Zircuit Technical Analysis: AI-Powered Security Innovation for Layer2

Zircuit: Redefining Layer2 Security and Efficiency

As the first Ethereum Layer2 solution to integrate an AI security engine, Zircuit is backed by top-tier institutions including Pantera Capital and Binance Labs. It aims to address the long-standing security vulnerabilities and efficiency bottlenecks in the DeFi sector. The project launched its testnet in 2024 and began phase one of its mainnet in May 2025. By integrating the Optimism Bedrock framework with zero-knowledge proof (ZK-Rollup) technology, Zircuit has achieved a breakthrough in performance with $0.001 gas fees and over 2,300 TPS. Its core innovation lies in its AI-driven real-time transaction monitoring system, which actively intercepts 98.2% of malicious attacks, shifting risk defense from “post-audit” to “prevention-first.”

This Token Insights article explores how Zircuit merges ZK proofs with AI monitoring to reconstruct Layer2 security standards, analyzing its tokenomics and industry implications.

Technical Architecture: The Fusion of AI and Zero-Knowledge Proofs

Dual-Layer Scaling and Security Mechanisms

Zircuit utilizes a hybrid ZK-Rollup and Optimistic Rollup architecture to process transaction data off-chain in batches, compress it using ZK proofs, and submit it to Ethereum for verification. This reduces cross-chain latency to under 3 seconds and significantly cuts user costs—actual gas fees are just 1/90 of Ethereum’s mainnet. Its modular structure is fully compatible with the EVM development environment, allowing protocols like Uniswap and Aave to migrate seamlessly.

Breakthrough in AI Security Engine

The Sequencer-Level Security (SLS) layer is Zircuit’s revolutionary innovation. AI algorithms scan the mempool in real-time, identifying potential threats through behavioral pattern recognition. Upon detecting suspicious activities—such as high-frequency function calls, abnormal gas spikes, or known phishing address interactions—the system automatically freezes transactions and triggers manual review. During testnet operations, this system successfully intercepted 127 simulated attacks (including flash loan exploits and reentrancy attacks), with a false positive rate under 0.3%. For example, an abnormal flash loan request to a Uniswap liquidity pool can be detected and blocked within 0.5 seconds, preventing asset loss.

Token Economic Model and Value Capture

ZRC Token Functionality

$ZRC serves as Zircuit’s governance and utility token, with a total supply of 10 billion tokens. Of this, 35% is allocated for community incentives (including airdrops and staking rewards, with 7% distributed in the first round), 17.93% to the ecosystem development fund, and 29.29% to the team and investors (12-month lockup followed by 24-month linear unlock).

Holding $ZRC grants users three core benefits:

1. Governance Voting Rights: Decide key parameters such as AI risk thresholds and fee rates (ranging from 0.1%–0.5%);

2. Yield Generation: Stake $ZRC for 7%–12% APY and increased airdrop allocations;

3. Cost Optimization: Use $ZRC to pay gas fees at a 20% discount.

Mainnet Festival Airdrop Progress

The Mainnet Festival launched in May 2025 is distributing 20 million $ZRC tokens. Users can earn points by transferring cross-chain assets (e.g., moving ETH from Ethereum to Base) or completing multi-chain task bundles (e.g., performing lending/borrowing operations on three or more chains). The top 10% of users by points receive a 30% bonus, with the top scorer receiving a $100,000 equivalent allocation.

Ecosystem Progress and Industry Positioning

Institutional Partnerships and Performance Validation

Zircuit has attracted institutions like Jump Crypto and Fidelity to its customized vault system, supporting asset allocation into low-risk staking pools (3%–5% APY) or high-risk restaking portfolios (targeting 8%–12% yields). On the security front, it collaborates with Halborn to enhance smart contract audits and integrates Chainlink oracles to optimize AI risk models. During its testnet, Zircuit processed $3.7 billion in transactions and engaged over 500,000 unique addresses.

Differentiation from Traditional Layer2 Solutions

Compared to mainstream solutions like Arbitrum, Zircuit achieves breakthroughs in key areas:

• Security Mechanism: Arbitrum relies on post-event audits, while Zircuit uses real-time AI interception;

• Cost Efficiency: Zircuit’s gas fee per transaction is $0.001, over 90% cheaper than Arbitrum ($0.1–$0.5);

• Response Time: Cross-chain transfers complete in 3 seconds, far faster than the industry average of 12 seconds.

Risk Challenges and Response Strategies

Technical Bottlenecks

ZK proofs may experience 15-second delays during peak loads, affecting cross-chain liquidation efficiency. The team is implementing recursive proof aggregation to reduce validation time, aiming for sub-second response speeds by full mainnet launch in Q3 2025. To address the 0.3% false positive rate in AI decisions, a dynamic threshold adjustment mechanism allows the community to vote on temporarily lowering sensitivity when false flags are reported.

Regulatory Compliance Pathways

The U.S. SEC may require transparency in AI decision logic. Zircuit adopts a dual-track strategy:

• Allocates 20% of tokens to a DAO governance fund, aligning with “sufficient decentralization” exemption guidelines;

• Integrates on-chain KYC modules and partners with compliant oracle providers (e.g., Chainlink) for identity verification.

Investors can track regulatory developments in real time via the JuCoin Compliance Tracker.

Breaking Market Competition

Facing a market dominated by Arbitrum and zkSync (68% share), Zircuit leverages proactive security as its unique edge. The testnet’s successful defense against flash loan attacks on Aave has already prompted Compound and others to begin migration testing.

Future Roadmap and Industry Impact

Zircuit’s 2025 roadmap focuses on three main directions:

1. Full Mainnet Launch (Q3): Enable real-time AI protection for cross-chain flash loans and millisecond-level arbitrage;

2. RWA Regulatory Expansion (Q4): Introduce EU MiCA-compliant asset modules supporting tokenized bonds and real estate as cross-chain collateral;

3. Security Layer Standardization (Long-term): Aim to cover 50% of Layer2 transaction risk control and shift the industry focus from a “performance race” to a “security race.”

If its “preventive security” paradigm proves successful, Zircuit could redefine the valuation framework for DeFi infrastructure.