Ethereum Layer 2 Ecosystem Breakthrough: 2025 ZK Rollups Project Panorama Scan

Why ZK Rollups Are the Hope for Ethereum Scalability

As the mainstream platform for blockchain applications, Ethereum faces an unavoidable contradiction— the more active the network, the higher the transaction fees and the slower the confirmation times. Although Ethereum 2.0 upgrades are being rolled out in phases, it remains challenging to solve scalability issues in the short term. In this context, Layer 2 solutions have emerged, among which ZK Rollups are gradually becoming the preferred choice for developers and users due to their unique technical advantages.

Compared to other Layer 2 solutions, ZK Rollups have clear advantages in security, transaction certainty, and privacy protection, driving large-scale adoption within the Ethereum ecosystem.

How ZK Rollups Work: From Complex to Simple

Core Concept Breakdown

Imagine the Ethereum mainnet as the city’s administrative center—important but congested. ZK Rollups are like efficient offices on the city’s outskirts, handling transactions off-chain efficiently and submitting the results back to the mainnet for verification.

The core innovation of ZK Rollups lies in using Zero-Knowledge Proofs—a powerful cryptographic tool that can prove the integrity and validity of a batch of transactions without revealing specific transaction details. These proofs are concise and lightweight, significantly reducing the data storage burden on the mainnet while enabling ultra-fast transaction processing.

Four Stages of Operation

ZK Rollups operate through collaboration between on-chain smart contracts and off-chain virtual machines:

1. Rules Definition Layer: Smart contracts on Ethereum mainnet specify the transaction rules and validation standards for ZK Rollups.
2. Batch Processing Layer: Transactions are executed in an off-chain virtual machine, greatly reducing costs and significantly increasing speed.
3. Proof Generation Layer: The system generates cryptographic proofs to verify the validity of the entire batch of transactions while keeping individual transaction details confidential.
4. On-Chain Verification Layer: The proofs are submitted to the mainnet and confirmed by validators, ensuring the integrity of off-chain transactions.

This architecture’s advantage is that the mainnet only needs to store key data and verification proofs, while most transaction computations are done off-chain. As a result, transaction throughput is greatly increased, network congestion is alleviated, and user costs decrease.

Advantages of ZK Rollups Compared to Other Layer 2 Solutions

Security and Trust Assumptions

Unlike Optimistic Rollups, which require waiting through dispute periods, ZK Rollups achieve immediate finality through zero-knowledge proofs. Optimistic Rollups rely on the assumption that transactions are valid unless challenged, whereas ZK Rollups verify each transaction individually, providing higher security guarantees.

More importantly, ZK Rollups do not depend on trusted intermediaries, eliminating economic trust assumptions, whereas Optimistic Rollups still rely on honest validators.

Privacy and Quantum Resistance

Each transaction’s details are hidden within cryptographic proofs, offering stronger privacy protections compared to Optimistic Rollups. Some ZK Rollups (such as those based on STARKs technology) also possess quantum resistance, safeguarding blockchain security for the future.

Developer Friendliness

Many ZK Rollup projects focus on EVM compatibility, allowing developers to migrate existing Ethereum applications without code modifications.

Notable ZK Rollups Ecosystem Projects to Watch in 2025

Manta Network (Manta Pacific)

Market Cap: $33.76M | Native Token: MANTA | Launch Date: September 2023

Manta Network centers on privacy protection, focusing on confidentiality in DeFi transactions. Its Manta Pacific is an Ethereum Layer-2 solution utilizing zk-SNARKs technology to ensure transaction privacy—users can perform encrypted cryptocurrency trades and swaps in complete privacy, while transaction validity can still be verified.

Since launch, its total value locked (TVL) has quickly risen to become the fourth-largest Layer-2 network on Ethereum. Manta aims to build a unified privacy layer for DeFi applications across various blockchains, filling a market gap.

Core Appeal: In an era where privacy is increasingly valued in DeFi, Manta offers features that many competitors lack—transaction confidentiality.

Linea

Market Cap: $107.43M | Native Token: LINEA | Launch Date: August 2023

Linea is a high-throughput ZK Rollup solution dedicated to improving transaction speed and reducing costs. The project announced an upcoming token airdrop in January 2024, though the specific token utility has not been fully disclosed.

Linea emphasizes ease of developer integration, making it more efficient to build and deploy Ethereum applications. Its main advantages are scalability and transaction throughput, giving it an edge over many competitors.

Polygon zkEVM

Total Locked Value: $115 million | Native Token: MATIC | Launch Date: March 2023

Polygon zkEVM is Polygon’s flagship ZK Rollup, providing scalable and Ethereum-compatible solutions. It executes transactions off-chain within an EVM-compatible environment and then uses ZK proofs to verify validity on-chain, ensuring seamless integration with existing Ethereum contracts and tools.

As part of the Polygon ecosystem, zkEVM benefits from network effects and synergy with multiple solutions, creating a versatile Layer-2 environment for developers.

Unique Advantage: Compatibility with existing Ethereum tools and smart contracts, especially friendly for developers familiar with the Ethereum ecosystem.

Starknet

Market Cap: $396.48M | Native Token: STRK | Launch Date: February 2022

Starknet employs STARKs (Scalable Transparent Arguments of Knowledge)—an advanced zero-knowledge proof scheme. Unlike zk-SNARKs, STARKs do not require trusted setup and are quantum-resistant, providing future-proof security.

Starknet supports general-purpose computation, capable of running any smart contract, making it a versatile platform for developers. It processes transactions off-chain and submits proofs to the Ethereum mainnet, achieving significant scalability.

Key Advantages: The trustless setup of STARKs and quantum resistance give Starknet a long-term security edge over similar projects.

zkSync Era

Total Locked Value: $555 million | Native Token: ZKS | Launch Date: March 2023

zkSync Era, developed by Matter Labs, is one of the most mature projects in the ZK Rollup space. It uses zkRollup technology, focusing on scalability and user experience while maintaining Ethereum compatibility.

It processes transactions off-chain and batches them into a single proof submitted to the Ethereum mainnet. Its key feature is maintaining EVM compatibility—allowing developers to migrate to Layer-2 without rewriting code, which is a major advantage.

Key Advantages: Mature tech stack, extensive developer support, and seamless compatibility with Ethereum smart contracts.

Scroll

Total Locked Value: $63.46 million | Release Date: October 2023

Scroll focuses on high throughput and low latency, utilizing zk-SNARKs to compress transactions. Transactions are executed off-chain and summarized into a single proof, then submitted to the Ethereum mainnet for validation.

Scroll emphasizes EVM compatibility, enabling existing Ethereum smart contracts to be easily ported to its platform. Its goal is to provide a high-throughput, low-cost alternative for DeFi applications and high-volume use cases.

Aztec Protocol

Native Token: Not yet launched | Launch Date: Started in 2017

Aztec innovatively adopts a hybrid public-private ZK Rollup model, allowing smart contract logic to run in both public and private modes while maintaining Ethereum’s security. Privacy is optional, supporting a range of applications from confidential transactions to anonymous voting.

Its core feature, Noir, is a programming language for writing zero-knowledge circuits, greatly simplifying ZK proof application development. The protocol aims for full decentralization upon mainnet launch, aligning with Ethereum’s open, censorship-resistant, permissionless ethos.

Main Advantages: Programmable privacy, hybrid model support, and lowering barriers for ZK app development with Noir language.

ZKFair

Market Cap: $163 million | Native Token: ZKF | Launch Date: December 2023

ZKFair is a decentralized exchange built on ZK Rollups, dedicated to ensuring fair trading and preventing front-running. It uses zero-knowledge proofs for off-chain transaction processing and batch submission to Ethereum.

Its core innovation is preventing transaction order manipulation— a common issue in traditional DEXs. ZKFair’s design eliminates front-running, providing a fairer trading environment.

Main Advantages: Anti-front-running features, appealing to users who prioritize transaction integrity.

DeGate V1

Market Cap: $21.14 million | Native Token: DG | Launch Date: September 2022

DeGate V1 is built on ZK Rollup technology, using zero-knowledge proofs to batch multiple transactions off-chain and then submit them to the Ethereum mainnet. This reduces costs, increases efficiency, and maintains security.

Its unique selling point is focusing on low slippage and low-cost trading for large transactions, aiming to be an optimized decentralized exchange.

ZetaChain

Market Cap: $80.87M | Native Token: ZETA | Launch Date: February 2021

ZetaChain has pioneered a general bridging technology based on ZK Rollup, enabling secure and efficient cross-chain communication. Using zk-SNARKs, it can verify transactions on one chain from another without revealing sensitive information.

This technology facilitates seamless asset and data transfer across different blockchains. ZetaChain also features ZetaML, a system for off-chain smart contract execution, further expanding its application potential.

Main Advantages: Focus on interoperability and cross-chain functionality, allowing dApps to seamlessly utilize assets and data across multiple blockchains.

Taiko

Launch Date: January 2024 (Testnet)

Taiko is pioneering the Ethereum ecosystem with its innovative ZK-EVM and ZK Rollup technology. The protocol is fully compatible with Ethereum, allowing existing dApps to deploy seamlessly without modifications, ensuring smooth developer transition.

Having raised $37 million in two funding rounds, its notable breakthrough is the Layer 1-based sequencer—driven by a bottom-layer Layer-1 blockchain rather than a centralized entity. This approach addresses common issues in current Rollup tech, such as centralization risks and censorship vectors associated with sequencer nodes.

Core Advantages: Layer-1-based sequencing simplifies the Layer-2 value chain, optimizes trust assumptions, and lowers barriers for developers to adopt.

Current Challenges Facing ZK Rollups

Despite their enormous potential, ZK Rollups still face several obstacles:

Technical Complexity: Implementation and maintenance are complex; infrastructure is still evolving.

Functional Limitations: Not efficient for certain transaction types, limiting application scenarios.

Resource Intensity: Generating cryptographic proofs can be resource-heavy, potentially impacting efficiency.

User Adoption: Requires broad user trust and ecosystem integration.

Governance: Protocol upgrade decisions need effective decentralized governance frameworks.

Economic Feasibility: While aiming to reduce costs, operational expenses may pose challenges.

Future Directions for ZK Rollups

The future of ZK Rollups is full of opportunities. Current development efforts focus on simplifying technical complexity, deepening integration with Ethereum, and overcoming liquidity fragmentation.

With steady growth and ecosystem collaborations, ZK Rollups have the potential to revolutionize Ethereum and the broader blockchain scalability landscape, ushering in a new era of high-speed, low-cost, and secure applications.

Summary

ZK Rollups are reshaping Ethereum’s scalability landscape. By efficiently processing transactions off-chain while ensuring security and data integrity, these innovations promise a more scalable, efficient, and robust Ethereum ecosystem.

Their ability to overcome current limitations opens new pathways for large-scale blockchain adoption, unlocking full potential, empowering users, and redefining how we interact with digital assets. In the Ethereum ecosystem of 2025, ZK Rollups will undoubtedly be one of the most noteworthy developments to watch.