Crypto:
30336
Bitcoin:
$64.991
% 0.08
BTC Dominance:
%54.2
% 0.09
Market Cap:
$2.37 T
% 0.16
Fear & Greed:
60 / 100
Bitcoin:
$ 64.991
BTC Dominance:
% 54.2
Market Cap:
$2.37 T

What’s ZkSync?

Zksync

SyZkSync is a scaling protocol that uses ZK-Rollup technology on the Ethereum layer 2 blockchain. With the recent 2.0 update, explanations about the usage agreement on the mainnet are in our article.

What Is ZkSync?

Before reviewing the project, we should understand how ZK-rollups (zero-knowledge rollups) work. ZK-rollups use proof-of-truth systems to verify transactions without revealing any sensitive information.

ZK-Rollups use a cryptographic proof called ZK-SNARK to encrypt and authenticate transactions on a blockchain. This allows users to make transactions in a fully encrypted format, while still maintaining the security and transparency of the blockchain.

ZkSync is a layer-2 scaling solution that uses ZK-Rollup technology to improve the scalability and efficiency of Ethereum.

The main purpose of the protocol, the first version of which was released in June 2020, is to: 

• Provide a reliable and user-friendly way to make transactions on Ethereum.

 • Offer low-cost, fast processing.

• Make financial products accessible to a wider audience.

ZK-Rollup technology enables fast withdrawals because of its high transaction capacity. Users can transact on ZkSync in about 10 minutes, which does not affect the availability of the network. Transactions submitted by users to ZkSync are instantly confirmed, displayed to the recipient side in the UI and API, and transferred assets can be used to make further transfers immediately.

Security and ZkSync Council

To prevent users from being harmed in case of problems that may arise in the protocol, ZkSync developers have created a group called the Security Council. The Security Council will have a 4-week wait period before fixing issues and releasing an update. Users will be able to withdraw their assets via the “emergency exit” mechanism during this time.

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What’s Zksync?

The Security Council is a group of 15 members who have the power to shorten the 4-week waiting period in case of problems. The amount of time that the waiting period is shortened is decided by a unanimous vote of the Security Council.

  • If 8 out of 15 members of the Security Council vote to shorten the waiting period, it will be extended to 2 weeks.
  • If 10 out of 15 members of the Security Council vote to shorten the waiting period, it will be extended to 1 week.
  • If 12 out of 15 members of the Security Council vote to shorten the waiting period, it will be reduced to 3 days.

Once the system is considered reliable enough, the Security Council will no longer have the ability to shorten the 4-week waiting period.

Another important feature of the project is zkEVM. ZkSync protocol makes the Ethereum Virtual Machine (EVM) compatible with ZK-Rollup. This is also called zkEVM for short. With zkEVM, the codes of Ethereum applications can be run on ZK-Rollup, which allows reaching a transaction speed of 2000 TPS.

The company has also announced the ZkPorter project, which aims to increase transaction speed to 20,000 TPS in the future.

You might also like: What is Trust Wallet? What Makes It Unique?

ZkSync Developers

ZkSync is being developed by Matter Labs, a team of experienced engineers and entrepreneurs. The team includes Steve Newcomb, who founded Powerset, which was acquired by Microsoft and later became part of Microsoft Bing. Anthony Rose, the Head of Engineering, led engineering teams at SpaceX for several years and developed software for Falcon, Dragon, and Starlink.

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Does ZkSync have a native token?

No, ZkSync does not have a native token yet. However, the developers have stated that they plan to create a token that will be used for staking and validating transactions.

Supporters of the project

ZkSync is supported by a number of well-known organizations, including Binance Labs, the Ethereum Foundation, and Coinbase. The company has raised over \$258 million in funding from venture capital firms and crypto companies.

Additionally, the company raised $2 million in September 2019 and $6 million in February 2021 from crypto companies such as Binance, Aave, Curve, and Coinbase Ventures. In November 2021, a16z led a $50 million round of funding with participation from venture capital funds like Dragonfly and Placeholder. In January 2022, the company received an additional $200 million in support from BitDAO.

What’s Zksync?

Overall, ZkSync has raised over $258 million in funding from a variety of investors. This funding will be used to develop the ZkSync platform and bring it to market.

When will ZkSync 2.0 be released? What’s their roadmap?

ZkSync 2.0 was released on testnet in the past months. The company has released many updates since then, and it is scheduled to launch on mainnet on October 28. The ZkPorter project is expected to be implemented after a while. You can access the updates and detailed roadmap here.

Projects in Ecosystem

There are various DeFi projects built on the ZkSync protocol, such as Curve, Yearn Finance, ZigZag, Mute.io, Taker, wallet applications, and various NFT projects such as Reddio, Homespace, Tevaera, tofuNFT. For detailed information, you can check the websites here.

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You can learn all the news, announcements, and analyses about ZkSync by following our Telegram and YouTube channels.

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