A Guide to the zKSync Ecosystem

In recent times, the zKsync ecosystem has been bubbling. The protocol has gained massive attention from DeFi fans and airdrop hunters. Admittedly, the ecosystem seems to get more complex daily. New DeFi products are being built and integrated into zKsync, and existing products are being improved.

Despite the comprehensive features of the zKsync ecosystem, it is possible to understand the comprehensive ecosystem, products, and dApps and how they benefit users. This guide will explain Zero-knowledge proof and ZK rollups, the advantages zkSync, zkSync tokens, bridging on zkSync, and compare zkSync with other layer-two scaling solutions.

What is zkSync?

zkSync is a layer-two protocol built on the zero-knowledge roll-up technology, which uses cryptographic proof to provide low-cost scalability to Ethereum’s ecosystem. Like other rollups, zkSync performs activities and calculates transactions off Ethereum’s main chain. As their name implies, they roll up multiple transactions into a single block to be recorded on Ethereum’s mainnet.

zkSync allows most data to be stored off-chain, and computation is performed off-chain. However, since all transactions are validated on the Ethereum mainchain, users have access to the same level of security as they would, utilizing the Ethereum mainnet directly.

Another key feature of zkSync is its EVM compatibility. zkSync supports Solidity and Vyper, allowing developers to start developing smart contracts, as they would on Ethereum’s mainnet or port projects already live on the mainnet to zkSync, using the same clients as other EVM-compatible chains. zkSync has gained popularity in the blockchain industry due to its ability to provide efficient and secure transactions without sacrificing the benefits of the Ethereum network. To learn more about the history, features, and benefits of zkSync, check this guide.

How zKsync Scales Ethereum

Ethereum was the first blockchain to introduce smart contracts, which led to the development of decentralized applications and non-fungible tokens. But Ethereum’s blockchain can only process 15 transactions per second, which means the more applications built on the network expanded, the more the number of transactions, and the higher the gas fees.

It wasn’t uncommon for users to pay exorbitant gas fees. Naturally, gas fees on the Ethereum network average between $10 to $50 per transaction. This value is relatively high compared to other blockchain networks like Solana and Avalanche. Although the Ethereum network is the leading blockchain network for NFTs and DeFi transactions, high gas fees still serve as a roadblock for some users.

Solutions in layer-two Optimistic rollups, Zero-knowledge (ZK) rollups, and zkSync were developed to address the scalability problem. These layer-two scaling solutions on Ethereum’s blockchain allowed mainstream users to enter and exit the Ethereum ecosystem in a decentralized manner while ensuring that transactions were fast, secure, and relatively low.

zKSync Era

After the launch of the zKSync project, Matter Labs officially launched zkSync 2.0 in October 2021. zkSync 2.0 was later rebranded into zkSync Era, with features such as account abstraction and EVM support.

Image source: zkSync Website

zkSync Era’s Account Abstraction is a feature that enhances the efficiency and simplicity of transactions on the blockchain. In traditional blockchains like Ethereum, for each transaction, the user needs to explicitly specify which specific tokens that would be used and their exact destinations. This process involves writing smart contracts and providing detailed instructions for each transaction.

However, zkSync Era’s Account Abstraction streamlines this process by allowing you to perform transactions without explicit instructions. Instead, users can focus on the desired action without worrying about the low-level details.

Image source: zkSync Website

Behind the scenes, zkSync’s Account Abstraction utilizes advanced zero-knowledge cryptographic techniques to ensure the integrity and security of the transaction. By abstracting away the need for explicit instructions, zkSync simplifies the transaction process, allowing developers to issue high-level instructions like “transfer a certain amount to a specific address” without the need to delve into the intricacies of the underlying tokens.

First, account abstraction reduces the complexity and potential for errors when writing smart contracts or interacting with dApps on the blockchain. Developers can focus on the functionality and logic of their applications rather than specific transaction details.

Second, zkSync’s Account Abstraction enhances scalability. By abstracting away the individual coins, transactions can be bundled together, reducing the computational overhead required to process each transaction separately. This boosts the overall transaction throughput, allowing for faster transaction processing.

Furthermore, zkSync Era introduced interoperability with smart contract languages such as Solidity and Vyper. This means developers wouldn’t need to learn new programming languages or frameworks

How to get started with zkSync & its potential airdrop

Currently, zkSync does not have a native token, although it is expected to offer some form of tokenization in the future, similar to the ARB airdrop.

The company has hinted at the possibility of an airdrop program similar to the one used by Optimism, which supporters and active users could be eligible for. The news of these developments generates a sense of anticipation among zkSync’s user base.

To qualify for airdrops, users must have a history of engaging with zkSync. If someone is new to using zkSync Era, they would first need to learn a few essential things. It’s best to be familiar with zkSync Lite and bridging to grasp critical concepts about how things function.

After gaining this knowledge, they should include the zkSync Era alpha mainnet network into their wallet, such as Metamask. Specific information, like the network’s name, RPC URL, and chain ID, is needed. This will let the user connect to zkSync Era and begin engaging with its ecosystem.

zkSync Bridge

Bridging assets means moving your tokens or digital assets from one network or blockchain to another. During a zkSync bridging transaction, two smart contracts interact, one on Layer 1 Ethereum and the other on Layer 2 zkSync. This would allow users to bridge ETH and ERC20 tokens in their wallets. Users can also submit a request to have tokens added to the standard zkSync bridge.

Depositing tokens to a designated zkSync address can be done by calling the deposit method on the L1 bridge. This will lock the tokens in the L1 bridge and initiate a transaction to the zkSync bridge to mint tokens and send them to the specified address. A new contract will be deployed if the token is not yet on zkSync. After the L1 to zkSync transaction is complete, users can finalize the deposit and mint the tokens on zkSync.

For withdrawing tokens from the L2 project to L1, users need to call the withdrawal method on the L2 bridge. This will burn the L2 tokens and send a message about withdrawing to the L1 bridge. Users can call the Withdraw method on the L1 bridge to retrieve the previously locked tokens.

zkSync vs. other Layer-Two Solutions

With the ongoing layer-two war among projects fighting for dominance and market share, it has become increasingly difficult for developers to choose the right platform to build on.

There are currently two major layer-two protocols developers use: Zero-Knowledge Rollups like zkSync, and loopring and Optimistic Rollups like Optimism and Arbitrum. To evaluate these different scaling solutions, developers must consider several factors like security, performance, economics, and usability.

Regarding security, developers should consider whether the protocol requires user liveness and whether a mass exit assumption exists, which could potentially compromise user funds. Additionally, builders must evaluate the custody of user funds, the vulnerability to hot-wallet key exploits, and the vulnerability to crypto-economic attacks.

Regarding performance and economics, zkSync boasts a high throughput of up to 2,000 transactions per second. It requires minimal capital, making it an attractive option for builders looking to scale their Ethereum projects. Unlike the optimistic rollups that require 1 week to process withdrawals, zkSync fulfills withdrawal requests within 1 to 10 minutes.

Usability is another critical factor to consider when evaluating layer-two scaling solutions. Not only is zkSync UI seamless, but it is also user-friendly. This makes it an ideal option for builders who want to make the transition to layer-two scaling as smooth as possible for their users.

DApps on zkSync

The zkSync ecosystem is quickly becoming a hub for new and exciting projects. Here are some recently added projects that are making waves in the crypto community:

Uniswap

As a testament to zkSync’s functionality, Uniswap, the largest decentralized market maker, migrated its clone to the layer 2 zkEVM, being the first fully functional application on an EVM-Compatible zkRollup, complete with Solidity smart contracts and Web3 front-end design.

The successful migration would pave the way for other developers to migrate their projects without learning zero-knowledge languages. Users opportune to test Uniswap’s UniSync tweeted that the transactions were instantaneous and seamless.

Ramp Network

Ramp Network, a crypto on- and off-ramping solution, has now gone live on the zkSync Era Mainnet. Ramp allows users to access the crypto ecosystem easily whiles providing a simple user experience, quick onboarding, and coverage across different locations and payment methods. The integration with zkSync Era Mainnet will allow Ramp Network users to experience faster, cheaper, and more secure transactions.

Omnisea

Omnisea, an NFT drops launcher, has also gone live on the zkSync Era Mainnet. The platform is designed to provide a seamless NFT experience, allowing users to create, launch, and trade NFTs easily.

Kreatorland

Kreatorland, an NFT launchpad and marketplace, is now live on the zkSync Era Mainnet. The platform aims to provide a comprehensive NFT ecosystem where creators can easily connect with buyers and collectors.

Redstone Finance

Redstone Finance is an EVM-compatible Oracle provider launched on the zkSync Era Mainnet. The platform provides data feeds for cryptocurrencies, commodities, NFTs, and more. Integrating zkSync Era will allow Redstone Finance to provide faster and more secure Oracle solutions.

What is Zero-knowledge Proof?

Zero-knowledge proof (ZKP) is a fascinating concept that has emerged in cryptography. it allows a person to prove the authenticity of specific information without revealing the information itself. How is that possible?

An illustration of this is the “find Waldo” exercise, where the goal is to prove that Waldo has been found in a picture without disclosing his location. To achieve this, the prover would black out the rest of the image, draw a box around Waldo, and send a picture of the boxed Waldo without disclosing his location.

Another instance where ZKP is used is in digital identity verification. If a wine and spirits establishment needs to confirm that a user is of legal drinking age, ZKP can be used. The user could use a digital identity connected to their blockchain wallet with access to their age. When the website requests confirmation of the user’s age, the digital ID can provide proof without disclosing the user’s age. This way, the website can authenticate the user’s age without access to the data.

Conclusion

Although the zero-knowledge-proof landscape is relatively new, Matter Labs, the team developing zkSync, has consistently demonstrated the full potential of what can be achieved with ZK-Rollups.

With the launch of zkSync’s 2.0, the project continues to collaborate and improve, hinting at the long-term reliability of the zero-knowledge-proof systems. Nonetheless, Ethereum is expected to serve as a data layer for these layer-two projects, paving the way for a more efficient, seamless, and cheaper future for Ethereum transactions.