data while maintaining data privacy—a decentralized, distributed computing model for privacy-preserving AI.
In a zkPoW consensus mechanism, a Succinct Noninteractive Argument of Knowledge (SNARK) functions as the Proof of Work (PoW) puzzle. When the SNARK is structured to verify transactions that alter the blockchain’s underlying state, the PoW mechanism is considered to incentivize essential computation. This approach establishes a connection between the verifiable computation driving the network and the blockchain’s state. Nockchain is the first protocol to implement this essential zkPoW model, using it to power its blockchain and secure its limited namespace.
The Advantages of Nock
The Nock language emphasizes minimalism and determinism, which makes verification straightforward and enhances security. Its predictability is critical for implementing a distributed computing concept, as originally envisioned in the Urbit project.
Despite its simplicity, Nock is Turing complete, allowing a broad range of applications, from smart contracts to complex computation.
$Nock token
$Nock is the native token on Nockchain. Users can pay the protocol fees in $NOCK to have computations verified via SNARK and recorded in the scarce namespace. This enables the Nockchain protocol to offer permissionless access to Global-Consensus SNARKs as a Service.
The $NOCK token has a hard-capped total supply of 2³² (~4 billion coins), launched fairly with no premine and entirely distributed to miners. Initially, $NOCK issuance serves to bootstrap and standardize verifiable compute capacity tailored to the Nock zkVM.
Who is Behind Nockchain?
The Nockchain project was founded by Zorp, a technical team known for its work on Urbit. Zorp’s track record includes innovations and rigorous academic publications that laid the groundwork for Nockchain.
An example of paper published by the team, which was one of the precursors to Nockchain, is this: https://eprint.iacr.org/2023/1021
Potential Challenges and Risks
While promising, Nockchain is not without risks. Adoption of zk proofs, while gaining traction in the industry, remains unpredictable. Similarly, attracting developers could be challenging, as Nockchain’s UTXO model and Nock language differ significantly from Ethereum-compatible zk rollups.
The Urbit project, however, could drive initial adoption. Urbit developers may find Nockchain an ideal platform, creating synergy between the two projects. Urbit, a decentralized computing initiative, currently uses Ethereum for applications like address registration, which is not ideal. Nockchain could offer a better alternative for these applications, benefiting both projects.
Nockchain’s learning curve may also be eased by recent developments. The Hoon language (which compiles to Nock) is easier to work with, and recently, Zorp is launching the Jock language, which aims to be even more user-friendly (the name is short for “JavaScript for Nock”).
As a new project, there’s still much to test, but the concept holds substantial potential. The zk rollup market alone currently holds over $3 billion in total value locked (TVL), and related project tokens have market caps in the billions, even as zk technology is still developing. If Nockchain can capture even a small part of this market, it would be a significant achievement.
The project strongly resembles Bitcoin’s philosophy, not only in its economic model (no ICO, no pre-mining, and a 100% fair mining distribution) but also in its culture. The creators advocate for cryptographic proof maximalism and decentralization.
What will happen in the coming years, no one knows. But getting some Nockcoins now might not be a bad idea.