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zkSync – Ethereum Scaling Solution

Token Terminal

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TL;DR: zkSync (built by Matter Labs) is an L2 protocol for scalable low-cost payments on Ethereum, powered by ZkRollup technology. zkSync launched its v1.0 on mainnet on June 18th.

What’s unique about zkSync? Since it builds on ZkRollup tech, zkSync can function without a challenge/withdrawal period (dispute game). This near-instant transaction finality differentiates zkSync from many other L2 scaling solutions.

Why use ZkRollups? In a ZkRollup, external validators generate Zk-proofs of state transitions and submit them on-chain. Proofs are instantly verified by a Rollup contract on Ethereum. Assuming that the Zk-proofs only include valid transactions, its is extremely difficult to manipulate blocks.

How secure is zkSync compared to other L2 scaling techniques? Zk-proof-based systems take a pro-active approach to security (blocks are final), while other dispute-based systems employ a reactive approach to security (blocks can be disputed).

What assets does zkSync support? zkSync can be used to transfer ETH & ERC20 tokens. Currently, new tokens are proposed and approved by the operator (Matter Labs). This process will eventually become community-governed.

What does it cost to transact on zkSync? Users that wish to transact on zkSync pay a small fee to the external validators that generate the Zk-proofs (~$0.001). Since the on-chain transaction costs are divided between all transactions within the Zk-Sync block, users are able to to save on total transaction costs.

How can I use zkSync? Move your assets off-chain by making a deposit to zkSync from your Ethereum wallet (e.g.MetaMask). Now, the real-time balances are only visible in the zkSync wallet and zkSync’s own block explorer:

zkSync’s block explorer

What’s on the roadmap? Initially zkSync focuses on enabling faster payments. The goal is to eventually scale smart contracts.

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The authors of this content, or members, affiliates, or stakeholders of Token Terminal may be participating or are invested in protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Token Terminal does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only, and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Token Terminal at any time without notice. Token Terminal accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.

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