An Overview of Linea

What is Linea?

Linea is ConsenSys’ first ZK Roll-up project, offering a fully equivalent EVM (Ethereum Virtual Machine) Layer2 network. It seamlessly combines high capacity, scalability, and low gas fees while providing developers with the same tools and infrastructure as the Ethereum network.

By integrating zero-knowledge proof capabilities with full EVM equivalence, Linea allows builders to create scalable DApps or migrate existing ones without the hassle of code changes or rewriting smart contracts. Additionally, Linea offers a convenient and flexible extensible framework, enabling developers to build on zkEVM without needing to be experts in zero-knowledge technology.

Currently, transaction costs on Linea are 15 to 20 times cheaper than the Ethereum network. More and more projects across various sectors, including wallets, cross-chain bridges, DeFi, NFTs, and others, are deploying and migrating to the Linea network. As a result, Linea’s Total Value Locked (TVL) has surged and now stabilizes at 68.8 million USD.

Project Background

Founding Team

Joseph Lubin is one of the co-founders of ConsenSys and Ethereum. Phil Davis is the Chief Financial Officer of ConsenSys, responsible for overseeing the financial and accounting functions of ConsenSys and expanding the company’s innovative financial strategies.

Current Financing Status

Linea has successfully raised a total of 775 million USD in funding with a valuation of 7 billion USD through five funding rounds. Notable participants in these rounds include top crypto investment firms like Dragonfly and Coinbase Ventures, as well as traditional financial giants such as Microsoft and SoftBank.

The parent company of Linea, ConsenSys, boasts substantial financial strength. According to ConsenSys’ financial reports, it generated a revenue of 720 million USD and a net profit of 220 million USD in 2022. ConsenSys, as a blockchain software company, is dedicated to developing Decentralized Applications (DApps) for the blockchain ecosystem and providing corresponding tools for developers and end-users. Its main projects are all based on the Ethereum network. ConsenSys’ product lineup includes the popular crypto wallet MetaMask, with over 30 million monthly active users, and Infura, a blockchain development tool for developers with a user base exceeding 400,000. ConsenSys stands as one of the most influential and powerful companies in the Ethereum ecosystem.

Linea Current Development

Currently, Linea has successfully launched its mainnet and achieved commendable results within its ecosystem. The total locked value (TVL) on the Linea mainnet has reached 68.81 million USD, contributing to its overall valuation of 7 billion USD. During the initial phase of the Linea testnet, known as the “Odyssey Mission,” users were highly engaged despite some criticism from the community. The project’s popularity continued to grow, and the market maintains high expectations for Linea’s airdrops.

Linea TVL data (source: https://defillama.com/chain/Linea )

Since Linea’s mainnet went live on August 9th, the Total Value Locked (TVL) has reached nearly 56.64 million USD. The initiation of the official DeFi Voyage event has led to a short-term doubling of TVL. Currently, the six-week DeFi Voyage event on Linea is coming to a close. This event consists of ten waves, each focusing on a specific DeFi sector, including wallets, exchanges, cross-chain bridges, swaps, lending, staking liquidity, and more. Each wave involves a core task and a reward task. Upon completing the core task, users are eligible to receive a Linea Voyage XP, a soul-bonding token.

Linea’s Technology

Linea utilizes SNARK (zk-SNARK: Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) proof technology based on Vortex. This technology ensures not only the privacy and confidentiality of transactions but also efficient verification, thereby enhancing the overall system’s efficiency. SNARK technology guarantees efficient and private transaction processes, providing users with a more effective trading experience and security.

Linea Inner-Proof System (source: ethresear.ch)

Linea is a fully equivalent EVM Layer2 network, and its main distinction from other zkEVMs lies in its internal proof systems, Arcane and Vortex.

To prove transactions on Linea, the platform utilizes arithmeticization to transform computer programs into mathematical expressions understandable by zero-knowledge proofs.

Arcane and Vortex establish a concise proof system. zk-EVM arithmetic is compiled by Arcane, transforming zk-EVM arithmetic into a polynomial IOP. Vortex is then used to instantiate the polynomial IOP into a concrete proof system. Vortex is equipped with a self-recursive mechanism, allowing iterative compression of proofs.

Once the self-recursion sufficiently reduces the proof, an external proof system, gnark (gnark is ConsenSys’ comprehensive Golang framework supporting advanced features like Groth16, Plonk, etc.), is used to add the final compression step. Through recursive optimization, the proof is compressed into the gnark external proof system, making it verifiable and ultimately allowing verification on the Ethereum network.

Advantages of Linea

Enhanced DeFi User Experience

Linea serves not only as infrastructure providing developers with a convenient development environment but also focuses on the DeFi sector. Linea’s flexible and extensible framework supports developers in building various new DeFi protocols with lower gas fees and high throughput of 4,800 TPS, features that the Ethereum network cannot provide.

Developer-Centric Approach

Linea strives to offer a seamless developer experience on Layer2 networks, supporting integration with tools like MetaMask, Truffle, Infura, and others to reduce development costs for developers. By combining zero-knowledge proof capabilities with full Ethereum Virtual Machine (EVM) equivalence, Linea allows builders to create scalable DApps or migrate existing ones without the hassle of code changes or rewriting smart contracts, enabling them to focus on innovation.

Backed by Substantial Traffic and Tool Support

As a product under ConsenSys, Linea benefits from tools like MetaMask, Infura, Truffle, etc. All applications in the Linea ecosystem support MetaMask wallet connections, attracting more users to Linea. Additionally, Linea’s mainnet is built into MetaMask by default, eliminating the complex manual addition process. It also supports developers in using Infura’s API to quickly deploy and expand DApps, forming a complete ConsenSys business ecosystem.

Ethereum Security Mechanism

Linea actively participates in Ethereum’s security mechanism while optimizing execution. This allows users to conduct numerous transactions, run complex programs, deploy contracts, mint NFTs, and report all these executions to the Ethereum network. Linea utilizes zero-knowledge proofs to prove and send reports of Linea chain activities to the Ethereum network, optimizing execution without compromising security. This approach is more reliable than Rollup with a single prover, eliminating the risk of a single point of failure.

Furthermore, ConsenSys’ expertise in U.S. regulatory compliance undoubtedly gives Linea a unique advantage that other Layer2 networks may lack.

Linea Ecosystem

Currently, projects like LayerZero, Galxe, Orbiter Finance, and more have integrated into the Linea ecosystem. While there are already over 100 supported DApps, many of them replicate the Ethereum ecosystem. Here are some noteworthy projects on the Linea network:

Projects in Linea Ecosystem (Source: https://linea.build/ )

Cross-Chain Bridge - Owlto Finance

Owlto Finance is a decentralized Cross-Rollup cross-chain bridge on the Linea chain. As one of the best-developed cross-chain projects in the Ethereum ecosystem this year, Owlto Finance aims to provide users with secure and fast asset movement and transfer services. Linea, as a highly decentralized Layer2 network solution, currently supports cross-chain services between networks such as Ethereum, Polygon, Arbitrum, Optimism, StarkNet, zkSync, making it easier for Owlto Finance to offer better cross-chain solutions on Linea.

Decentralized Lending Protocol - Mendi Finance

Mendi Finance supports mainstream currencies, including USDT, USDC, DAI, and other stablecoins. Mendi has a reliable security model, leveraging decentralized oracles like Pyth and Chainlink for price protection, providing users with secure transaction support.

Additionally, Mendi also features cross-chain recharge functionality, allowing users to deposit assets from any chain into the Mendi lending pool.

Mendi Finance Homepage (source: https://mendi.finance/ )

Decentralized Trading Platform - EchoDEX

EchoDEX is the first ecosystem project on the Linea chain, loved by users for its low fees and high liquidity aggregator functionality. EchoDEX supports various features like cross-chain, staking, mining, and users participating can receive the ECP token as a reward. Furthermore, EchoDEX has announced an airdrop plan, and detailed criteria and rules can be found on the official website.

EchoDEX Homepage (source: https://www.echodex.io/ )

NFT Trading Platform - Zonic

As the first NFT trading platform on Linea, Zonic also participated in the DeFi Voyage event. Zonic is an NFT trading marketplace on Layer2, supporting NFT transactions on multiple chains like Polygon, Scroll, Arbitrum, zkSync, Optimism, and more. Currently, Zonic supports completely free NFT sales.

Zonic Homepage (source: https://zonic.app/ )

Wallet - Linea Safe

Linea Safe is a multi-signature wallet, a decentralized custodial protocol, and a collective agreement asset management platform. It is a vital partner in the Linea ecosystem, supported by Linea Goerli and Linea deployments. Linea Safe has received support from Protofire, a blockchain expert team, ensuring the wallet’s updated state and optimizing security features, providing users with a smoother experience in the Linea ecosystem.

Linea Safe Homepage (source: https://safe.linea.build/welcome )

Linea Tokenomics

Linea has not yet issued a native token.

Linea Voyage XP ($LXP)

Participating in the ongoing DeFi Voyage event on Linea allows users to earn a soul-bonding token called Linea Voyage XP after completing core tasks.

Voyage XP is a soul-bonding token, non-transferable, and holds no monetary value. It can be understood as Linea’s way of rewarding and providing identity proof to community contributors. Voyage XP holders are eligible for perks such as official merchandise, community roles, whitelist privileges, and more.

Conclusion

Currently, there are relatively few native projects on the Linea chain. However, with the strong development of native projects in the future, Linea can achieve better growth. The Linea team is actively expanding its ecosystem partners, and the native integration with MetaMask helps establish a close connection with users. Linea’s use of zero-knowledge proofs and EVM equivalence allows it to compete with zk-VM Rollups, enabling seamless reuse of existing smart contracts and tool infrastructure. Coupled with the widespread anticipation of Linea’s token issuance by users, there is undoubtedly a significant burst of growth awaiting Linea.