zkSync(ZK)

What Is ZKsync?

An innovative Layer-2 (L2) solution, the ZKsync Era ecosystem is a math-secured verifiable network that is ever-expanding and that implements unique solutions to scale Ethereum. It supports Ethereum Virtual Machine (EVM) compatibility for the network. 

The ecosystem also consists of a comprehensive suite of tools and services. These include wallets, bridges, and explorers, among others. ZKsync also supports several decentralized applications (dApps) and projects. 

ZKsync Era offers a main benefit to those who develop EVM dApps: they may effortlessly port to the ecosystem and see notably lower gas fees and higher transaction rates per second. This comes all while adopting the decentralization and security of the Ethereum blockchain.

The network has facilitated over 400 million transactions, hosts more than 7 million addresses, and has around $813 million as total value locked.  

Background and Development of ZKsync

The L2 network was invented by Germany-based Matter Labs to boost the scale of the Ethereum blockchain. The project started in 2019 and went on until the first version, zkSync 1.0 or zkSync Lite, was released in 2020. This early version of the technology was capable of scaling more than 2,000 transactions per second (TPS). 

However, with the growth of the network, there was a need to deliver higher throughput. This led to the development of the zkSync 2.0, or ZKsync Era. According to Matter Labs, the ecosystem's ZK Rollup technology, which will be elaborated later, is capable of hitting more than 100,000 TPS without sacrificing programmability, scalability, decentralization, and security. 

How ZKsync Era Works 

In the field of L2 technologies, ZKsync Era is a massive leap forward. While there is no single all-encompassing solution for all key features in Ethereum, ZKsync has ZK Rollups that attempt to enhance all of the Ethereum network's key aspects. What makes ZKsync Era stand out among the rest is its EVM compatibility, ethos compatibility with being decentralized and open-sourced, certainty due to its ZK proofs, and claim of future improvements without having to alter code.

ZK Rollup is a scalability method that allows faster transaction validation for a cheaper rate. It leverages cryptographic techniques, called zero-knowledge (ZK) proofs, to make sure that transaction processing over the Ethereum blockchain is efficient, secure, and does not reveal any details about the transaction. ZK Rollups aggregate the data of the transaction and provide it to a main chain, like Ethereum, for it to undergo final validation. 

The ecosystem's architecture that enables ZK proof generation is known as ZKsync VM. This works to trace smart contracts that were initially coded for EVMs. This architecture inherits the invariants and programming models of EVMs. One of its crucial aspects is that it may support rollbacks and transactions that are potentially revertible. 

ZK EVM also sits at the core of the ZK Stack. This is meant to run transactions while keeping full Ethereum compatibility, allowing seamless interaction and integration with the wider Ethereum network.

ZKsync has also introduced ZK Nation, which is meant to unite organizations, individuals, and technologies for realizing the ZK Credo and accelerating innovation. It serves as a community-driven governance system for driving the protocol's continuous development.

ZK Token

ZKsync has its own token, the ZK token, for protecting, governing, and growing the protocol. By maintaining decentralization, this governance token comes to ensure that the network stays censorship-resistant and trustless. 

With the ZK token, holders may introduce and also vote on upgrades over the protocol. They can also pay network fees through the native account abstraction of the network. 

The token's total supply is 21,000,000,000, with around 67% being allocated to the community. The remaining 17.2% and 16.1% are allocated to investors and the team at Matter Labs, respectively. 

Should You Invest in ZK Token? 

Frequently Asked Questions 

What Are Layer-2 Networks?

Layer-2 (L2) networks are inherently off-chain technologies or networks that are developed over a Layer-1 (L1) blockchain. The L2 network usually serves as a different blockchain that goes beyond the L1 network and gets the latter's guarantees of security. In most cases, L2 protocols operate on smart contracts for their networks. 

These solutions are usually aimed at addressing scalability issues faced by L1 blockchains. While Ethereum and Bitcoin, for instance, have seen remarkable advancements, they are still faced with notable scalability limitations. 

With L2 networks, like ZKsync Era, transaction processes are expedited and executed with lower fees, all while maintaining the network's security. In the case of ZKsync Era, these addressed scalability issues pertain to the Ethereum network.

Is ZKsync Era Decentralized? 

ZKsync has released its own native governance token, the ZK token. Up to 67% of the token's supply has been allocated to the community. With this governance token, holders are given the privilege and right to participate in voting and introducing upgrades to the ecosystem. 

The protocol has also introduced ZK Nation, which would play a vital role in the ecosystem's community-driven governance.

The ecosystem mainly aims to boost the throughput of Ethereum all while keeping the network's ethos of security, self-sovereignty, and decentralization. 

Where Can You Buy ZK Token?

The ZK token is listed on different centralized exchanges, such as Binance, Bybit, and MEXC. The governance token is also listed on decentralized exchanges, such as Jupiter and OpenOcean, wherein transactions directly take place through peer-to-peer trading.