A Deepdive into zkSync - Turbocharging Ethereum with Scalability and Security

What is zkSync?

zkSync is a layer 2 trustless protocol offering scalable, low-cost payments on Ethereum, fueled by zkRollup technology. zkSync is a revolutionary protocol designed to offer more scalable and cost-effective transactions on the Ethereum network. It does this by using an advanced technology known as zkRollup.

In essence, zkSync is like a high-speed lane for Ethereum transactions, capable of handling thousands of transactions per second, similar to the transactional capacity of major credit card networks like VISA. The best part? It accomplishes this without compromising on the security of users' funds. This is possible because of zero knowledge technology, a unique feature that allows zkSync to optimize transaction speed while keeping transactions transparent and secure, just like on the main Ethereum chain.

But what truly sets zkSync apart is how it deals with entering and exiting the Ethereum mainnet. Unlike the traditional system,zkSync employs a decentralized exit mechanism, which means that users do not need to rely on a central authority or custodian to retrieve their assets. Instead, the withdrawal process involves submitting a proof of ownership on the Ethereum mainnet, which is then validated by the zkSync smart contracts. Once the proof is verified, the assets are transferred back to the user's Ethereum mainnet address. By implementing a zero-knowledge (ZK) rollup architecture, zkSync effectively enables "unlimited" scaling of the Ethereum network. This means, in theory, that the network can accommodate a growing number of users and transactions without slowing down.

Ethereum has established itself as a dominant force. However, as the network has grown, scalability and transaction costs have emerged as significant hurdles. Layer 2 solutions are increasingly being seen as the answer to these challenges, and one of the most promising among these is zkSync. This article is being written to explore this solution in detail, shedding light on its workings, its team, its technological underpinnings, its growth trajectory, and its potential future developments. By doing so, we hope to provide readers with a clear and comprehensive understanding of zkSync, its role in the Ethereum ecosystem, and its impact on the broader blockchain landscape.

The Next Level Scaling solution

zkSync (website) is like a supercharger for Ethereum, speeding up transactions and making them cheaper while maintaining the same level of security. Think of it as a kind of "express lane" for Ethereum transactions, using something called zero-knowledge rollups to make everything faster and less expensive. The goal is to help more people adopt public blockchains without barriers like high costs or slow speeds.

zkSync is a scaling and privacy engine for Ethereum that uses zero-knowledge rollups to provide a trustless protocol for scalable low-cost payments on Ethereum. Its purpose is to break financial barriers and enhance the world's freedom by accelerating the mass adoption of public blockchains. zkSync enables users to exit and enter the Ethereum mainnet in a decentralized pattern while offering lower transaction fees compared to the legacy ecosystem. zkSync is designed to bring a VISA-scale throughput of thousands of transactions per second (TPS) to Ethereum while keeping the funds as secure as in the underlying L1 accounts and maintaining a high degree of censorship-resistance.

zkSync is designed for developers and users who want to use Ethereum but are concerned about high gas fees and slow transaction times. It is a user-centric zk rollup platform from Matter Labs that provides a scaling solution for Ethereum, already live on Ethereum mainnet. The platform is designed to make it easier for developers to build decentralized applications (Dapps) and for users to interact with them by providing low gas transfers of ETH and ERC20 tokens in the Ethereum network, atomic swaps, limit orders, and native L2 NFT support.

zkSync is a mainstream scaling technology implementing innovative solutions to Ethereum scaling. It uses zero-knowledge proofs and on-chain data availability to keep users' funds as safe as though they never left the mainnet. The platform is built on ZK Rollup architecture, which is an L2 scaling solution in which all funds are held by a smart contract on the mainchain, while computation and storage are performed off-chain. For every Rollup block, a state transition zero-knowledge proof (SNARK) is generated and verified by the mainchain contract, which allows for high throughput and low fees.

zkSync is a Layer-2 scaling solution compatible with Ethereum Virtual Machine (EVM), with mainnet-level security and zero reliance on third parties. It is designed to disrupt the Ethereum scaling sector by providing a more efficient and cost-effective way to use Ethereum. The platform has a Total Value Locked (TVL) that has been soaring, which means that enough liquidity has been entering into chains under the protocol. The platform is expected to have a large Total Addressable Market (TAM) due to the growing demand for decentralized applications and the need for more efficient and cost-effective ways to use Ethereum.

The Team behind zkSync

zkSync is an exciting technology developed by Matter Labs that turbocharges Ethereum transactions. This Layer-2 solution uses a concept called zero-knowledge proofs to make Ethereum scalable, secure, and decentralized. Matter Labs was founded in 2018 by Alex Gluchowski and Alex Vlasov, and they've been committed to developing cutting-edge blockchain technologies ever since. The team is quite dynamic, with between 25 and 30 members.

The project has received guidance from influential advisors like Vitalik Buterin, the co-founder of Ethereum, and Zooko Wilcox, the founder of Zcash. This wealth of knowledge and experience surely adds tremendous value to the project. Moreover, Matter Labs and zkSync have managed to garner significant financial backing. Prestigious investors like Andreessen Horowitz, Crypto.com, and Blockchain.com, among many others, have shown their faith in the project. Partnerships have also been established, one of which is with OpenZeppelin, a company focused on blockchain security.

The total funding to fuel the zkSync project is a substantial $458 million, with a dedicated $200 million ecosystem fund. This includes a significant $200 million raised in a Series C round, with Dragonfly and Blockchain Capital taking the lead. This funding will be crucial in fostering zkSync's adoption and expanding the team. Finally, to foster community involvement and innovation, Matter Labs has announced plans to open-source zkSync 2.0 under an MIT Open Source license later in 2022. This is a testament to the company's commitment to transparency and shared growth within the blockchain community.

Unleashing Speed, Efficiency, and Security through Cutting-Edge Tech

zkSync is like a powerful upgrade to Ethereum. It's a system that makes transactions of Ethereum and ERC20 tokens quicker, less expensive, and even supports NFTs on Layer 2 . What makes it tick is a structure called the ZK Rollup architecture.

In simple terms, ZK Rollup is a solution that keeps all the funds securely in a smart contract on the main Ethereum chain, but carries out computations and storage elsewhere. This off-chain operation makes things more efficient. For every block of transactions, a special proof called a zero-knowledge proof (SNARK) is created and checked. This makes sure the transactions are legitimate without revealing any private details.

zkSync is a platform from Matter Labs that's already operating on the Ethereum mainnet. It leverages these zero-knowledge proofs to ensure your funds are as safe as if they were still in your mainnet account. In addition, it provides top-tier security similar to the main Ethereum network, all while eliminating the need for any third parties. Fast confirmations, quicker finality on the main Ethereum layer , and ultra-low transaction fees are all part of the deal.

A great feature of zkSync is that it lets you move on and off the Ethereum mainnet in a decentralized way, which means there's no single entity controlling this process. Also, it keeps transaction costs lower compared to traditional systems. It maintains key Ethereum features, such as smart contract composability, enabling it to work seamlessly with existing Ethereum applications.

zkSync presents an attractive solution for anyone looking to make the most out of Ethereum. It offers enhanced security, cheaper transactions, and it fits smoothly into the existing Ethereum ecosystem. Thanks to its use of zero-knowledge proofs, it's a system you can trust to keep your funds secure. If you're keen to start using zkSync, there are plenty of resources to learn more here.

When Token?

There is currently no token live but, there's been some buzz about a possible zkSync airdrop, with a new token potentially named $ZKS. However, it's important to note that the team at zkSync has not confirmed any plans to release this token, let alone distribute some through an airdrop. So, while the possibility exists, it's still uncertain whether they'll actually release any tokens or provide an airdrop.

zkSync has also announced zkSync 2.0, now known as zkSync Era. This has brought some game-changing features to the table. For example, Account Abstraction and compatibility with Ethereum Virtual Machine (EVM) through popular programming languages, Solidity and Vyper, are now part of its offering. In essence, zkSync Era is the first instance of a zero-knowledge EVM for Ethereum, marking a significant milestone in the evolution of the platform.

Remarkable Growth

zkSync is up and running on the Ethereum mainnet and gaining popularity fast among users and developers. To illustrate its growth, let's take a peek at some numbers. Since the launch of the new version, called zkSync Era, over 59,200 Ethereum tokens have been bridged and more than 254,500 wallets have been created. In addition, nearly 300,000 transactions have taken place, highlighting the expanding use of this platform.

As for its ecosystem, zkSync is far from being a standalone platform. Many decentralized apps have been built on top of it, creating a vibrant and diverse ecosystem. In fact, more than $150 million is locked in value within these apps. One notable example is Syncswap, an on-chain exchange service, which alone holds over $64 million. zkSync is gaining ground in the Ethereum community. Thanks to its scalability, affordable transaction costs, and robust security features, it's becoming a go-to solution for users and developers alike.

Visa-Level Capacities

zkSync is a promising solution that's been designed with the ambitious goal of bringing VISA-like transaction capacity to the Ethereum network. This means it aims to handle thousands of transactions per second while ensuring that user funds remain as secure as they would be in standard Ethereum accounts, also known as Layer 1 or L1 accounts. Furthermore, it aims to offer strong resistance to censorship, further enhancing its appeal.

There's been a buzz in the crypto world about a potential airdrop from zkSync. An airdrop, in case you're not familiar, is typically a distribution of tokens to existing holders. But remember, this is purely speculative at this stage, and there's no guarantee that an airdrop will take place or what the value of these tokens might be if it does.

When it comes to competitors, zkSync has quite a few. Some of the notable ones include Loopring, Optimism, StarkNet, Arbitrum, Hermez, and Polygon. These alternatives offer their own unique solutions to enhance the Ethereum network. In the grand scheme of things, zkSync is showing immense potential. Its growth and its ability to provide scalability solutions for Ethereum have been impressive. It's seen as a tool that could boost the performance of countless Ethereum-based projects. The way it can ensure smooth performance of different protocols within one environment is particularly vital for Dapps.

Here is an overview of zkSync's best ecosystem projects.

Conclusion

In an increasingly congested Ethereum landscape, zkSync stands out as a beacon of efficiency, affordability, and security. Using zkRollup technology, this Layer 2 protocol offers a solution to Ethereum's scalability problem, promising to increase its throughput to rival that of major credit card networks, while maintaining the security of user funds. One of its most significant features is the ability to enter and exit the Ethereum mainnet in a decentralized and cost-effective manner, a unique feature that sets it apart from its competitors.

As developed by Matter Labs, zkSync is more than just a promising technology – it is already live and operating on the Ethereum mainnet. The project has received substantial funding and strategic guidance from some of the most influential figures and companies in the crypto space, ensuring its continued growth and development. With over 254,500 wallets created and nearly 300,000 transactions already made since the launch of zkSync Era, it's clear that this platform is quickly gaining traction.

The potential for a future zkSync token and the prospect of an airdrop has generated a lot of excitement within the crypto community, but it's important to note that these are still speculative at this point. However, the development of zkSync Era, with its compatibility with Ethereum Virtual Machine and support for popular programming languages, Solidity and Vyper, marks a significant milestone in the platform's evolution.

All in all, zkSync appears to be an increasingly important player in the Ethereum ecosystem. Its unique technology and user-centric approach may just be the answer to Ethereum's scalability and cost issues, potentially pushing the adoption of public blockchains to a wider audience. Its growth trajectory and ongoing developments suggest that this platform has a bright future ahead, making it a key player to watch in the blockchain landscape.