Ethereum Layer 2 Evolution: A 2025 ZK Rollup Track Panorama Scan

As the world’s largest smart contract platform, Ethereum is now facing an awkward dilemma—high transaction fees and network congestion becoming the norm. Although Ethereum 2.0 upgrades promise to bring change, Layer 2 scaling solutions have already become the most practical tools to address urgent issues. Among many Layer 2 solutions, ZK Rollup technology is gradually becoming a favorite among developers and traders due to its unique cryptographic advantages.

ZK Rollup: The Underrated Dark Horse of Scaling

What is ZK Rollup? Simply put, it’s a magic that compresses a large number of transactions into one. Imagine queuing at a bank; ZK Rollup is like the bank processing 1,000 transfer orders at once instead of reviewing each one individually.

Its core engine is Zero-Knowledge Proofs, a cryptographic tool that can prove a batch of transactions are valid without revealing any transaction details. These proofs are extremely concise and lightweight, significantly reducing the data load on the mainnet while enabling super-fast transaction speeds. Zero-Knowledge Proofs have three major advantages: integrity (transactions truly occurred), soundness (cannot be faked), and zero-knowledge (details are hidden).

How ZK Rollup Works

ZK Rollup operates through a hybrid architecture of “on-chain rules + off-chain execution”:

1. Smart contract rules: The mainnet contract defines the transaction rules and state transitions of ZK Rollup.
2. High-speed off-chain virtual machine: Transactions are executed at astonishing speed in an off-chain virtual machine, drastically lowering costs.
3. Cryptographic proof generation: The system produces a cryptographic proof verifying the validity of the entire batch of transactions while hiding details.
4. Mainnet verification and confirmation: The proof is submitted to the mainnet for validation, ensuring the integrity of off-chain transactions.

The beauty of this architecture is that the mainnet only needs to verify a concise cryptographic proof instead of checking each transaction individually. The result is increased transaction throughput, alleviated network congestion, and significantly reduced fees.

Why ZK Rollup Wins: Five Core Advantages

1. The Ultimate Form of Scalability

ZK Rollup bundles multiple off-chain transactions into a single transaction, greatly compressing data on the main chain. Through batch processing and off-chain computation, the per-transaction fee can be reduced to one-tenth of the original. For high-frequency trading applications, this is a qualitative leap.

2. Security with Privacy

Cryptographic proofs guarantee security without trusting any third party. Meanwhile, transaction details are hidden within the proof, offering a privacy level far beyond other solutions.

3. Instant Finality of Transactions

Unlike optimistic Rollup, ZK Rollup does not require waiting for dispute periods (usually 7 days). Once the proof is verified, transactions are immediately finalized. Transaction finality occurs within seconds, greatly enhancing user experience.

4. Seamless Compatibility with Ethereum

Most ZK Rollup solutions maintain on-chain data availability and are compatible with Ethereum smart contracts. Developers can easily migrate existing projects without extensive rewrites.

5. Environmentally Friendly and Promoting Interoperability

Efficient transaction processing means lower energy consumption. Some ZK Rollups also support cross-chain interoperability, paving the way for multi-chain ecosystems.

ZK Rollup vs. Optimistic Rollup: Key Differences

Both are Layer 2 solutions, but their approaches differ:

In short, ZK Rollup offers stronger security but with higher technical barriers; optimistic Rollup is easier to use but requires patience for finality.

ZK Rollup Projects to Watch in 2025

1. Manta Network (Privacy DeFi Player)

Key Data: TVL once exceeded $850M, circulating market cap $33.82M, launched September 2023

Manta Pacific quickly rose to become Ethereum’s fourth-largest Layer-2 network, with privacy as its secret weapon.

It uses zk-SNARKs technology to enable users to trade cryptocurrencies with complete privacy. Assets and amounts are encrypted, but transaction validity can be verified. This addresses the long-standing privacy gap in DeFi. Manta also aims to become a privacy layer for multi-chain ecosystems, providing privacy protection for DeFi applications across various blockchains.

Why Follow: Privacy needs are fundamental; Manta is doing what others haven’t.

2. Linea (Developer-Friendly Efficiency Machine)

Key Data: TVL $202 million, market cap $107.32M, launched August 2023

Linea takes a different approach: pursuing maximum efficiency and developer friendliness.

It verifies batch transactions using zk-SNARKs, with a special focus on developer experience. Want to deploy applications on Linea? Compared to other Layer 2s, integration difficulty is significantly lower. This design philosophy has attracted many development teams. Linea also announced a native token airdrop plan, with specific token uses yet to be revealed.

Why Follow: High efficiency + low barrier to entry = potential for rapid ecosystem expansion.

3. Polygon zkEVM (Ecosystem Integrator)

Key Data: TVL $115 million, mainnet beta launched March 2023, native token MATIC

Polygon zkEVM is a new member of the Polygon ecosystem, offering an EVM-compatible ZK Rollup solution.

Its advantage lies in EVM compatibility—transactions are executed off-chain and verified with ZK proofs. This means existing Ethereum contracts and tools can run without modification. Coupled with Polygon’s network effects and integration with other solutions, zkEVM becomes a developer-friendly choice.

Why Follow: Mature ecosystem + strong compatibility = top choice for large projects.

4. Starknet (Guardian of the Quantum Era)

Key Data: TVL $170 million, market cap $396.53M, launched February 2022

Starknet uses STARKs technology, an advanced form of zero-knowledge proofs. Its biggest advantage? No trusted setup required, and it has quantum resistance.

STARKs handle transactions off-chain and submit proofs to Ethereum. Starknet supports general-purpose computation, meaning any smart contract can run. For long-term holders, STARKs’ quantum resistance offers future security.

Why Follow: Cutting-edge technology + future-proofing = a hub for tech enthusiasts.

5. zkSync Era (The Balance Master)

Key Data: TVL $555 million, market cap covers mid-range, full mainnet launched March 2023

Developed by Matter Labs, zkSync Era aims for a balance: scalability, user experience, and perfect compatibility with Ethereum.

It processes transactions off-chain and batches them into a single proof submitted to the mainnet. EVM compatibility means developers can migrate without rewriting code. Low fees and high throughput directly address Ethereum’s two major pain points.

Why Follow: Optimal balance + fastest ecosystem growth among ZK Rollups.

6. Scroll (High-Throughput, Low-Cost Solution)

Key Data: TVL $63.46 million, bridged deployment October 2023

Scroll focuses on one goal: maximum throughput + minimum latency.

It compresses transactions with zk-SNARKs, executes off-chain, and submits cryptographic proofs to the mainnet. EVM compatibility allows seamless porting of existing Ethereum applications. Especially suitable for DeFi and high transaction volume scenarios.

Why Follow: The top choice for performance enthusiasts.

7. Aztec Protocol (Privacy Programming Pioneer)

Launch Date: Since 2017

Aztec pioneered a hybrid public-private ZK Rollup model, allowing applications to choose privacy levels as needed.

Its core highlight is the Noir programming language, simplifying the development of ZK proof circuits. Privacy is optional, supporting diverse applications from private transactions to anonymous voting. The protocol commits to fully decentralized core components, aligning with Ethereum’s open-source and censorship-resistant values.

Why Follow: Programmable privacy = new possibilities for DeFi applications.

8. ZKFair (Guardian of Transaction Fairness)

Key Data: Launched December 2023, native token ZKF, market cap $163 million

ZKFair addresses a very specific pain point: front-running.

It is a decentralized exchange that uses ZK Rollup for off-chain transaction processing. Its core innovation is preventing transaction order manipulation—zero-knowledge proofs ensure fairness in transaction sequencing, making front-running nearly impossible. For traders sensitive to transaction fairness, this is good news.

Why Follow: Filling the gap in DEX fairness = another solution to MEV issues.

9. DeGate V1 (Efficiency Booster for Derivatives Trading)

Key Data: Launched September 2022, native token DG, market cap $21.14M

DeGate V1 is based on ZK Rollup technology, focusing on a differentiated feature: low slippage for large trades.

Its goal is to become the most optimized decentralized exchange, especially serving large traders. The high efficiency of ZK Rollup makes it particularly suitable for derivatives trading, which is cost-sensitive.

Why Follow: A dedicated tool for large traders.

10. ZetaChain (Cross-Chain Interoperability Bridge)

Key Data: Released February 2021, native token ZETA, circulating market cap $80.78M

ZetaChain uses ZK Rollup technology to do something innovative—universal bridging.

Using zk-SNARKs, it can verify the validity of transactions across chains without revealing confidential information. This enables seamless asset and data transfer between different blockchains. It also features “ZetaML,” a technology for off-chain smart contract execution.

Why Follow: Standard-bearer for interoperability in the multi-chain era.

11. Taiko (Decentralized Sequencing Revolution)

Key Data: Testnet launched January 2024, funding $37 million, currently active testnet

Taiko’s biggest innovation is its sequencing mechanism. Traditional Rollup sequencers are centralized entities, which can be vectors for censorship. Taiko makes the sequencer driven by a Layer 1 blockchain, eliminating centralization risks.

Fully EVM compatible, existing Ethereum applications can deploy without modification. This “Layer 1-based sequencing” simplifies trust assumptions and lowers barriers for developers.

Why Follow: Fundamentally solves Rollup centralization issues—an embodiment of decentralization.

The Real-World Challenges Facing ZK Rollup

Despite promising prospects, ZK Rollup still faces practical challenges:

High Technical Barriers: The complexity of cryptography makes implementation and maintenance difficult, with talent scarcity.

Limited Flexibility: Some transaction types are inefficient to process, restricting application scenarios.

Data Management Pressure: Rollup transaction data must be permanently accessible, demanding high data storage.

Proof Generation Costs: Cryptographic computations are resource-intensive; efficiency improvements are needed.

Ecosystem Integration Difficulties: Widespread user adoption and infrastructure support are required; cold start is tough.

Governance Complexity: Protocol upgrade decisions, decentralization, and balancing innovation with stability are long-term issues.

Economic Feasibility: While aiming to reduce costs, operational expenses may erode economic benefits.

The Future Trajectory of ZK Rollup

The development path of ZK Rollup is clear: simplify complexity, deepen integration with Ethereum, and address liquidity fragmentation.

Ongoing research is cracking technical difficulties. Innovations are emerging rapidly, and competition is driving progress across the sector. As the ecosystem matures and collaborations deepen, ZK Rollup has the potential to fundamentally reshape Ethereum’s scalability landscape—ushering in an era of high-speed, low-cost, secure, and reliable blockchain applications.

Final Words

ZK Rollup is not just a simple upgrade; it’s a paradigm shift for the Ethereum ecosystem. By efficiently processing transactions off-chain while maintaining security and data integrity, it promises to create a more scalable, efficient, and robust Ethereum— and even a new era for blockchain applications.

Its ability to break current limitations paves the way for large-scale blockchain adoption. As this technology moves from the fringes to the mainstream, individuals will be truly empowered, and our interaction with the digital world will be redefined. The era of ZK Rollup has arrived— the key question is not “if,” but “when.”