Security

Halo derives its security directly from the underlying settlement layer by:

• Posting state proofs to the base chain

• Holding user funds securely on L1

• Allowing users to post forced transactions when needed

Each batch submission includes the proof, the updated state root, and nullifier set commitments, which are sent to the L1 verifier contract on the Settlement chain. The L1 validators verify the zero-knowledge proof a constant-time operation independent of batch size — update the canonical state root, and finalize settlement for all included transactions.