zkSync Chain: An Overview (What You Need to Know)
The world of blockchain technology continues to evolve, and one of the emerging solutions that has gained attention is zkSync. zkSync is a layer-2 scaling solution that aims to address some of the scalability and transaction cost challenges faced by blockchain networks like Ethereum. In this article, we will provide an overview of zkSync blockchain and what you need to know about it.
N/B: Please note that this article provides a general overview of zkSync blockchain and is not an exhaustive technical guide. It is always recommended to do further research and consult.
What is zkSync?
zkSync is a protocol that implements zero-knowledge proofs to enable scalable and low-cost transactions on Ethereum. It is designed as a layer-2 solution, which means it operates on top of the Ethereum blockchain to leverage its security while providing improved scalability and cost efficiency. zkSync aims to address the limitations of the Ethereum blockchain, such as high transaction fees and slow confirmation times, by
moving most transactions off-chain and settling them later on the Ethereum mainnet.
What is layer 2 on Ethereum?
Scalable design is one form of implementation used in Layer 2 on Ethereum. The goal of layer 2 rollup is to resolve Ethereum’s intrinsic flaws, including sluggish transfers and high gas prices because of its constrained capacity. By separating possession from calculation, the layer 2 scaling method operates. Smart contracts contain all of the assets on the main chain in Layer 2 blockchain systems. The off-chain component is in charge of calculation and storing at the same time. As a consequence, Layer 2 solutions provide high transaction rates and L1 degree of security.
A brief history of zkSync (zkSync 2.0 -> zkSync Era)
The zkSync campaign was launched in the 2020 summer. However, since at least 2019, Matter Labs, the company that created zkSync, has been working on Layer 2 scaling zero knowledge evidence. The first encounter, which was introduced in June 2020, offered 300 interactions per second. Features with a higher level of quality were introduced by zkSync 2.0, such as Account Abstraction and EVM support via Solidity and Vyper.
It’s zkSync Era now, not zkSync 2.0. Matter Labs stated on February 16, 2023, that zkSync 2.0 would now be known as zkSync Era. The first zero-knowledge EVM for Ethereum is called zkSync Era. Registered projects are free to launch and evaluate their dApps on the mainnet as part of Fair Onboarding Alpha. The latest version is entirely open-source thanks to the MIT/Apache 2.0 license. Although Matter Labs is aggressively pursing security assessments and bug reward programs, developers are still in the final testing phase with restricted token bridging. Up until Full Launch Alpha, the following and last zkSync Era milestone, the mainnet won’t be accessible to end users.
How does zkSync work?
zkSync uses zero-knowledge proofs, a cryptographic technique that allows users to prove the authenticity of a statement without revealing any additional information. zkSync uses zkRollup, a specific type of rollup solution, where transaction data is aggregated off-chain and only a cryptographic proof of the validity of the transactions is submitted to the Ethereum mainnet.
zkSync’s approach involves bundling multiple transactions into a single batch, creating a Merkle tree of the transaction data, and generating a zero-knowledge proof that attests to the correctness of the entire batch. This proof is then submitted to the Ethereum mainnet, which allows for a high throughput of transactions with lower gas fees compared to on-chain transactions.
Security and Trust Model
zkSync’s security relies on the cryptographic properties of zero-knowledge proofs, which provide mathematical guarantees of the correctness and privacy of the transactions. The zero-knowledge proofs used in zkSync ensure that transactions are valid without revealing any confidential information, making zkSync a secure and privacy-preserving solution. zkSync also follows a trustless model, where users do not need to trust a central authority or intermediaries. The zkSync contracts on Ethereum are open-source and audited by reputable security firms, providing transparency and accountability. Users retain custody of their assets and can always exit zkSync and settle their funds on-chain if needed.
Supported Assets and Use Cases
zkSync supports a wide range of ERC20 tokens and ETH as native assets on its network. Users can transfer, trade, and interact with these assets on zkSync with fast confirmations and low transaction costs compared to on-chain transactions.
zkSync has potential use cases in various areas, including decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and microtransactions. It can enable high-frequency trading, micropayments, and other applications that require fast and cost-effective transactions.
Features and benefits of zkSync
Low gas transactions for ETH and ERC20 coins serve as the most important differentiator. As opposed to L1 or Optimistic Rollups, transfers are fast and affordable.
- Transfer fee: $0.02
- Withdrawal fee: $1.59
- One-time activation fee: $0.44
- Mint NFT: $0.05
Additionally, zkSync allows “gasless meta-transactions,” in which users pay gas costs using tokens that have been moved. As an illustration, a customer who sends DAI pays costs with DAI.
Interoperability between smart contracts is the second advantage. Solidity code can be reused by developers. The third advantage is the support for limit orders and atomic trades, which are essential for crypto platforms. zkSync is totally open source and enables native layer 2 NFTs as well.
Disadvantages of zkSync
According to some users, the L1 protocol’s money withdrawals happen slowly. The completion of other operations in a single group must be waited for by users. In fact, it takes 40s to create a protected transaction, which may not be feasible in the future.
Concerning zkSync dApps, the following drawback is present. Quite a lot of computational capacity is needed to prove every group. In ZK rollups, dApps are consequently much less frequent. EVM interoperability is another problem that makes dApps difficult.
Getting Started with zkSync
To use zkSync, users need to create a zkSync wallet, which can be done through the zkSync web interface or via supported wallets. Users can deposit assets into zkSync, and once the funds are confirmed, they can start transacting with zkSync’s fast and low-cost transactions. Users can
also withdraw their funds from zkSync back to the Ethereum mainnet at any time.
Conclusion
zkSync is an innovative layer-2 scaling solution that aims to address the scalability and cost challenges faced by blockchain networks. With its use of zero-knowledge proofs and trustless model, zkSync offers a secure, efficient, and scalable solution for transactions on Ethereum. It has the potential to enable various use cases and applications, and it is worth keeping an eye on its development and adoption in the blockchain Ecosystem.
