Contents:

What is zkSync and how it differs from other L2s?

By:
Andrew Carr
| Editor:
Paul Sazan
|
Updated:
July 31, 2024
|
5 min read

zkSync is here to turbocharge Ethereum, making it faster and cheaper. Created by Matter Labs, zkSync uses zero-knowledge rollups (zkRollups) to handle loads of transactions without breaking a sweat. This means you get quick, low-cost payments while keeping your funds safe. Let's take a trip through zkSync's journey and what makes it tick.

History and Development

Matter Labs, a German company, kicked off zkSync in December 2019. The first version, zkSync 1.0 (or zkSync Lite), hit the Ethereum mainnet in June 2020. It could handle 300 transactions per second (TPS), showing off its muscle in making Ethereum more scalable.

Since then, zkSync has grown up. It moved from zkSync Lite to zkSync Era (zkSync 2.0). This new version plays nice with the Ethereum Virtual Machine (EVM), letting developers use Solidity and other Ethereum languages to whip up smart contracts. This makes it easier and cheaper for developers to jump on board.

Key Features

zkSync packs a punch with several standout features:

  1. Scalability: zkSync can handle over 150 times the transactions of the Ethereum mainnet. More transactions, less congestion.
  2. Low-Cost Transactions: By processing transactions off-chain, zkSync slashes fees. You get to keep more of your money.
  3. Security: zkSync is trustless, meaning your funds stay safe. zkRollups keep your money secure on the main chain while transactions happen off-chain.
  4. EVM Compatibility: zkSync Era (zkSync 2.0) works with the Ethereum Virtual Machine. Developers can use familiar tools and languages like Solidity to build and deploy smart contracts.
  5. Transparency: zkSync leverages Ethereum's transparency. You can trust that your transactions are secure and verifiable.
  6. Developer-Friendly: zkSync supports Ethereum languages and tools, making it easier for developers to migrate existing projects and create new applications.

Applications of zkSync

zkSync is here to turbocharge the Ethereum blockchain, making transactions faster and cheaper. It's a game-changer for decentralized finance (DeFi) and non-fungible token (NFT) marketplaces.

DeFi DApps on zkSync

zkSync is home to a bunch of DeFi apps that thrive on its speedy transactions and low fees. Here are some of the big players:

  • Curve: This decentralized exchange is your go-to for stablecoin trading.
  • Yearn Finance: Think of it as your DeFi autopilot, helping you rake in profits from yield farming. It’s mainly on Ethereum, Fantom, and Arbitrum.
  • ZigZag: A decentralized exchange that makes trading a breeze.
  • Mute.io: Offers a mix of DeFi services like swaps and liquidity pools.
  • Taker Protocol: Perfect for lending and borrowing assets.

NFT Marketplaces on zkSync

zkSync isn't just about DeFi; it's also a hotspot for NFT marketplaces. Artists, collectors, and traders can buy, sell, and trade digital goodies here. Check out these platforms:

  • Reddio: A marketplace for all your NFT trading needs.
  • Homespace: Buy and sell virtual real estate.
  • TofuNFT: Offers a smorgasbord of NFTs.
  • Tevaera: Combines gaming with NFTs for a unique experience.
  • Mintsquare: Mint and trade NFTs to your heart's content.

By supporting both DeFi apps and NFT marketplaces, zkSync is making Ethereum more user-friendly and efficient for everyone.

Evolution of zkSync

The journey of zkSync has been nothing short of impressive, evolving from its humble beginnings to a powerhouse in blockchain tech, making things faster and cheaper for everyone.

From zkSync 1.0 to zkSync 2.0

zkSync started with zkSync Lite (zkSync 1.0) and has now morphed into zkSync Era (zkSync 2.0). The first version hit the Ethereum mainnet in June 2020, aiming to boost transaction speeds and cut down fees using zk-rollups. It was a game-changer for Ethereum users tired of high fees and slow transactions.

Fast forward to March 2023, zkSync 2.0 launched, bringing a whole new level of awesomeness. This version is EVM-compatible, meaning developers can use familiar tools like Solidity to create smart contracts. No more headaches trying to switch from Ethereum to zkSync.

zkPorter: Speeding Things Up

Enter zkPorter, a cool feature in zkSync Era that takes things up a notch. It uses off-chain data storage and Zero-Knowledge Proofs (ZKP) to validate transactions, making everything super fast. We're talking over 20,000 transactions per second fast.

And it doesn't stop there. With future sharding upgrades, zkSync 2.0 could handle more than 100,000 TPS. That's like going from a bicycle to a rocket ship. Plus, it's still compatible with Solidity and Zinc, so developers can go wild with smart contracts.

The leap from zkSync 1.0 to zkSync 2.0, along with zkPorter, is a big deal. It makes blockchain tech faster, cheaper, and more accessible. zkSync is now a major player in the crypto world, offering solid solutions for developers and users.

zkSync in the Crypto Scene

How zkSync Stacks Up Against Other Layer 2 Solutions

zkSync is making waves in the Layer 2 world, especially with its use of zk-rollups. Even though it's third in Total Value Locked (TVL) among L2 solutions, it's the top dog when it comes to zk-rollups. The gap in TVL compared to Arbitrum and Optimism is mostly because they got a head start and have more established ecosystems.

zkSync outshines Optimistic Rollups in transaction efficiency, handling ten times more transactions. This makes zkSync a go-to for high-frequency trading and other scenarios needing quick transaction confirmations.

What's Next for zkSync?

The future looks bright for zkSync with zkSync 2.0 on the way. This update promises to boost the network's capabilities and scalability. One of the most exciting features is sharding, which could let the network handle over 100,000 transactions per second.

zkSync 2.0 will also support arbitrary smart contracts thanks to its compatibility with Solidity, Ethereum's programming language. This is made possible through zkEVM, zkSync's internal programming language, Zinc.

These upgrades make zkSync a strong player in the L2 arena, potentially outpacing other solutions in scalability and functionality.

In a nutshell, zkSync isn't just a leading zk-rollup solution; it's a forward-thinking platform with huge potential for growth and innovation in the crypto market. It offers scalability, low costs, security, and developer-friendliness. It's a solid choice for anyone looking to get the most out of the Ethereum blockchain.

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