Ethereum platform, despite being a popular choice for developing decentralized applications (DApps), has encountered scalability issues over time. The increasing transaction volume on the Ethereum network has resulted in challenges such as high fees, slow transaction speeds, and inefficiency. However, Layer-2 solutions like zkSync hold promising potential in addressing Ethereum's scalability issues. What is zkSync? zkSync is a Layer-2 blockchain aiming to bring scalability to Ethereum. It combines the zkRollups technology, the first Layer-2 protocol, with compatibility with the Ethereum Virtual Machine (EVM). zkSync enables users to perform faster, cheaper, and more scalable transactions. It uses zero-knowledge technology to aggregate transactions on the Layer-2 chain instead of the main chain, sending only the necessary proofs to the main chain. How Does It Work? While functioning as a Layer-2 solution, zkSync preserves the security and decentralized nature of Ethereum. Users deposit their ERC-20 tokens on the main Ethereum chain to make investments and perform transactions. Subsequently, users broadcast their transactions on the Layer-2 chain. zkSync collects, compresses, and keeps these transactions on the Layer-2 chain. A batch proof, consisting of all the transactions, is used to submit the changes to the main chain. Thus, each transaction performed on the Layer-2 chain is linked to the main Ethereum chain through a proof. Advantages zkSync provides numerous advantages for Ethereum. Here are some of them: Scalability: By eliminating transaction costs and capacity limitations on the main chain, zkSync increases transaction speed and capacity on the Ethereum network. Speed: Operating as a Layer-2 solution, zkSync accelerates transactions and reduces waiting times, allowing users to transact faster and more efficiently. Low fees: It offers the possibility to transact at lower costs compared to the main chain. DApp developers can benefit from allowing their users to transact at lower fees, potentially reaching a wider user base. Backward compatibility: zkSync preserves Ethereum's smart contract functionalities, enabling existing DApps to easily transition to the Layer-2 chain. Summary zkSync is a promising Layer-2 technology addressing Ethereum's scalability issues. By utilizing zero-knowledge technology, it enables faster, cheaper, and scalable transactions. Strengthening the Ethereum ecosystem by allowing DApps to reach a wider user base, zkSync contributes significantly to the world of cryptocurrencies. As a solution to Ethereum's scalability challenges, zkSync makes a significant contribution. Layer-2 solutions are expected to become more prevalent in larger blockchain networks like Ethereum in solving scalability problems in the future.
