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Validium

A validity-proof scaling system that stores transaction data outside the settlement chain.

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Definition

A validity-proof scaling system that stores transaction data outside the settlement chain.

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Why it matters

Scaling concepts explain how blockchain systems increase capacity while balancing security and decentralization.

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How it works

It uses Zero-Knowledge proofs to prove that transactions are valid on the Ethereum mainnet. The actual transaction data is sent to a Data Availability Committee off-chain. If the committee becomes malicious or stops providing the data, users might face difficulties withdrawing their funds, making it a trust-based model compared to pure rollups.

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Real-world example

Immutable X is a prominent example of a platform that uses Validium technology for NFT gaming and trading.

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Advantages

  • Incredible scaling potential
  • Extremely low transaction costs
  • High speed execution

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Limitations

  • Higher trust requirements for data availability
  • Potential for censorship by data committee
  • Complex recovery if data is lost

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Common misconceptions

  • Many confuse Validium with ZK-Rollups; the key difference is where the data is kept.
  • People often assume Validium is ‘less secure’ in every way, but it is actually just a different security model.
Canonical knowledge ID: glossary:validium