#  zkLink is the 

By [NomadYam](https://paragraph.com/@920306) · 2023-04-01

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What is zkLink? It is the realization of the promise of a multi-chain blockchain ecosystem and connected DeFi-verse. zkLink can be easily described as a decentralized Binance. It didn't take a day or two for them to start building a project.

Due to their incompatible ledgers, token standards, and consensus mechanisms, it seems almost impossible to collect tokens on different chains into one on-chain universal pool that CEXs have long been benefiting from.

zkLink addresses this problem differently by building a token merge infrastructure on top of multiple chains, where the disparity of stablecoins of different kinds and from different source chains is eliminated — for example, there would be no boundary between USDT-Ethereum and USDC-Solana on zkLink L2 network, while in centralized exchanges like Binance only the same kind of token is clustered into the same pool.

zkLink is the first on-chain protocol to deliver a CEX-like feature-set (multi-chain stablecoin liquidity aggregation) in a decentralized manner, which none of the decentralized bridges or DEXs have ever achieved by design.

![](https://storage.googleapis.com/papyrus_images/772a492fcd23d467b2bc5ffe879b2f45046ebf90cb176cbb363c58377a417547.png)

As of April 23, 2022, the 24h trading volume of the whole crypto market is over $113 billion, but only $5 billion (3.9%) was traded on decentralized exchanges. This data is telling a story that the market strongly prefers the advantages offered by CEXs, with the top exchange Binance taking $13 billion of trading volume, which is almost 3 times as much as the total of DEXs. ([https://www.coingecko.com/en/dex](https://www.coingecko.com/en/dex))

![](https://storage.googleapis.com/papyrus_images/e476d4c82ec5848cecaa55c29ebbc4172ebe8d67ea0b77ef675816fb722a15f0.png)

There is tremendous opportunity to be created if a seamless CEX-like experience could be delivered securely and fully decentralized with deep liquidity, with ease of use first and foremost.

![Source: Binance Exchange Website](https://storage.googleapis.com/papyrus_images/297f71cab21ac2a170f95d04b21326ed777f2002803c7f7df5aceb1786e69c48.png)

Source: Binance Exchange Website

In a crypto world that advocates decentralization, CEXs could be thought of as a short-term remedy, rather than the ultimate solution:

*   **Asset ownership**: To trade with a CEX, users must firstly give out control of their assets to the exchange, and prove their ownership to the exchange before doing any operations. From the perspective of a ledger, the asset ownership actually belongs to the exchange rather than the trader, and once the identity is stolen, users will lose their tokens.
    
*   **Privacy**: The KYC identity verification process of a CEX is similar to the real-world banking system that links your account with your identity and requires personal documentation during registration. This is against the free-access and open finance idea of DeFi.
    
*   **Trustlessness**: You have to trust the centralized exchange that your trades will be consummated, whose operators have the right to restrict, reverse or withhold your trades; however, by virtue of distributed computation, transactions are executed by the contracts that can not be disturbed.
    

In the future of Metaverse, a decentralized bank is an indispensable piece of the puzzle.

zklink official links

1\. Official website [https://zk.link/](https://zk.link/)

2\. Learn what zkLink is? [https://zklinkdefi.medium.com/](https://zklinkdefi.medium.com/)

3\. Dive into the zkLink Docs [https://docs.zk.link/docs/Introduction](https://docs.zk.link/docs/Introduction)

4\. Join our telegram [https://t.me/zkLinkorg](https://t.me/zkLinkorg)

5\. Follow our twitter [https://twitter.com/zkLinkorg](https://twitter.com/zkLinkorg)

6\. Github [https://github.com/zkLinkProtocol](https://github.com/zkLinkProtocol)

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*Originally published on [NomadYam](https://paragraph.com/@920306/zklink-is-the)*