What is zkSync (ZK)? All you need to know about ZK

Among the Layer 2 projects for Ethereum, ZKsync has stood out as a top player, leading the way in creating a solution using Zero-knowledge technology to be compatible with the execution environment through Ethereum’s EVM.

So, what exactly is ZKsync? What sets ZKsync apart from other Layer 2 projects? Let’s dive deeper into the ZKsync project with AZCoin in the article below!

What is zkSync?

zkSync is a reliable layer 2 protocol for low-cost payments, speeding up transaction processes, and enhancing scalability and privacy for Ethereum through Zero Knowledge (ZK) Rollup technology.

It’s a user-centric platform from Matter Labs, focusing on security, user experience, and developer experience. Matter Labs is currently working on developing zkSync 2.0 with two main goals:

• Supporting arbitrary smart contracts through Solidity and Zinc.
• Significantly enhancing processing capabilities through zkPorter – a protocol combining zkRollups and sharding, achieving over 20,000 TPS (transactions per second).

Matter Labs aims for zkSync to become the backbone of Ethereum payments, connecting users, wallets, services, dapps, and exchanges.

The goal of zkSync

• Expansion capability: zkSync aims to address the scalability issue on the Ethereum network, allowing for processing a large number of transactions without overloading the Ethereum mainnet.
• Transaction speed enhancement: zkSync aims to provide the ability to execute Ethereum transactions faster while reducing transaction confirmation times.
• Transaction fee reduction: zkSync helps minimize transaction fees compared to conducting transactions directly on the Ethereum mainnet.

zkSync – Advantages and Disadvantages

Advantages

• High Performance: zkSync offers fast transaction speeds, meeting the demands of DeFi applications and other use cases.
• Low Transaction Fees: Reduced transaction fees enhance accessibility and attractiveness for users.
• Easy Integration: zkSync integrates seamlessly with existing Ethereum applications and smart contracts, opening up opportunities for development and interaction within the blockchain ecosystem.
• EVM Compatibility: zkSync Era’s key proposition is its EVM compatibility through zkEVM. This allows smart contracts on ZK to be compatible with Ethereum’s EVM. Developers can easily build on zkSync Era using Ethereum’s native programming language like Solidity.
• Security: As a Layer 2 ZK-rollup, zkSync leverages Ethereum as its underlying layer. Therefore, zkSync Era relies on Ethereum for protection against network attacks and full-network attacks.
• Open Source and Customizable: zkSync is an open-source protocol, allowing the community to develop and customize it according to the needs of individual applications or projects.

Disadvantages

• Centralization Concerns: Some users are concerned that zkSync could lead to excessive centralization, as the platform’s operation relies on validators or operators. If key validators are compromised or controlled by a third party, it could affect zkSync’s security and trustworthiness.
• Potential Security Risks: While zkSync utilizes zero-knowledge technology to protect privacy and verify transaction validity, the implementation and use of complex software and protocols can still pose security risks. Vulnerabilities and bugs in the source code could be exploited and endanger the system.
• Dependence on Limited Participants: zkSync relies on contributions from validators and operators. This dependence can raise concerns about the compatibility and trustworthiness of these participants.
• Potential for Inaccurate Information: In some cases, when using zero-knowledge technology, there could be inaccuracies in information where the system provides incorrect results regarding the integrity of transactions. This could affect zkSync’s reliability and accuracy.

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How does zkSync work?

zkSync is a Layer 2 scaling solution for the Ethereum blockchain. It aims to provide an open and seamless experience for users, eliminating the need for complex transitions between layers or new addresses.

zkSync achieves this by leveraging Zero Knowledge proofs and on-chain data access. This allows for smooth asset transfers between Layer 1 (Ethereum) and Layer 2 (zkSync), similar to Starknet or Immutable X.

The platform offers significant benefits for both users and developers. It reduces transaction fees by up to 99%, eliminates the need for third-party involvement, provides instant transaction confirmations, and ensures payments can be made to existing Ethereum addresses and smart contracts.

zkSync is a ZK Rollup, a type of Layer 2 scaling solution that uses Zero Knowledge proofs to verify transaction batches on the Ethereum network. This process involves creating a proof of validity for each batch, which is then submitted to Ethereum for finalization. In zkSync, this is achieved through a SNARK (Succinct Non-interactive Argument of Knowledge).

The project’s potential to improve user experience, explore DeFi advancements, and reduce costs makes it a significant development in the Ethereum ecosystem.

ZKsync Token Information

• Token Name: ZKsync Token
• Ticker Symbol: ZK
• Blockchain: ZKsync
• Token Standard: ERC-20
• Smart Contract: [To be updated]
• Token Utility: Utility, Governance
• Total Supply: 21,000,000,000 ZK

ZK Token Allocation

Community (66.6%):

• Airdrop (17.5%): 89% for users, 11% for contributors
• Ecosystem Initiatives (19.9%)

Team & Investors (33.3%)

• Team (16.1%)
• Investors (17.2%)

Airdrop Details

ZKsync has previously announced an airdrop distribution, allocating 66.6% of the total supply to the community and 33.3% to investors and the development team. They have also revealed 13 projects eligible for the airdrop and provided information on the criteria and amount of ZK allocated to eligible wallets.

The progress and development of ZKsync during the first half of 2024

According to data from DefiLlama, the total value locked (TVL) on ZKsync fluctuated between $123 million and $182 million during the first six months of 2024.

Furthermore, the ZKsync ecosystem is rapidly expanding, with over 100 projects already developed and integrated into the platform.

ZKsync is a project with high potential. We recommend you review our Evaluation Process to choose the right exchange for you.

Summary

This article provides a comprehensive overview of ZKsync, a pioneering project in the development and application of ZK-Rollups technology within the blockchain space. ZKsync aims to address the challenges of high gas fees and slow transaction speeds on the Ethereum network.