What is zkSync?

zkSync.io is a Layer 2 scaling solution for Ethereum developed by Matter Labs. It aims to enhance Ethereum’s scalability and reduce transaction costs while ensuring security. This solution uses zkRollup technology, which bundles multiple transactions off-chain and then verifies them on-chain using zero-knowledge proofs (SNARKs). This process ensures transaction validity, reduces computational load on the Ethereum mainnet, and lowers transaction fees significantly.

Features and Benefits of zkSync

Zero-Knowledge Rollups (zkRollups):

zkSync uses Zero-Knowledge Rollups (zkRollups) technology to enhance Ethereum’s scalability and efficiency while maintaining security. This works by aggregating multiple transactions into a single batch off-chain, which are then verified on-chain using zero-knowledge proofs (zk-SNARKs).

1. Users sign transactions and submit them to Layer 2 (L2) operators, often called sequencers.
2. These sequencers execute the transactions, then bundle them into batches, and periodically submit these batches to the Ethereum mainnet (Layer 1, L1).

Zero-knowledge proofs are important for ensuring the validity of these batched transactions without revealing any transaction details. The proofs confirm that the state changes proposed by the Layer 2 operator are correct and are the result of executing the given batch of transactions. This method reduces the computational load on the Ethereum mainnet, as only the proofs need to be verified on-chain, not individual transactions themselves.

How ZKSync publishes transactions to Ethereum

To ensure data availability and reduced costs, zkSync publishes transaction data on Ethereum as calldata, a computatioanl method that stores data on-chain without affecting Ethereum’s mainnet state.

The state of zkSync, which includes accounts and balances, is represented by a Merkle tree, and its root (Merkle root) is stored on-chain. When transactions are processed, the state transitions to a new Merkle root, and the validity proof submitted alongside the new state root ensures that the new state is a valid result of the processed transactions.

The proof system used in zkSync includes various components to ensure the correctness of the state transitions, such as the Boojum toolkit, a Rust-based cryptographic library for constructing and verifying circuit functionality. This approach enhances security and efficiency by reducing the amount of data that needs to be stored and processed on-chain.

zkSync’s use of zkRollups allows for scalable, cost-effective transactions while maintaining high security and data integrity. It supports easy interoperability between zkSync chains, allowing for trustless communication and asset transfers across the ecosystem.

Scalability and Cost Efficiency:

The use of zkRollups helps to optimize both scalability and cost efficiency for ZKSync, which, in turn, enhances its ability to handle high transaction volumes and reduces associated costs. zkSync is able to handle thousands of transactions per second, an increased throughput that is particularly beneficial for applications that demand high transaction rates, such as decentralized finance (DeFi) platforms and non-fungible token (NFT) marketplaces.

The efficiency of zkRollups in compressing and verifying transaction data means that users can benefit from lower fees, making it a cost-effective solution for both small and large-scale transactions. This is particularly advantageous for micropayments and other high-frequency transaction scenarios where cost efficiency matters.

Use Cases

Decentralized Finance (DeFi)

zkSync enables efficient and cost-effective operations for decentralized finance applications. Its infrastructure supports automated market makers (AMMs), lending platforms, and yield farming protocols by offering low transaction fees and high throughput, allowing DeFi platforms to scale and serve a broader audience.

Payments and Transfers

zkSync facilitates efficient payments and token transfers on Ethereum. The protocol provides instant confirmations and low fees for ETH and ERC-20 token transactions. Users can make peer-to-peer payments and remittances quickly and cost-effectively. The system supports payments to any Ethereum address, simplifying the user experience by not requiring pre-registration of accounts.

NFT Marketplaces

zkSync supports the creation, transfer, and trading of non-fungible tokens (NFTs). This capability is particularly useful for NFT marketplaces that need to handle high transaction volumes with reduced costs. zkSync’s infrastructure allows these platforms to offer users faster and more economical transactions when buying, selling, or minting NFTs.

Cross-Chain Bridges and Smart Contracts

zkSync’s interoperability features enable the creation of cross-chain bridges that allow assets to be transferred securely and efficiently between different blockchain networks. This is essential for projects that interact with multiple blockchains, providing a secure method to move assets across platforms without compromising security.

It also supports the deployment of smart contracts, making it possible for developers to build and run decentralized applications (dApps) with enhanced scalability and lower costs. Its zkEVM compatibility ensures that existing Ethereum smart contracts can be easily ported to zkSync, allowing developers to benefit from zkRollups without significant code modifications.

Gaming and Metaverse Applications

The low fees and high throughput of zkSync are ideal for gaming and metaverse applications that require frequent transactions. Developers can create interactive experiences without the limitations of high transaction costs and slow processing times, enabling more engaging user interactions.

Enterprise Solutions

zkSync’s scalability and cost-efficiency are also beneficial for enterprise applications. Businesses can use zkSync for various blockchain-based solutions, such as supply chain management and identity verification. The protocol’s strengths improve operational efficiency and reduce costs for enterprise-level applications.

History and Development

zkSync was developed by Matter Labs, a company focused on advancing zero-knowledge proof technology to solve blockchain scalability issues. The project has gone through several development phases, each introducing new features and improvements to the protocol.

zkSync Lite

The initial version of zkSync, known as zkSync Lite, focused on simple payments and basic functionalities. It demonstrated the viability of zkRollup technology and its potential to scale Ethereum transactions.

zkSync Era

An advanced version that introduced full EVM compatibility, account abstraction, and enhanced security features. zkSync Era supports Solidity and Vyper smart contracts and integrates with popular development tools such as Hardhat and Foundry.

Development Highlights:

• zkRollup Implementation: The technology behind zkSync is zkRollup, which combines multiple transactions into a single batch processed off-chain.
• Security Audits: zkSync has undergone multiple security audits to ensure safety of its protocol. Matter Labs also maintains a bug bounty program to encourage the community to identify and report potential vulnerabilities.
• Community and Ecosystem Growth: Over time, zkSync has built a strong ecosystem of developers, users, and partners. The protocol supports a wide range of dApps and integrates with various tools and services to enhance the developer experience.

Project Vision and Goals

The primary goal of zkSync is to provide a scalable, low-cost, and secure Layer 2 solution for Ethereum. By leveraging zkRollup technology, zkSync aims to address the scalability issues of Ethereum, enabling more widespread adoption of decentralized applications. zkSync’s mission is to make blockchain technology more accessible and efficient for users and developers alike.

Goals

• Enhance Scalability: By processing transactions off-chain, zkSync aims to increase the throughput of the Ethereum network, allowing it to handle more transactions per second.
• Reduce Costs: Lower transaction fees help broader adoption and usability of blockchain technology. zkSync’s low-cost transactions make it feasible for users to engage in microtransactions and frequent interactions with dApps.
• Ensure Security: Maintaining the security and trustlessness of transactions is a top priority. zkSync takes advantage of Ethereum’s security model, ensuring that all transactions are secure and verifiable.
• Improve User Experience: zkSync focuses on providing a good user experience, including fast transaction confirmations and compatibility with existing Ethereum wallets and tools. The protocol supports features like instant confirmations and low fees, making it easier for users to interact with blockchain applications.

Benefits for the Ecosystem

• Increased Throughput: zkSync’s off-chain processing capabilities allow the Ethereum network to handle a higher volume of transactions, reducing congestion and improving efficiency.
• Lower Fees: Reduced transaction costs make it more affordable for users to interact with dApps, fostering greater adoption and usage.
• Enhanced Security: By leveraging Ethereum’s security model, zkSync ensures that all transactions are secure and trustless, maintaining the integrity of the network.
• Developer-Friendly: zkSync’s EVM compatibility and support for popular development tools make it easier for developers to transition from Ethereum to zkSync, enabling them to take advantage of Layer 2 benefits without extensive modifications to their existing codebases.

Highlights

• zkSync is a Layer 2 scaling solution for Ethereum using zkRollup technology.
• Developed by Matter Labs, zkSync aims to improve scalability, reduce transaction costs, and maintain security.
• zkSync supports EVM-compatible smart contracts and offers various developer tools and resources.
• The project has gone through significant development phases, including zkSync Lite and zkSync Era.
• zkSync’s vision is to make blockchain technology more accessible and efficient for widespread adoption.