Blockchain technology has introduced a transformative approach to transaction processing by leveraging a decentralized and secure system for exchanging data without intermediaries.
However, Layer 1 (traditional) blockchains have limitations that hinder their scalability and adoption rates. Here comes the role of Layer 2 solutions, such as Zksync, which aims to address these issues by improving transaction speeds, reducing fees, and enhancing user privacy by utilizing cutting-edge methods to facilitate quick and safe transactions, such as offloading transactions from the main blockchain and using zero-knowledge proofs.
The Flaws with Layer 1 Blockchains
Traditional (Layer 1)blockchains are facing several challenges related to scalability, transaction speed, and fees. With more users joining the network daily, traditional blockchains struggle with handling increased traffic on the chains leading to slower transaction speeds. Moreover, miners’ fees increase due to high demand resulting in higher costs for users when conducting transactions on-chain, with these limitations affecting the blockchain user experience.
What is zkSync?
zkSync is a Layer 2 scaling solution for Ethereum that enables fast and secure transactions using zero-knowledge proofs. By offloading transactions from the main Ethereum blockchain, zkSync reduces congestion and transaction fees, making it a practical solution for decentralized applications and smart contracts. zkSync is designed to be compatible with the Ethereum Virtual Machine (EVM), meaning developers can build dApps on Ethereum and easily integrate them with zkSync.
How does zkSync work?
zkSync uses a technique referred to as Validium to offload transactions from the main Ethereum blockchain; Validium is a Layer 2 scaling solution that uses zero-knowledge proofs to enable fast and secure transactions without compromising user privacy.
On the zkSync platform, users can deposit their Ethereum into a zkSync smart contract, which acts as a temporary holding account for a while. Subsequently, the tokens can then be transferred to other users within the zkSync network rapidly with low fees.
The zero-knowledge proof protocol used in the zkSync network offers robust privacy and security features for transaction processing; this protocol enables the network ledger to keep transaction details confidential and inaccessible to unauthorized parties facilitating the proof of a statement’s truth without revealing any additional information beyond the statement itself. Within the zkSync protocol, the transaction details, such as the parties involved or the amount, can be kept private while still being verified by the network, ensuring the protection of transaction information and maintaining the integrity of the network’s privacy-focused approach.
Once a user requests to withdraw their tokens held by the zkSync smart contract, they can submit a withdrawal request to the main Ethereum Network blockchain. After the user’s request is confirmed, the tokens are transferred freely back to the user’s Ethereum wallet with a minimal gas fee.
Benefits of ZKSync
The first and most significant benefit is that ZKSync enables fast and secure transactions with low fees; since transactions are offloaded from the main Ethereum blockchain, they are processed much faster and with a lower gas fee. This makes zkSync a practical solution for use cases beyond cryptocurrency, such as decentralized finance (DeFi) applications.
Another benefit of zkSync is that it enhances user privacy by keeping transaction details private through using zero-knowledge proofs, making zkSync an attractive option for users concerned about their transactions’ privacy conducted on the decentralized ledger.
ZkSync is built to be compatible with the Ethereum ecosystem, meaning that developers can build dApps on Ethereum and easily integrate them with zkSync eliminating the need to learn a new programming language or platform.
Conclusion
Layer 2 scaling solutions like Zksync offer an effective cure to the challenges faced by traditional blockchains today, resulting from slow transaction times and high fees, among others, due to increased demand in usage trends globally. As discussed previously, Zksync addresses these issues through its technical features, including zero-knowledge proofs, rollups, and promising rollup technologies, significantly improving scalability while maintaining trust and privacy. Therefore it is crucial for developers to always seek ways around optimizing blockchain protocols to reach maximum efficiency without leaving out the user experience, thereby promoting mass adoption of blockchain-based systems worldwide.