Exploring ZkSync: An Ethereum Layer-2 Solution for Scalability

Ethereum is one of the most popular blockchain platforms in the world. However, it has a scalability problem. The Ethereum mainnet can only process about 15 transactions per second (TPS). This is not enough to support the growing demand for decentralized applications (DApps).
There are a number of Layer-2 solutions that are being developed to address Ethereum's scalability problem. ZkSync is one such solution. It is a zkRollup-based Layer-2 solution that offers a number of advantages over other Layer-2 solutions.
In this blog post, we will take a closer look at ZkSync. We will discuss what it is, how it works, and its advantages. We will also discuss the future of ZkSync.
Problem
Ethereum is a powerful blockchain platform, but it is also limited in its scalability. The Ethereum mainnet can process only about 15 transactions per second, which is not enough to support the growing demand for decentralized applications (DApps).
What is zkRollup?
A zkRollup is a type of rollup that uses zero-knowledge proofs to verify transactions off-chain. This allows zkRollups to achieve much higher throughput than traditional rollups, which use fraud proofs.
Zero-knowledge proofs are a cryptographic technique that allows someone to prove that they know something without revealing what that something is. In the context of zkRollups, this means that users can prove that they have completed a transaction without revealing the details of the transaction.
What is ZkSync?
ZkSync is a zkRollup-based Layer-2 solution for Ethereum. zkRollups are a type of Layer-2 solution that use zero-knowledge proofs to verify transactions off-chain. This allows zkRollups to achieve much higher throughput than Layer-1 solutions, such as the Ethereum mainnet.
ZkSync is built on top of the Ethereum Virtual Machine (EVM). This means that developers can easily port their DApps to ZkSync. ZkSync also supports a number of features that are important for DApps, such as gasless transactions and private transactions.
Solution
zkSync addresses the scalability problem by moving transactions off the Ethereum mainnet and onto a Layer-2 sidechain. This sidechain uses ZKPs to verify transactions without the need to publish the entire transaction history to the mainnet.
How it Works
zkSync uses a two-stage process to process transactions:

• Off-chain execution: Transactions are first executed off-chain, in a trusted environment. This allows for faster processing and lower fees.
• On-chain verification: The results of the off-chain execution are then verified on the Ethereum mainnet using ZKPs. This ensures that the transactions are valid and secure.

How does ZkSync work?
ZkSync works by using a combination of zkRollups and a secure off-chain execution environment. Users submit transactions to ZkSync's off-chain execution environment. These transactions are then processed by a network of zkSync validators.
The zkSync validators use zero-knowledge proofs to verify the transactions. These proofs are then submitted to the Ethereum mainnet. The Ethereum mainnet then confirms the transactions and updates the state of the blockchain.
Advantages of ZkSync
ZkSync offers a number of advantages over other Layer-2 solutions. These advantages include:

• Scalability: ZkSync can achieve throughput of up to 2,000 TPS. This is much higher than the throughput of the Ethereum mainnet.
• Security: ZkSync uses zero-knowledge proofs to verify transactions. This makes it one of the most secure Layer-2 solutions available.
• EVM compatibility: ZkSync is compatible with the Ethereum Virtual Machine (EVM). This makes it easy for developers to port their DApps to ZkSync.
• Gasless transactions: ZkSync transactions do not require gas. This makes them much cheaper than transactions on the Ethereum mainnet.
• Private transactions: ZkSync supports private transactions. This allows users to keep their transactions private.

ZKSync Benefits
ZKSync offers a number of benefits over other Layer 2 scaling solutions. These benefits include:

• High throughput: ZKSync can process up to 2,000 transactions per second. This is a significant improvement over the Ethereum mainnet, which can only process about 15 transactions per second.
• Low fees: ZKSync fees are typically much lower than Ethereum mainnet fees. This makes it more affordable for users to use dApps on ZKSync.
• Security: ZKSync is secure because it is built on top of the Ethereum mainnet. The Ethereum mainnet is secured by a decentralized network of miners, which makes it very difficult to attack.

ZKSync Use Cases
ZKSync can be used for a variety of applications, including:

• Decentralized finance (DeFi): ZKSync can be used to provide DeFi services, such as lending, borrowing, and trading.
• Non-fungible tokens (NFTs): ZKSync can be used to create and trade NFTs.
• Gaming: ZKSync can be used to create and play blockchain games.

ZKSync Adoption
ZKSync is gaining traction among developers and users. A number of dApps are already being built on ZKSync, and the number of users is growing.
In December 2023, ZKSync announced that it had raised $100 million in a Series B funding round. This funding will be used to accelerate the development of ZKSync and to support the growth of the ZKSync ecosystem.



ZkSync's Ecosystem
The ZkSync ecosystem is growing rapidly, with a number of projects already built on the platform. These projects include:

• DeFi: ZkSync is a popular choice for DeFi applications, such as decentralized exchanges, lending platforms, and derivatives markets.
• NFTs: ZkSync is also a good choice for NFT applications, as it offers high speeds and low fees.
• Gaming: ZkSync is well-suited for gaming applications, as it can provide fast and reliable transactions for in-game assets.

ZkSync's Future
ZkSync is still under development, but it has the potential to become a major player in the Ethereum scaling landscape. Matter Labs is working on a number of improvements for ZkSync, including:

• Increased scalability: Matter Labs is working on reducing the cost of ZkSync transactions, which will make it more affordable for mass adoption.
• Improved security: Matter Labs is working on improving the security of ZkSync transactions, making them even more secure than transactions on the Ethereum mainnet.
• Expanded functionality: Matter Labs is working on expanding the functionality of ZkSync, making it possible for more applications to be built on the platform.

If Matter Labs is successful in these endeavors, ZkSync could become the go-to Layer-2 scaling solution for Ethereum

Future Plans
zkSync plans to continue to develop its platform and expand its functionality. The team is working on a number of new features, including:

• EVM compatibility: zkSync will eventually be fully compatible with the Ethereum Virtual Machine (EVM), which will allow developers to deploy existing DApps without making any changes.
• Cross-chain compatibility: zkSync will be compatible with other blockchains, which will allow users to transfer assets between different networks.