The need for scaling solutions for blockchain technology has long been a hotly debated topic.

I think everyone knows that as blockchain networks grow, transactions per second (TPS) has become a critical issue. The current capacity of major blockchains such as Bitcoin and Ethereum is insufficient to handle the transaction volume required for adoption.

For example, Bitcoin processes about 7 transactions per second, while Ethereum processes about 15 transactions per second. In comparison, traditional finance Visa processes about 1,700 transactions per second on average. Without a scaling solution, blockchain cannot compete with traditional financial systems and achieve mass adoption.

As more and more people use the blockchain at once, transaction fees become very high, and then during peak usage times it can hinder users and make small transactions impractical.

Scaling solutions are essential to reduce transaction costs so that blockchain technology can be more widely accessible and used by the general public. Slow transaction times and high fees degrade the user experience, discourage new users, and limit the usability of decentralized applications.

To attract and retain users, blockchain networks must provide seamless, fast, and cost-effective transactions, which can currently only be achieved through effective scaling solutions.

Today we’re comparing zk Rollups on Ethereum and zk Compression on Solana. Both technologies aim to enhance scalability, but they achieve this goal in different ways, reflecting the unique design philosophies and priorities of their respective ecosystems.

Zk-Rollups are L2 scaling solutions that improve the scalability of blockchains by moving computation and state off-chain while storing transaction data in bundled batches on-chain.

They use cryptographic proofs called zero-knowledge proofs to prove the validity of these bundled transactions without revealing the actual data. This ensures the security of the Ethereum mainnet while making transactions on the sidechain faster and cheaper.

The sequencer generates a zk-SNARK proof, a compact cryptographic proof that verifies the validity of a transaction without revealing all the details. And, the proof and the transaction data are submitted to the Ethereum mainnet. Anyone can verify the proof on the mainnet to ensure that the transaction is valid. In case of a dispute, anyone can submit the original transaction data for on-chain settlement, leveraging Ethereum's strong security. Rollup contains a cryptographic proof (specifically a zero-knowledge proof) that verifies the correctness of the bundled transactions. The Ethereum network only needs to verify this proof, rather than each transaction, which greatly reduces the computational load. Transactions are grouped off-chain in a rollup. A zero-knowledge proof is generated to confirm the validity of the aggregated transaction. The proof and minimal summary data are submitted to the Ethereum mainnet for verification. After successful verification, the state on the Ethereum mainnet is updated to reflect the aggregated transaction.

ZKCompression is a technology that reduces data storage costs on the Solana blockchain by storing only a “fingerprint” of compressed data on-chain while maintaining the privacy of the data.

The "ZK" in ZK Compression stands for zero-knowledge, indicating that the privacy of the compressed data is preserved. This approach helps to significantly reduce the amount of data that needs to be stored on-chain, thereby reducing storage costs for developers.

ZK Compression is not an L2 solution, but an upgrade to improve data storage efficiency on Solana.

ZK Compression is not a Layer 2 rollup because, unlike L2 solutions, transaction execution and state storage in ZK Compression happens directly on the Layer 1 (L1) chain.

The key difference is where execution and state are managed. With zk Rollups, these processes occur on auxiliary chains, which periodically send commitments and proofs to the main L1 chain. In contrast, ZK Compression keeps all execution and state on Solana itself, rather than on a separate chain.

This fundamental difference means that while zk Rollups offload some processes to a secondary layer to enhance scalability, ZK Compression optimizes data storage directly on the main blockchain without creating a separate execution layer.

The main difference between zk Rollups on Ethereum and zk Compression on Solana fundamentally lies in their approaches to enhancing blockchain scalability and optimizing data storage:

zk Rollups: Transaction execution and state storage are performed on an auxiliary chain independent of the Ethereum mainnet. The auxiliary chain periodically sends commitments and proofs to the Ethereum mainnet. Only cryptographic proofs and minimal summary data are submitted to the Ethereum mainnet for verification. This approach minimizes the computational load on the mainnet. zk-SNARK (Succinct Non-Crypto Argument of Knowledge) proofs are used to ensure transaction validity without revealing detailed transaction data. This protects privacy while protecting the security of the Ethereum mainnet.

zk Compression: All transaction execution and state storage occurs directly on the layer 1 chain, in this context Solana. No separate auxiliary chains are involved. Only the “fingerprint” (hash) of the compressed data and the corresponding ZK proof are stored on the Solana blockchain. This significantly reduces the amount of data stored on-chain, thereby reducing storage costs.

In summary, both perspectives on scaling highlight the importance of a balanced approach to ensure that blockchain networks can achieve sustainable growth while maintaining their core principles.

Solana’s achievements in this regard make a compelling case for the adoption of advanced scaling solutions across the blockchain industry, paving the way for broader adoption and innovation.