zkRelay: Facilitating Sidechains using zkSNARK-based Chain-Relays

We facilitate trusted cross-blockchain state proofs by implementing a chain-relay that validates block headers from proof-of-work blockchains. While current approaches require proof sizes linear to the amount of blocks the state was built on, trusted intermediaries, or economic assumptions, we propose the utilization of off-chain computations through zkSNARKs to provide a cryptographically secure and highly scalable sidechain mechanism. Multiple block headers are included in batches and verified off-chain, while preserving light client support. Only the validity of the off-chain computation is verified on-chain, creating a sidechain mechanism that requires constant verification costs and releases the target ledger from processing and storing every single block header of the source blockchain. Efficient Merkle proofs enable including intermediary blocks for any batch that was submitted. We provide a prototypical implementation that facilitates the verification of 504 Bitcoin headers in a single proof on Ethereum using the ZoKrates framework. Hereby, the verification costs are reduced by a factor of 187 compared to current approaches such as BTC Relay.