ZKsync (ZK)
Zero-knowledge rollups have risen as a game-changing solution on Ethereum, as they offer scalability, privacy, as well as increased transaction speeds and reduced fees. Despite all these new capabilities, there has been a problem due to the lack of compatibility with the Ethereum Virtual Machine (EVM) – the core instrument for building and deploying dApps on Ethereum. But this is becoming a thing of the past…
Join us in this article as we dive into ZKsync, a zero-knowledge Layer 2 on Ethereum that aims to scale the network and bring adoption through its EVM compatibility, and we’ll also guide you on how you can build on the network.
ZKsync is a Layer 2 scaling solution built to make transactions on Ethereum faster and cheaper by processing them off the main chain using zero-knowledge rollups technology.
Zero-knowledge rollups, or ZK Rollups, utilize sophisticated cryptographic methods known as zero-knowledge proofs (ZKPs) which verify the correctness of each transaction within the rollup without disclosing any transaction details.
ZKsync utilizes SNARK (Succinct Non-interactive Argument of Knowledge) as a recursive method of verification and as its zero-knowledge proof mechanism.
SNARKs enable recursive verification of other SNARKs that verify recursively other SNARKs and that can build a pyramid that is arbitrarily scalable. Meaning that you can verify all of the world’s transactions that are happening on blockchain in basically 30 milliseconds and from your smartphone- Alex Gluchowski.
At the time of writing, ZKsync ranks among the top Layer-2 networks (on Ethereum) and has a very high activity (transactions per second). It has handled over 400 million transactions across over seven million addresses, and has a total value locked of over $750 million and rising.
This review of ZKsync (ZK) was created for informational purposes. This article is not intended for promotion.
The idea of ZKsync was introduced in 2019 by the German-based engineering team, Matter Labs, and since then has evolved into the following main versions: ZKsync 1.0, ZKsync 2.0, and ZKsync 3.0.
To start at its history, we take a look at the first version of ZKsync that was introduced in June 2020 and later renamed to ‘ZKsync Lite’. It was a Layer 2 solution primarily focused on secure and cost-effective token transfers via Ethereum and back in the day, it could conduct up to 3000 transactions per second (TPS).
But as the Ethereum network grew, the need for higher throughput and bigger support for more complicated dApps to a broader public became a necessity that led to the next version.
The second version, named ZKsync 2.0, was introduced in Feb 2023 when it was renamed to ‘ZKsync Era’. This version came with major improvements (as we will see later) but the key one was Zero-Knowledge Ethereum Virtual Machine (zkEVM) which made the ZKsync, the world’s first EVM-compatible ZK rollup.
Smart contracts in the ZKsync Era are written in Solidity or Vyper which are both popular programming languages in the space.
What improved was the following: you may have heard of the blockchain trilemma, where it is difficult to scale without compromising security or decentralization. And when it comes to scaling Ethereum, there’s a fourth factor in this equation, namely programmability.
As most of the current scaling solutions on the network exist by sacrificing some security, decentralization, and programmability for scalability, the design of ZKsync Era tries to maximize all four features with the combination of the following two technological features:
It does so with its zkEVM, which is an Ethereum Virtual Machine that executes smart contract transactions in a way compatible with zero-knowledge-proof computations and the existing Ethereum infrastructure.
According to Ethereum founder Vitalik Buterin’s classification of zkEVMs, ZKsync Era falls under the fourth category as a high-level language-equivalent model which makes it the only L2 solution with layer 1 security.
The different types of ZK-EVMs- Vitalik
Also, ZKsync’s Low-Level Virtual Machine (LLVM) based compiler, enables developers to build for Ethereum through it to write smart contracts in source code compilers, zksolc for Solidity and zkvyper, for Vyper.
The second rabbit out of the ZkSync hat, is the zkPorter, which offers off-chain data storage as compared to zkEVM which offers on-chain. This off-chain feature helps reduce transaction costs while still relying on the safety and decentralization through a Proof of Stake (PoS)– based security system of ZKsync token ‘stakers’.
The off-chain data storage also enhances transaction speed enabling it to handle up to 20,000 TPS.
The team on ZKsync ensured that the duo, ZkEVM and ZkPorter are ideal for secure and fast transactions. But it does not end here, ZKsync Era has more features that distinguish itself from the competition.
The introduction of account abstraction was considered to be the ‘long time dream of the Ethereum developer community.’
Traditionally there exist two types of accounts on the EVM:
This difference creates a challenge in use cases that require both accounts.
So, account abstraction aims to resolve these issues by providing a unified account model through smart accounts and through Paymasters.
ZKsync account abstraction implementation: Source
Months after upgrading to Zksync Era, the team introduced ZkStack naming it as; ‘Your framework for building modular, sovereign, ZK Chains.’
https://twitter.com/zksync/status/1673317167628967936
The ZK Stack modularity provides developers with the following capabilities to design a network of interconnected blockchains known as hyperchains that include:
These hyperchains built on ZKsync Era are considered a Layer 3 (L3) platform which has given the ZKsync protocol a ticket to be one of the first to create the L3 narrative. Are things going too far?
More on ZK Stack can be found here
ZK chains are thus designed to provide interoperability across various blockchains. They represent another layer of blockchain architecture composed of parallel-running instances of zkEVM that achieve consensus and finality on Ethereum’s L1.
Gray lines show proofs, and orange lines the Hyperbridges, which automatically connect all blue chains.
Through ‘hyperscalability’ provided by ZK Stack, ZK Chains can build ‘Hyperbridges’ to connect different rollups within the ecosystem.
The ZKsync 3.0 protocol upgrade was released in June 2024 and modifies the ZKsync bridge into a shared router contract to support the expanding network of interoperable ZK chains.
https://x.com/zksync/status/1808125974061384130
“The Elastic Chain is an infinitely extensible network of ZK chains (rollups, validiums and volitions), secured by math and seamlessly interoperable under uniform intuitive UX,” – Matter Labs.
Now that we have looked at the technicalities and different components that make up the ZKsync, let us guide you on how to build on the protocol…
The first step to start building on ZKsync is to connect your wallet to the protocol. You can do so by following the outlined instructions here.
Once you have your wallet connected, you can get testnet funds from one of many testnet faucets to use for deploying your first smart contract.
Next, you can now deploy a smart contract to ZKsync from your browser using Remix or Atlas. More information on how to do this can be found here
Developer Tutorial: Getting Started with ZKsync
Since the launch of the ZKsync Era mainnet, the protocol’s ecosystem has expanded very much. Here is an overview of some of the projects running it:
For an extended list of the ZKsync ecosystem visit their page on their official website here.
ZKsync has attracted attention and investment from major players in the industry. Collectively, these investors have raised $458 million across several funding rounds.
The first round was led by Placeholder VC in September 2019 which raised $2M, followed by a $6M Series A led by Union Square Ventures and a $50M Series B led by Andreessen Horowitz both in 2021. One year after, in 2022, the Ecosystem Fund and Series C funding rounds were conducted, each raising $200M. Wow!
On June 11, 2024, ZKsync announced their official ecosystem token- ZK as a way of showing appreciation and adding governance to the community. It has several use cases, similar to most of the tokens in the space, such as:
https://twitter.com/TheZKNation/status/1800424206129357194
It is used in the ZKsync governance process – as the ZK token allows holders to introduce and vote on protocol upgrades. Check how to delegate voting power at delegate.zknation.io
It is used to pay for network fees- Through ZKsync’s native account abstraction users can pay gas fees on any ZK chain with the token instead of ETH.
It is used to be staked- Through staking mechanisms, holders of the token can secure the network and earn a yield while doing so.
ZK has a total supply of 21 billion tokens, distributed in the following way:
With 67% of the token going to the ZKsync community, a two-thirds allocation that is then divided the following way:
695,232 wallets received 17.5% via airdrop and are funded with ZK tokens, making it one of the largest distributions of tokens to users amongst major rollups.
The claim started on the week of June 17th, 2024, and will end on January 3rd, 2025. Check more details of the airdrop at their page ZK Airdrop.
17.2% goes to early investors and 16.1% to the founders, which is the Matter Labs team. But both their tokens are locked completely for the first year and will gradually unlock over three years from June 2025 to June 2028.
The future looks promising for ZKsync. With the recent Version 3.0 upgrade, the team promises that it will soon be joined by more than 20 new ZK Chains currently being built on the ZK Stack and planning to be live and operational on mainnet by the end of 2024.
In conclusion, ZKsync has established itself as a leading zero-knowledge scaling solution on Ethereum through its innovative use of zkEVM and zkPorter technologies. By providing EVM compatibility, ZKsync allows developers to build smart contracts just as they would on Ethereum mainnet.
With over 400 million transactions processed to date across many dapps and services, it is clear that ZKsync is delivering on its promise of bringing Ethereum to the mainstream through scalable and accessible solutions.
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