zkEVM Chains — All About Their Working, Use Cases, & Future

The technology that helps to build efficient dApps for the better

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If you’re involved in the world of blockchain, you’ve likely heard of zkEVM chains — the latest innovation in the field of decentralized finance (DeFi). But what exactly are zkEVM chains, and what makes them so exciting for the future of blockchain?

Let’s explore more about them in this blog 👇🏻

Introduction

First, let’s define some terms. zkEVM stands for “zero-knowledge Ethereum Virtual Machine,” which is a mouthful, but it essentially means a version of the Ethereum Virtual Machine (EVM) that uses zero-knowledge proofs (ZKPs) to enhance privacy and scalability. The EVM is the runtime environment for smart contracts on the Ethereum blockchain, and it’s what enables developers to create decentralized applications (dApps).

Now, you might be wondering, what are zero-knowledge proofs? In simple terms, ZKPs are cryptographic algorithms that allow you to prove the validity of a statement without revealing any other information. This can be incredibly useful for privacy-focused applications, as well as for scalability — since ZKPs allow for more efficient processing of data.

So, How Does zkEVM Chains Work?

Essentially, they use ZKPs to verify the validity of transactions and smart contract executions, rather than relying on traditional consensus mechanisms like proof-of-work or proof-of-stake. This means that transactions can be processed much faster and with much lower fees than on the main Ethereum blockchain.

But that’s not all — zkEVM chains also offer enhanced privacy features. Since ZKPs allow you to prove the validity of a statement without revealing any additional information, it’s possible to create transactions and execute smart contracts without revealing any information about the parties involved, or the details of the transaction itself. This is a huge advantage for applications where privacy is critical, such as financial transactions.

Here are some examples of zkEVM chains and their use cases:

1. Arbitrum: Arbitrum is a zkEVM chain that is designed to be compatible with the Ethereum network. It uses ZKPs to enhance scalability and reduce fees, while still maintaining compatibility with Ethereum-based dApps.
2. zkSync: zkSync is a layer-2 scaling solution that uses ZKPs to enhance privacy and scalability. It is designed to be compatible with Ethereum-based dApps, and can be used to process transactions more quickly and with lower fees than on the main Ethereum network.
3. Polygon: Polygon (formerly known as Matic Network) is a layer-2 scaling solution that uses ZKPs to enhance scalability and reduce fees. They upgraded to zkEVM based chain from March 27, 2023. It is designed to be compatible with Ethereum-based dApps.

So, What Does The Future Hold For zkEVM Chains?

Well, there are a few key areas where we’re likely to see them making a big impact.

First, zkEVM chains are likely to be a game-changer for DeFi. One of the biggest challenges facing DeFi today is scalability — as more users flock to decentralized applications, the Ethereum network has struggled to keep up with demand. This has led to high fees and slow transaction times, which can be a major barrier to adoption. By using zkEVM chains, DeFi applications can process transactions more quickly and with lower fees, which could make them much more accessible to a wider range of users.

Second, zkEVM chains could also have a big impact on privacy-focused applications. As we’ve mentioned, ZKPs allow transactions to be processed without revealing any additional information. This could be incredibly useful for applications where privacy is critical, such as healthcare or identity management.

Finally, zkEVM chains could also play a role in the future of the internet itself. They offer a promising solution to this problem, by providing a more scalable and private way of processing data.

Overall, zkEVM chains have a wide range of use cases, from decentralized finance to gaming and NFTs, to financial applications more broadly. As more and more developers and users adopt these solutions, it’s likely that we’ll see continued innovation and development in the space.

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