What is zkSync?
zkSync is a Layer 2 scaling solution of Ethereum and the technology it uses is ZK Rollups. It is researched and developed by Matter Labs to help increase throughput, reduce fees for the Ethereum network as well as to compete with some current Layer 2 systems such as Optimism, Arbitrum, Loopring, StarkNet.
With the ZK Rollup structure, it brings a lot of advantages to the project such as calculating and storing data on Off-chain (off-chain), then just roll the transaction and send SNARK Proofs (valid proofs). of transactions in the Rollup block) to the main chain. Unlike the Optimistic Rollup technology, it provides a Fraud Proof that must then be resolved when there is a data dispute.
Development process
zkSync Lite: This is a non-custodial (Non-custodial) Ethereum scaling solution for zkRollup with a presumption of no trust built on top of the SNARK platform. It is used exclusively for simple purposes. The weakness of zkSync Lite is that it lacks support for zkEVM and cannot handle more complex smart contracts. zkSync 1.0 has been on Mainnet since June 2020.
zkSync Era: zkSync Era is a trustless zk- Rollup , built on the SNARK platform, using proof-of-stake to provide scalability with low transaction costs on Ethereum. All assets are stored in a single smart contract on the main chain (on-chain), while computation and data storage are done off-chain.
Outstanding Features of zkSync Era
zkSync took 4 long years to build, zkSync Era is now on the Mainnet with the following 5 competitive advantages:
- Easy smart contract deployment: zkSync Era supports generic smart contracts, which means that Devs can implement any logic they want.
- EVM Compatible: zkSync Era is a layer 2 zk- Rollup that is EVM compatible, making it easy for Devs to migrate from an EVM platform like Ethereum to zkSync Era.
- Solidity language support: zk technology is quite complex, not friendly with Solidity language. So the fact that zkSync Era supports the familiar Solidity language, will make it easier for Devs to build dApps on zkSync, thereby attracting more developers to the zkSync ecosystem.
- Gas in ETH: zkSync Era using ETH as gas will be convenient for users to join the network. zkSync Era also supports AA ( Account Abstraction) to help convert other tokens to ETH to pay fees.
- Open source: open source makes the network more transparent, secure, and decentralized.
Roadmap
Currently, the zkSync Era milestone reaches the Fair Onboarding Alpha during the Mainnet phase. The zkEVM version will be officially announced by zkSync to the Mainnet at the end of March. Going forward, zkSync will focus on sanitize the network and user experience, building layers3 to increase the customizability of each project, and finally network is decentralized. This will also be the time when many investors expect zkSync to launch tokens and AirDrop for users to contribute to the project soon.
Partners and investors
zkSync has raised $458M from nearly 20 large, reputable investment funds in the market such as Coinbase Ventures, OKX Ventures, A16Z, DragonFly Capital, and more. The last funding round of zkSync was in November 2022 with a raise of up to $200M. Although Matter Labs, the company behind zkSync, has not disclosed the project's valuation, the total amount of capital raised shows that zkSync's financial strength and great potential has attracted many investment funds.
Project team
The team of Matter Labs, the company behind zkSync, is mainly located in Europe with its headquarters in Berlin. Matter Labs was founded by 2 members: Alexandr Vlasov and Alex Gluchowski.
Alex Gluchowski is a software engineer with 19 years of experience, he worked as CTO for several technology companies, including one specializing in Ethereum R&D, before starting to focus on zkSync.
Pieces of the zkSync ecosystem
The zkSync ecosystem has thrived in 2023 since the launch of the zkSync Era with over 300 projects and an enthusiastic community of builders and supporters around the world.
- DeFi: DeFi ecosystem on zkSync thrived after Arbitrum completed its massive AirDrop , money flowed to zkSync as the next stop to hunt for AirDrop. Prominent DEX exchanges on zkSync such as SyncSwap with $55M TVL, other DEX exchanges such as iZiSwap, Mute.io, Velocore, .. are also interested by users.
- Infrastructure: Gnosis Safe, StorJ, Moralis, Tenderly, Chainlink, Geo Web, The Graph, Tracer DAO,
- Wallet: Many wallet projects are developed on zkSync, such as: Argent, Bitkeep, Onto Wallet, Numio, imToken, OKX Wallet, Math Wallet, Zerion, Tally, ..
- NFT & NFT Marketplace: The Sell Out, NFT Panas, zkAnimals, zkRock, Basic Cat Society, zkApe, ZKbulls, OKX NFT Marketplace, OpenMeta, BCware,...
- Gaming: Crypto Maze, MiniMiniDungeon, OpenStars.org,…
- Payment: DePay, Trustles, Indacoin,...
- Social: Creaton, CyberConnect, Tide, Aragon,…
Conclude
After the projects on optimictis roll-up deployed Mainnet and AirDrop for users, the zk roll-up projects also received a lot of attention. Thanks to that, the zkSync ecosystem is interested by many people and the money flow is strong. Projects boomed strongly, but besides that, there were also many projects taking advantage of FOMO to scam users to lose money, typically memecoin projects recently. In addition, the user experience when using projects built on zkSync is not really good, gas is still quite high compared to Arbitrum or Optimism, lag is still there. In the coming time, zkSync will still be an ecosystem that receives the attention of investors and it is likely that zk roll-up projects will dominate in the period from now to the end of the year.
Disclaimer: Any information on this website is not investment advice and AZDAG is not responsible or liable for any content. Readers should do their own research before taking any investment action in the crypto market.
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