Ethereum expansion race heats up: How ZK Rollup technology is reshaping the Layer-2 landscape

In the blockchain industry, scalability has always been a core pain point for Ethereum. As the Ethereum ecosystem applications explode, issues such as network congestion and high transaction fees are becoming increasingly prominent. Although Ethereum 2.0 upgrades are gradually progressing, Layer-2 solutions have become the most practical breakthrough at present. Among them, Zero-Knowledge Proof-driven ZK Rollup technology, with its combination of efficiency and security, is attracting more and more attention.

Why Has ZK Rollup Become the New Favorite of Layer-2?

ZK Rollup is essentially an off-chain transaction processing mechanism that bundles many transactions together for batch verification. Unlike other Layer-2 solutions, ZK Rollup uses zero-knowledge proof technology, which can verify transaction validity without revealing specific transaction details.

Imagine: if traditional methods require checking the full information of each transaction to confirm its legality, then ZK Rollup is like an encrypted “audit report” that only needs to be verified for authenticity, without seeing the specific details within the report.

Three core features of zero-knowledge proofs: Integrity (proof of truthfulness and validity), Soundness (impossible to forge), Zero-Knowledge (no disclosure of details). This mechanism ensures transactions are both secure and fast.

How ZK Rollup Works

The ZK Rollup architecture consists of on-chain and off-chain components:

1. On-chain layer: Smart contracts define transaction rules and store key data
2. Off-chain layer: Independent virtual machines handle most transactions, significantly reducing costs and increasing speed
3. Proof generation: Cryptographic proofs are generated for a batch of transactions, verifying their validity without revealing individual transaction details
4. On-chain verification: Proofs are submitted to the Ethereum mainnet, where validators ensure off-chain transaction integrity

The advantage of this architecture is that the main chain only needs to verify a concise cryptographic proof, rather than processing hundreds of transactions individually, greatly alleviating network load.

ZK Rollup vs Optimistic Rollups: Which Is Better?

This is a frequently discussed topic in the market. Optimistic Rollups adopt a “presumed valid” strategy, only checking transactions when disputes arise; whereas ZK Rollups use a “must verify every transaction” mode.

This leads to several key differences:

Security: ZK Rollups provide immediate finality; once a transaction is submitted, it is irreversible. Optimistic Rollups require waiting through a dispute period (usually several days) for full confirmation.

Trust assumptions: ZK Rollups do not rely on validator honesty, purely based on mathematical proofs; Optimistic Rollups assume at least one honest validator exists.

Privacy protection: Transactions in ZK Rollups are hidden within proofs, offering higher privacy; Optimistic Rollups have fully transparent transaction data.

Complexity trade-offs: ZK Rollups are technically more challenging but offer stronger scalability.

ZK Rollup Ecosystem in the Ethereum Ecosystem

By the end of 2025, several mainstream ZK Rollup projects have entered operational stages, and the market landscape is gradually becoming clearer.

Manta Network: Pioneer of Privacy DeFi

Native token: MANTA (circulating market cap $33.95M) Launch date: September 2023

Manta Network introduces privacy protection into DeFi transactions using zk-SNARKs technology. Users can perform encrypted asset swaps in fully private states, with transaction details encrypted but verifiable. Within a short time since launch, its TVL has surpassed Coinbase’s Base, rising to the fourth-largest Layer-2 network on Ethereum.

Key point: Manta’s uniqueness lies in making privacy a core feature of DeFi rather than an optional add-on, and it aims to build a cross-chain privacy layer connecting different blockchain ecosystems.

Linea: The Balance of Speed and Compatibility

Native token: LINEA (circulating market cap $107.71M) Launch date: August 2023

Linea uses zk-SNARKs for transaction verification while maintaining full compatibility with Ethereum development tools. Its announced token airdrop plan was launched in January 2024, providing incentives for ecosystem development.

Core advantage: High transaction throughput and developer friendliness. Linea emphasizes reducing integration costs for developers, making Ethereum application development more efficient.

Polygon zkEVM: A Paradigm of Ethereum Compatibility

Native token: MATIC Launch date: March 2023 (Mainnet Beta)

As Polygon’s flagship product, zkEVM executes transactions in an EVM-compatible environment, then verifies them with ZK proofs. This design allows existing Ethereum contracts and development tools to migrate without modification.

Unique advantage: Thanks to Polygon’s ecosystem network effects and multi-solution integration, zkEVM offers a full-featured Layer-2 environment. For developers familiar with Ethereum, migration costs are minimal.

StarkNet: The Ambitious General-Purpose Computation

Native token: STRK (circulating market cap $396.83M) Launch date: February 2022

StarkNet is based on STARKs technology (distinct from zk-SNARKs), a trustless zero-knowledge proof system. It supports general-purpose computation, meaning any smart contract can run on it.

Technical highlights: STARKs are quantum-resistant, ensuring long-term security; they also do not require complex trusted setup ceremonies, simplifying system initialization.

zkSync Era: The Mainstream Driver

Native token: ZKS (total locked value $555 million) Launch date: March 2023

Developed by Matter Labs, zkSync Era aggregates transactions off-chain in batches and submits a single proof to Ethereum. Its EVM compatibility allows developers to deploy without rewriting code.

Market position: Leading in TVL among similar projects, attracting numerous DeFi applications, and becoming the most mature operational example of ZK Rollup.

Scroll: The Pursuer of High Throughput

Native token: Not yet launched Launch date: October 2023 (Bridge deployment)

Scroll compresses transactions using zk-SNARKs and emphasizes full EVM compatibility. It focuses on achieving high throughput while maintaining low costs.

Application scenarios: Optimized for high-frequency DeFi applications and gaming projects.

Aztec Protocol: The Pioneer of Programmable Privacy

Launch time: 2017 Native token: Not yet launched

Aztec’s hybrid public-private architecture allows developers to choose transaction privacy levels. Its innovative Noir programming language simplifies zero-knowledge circuit development, enabling ordinary developers to use ZK technology.

Vision: Fully decentralized core components, aligned with Ethereum’s open and censorship-resistant values.

ZKFair: The Guardian Against Front-Running

Native token: ZKF (market cap $163 million) Launch time: December 2023

ZKFair is a decentralized exchange that innovates by using zero-knowledge proofs to prevent front-running and transaction order manipulation.

Market pain point solution: In traditional DEXs, miners or validators often exploit information advantages to front-run profitable trades. ZKFair ensures fairness in transaction sequencing through cryptographic methods.

DeGate: Optimization for Large Transactions

Native token: DG (market cap $21.14 million) Launch date: September 2022

DeGate V1 is based on ZK Rollup technology, focusing on providing low slippage and low cost for large trades. Its batch processing runs off-chain, reducing institutional trading costs.

Positioning: An optimized decentralized exchange tailored for large-volume trading needs.

ZetaChain: The Cross-Chain Interoperability Bridge

Native token: ZETA (circulating market cap $80.78M) Launch date: February 2021

ZetaChain innovatively developed a “universal bridging” technology based on ZK Rollup, using zk-SNARKs to verify cross-chain transactions without revealing keys.

Core advantage: Breaks the limitations of DApps being confined to a single blockchain, enabling seamless use of assets and data across multiple chains. Its unique “ZetaML” technology supports off-chain smart contract execution.

Taiko: The Breakthrough in Decentralized Ordering

Launch date: January 2024 (Testnet) Funding scale: $37 million

Taiko stands out in the Rollup field with its innovative “Layer 1-based ordering mechanism.” Traditional Rollups rely on centralized sequencers to bundle transactions, while Taiko’s sequencer is driven by the underlying L1 blockchain.

Technical breakthrough: This design eliminates the censorship risk and single point of failure associated with centralized sequencers. It also simplifies Layer-2 trust assumptions, lowering the barrier for developers.

Current Core Challenges Facing ZK Rollup

Despite promising prospects, ZK Rollup technology still faces the following bottlenecks:

Technical complexity: Advanced cryptography foundations make implementation and maintenance challenging, requiring more specialized talent.

Application flexibility: Some transaction types are inefficient to process, limiting the scope of applicable scenarios.

Data availability requirements: The data corresponding to Rollup transactions must remain accessible, posing data management challenges.

Proof generation efficiency: Creating cryptographic proofs is resource-intensive, potentially becoming a bottleneck.

User education and adoption: The ecosystem needs broad user base and infrastructure support; building trust takes time.

Governance mechanism design: Protocol upgrades and rule changes require ensuring decentralization, security, and efficiency.

Economic feasibility: Although the goal is to reduce costs, operational expenses may still impact long-term sustainability.

Future Development Directions of ZK Rollup

Industry R&D is heading toward several breakthroughs:

Simplifying complexity: Improving cryptographic tools and development frameworks to lower technical barriers.

Enhancing Ethereum integration: Promoting asset and application migration across layers to build a unified ecosystem.

Liquidity aggregation: Innovative bridging and swapping mechanisms to overcome liquidity fragmentation.

Cross-Rollup communication: Establishing seamless cooperation mechanisms among different ZK Rollups.

With ongoing research investment and ecosystem collaboration deepening, ZK Rollup is expected to become a key catalyst for large-scale blockchain adoption, ushering in a new era of high throughput, low cost, and strong security applications.

Summary

ZK Rollup technology represents the latest achievement in blockchain scalability exploration. By efficiently processing transactions off-chain while ensuring main chain verification, they are building a more scalable, efficient, and secure Ethereum ecosystem.

From Manta Network’s privacy innovations to Taiko’s decentralized ordering breakthroughs, projects are advancing ZK Rollup technology from different angles. These developments clear obstacles for widespread blockchain application adoption and unleash the true potential of the technology.

Looking ahead, ZK Rollup will become a crucial bridge connecting the Ethereum mainnet and application layer, reshaping the value flow within the blockchain ecosystem.