ZKsync (ZK) is one of the most popular Layer-2 scaling solutions in the Ethereum ecosystem. The protocol introduces Zkproofs and other proprietary technology to enable frictionless interoperability within its multichain ecosystem. Here’s what you need to know about ZKsync.
ZKsync is a top-performing scaling solutions and infrastructure provider. The project has successfully completed 400M transactions since its launch. It currently lists +7M active addresses with +$1.56B TVL (Total Value Locked). This growth comes from multiple factors, such as its added performance and lower fees.
What are Layer 2 Networks?
The term layer 2 network refers to a protocol designed to operate on top of a mainnet. Zksync operates alongside Ethereum where it serves a critical role in reducing congestion. Most layer 2 options will offload the computational aspects of the transaction process. This strategy has proven to be very effective. Additionally, it can add extra functionality to the original chain’s users, furthering its usefulness.
What Problems Does ZKsync (ZK) Attempt to Fix?
Zksync was built from day one to help reduce the congestion that plagued the Ethereum network. Originally, Ethereum was a Proof-of-Work network. This structure meant that the network required heavy computational power, resulting in higher fees and delayed transaction times for users.
Source – ZKsync
The developers behind ZKsync recognized these limitations. They created Zksync to reduce the computational workload on the mainnet and improve security. As part of this strategy, it leverages zero-knowledge rollups, effectively improving security.
High Fees
One of the main issues that congestion causes on the network is higher fees. In the case of Ethereum, there have been several instances where network congestion has caused the network fees to outpace transaction amounts. Consequently, the desire for a fast and effective low-cost scaling solution was needed. ZKsync offers low-cost transactions that range from 1-3 cents each, greatly reducing the cost associated with the Ethereum mainnet.
Lack of Interoperability
A lack of interoperability is another concern that had the developer’s attention. As such, ZKsync’s team sought to introduce a new level of interoperability. As part of this approach, the platform allows users to easily create fully interoperable tokens and networks. These protocols can be accessed using the modular smart accounts. These accounts live on the protocol level, enabling them to seamlessly interact with all ZK side chains.
Lack of Liquidity
Alongside a lack of interoperability is a lack of liquidity. Whenever you have systems that operate as islands, there will be smaller pools of liquidity for certain projects. ZKsync offers a solution in terms of full interoperability across the entire ZK ecosystem. As such, all projects can enjoy access to the deepest liquidity provided by the ERC sector.
Benefits of ZKsync (ZK)
ZKsync offers a lot of benefits that make it stand out. For one, the platform offers high performance with fast and cheaper transactions. The lower cost and speed make ZKsync ideal for dapps that rely on microtransactions.
Developer centric
Developers will notice the added time taken to support their builds. The protocol features an easy-to-use interface that offers a customizable UX. Developers can easily build, deploy, maintain, and secure their creations using ZKsync technology.
Easy On-Boarding
Another major benefit that Zksync introduces is one-tap onboarding. Those new to the layer 2 or blockchain space can find the flood of new terminology, features, and services overwhelming. The use of a one-touch onboarding strategy reduces technical barriers to adoption and provides new users with the confidence that they can navigate the decentralized economy effectively.
ZKsync Security
Security is another benefit that Zksync users enjoy. The protocol introduces several methods of keeping users protected, including high-level cryptography, community governance, open-source coding, verifiable blockchain transactions, and more. Uniquely, the system also supports biometric verification for wallets and more. This approach eliminates the need to memorize long seed phrases.
How Does ZKsync (ZK) Work?
Zksync operates using a technology called ZK-rollups. This tech works by bundling hundreds of transactions into a single batch file called a ZKProof. This strategy ensures that the mainnet is bombarded with separate transactions. From here, the batch file gets sent to get verified. Once the transactions are verified, a ZK-SNARK is formed. This protocol is what is posted on the Ethereum mainnet.
zkPorter
The developers recently introduced an additional scaling method called ZKPorter. This off-chain data availability system provides a host of benefits, including pushing scalability from around 4000 TPS (transactions per second) to 20,000 TPS.
Guardians
Guardians are network nodes that conduct certain critical tasks within the Zksync economy. They handle tasks like varying ZK SNARKS and more. Guardians receive rewards in the form of ZK tokens based on their level of participation in the network.
Zero-Knowledge Proofs (ZKPs)
Zero Knowledge Proofs is a technology that has revolutionized blockchains. The term refers to a method of verifying a person has a certain item without revealing the item itself. In the case of ZKSnark, ZKPs allow users to transact without having to share direct account details.
The concept of Zk Proofs can seem confusing but you can think of it like having a password to a new video game release. If someone wanted to see if you had a password without asking for it directly, they could begin by asking you a question about the game.
This strategy assumes that only someone with a passcode would know certain details. As such, it’s possible to guarantee you have access without compromising security by revealing your password. This method, pioneered by ZKsync, increases privacy and security for blockchain networks. Notably, it’s now common to see zk-roll-ups used in fourth-gen blockchain as a method to enhance security.
Better than Optimistic rollups
This technology improves on optimistic roll-up options. In an optimistic rollup, the transactions are assumed to be valid and rolled up. However, the privacy data such as account info and other personal security identifiers get shared. ZK roll-ups offer faster performance, lower costs, and reduce privacy risks across the board.
ZKsync Ecosystem
The ZKsync ecosystem consists of a variety of popular dapps, (DeFi) protocols, games, NFT collections, and infrastructure options. The platform continues to expand its features with new ZK side chains, pushing innovation and interoperability further.
ZK Chains
Zk Chains are sub-networks powered by Zksync. Users can create these blockchains to support their particular dapps and use cases. These systems offer full flexibility, including the ability to host digital assets, governance protocols, and much more. The flexibility and interoperability of these networks have helped Zksync increase its influence and offerings.
ZK Nation
The ZK Nation is where ZKSync users can meet up to share ideas, concepts, and strategies. This community represents the developers, users, and creatives that drive innovation in the economy. Z Nation participants gain access to added rewards in the form of competitions, airdrops, and more.
Token – ZK
The ZK token is the main utility and rewards asset for the economy. Users need to hold ZK to participate in the ecosystem. It can be used to facilitate transactions, pay gas and transaction fees, reward users, and participate in community governance options. As such, ZK is a versatile ERC-20-powered asset that provides full traceability and interoperability.
Consensus Mechanism
Zksync utilizes a Proof-of-Stake (PoS) consensus mechanism to remain valid. In this setup, users can stake their tokens to validate the networks. This strategy has some significant advantages over PoW networks. For one, it provides a more democratic and easy-to-join option that eliminates the need for expensive mining rigs or technical understanding. Also, anyone can stake their tokens, secure the network, and receive passive rewards for their efforts based on their level of participation.
Network Governance
Community voting is how users can get their voices heard. The system enables anyone to stake ZK tokens to access proposals and voting rights. Notably, the governance system leverages a delegated approach, meaning that users need to delegate their tokens to a guardian or other address. Notably, they can change where they delegate and how much at any time.
ZKsync History
Matter Labs created Zksync and launched it in 2020. The first version upgraded the ERC community’s performance and demonstrated how Zkproofs can enhance transactions and security. The upcoming ZKsync 2.0 upgrade will push scalability even further, with company documents showing support for 100,000 TPS.
How to Buy ZKsync (ZK)
Currently, ZKsync (ZK) is available for purchase on the following exchanges.
Coinbase – A publicly traded exchange listed on the NASDAQ. Coinbase accepts residents from 100+ countries, including Australia, Canada, France, Germany, Netherlands, Singapore, the United Kingdom, and the United States (excluding Hawaii).
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry and offers trading access to over 190 countries, including Australia, Canada, Europe, and the United States (excluding Maine, New York, and Washington state).
Binance – Accepts Australia, Singapore, the UK, and most of the world. Canadian & USA residents are prohibited. Use Discount Code: EE59L0QP for 10% cashback on all trading fees.
ZKsync (ZK) – Driving Ethereum Innovation and Performance
ZKsync is a perfect example of how innovation and ingenuity can result in a better UX for all. The project streamlines dapp creation and interoperability. As such, it now serves a vital role in the Ethereum economy, providing developers with better security and faster settlement times. All of these factors make Zksync a platform to watch.
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