Latus Incentive Scheme: Enabling Decentralization in Blockchains based on Recursive SNARKs

TL;DR

This paper introduces an incentive scheme for the Latus SNARK-based sidechain system, enhancing decentralization in blockchains by motivating verifiable proof creation and communication with diverse sidechains.

Contribution

It provides a detailed incentive scheme for Latus, enabling practical decentralized SNARK-based sidechains and can be adopted by similar blockchain systems.

Findings

Design of an incentive scheme for Latus sidechains

Enhanced decentralization through incentivized proof creation

Potential applicability to other SNARK-based blockchains

Abstract

In the Zendoo whitepaper we introduced a novel SNARK-based construction that allows Bitcoin-like blockchains to create and communicate with sidechains of different types without knowing their internal structure. We also introduced a specific construction, called Latus, allowing creation of fully verifiable sidechains. In the paper we omitted a detailed description of an incentive scheme for Latus that is an essential element of a real decentralized system. This paper fills the gap by introducing details of the incentive scheme for the Latus sidechain. The represented ideas can also be adopted by other SNARK-based blockchains to incentivize decentralized proofs creation.