What ZKsync Is and How to Buy the ZK Token

ZKsync is a Layer-2 scaling solution for Ethereum, improving transaction speed and lowering costs. Here’s how it works.

Key Takeaways:

• ZKsync is a Layer-2 scaling solution for Ethereum that uses Zero-Knowledge (ZK) rollups to improve transaction speeds and lower costs.

• It enables Ethereum Virtual Machine (EVM) decentralised apps (dapps) to operate with higher transaction throughput while maintaining security and decentralisation.

• The ZKsync system employs Byzantine Fault Tolerance (BFT) and Delegated Proof of Stake (DPoS) to enhance transaction speeds.

• The ZK token, integral to the ZKsync ecosystem, incentivises users, facilitates transactions, and ensures network security.

• A significant airdrop of 21 billion ZK tokens occurred on 15 July 2024.

• The token is also available for trading on Crypto.com.

What Is ZKsync?

Developed by Matter Labs, ZKsync is a pioneering Layer-2 scaling solution for Ethereum that leverages Zero-Knowledge (ZK) rollups to enhance transaction speeds and reduce costs. The ZK token serves as the backbone of the ZKsync ecosystem, designed to incentivise users, facilitate transactions, and secure the network. It offers lower fees and faster transactions than the Ethereum network, aiming to provide a seamless user experience on ZKsync-powered platforms.

How Do ZK Rollups Work?

As mentioned above, ZK rollups are a type of Layer-2 scaling solution for blockchain networks that aim to improve the scalability and efficiency of transactions. But how does that work in detail?

Below is a brief overview:

1. Batching transactions: ZK rollups batch multiple transactions off-chain into a single transaction, reducing the load on the main blockchain.

2. Cryptographic proofs: Instead of recording each individual transaction on the main blockchain, ZK rollups use cryptographic proofs, called ‘validity proofs’ or ‘Zero-Knowledge (ZK) proofs’, to verify the validity of the batch of transactions. These proofs are then submitted to the main blockchain.

3. Off-chain computation: The computation and processing of transactions are performed off-chain, in the ZK rollup layer. This allows for much faster and more cost-effective transaction processing compared to executing each transaction directly on the main blockchain.

4. Trustless security: The ZK proofs provided by ZK rollups allow the main blockchain to verify the validity of the off-chain transactions without needing to trust the ZK rollup operator. This ensures trustless security for the users.

Benefits of ZK Rollups

• Scalability: By batching transactions and moving computation off-chain, ZK rollups can significantly improve the transaction throughput of the blockchain network.

• Cost-efficiency: ZK rollups reduce the gas costs for users by executing transactions off-chain and only submitting the cryptographic proof to the main blockchain.

• Privacy: The use of ZK proofs in ZK rollups can also enhance the privacy of transactions, as the specific details of the transactions are not revealed on the main blockchain.

Other examples of popular ZK rollup implementations include Immutable X and Starkware’s StarkNet. These solutions have been gaining traction in the blockchain ecosystem as a way to address the scalability challenges faced by many Layer-1 blockchain networks.

How Does ZKsync Work?

Now that we clarified the ZK rollup process, let’s take a look at how ZKsync employs this technology: ZKsync bundles multiple transactions into a single proof, processing them off-chain to significantly boost Ethereum’s transaction throughput. This allows for the effortless porting of Ethereum Virtual Machine (EVM) decentralised apps (dapps) to ZKsync, offering higher transaction throughput while maintaining Ethereum’s security and decentralisation.

How the ZKsync Process Works

• A user initiates a transaction or a priority operation.

• An operator processes the request, creating a rollup operation and adding it to a block.

• The operator then submits the completed block to the ZKsync smart contract as a block commitment. The rollup is verified by the smart contract.

• The proof for the block is submitted to the ZKsync smart contract. Successful verification finalises the new transaction.

Operators are pivotal in managing transaction processing, block creation and commitment, and the generation and submission of ZK proofs. They are responsible for maintaining network integrity and security, ensuring correct and efficient transaction processing.

ZKsync is categorised as a Type 4 system in the taxonomy of Zero-Knowledge Ethereum Virtual Machines (zkEVMs), supporting smart contracts written in Solidity or Vyper. Type 4 systems like ZKsync prioritise performance and provability in ZK, offering faster prover times. However, this approach may lead to more incompatibility compared to systems closely replicating the EVM. 

For example, smart contracts deployed on ZKsync might not have the same address as those deployed on the EVM due to differences in the underlying address generation mechanism.

ZKsync’s Consensus Mechanism

ZKsync employs a consensus mechanism that includes Byzantine Fault Tolerance (BFT) and Delegated Proof of Stake (DPoS) to enhance transaction speeds on the Ethereum network. 

The use of these mechanisms, particularly DPoS, can potentially introduce elements of centralisation, as a smaller group of nodes can gain significant control over the network, potentially compromising the decentralised and trustless ethos of blockchain technology.

Benefits of ZKsync

• Native interoperability: ZK chains enable frictionless interoperability, facilitating trustless communication and asset transfers between chains within the ecosystem.

• User-centric design: ZKsync offers secure onboarding and a customisable user experience, simplifying access to all ZK chains.

• Developer empowerment: It allows seamless deployment of apps or ZK chains with familiar EVM code, fostering the growth of the largest ZK ecosystem.

What Is the ZK Token Used For?

Native to ZKsync, the ZK token serves as the backbone of the ZKsync ecosystem, incentivising users, facilitating transactions, and securing the network. It offers lower fees and faster transactions than the Ethereum network, aiming to provide a seamless user experience on ZKsync-powered platforms.

ZK Token Airdrop

The $ZK token airdrop on 15 July 2024 distributed 17.5% of the total token supply (amounting to 21 billion tokens) to eligible participants, including ETH holders, regular users of ZKsync, and those interacting with dapps built on ZKsync. For those not eligible, the token has been listed on Crypto.com for trading.

How to Buy ZKsync

Opening a position in ZKsync (ZK) is easy using the Crypto.com App, which offers over 250 cryptocurrencies, from meme coins like Dogecoin and Shiba Inu to Bitcoin, Ethereum, Solana, and Ripple. Fund an account with one of over 20 fiat currencies like USD, GBP, and EUR. 

Simply follow these steps:

1. Download the Crypto.com App, available free on the Apple App Store or Google Play Store.

2. Complete the simple sign-up process.

3. Fund the account using bank transfer, Apple Pay, or a debit/credit card. Allow 1–3 business days for bank transfers.

4. Once funds hit, start buying ZK.

Conclusion

ZKsync works by leveraging ZK rollup technology to process transactions off-chain, significantly increasing Ethereum’s transaction throughput while maintaining its security and decentralisation, making it a pivotal solution in addressing Ethereum’s scalability challenges.

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