Transparency, Security & Decentralization — After the FTX Scandal
Since 2022, against the backdrop of the slowing economic growth, rising inflation and hiking interest rates around the world, the cryptocurrency sector has been in a bear market. November is the season when the weather in major countries in Asia, Europe and North America turns cool and gradually enters winter, and the recent FTX scandal has brought the whole industry straight into a blizzard. In this article, we will not dig into the specific causes of this incident, nor will we discuss the illegal practices of SBF or Alameda Research. People trust CEX and deposit their funds at CEX for safekeeping and trading, so the fact that FTX Exchange was able to misappropriate tens of billions of user assets alone is shocking and disturbing to the entire industry.
Let’s get back to the essence of cryptocurrencies and the industry’s original purpose — decentralization. The cryptocurrencies we hold (represented by BTC and ETH) represent freedom and the sanctity of personal assets, and the first thing to be guaranteed is security. Choosing a centralized exchange (CEX) for asset storage is very insecure (equivalent to authorizing others to keep one’s assets). As many mainstream tokens are issued on the ETH public chain (ERC20 protocol), ETH Wallet becomes the first choice for users to leave CEX.
ZKSpace, as a Layer 2 solution for the ETH mainnet based on ZK-Rollups technology, provides a Layer 2 wallet for users’ ERC20 assets, which are kept in smart contracts on the ETH mainnet and cannot be taken out by anyone except the private key holder. ZKSpace allows users to conduct decentralized transactions, transfers, minting or buying and selling NFTs on the ZKSpace platform, enjoying a gas fee that is much lower than the ETH mainnet and faster transaction confirmation (only a few seconds). And of course, users can withdraw their assets to their Ethereum mainnet wallet at any time they want. At the same time, ZKSpace ensures the consistency of Layer 2 and Layer 1 status by continuously generating zero-knowledge proofs, and periodically synchronizing the aggregated and packaged transaction data to the ETH mainnet, ensuring the same transaction security as the base layer. At the same time, we also provide a ZKSpace Explorer for users to freely view all addresses and transaction information of Layer 2, making it secure, transparent and decentralized.
ZKSpace team has been deeply engaged in Layer 2 scaling for several years, and has launched ZKSwap V1, ZKSwap V2, ZKSpace, covering a series of blockchain products such as Layer 2 wallet, exchange, NFT platform, domain name service, etc., with the goal of building a complete Layer 2 ecosystem. All of our smart contracts have been audited by top tier security agencies such as SlowMist and Certik, and have been running smoothly for nearly two years without any security accidents, with its peak TVL reaching $2.5 billion. We have never stopped our research and development. We remain true to our original aspiration and are committed to providing users with safe and convenient blockchain services. We invite community supervision.
ZKSpace is currently running a World Cup NFT prediction game, buy the NFT of your favorite team and you can share a large prize pool: https://zks.app/activities/WorldCup. Before the end of this year, we will also carry out Christmas activities, design exclusive Christmas NFTs for users, and reward the community. Please stay tuned!
The ZKSpace (formerly ZKSwap) platform consists of three main parts: ZKSwap, the first Layer 2 AMM DEX utilizing ZK-Rollups technology, payment service ZKSquare supporting fast and cheap Batch Transfer, and an NFT minting center and marketplace ZKSea. ZKSpace has been running since February 2021 with hundreds of function iterations, and no security incidents have ever occurred. With innovative NFT L1-L2 transfer, unlimited token listing, cheap and smooth deposit & withdrawal, and a Layer 2 domain name system ZNS, ZKSpace aims to implement EVM-compatible ZK-Rollups and bring the community more Layer 2-based products.