Introduction

Ethereum, the world's second-largest cryptocurrency by market capitalization, has faced challenges concerning scalability, transaction fees, and throughput. Layer 2 (L2) scaling solutions have emerged to address these challenges, enhancing Ethereum's capabilities. Among these L2 solutions, zero-knowledge proofs have been instrumental in improving both security and efficiency. In this blog post, we will discuss Layer 2, zero-knowledge proofs, and how they are being used in L2 solutions such as zkSync, with a focus on the recent launch of zkSync Era, a significant milestone in Ethereum scaling.

Layer 2 and Zero-Knowledge Proofs

Layer 2 solutions are protocols built on top of an existing blockchain, such as Ethereum, to improve its scalability and reduce fees. Zero-knowledge proofs are cryptographic techniques that allow a prover to demonstrate the correctness of a statement without revealing any information beyond the statement's validity. In the context of Layer 2 solutions, zero-knowledge proofs are used to create zero-knowledge rollups. These rollups aggregate multiple transactions into a single transaction and then generate a cryptographic proof of their validity. This approach reduces the amount of data that needs to be stored on the blockchain, resulting in lower transaction fees and improved scalability.

zkSync and the zkSync Era Launch

Matter Labs, an Ethereum scaling team, recently launched zkSync Era, the second iteration of their Layer 2 network. zkSync Era is a zero-knowledge rollup compatible with the Ethereum Virtual Machine (EVM), which means that developers can deploy applications on both zkSync Era and the Ethereum mainnet without making significant changes to their code. The launch of zkSync Era marks the first public launch of an EVM-compatible rollup secured by zero-knowledge proofs. Unlike previous zk-rollup offerings, which required bespoke programming languages and hindered adoption, zkSync Era and other "zkEVMs" offer EVM compatibility, enabling seamless integration with existing Ethereum infrastructure. Since its launch in June 2020, zkSync Lite, the first zk-rollup network by Matter Labs, has processed over 10 million transactions and secured a total value locked (TVL) of more than $73 million. With the arrival of zkSync Era, the Ethereum ecosystem is poised for even greater growth and innovation.

Highlights of zkSync Era

zkSync Era introduces several notable features that set it apart from other L2 solutions:

1. Permissionless EVM-compatible smart contracts: Developers can deploy their existing Solidity/Vyper code with little to no modifications, making it easy to transition applications between zkSync Era and the Ethereum mainnet.
2. Standard Web3 API: This feature allows seamless integration with existing indexers, explorers, and other Ethereum infrastructure components.
3. Account abstraction: Users can program customizable security parameters and wallet recovery options, such as two-factor authentication, making wallet management easier for newcomers to the crypto space.
4. Layer 3 development: zkSync Era facilitates the deployment of customizable blockchains on top of its network, which can be app-specific chains like dYdX or permissioned enterprise chains like Hyperledger.

zkSync-Compatible Bridges

Bridging assets between various Layer-1 and Layer-2 networks is an essential aspect of the zkSync ecosystem. zkSync-compatible bridges connect the zkSync network with other blockchains and Layer-2 solutions to facilitate cross-chain transfers of value and data. These bridges ensure seamless interoperability, allowing users to interact with multiple ecosystems without switching between different wallets or platforms. Some notable zkSync-compatible bridges include:

1. Connect: Connect is a decentralized bridge that enables trustless transfers of tokens between Ethereum, zkSync, and other Layer-2 networks like Polygon, Arbitrum, and Optimism. Users can move assets across chains without the need for centralized custodians or intermediaries.
2. Hop Protocol: Hop Protocol is a multi-chain bridge that allows users to transfer tokens between Ethereum, zkSync, and other Layer-2 networks with minimal delays and low fees. It uses automated market makers (AMMs) to facilitate cross-chain swaps and enable seamless asset transfers between various networks.
3. Connext: Connext is a cross-chain liquidity network that connects Ethereum, zkSync, and other Layer-2 networks, allowing users to transfer assets and data across chains with ease. It leverages state channels to enable fast, low-cost transfers without requiring on-chain transactions.

These bridges play a vital role in the adoption and growth of zkSync, as they allow users and developers to access a wider range of assets, applications, and services within the zkSync ecosystem. As more bridges become available and zkSync continues to grow, we can expect to see increased interoperability between various Layer-1 and Layer-2 networks, fostering innovation and collaboration within the blockchain space.

Conclusion

zkSync Era is a significant milestone in the evolution of Ethereum scaling solutions. Its launch brings forth the first public EVM-compatible zk-rollup secured by zero-knowledge proofs, offering improved security, fast finality, and high EVM compatibility. This new generation of zkEVMs, including zkSync Era, holds the promise of bringing Ethereum scaling to new heights, allowing developers to build and deploy applications more easily, while users benefit from lower transaction costs and enhanced security. With numerous decentralized applications (dApps) preparing to deploy on zkSync Era, such as Uniswap, Curve, and MakerDAO, and traditional companies looking to move operations on-chain, the future looks promising for zkSync and the broader Ethereum ecosystem.