How zkSync makes Layer-2 transactions faster and cheaper

TL;DR:

• zkSync is a Layer 2 protocol that addresses Ethereum’s scalability and cost-effectiveness challenges.
• It uses zk-Rollups to merge layer-2 transactions into a single transaction on the Ethereum blockchain.
• zkSync’s account abstraction feature enables converting private accounts into smart contracts, supporting automatic transfers and member payments.
• It provides greater scalability and lower transaction costs compared to other solutions such as Optimistic Rollup.
• Challenges include compromised security with consensus mechanisms and risk of lost transactions.
• zkSync has had a significant impact on the Ethereum ecosystem, with promising implications for decentralized finance and non-fungible tokens.

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From congestion to efficiency

In the fast-paced world of blockchain technology, scalability and cost-effectiveness have long been among the main challenges preventing widespread adoption. Ethereum, the second largest blockchain platform, has faced inherent congestion due to its ever-increasing popularity. However, the Layer 2 blockchain protocol called zkSync has emerged as a powerful solution to address these limitations, revolutionizing how we transact on the Ethereum network.

Developed by Matter Labs, zkSync is on a mission to drive mass adoption of cryptocurrencies for personal sovereignty. This innovative Layer 2 protocol not only aims to eliminate Ethereum’s congestion, but also strives to scale its core values, unlocking the full potential of trustless blockchain technology.

In this article, we delve deeper into the transformative capabilities of zkSync, and explore how it makes layer-2 transactions faster and cheaper. First, let’s examine how zkSync works.

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Working with zkSync

zkSync is Matter Labs’ first Ethereum Layer 2 product built on the zk Rollups architecture. The zk-Rollup solution enables faster validation of Ethereum transactions at a lower cost through layer-2 scalability. Essentially, it merges a bunch of layer-2 transactions into a single transaction sent on Ethereum’s blockchain.

To validate the correctness of the Rollup block on the main chain, a zero-knowledge proof – called a SNARK-type zero-knowledge proof – is constructed.

Each transaction verification costs significantly more than SNARK verification, and keeping the state off-chain costs less than storing on the EVM.

Furthermore, each zkSync transaction has two components that make it cost-effective:

• On-chain: The validator must pay Ethereum gas to verify each SNARK in a zkSync block. Depending on the current Ethereum gas price, this fee may vary.
• Off-chain: Costs associated with storing state and generating a SNARK (zero-knowledge secure).

Furthermore, the account abstraction (AA) feature of zk-Sync allows users to convert private accounts into smart contracts with their logic by converting externally owned accounts (EOA) to smart contract accounts (CA).

This allows one wallet to support and sponsor another by converting other tokens to ETH against fees. Furthermore, users can save time by pooling transactions and signing them all at the same time instead of processing each transaction individually. Through the AA function, customers can also plan automatic money transfers, renew membership payments, etc

Optimistic rollup projects such as Arbitrum and Optimism, as well as ZK rollup projects such as zkSync and Starkware, are all leading open solutions for Ethereum. However, zkSync claims that ZK Rollups are faster than Optimistic because they don’t have to wait seven days before verifying the transaction’s validity.

Additionally, unlike Optimistic Rollup, ZK Rollup does not require a 7-day waiting period for deposits and withdrawals, leading to higher capital efficiency. All of these lead to greater scalability and lower transaction costs.

Challenges from the complexity of zkSync

The security of zkSync’s consensus mechanism is compromised by consensus networks, such as practical Byzantine fault tolerance (pBFT) and delegated proof-of-stake (DPoS), which are implemented to speed things up. Although the layer-2 network is getting faster, protocols that increase the speed are usually centralized.

Furthermore, it is possible for users to send a transaction intended for an exchange to Layer 2 if some major wallets and exchanges are out of sync, which could cause the transaction to be sent to the wrong device. Because of this, transactions can be lost forever, especially if layer-2 networks do not recognize them.

In addition, the complexity of general EVM poses a major risk to zkSync because it is still in the early stages of development. In the context of transaction processing, these complexities and the need to generate evidence are major challenges.

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The wider implications of zkSync

The emergence of zkSync as a Layer-2 blockchain protocol has undeniably had a profound impact on the Ethereum ecosystem. From its inception as zkSync 1.0 to its evolution to zkSync 2.0, this innovative solution has shown continuous growth and improvement, offering faster and cheaper transactions for Ethereum users. But as we look to the future, the question arises: are zero-knowledge secure systems reliable as a long-term tool?

Since its introduction in 2019, zkSync has shown resilience and persistence in tackling Ethereum’s scalability and congestion issues. Its ability to make transactions more efficient, seamless and cost-effective has positioned it as a promising solution for the blockchain community. Several decentralized applications (DApps) have already embraced the trustless layer-2 protocol, further validating its effectiveness.

While the future of zkSync proof remains an open question, the overall trajectory and progress of zk-Rollups suggests a positive outlook. Moreover, the broader implications of zkSync extend beyond Ethereum, with the potential to transform various sectors, including decentralized finance and non-fungible tokens.

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What is zkSync:

zkSync is an Ether and ERC20 token transfer layer 2 solution. The L2 protocol positions itself as an Ethereum scaling and privacy engine. The project is based on a zero-knowledge (ZK) rollup architecture that allows “unlimited” Ethereum scaling.

Learn more about zkSync:

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