Key Takeaways:

• Discover what coprocessors are and how they aid the blockchain space in promoting operational efficiency for businesses.
• Explore various coprocessing solutions available in the current crypto market that have attained success.
• Check out the potential of coprocessors empowering smart contracts in the future crypto space as adoption levels increase.

Blockchain technology has evolved very much since its inception nearly one and a half decades ago. With an increasing level of user influx across various blockchain networks, the need for advanced and efficient systems has increased. While layer-2 provisions and new layer-1 blockchains have presented an answer for this complex issue, coprocessors have emerged as another solution that could potentially revolutionize the blockchain space for the better. This blog will concentrate on coprocessors in the blockchain space and how these solutions can complement smart contract programs affiliated with decentralized applications (dApps). Come along as we explore the newest off-chain processing solution.

Coprocessors in the Blockchain Space

Before we discuss blockchain-specific coprocessors, we should know what coprocessors mean in general terms. Coprocessors in the traditional computing space are specialized hardware chips working alongside the main Central Processing Unit (CPU) of a computer that increase the processing power of a computing system. GPUs (Graphic Processing Units) are a type of coprocessors that enhance the graphics output of a computer.

• In the blockchain space, coprocessors typically are of two types: Crypto Coprocessors and Smart Contract Coprocessors. The former are hardware solutions embedded within chips that support cryptographic operations like encryption and decryption that bolster security for blockchain-native applications and processes.
• However, smart contract processors are software solutions that boost the functionality of smart contract programs that execute transactions off-chain, opening amplified scalability and reduced processing costs. Solutions from Axiom and Phala Network provide outstanding services for businesses using Zero-knowledge Processing (ZKP) and Multi-Party Computation (MPC).
• These solutions have emerged in prominence in recent times due to the increased need for faster processing for blockchain-based business solutions. Cryptoeconomic coprocessors use value-at-stake and an interactive protocol that offers strong proof of a computation’s authenticity. On the other hand, the ZK coprocessor utilizes zero-knowledge mechanisms to create succinctly verifiable proofs for computations.

Ways Coprocessors Maximize a Blockchain’s Potential

Coprocessors have attained popularity in the Ethereum network mainly due to the sheer presence of a large number of decentralized business applications. These solutions, either based on zero-knowledge proofs or cryptoeconomic mechanisms, can aid the Ethereum blockchain immensely. In essence, coprocessors aim to close the gap between traditional blockchain space and advanced dApps.

• Improved Scalability: Coprocessors enhance the scalability of the layer-1 blockchain by moving transactions off-chain using ZKPs and MPCs, enhancing the speed and capacity of the network. Doing so without depending on other layer-2-based mechanisms can move Web3 dApps away from decentralization.

• Lowered Latency: Using coprocessors can decrease the latency of blockchain transactions, which can take a few minutes on networks like Ethereum, by tapping into off-chain processes to register transactions on the main network while reducing gas costs, which can lead to seamless experiences for users.

• Multi-chain Functionality: Coprocessors can promote multi-chain functionality to a greater extent, opening chances for a diverse and distributed blockchain ecosystem. With off-chain solutions to support transaction execution, opening the chances of a unified blockchain economical space with focus on efficiency.

Which Circuit Mechanisms Do Coprocessors Use for Computation?

Coprocessors are a complex piece of technology, even in the standards imposed by the blockchain space, which are realized using various circuit mechanisms. Each of these circuit mechanisms has an influence on application performance, developer experience, and flexibility. This section speaks about circuit mechanisms typically used in ZK coprocessors to compute data for dApps.

• Custom-built Circuits: Custom-built circuits are built from scratch by developers for every blockchain-based application. These solutions provide the computational capacity necessary for ZK coprocessors with the highest performance possible despite needing dedicated effort.

• eDSL/DSL Circuits: eDSL/DSL circuits are created by developers for individual decentralized applications but using different ZK-based frameworks. Although using these mechanisms is easier to execute for developers, applications commonly experience a degradation in performance.

• ZK Virtual Machines: ZK virtual machines let developers create programs in these solutions that can be verified using zero-knowledge proofs. While developer experience is extremely eased, the difference in overheads between virtual machines and ZK solutions can dampen performance of applications.

How Does a Coprocessor Function?

Coprocessors based on smart contracts function using zero-knowledge proofs (ZKPs) that follow a four-step process. While specific approaches might be different (depending on the circuit mechanisms used), there exists a common set of steps, which we will see below:

• Smart Contract Delegation: The process begins with a blockchain-based smart contract finding a complex problem for computation. It delegates this problem alongside relevant data to the coprocessor network.

• Off-chain Computation: The coprocessor network with multiple processing nodes, based one of the circuit mechanisms we had seen above, performs computation on the delegated task.

• ZK Proof Generation: After the computation process is completed, the coprocessing network forms a zero-knowledge proof (ZKP). This proof mathematically demonstrates that the process was executed correctly without revealing any specific data.

• On-chain Verification: Finally, the smart contract receives the zero-knowledge proof and verifies it on the blockchain network. If the proof is valid, the smart contract can believe the results of the computation.

Conclusion

Henceforth, we looked at how coprocessors function and how they aid in making blockchain infrastructure efficient for decentralized applications. Several dedicated solutions have already explored the newest way of creating proof of data authenticity using off-chain technologies, and numerous business applications (especially DeFi platforms) have implemented them. While their full-scale impact is yet to be known, results so far have been promising, motivating more business owners to include smart contract coprocessors in their workflows. What do you think about the emergence of coprocessors in the blockchain space? Our opinion is that these solutions might change the way decentralized business applications are developed and used.