ZKsync, a Layer-2 scaling solution for Ethereum, aims to improve the efficiency and cost-effectiveness of Ethereum transactions by processing them off the main Ethereum chain using zk-rollups. Layer-2 solutions can be likened to an additional freeway running parallel to a crowded highway, allowing more transactions to flow on the main freeway (Ethereum). This additional lane represents the off-chain transaction handling that ZKsync performs with the help of zk-rollups.
The process of ZKsync begins with the accumulation of transactions using zk-rollups, which groups and confirms transactions in batches to alleviate pressure on the Ethereum main chain. ZKsync then generates ZKPs to validate these batches, ensuring the authenticity of the transactions while keeping their details concealed.
The ZK token is integral to ZKsync’s decentralized governance system, providing voting rights to its holders. Users can stake ZK tokens to a ZKsync address, giving the address holder, known as a Delegate, the right to vote on governance proposals. Notably, delegation does not transfer tokens, but only activates voting capabilities for the designated address. The ZK token was launched on Binance on June 17, 2024.
ZKsync conducted an airdrop, distributing 17.5% of the total ZK tokens to wallets and contributors who met specific conditions, such as porting assets to ZKsync Era, engaging in smart contracts, transacting through paymasters, trading ERC-20 tokens, providing liquidity, holding particular NFTs, or participating in the ZKsync Lite platform.
Controversy has arisen over the fairness and execution of the ZKsync airdrop, particularly due to concerns about preventing Sybil attacks. Furthermore, ZKsync and optimistic rollups are two different approaches to transaction integrity and settlement. Optimistic rollups rely on nodes to validate transactions, while ZKsync employs ZKPs for increased accuracy and faster settlement times.
ZKsync’s use of zk-rollups helps reduce transaction fees and time taken on the main Ethereum network, allowing for more users and decentralized applications (DApps) to be accommodated. Additionally, its compatibility with the Ethereum Virtual Machine (EVM) makes it easy for developers to transition their DApps to ZKsync without extensive code modifications.
In conclusion, ZKsync’s utilization of zk-rollups and ZKPs in a Layer-2 design enhances transaction speed and reduces costs on the Ethereum network. This approach offers increased security and faster settlement compared to optimistic rollups, presenting a promising solution to blockchain scalability issues.
