ZK Rollups are an innovative scaling technology for Ethereum, enabling transactions to be processed more efficiently and cost-effectively. In this article, we will discuss the principles of ZK Rollups and the projects utilizing this technology in the DeFi ecosystem.
What Are ZK Rollups?
ZK Rollups are a scaling method that processes transactions away from the main Ethereum chain. Instead of handling each transaction individually, ZK Rollups group them and process them in bulk, thereby reducing the load on the main network and lowering fees. The technology uses zero-knowledge proofs to confirm that a transaction occurred without revealing all the underlying details.
How Do ZK Rollups Work?
ZK Rollups combine on-chain and off-chain components to ensure speed and security. Here’s how it works:
- **On-Chain Smart Contracts**: The rules that reside on Ethereum and govern how ZK Rollup transactions operate. - **Off-Chain Processing**: Most of the work, like verifying and grouping transactions, occurs outside of Ethereum. - **Proof Creation**: A single cryptographic proof is generated for each batch of transactions. - **Proof Submission**: The proof is sent back to Ethereum for verification, after which the batch of transactions is finalized.
Top ZK Rollup Projects
Several notable projects are utilizing ZK Rollups:
1. **Manta Network** - **TVL**: $851 million - **Launch**: September 2023 (Testnet) - **Token**: MANTA - **Notable Feature**: Focuses on private transactions using zk-SNARKs.
2. **Linea** - **TVL**: $202 million - **Launch**: August 2023 - **Token**: LINEA (utility yet to be defined) - **Notable Feature**: Reduces transaction costs and improves speed.
3. **Polygon zkEVM** - **TVL**: $115 million - **Launch**: March 2023 (Mainnet Beta) - **Token**: MATIC - **Notable Feature**: High compatibility with Ethereum.
4. **StarkNet** - **TVL**: $170 million - **Launch**: February 2022 - **Token**: STRK - **Notable Feature**: Utilizes STARKs for enhanced security and scalability.
5. **zkSync Era** - **TVL**: $555 million - **Launch**: March 2023 (Full Mainnet) - **Token**: ZKS - **Notable Feature**: Full compatibility with the Ethereum Virtual Machine.
ZK Rollups are advancing to become an integral part of Ethereum's ecosystem, providing solutions to pressing scalability and cost issues. If this trend continues, ZK Rollups could significantly reshape Ethereum's infrastructure, enabling faster, cheaper, and more secure applications.
