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When it comes to investing in cryptocurrency, narratives often play an important role in identifying promising investment opportunities.
In 2017 we had Initial Coin Offerings (ICO's), Ethereum Killers (NEO, for example), Interoperability (Wanchain & Icon), and zero transaction fees (IOTA & Nano/Raiblocks).
From 2020 - 2021 Decentralized Finance (DeFi) was the new narrative, bringing interest to cryptocurrencies such as MakerDao, Uniswap, Avalanche, etc.
Additional cryptocurrency narratives in 2021 included:
Non-Fungible tokens/NFTs (Enjin, Bored Ape Yacht Club, Galactic Geckos, etc.)
Meme Coins (Dogecoin, Shiba Inu, Floki Inu, etc.)
Algorithmic Currency Protocols (Olympus DAO, Titan Finance, Wonderland, etc.)
Binance Smart Chain "Moonshots" (Safemoon, for example)
Metaverse & Crypto Gaming (The Sandbox, Decentraland, Axie Infinity, Illuvium, My Neighbour Alice, etc.)
Savvy investors caught on to these narratives early and made some spectacular gains on their investments.
However, this doesn't mean you should always chase the next big narrative. In fact, I believe it's best to focus on the fundamentals behind a cryptocurrency instead and build a long-term position.
But at the same time, it's important to understand which narratives are attracting the most attention since the money usually follows soon after.
Once you know what the next narrative is, you can research cryptocurrencies within that narrative and build a position with the projects that have a good team and fundamentals behind them.
One narrative that is attracting a lot of attention right now is ZK-Rollups, and we'll be looking at this technology in this post.
We'll also look at three cryptocurrencies which use ZK-Rollup technology, with a secret, bonus cryptocurrency that is related to one of the platforms mentioned. Keep reading until the end and see if you can find it.
If you decide to invest in ZK-Rollup related cryptocurrencies , I recommend using Kucoin to easily buy and sell cryptocurrency, including the ones mentioned in this post. Kucoin is available worldwide, including the USA.
Explained simply, a ZK-Rollup is a smart contract that takes hundreds of transactions off the main blockchain and bundles them into a single transaction. It then sends a validity proof back to the main blockchain.
This reduces the amount of data being sent through Ethereum's main blockchain (Layer 1), enabling faster and cheaper transactions.
For a more detailed explanation on ZK-Rollups, read the next section or skip ahead if you already understand how they work.
Zero-Knowledge Rollups (ZK-Rollups) are smart contracts that scale the Ethereum network by processing multiple transfers off the main blockchain.
ZK-Rollups work by taking hundreds of transfers off-chain and combining or "rolling" them up into a single transaction. It then submits a SNARK (succinct non-interactive argument of knowledge) back to the main chain as proof of validity.
Validating a block with a ZK-Rollup is faster and cheaper since less data is included.
ZK-Rollups are one of the options being developed for Layer 2 construction to increase scalability. Another option being developed is Optimistic Rollups.
If you want to see a more detailed explanation on ZK-Rollups and Rollup technology in general, I recommend the following resources:
At the time of me writing this, there aren't many ZK-Rollup-based platforms with their own native token, hence why only three are included in this article.
Loopring (LRC) is a ZK-Rollup Layer 2 solution that allows for high-throughput, low-cost trading and payments on Ethereum.
It aims to allow anyone to build non-custodial, order book-based exchanges on Ethereum by leveraging zero-knowledge proofs.
With ZK-Rollups, Loopring claims its exchanges can offer faster settlements for traders.
Instead of settling trades on the Ethereum blockchain directly (like other DEX's do), ZK-Rollups enable Loopring exchanges to complete computations off-chain.
This reduces the number of transactions being submitted to the Ethereum network, increasing speed and reducing costs for traders.
Loopring has its own token (LRC), which you can find on Binance. US based investors can use Kucoin to invest in LRC.
zkSync is a Layer 2 scaling solution that offers cheaper and faster transactions than the main Ethereum blockchain (Layer 1).
It uses ZK-Rollup technology to process transactions off the Ethereum blockchain while still maintaining its security and finality.
zkSync was developed by Matter Labs which received $50 million in funding from investors including Andreessen Horowitz (a16z), Crypto.com, Blockchain.com, Aave, and more.
zkSync's benefits include:
Low gas fees: Gas fees are equal to 1% of Ethereum gas & cheaper than using optimistic rollups
High speeds: 2000+ transactions per second (tps) compared to 14tps on Ethereum
Security: Secured by the main Ethereum blockchain
Frictionless transfers: Easily move your crypto between Layer 1 and Layer 2 without delays
Censorship resistance: You can move your assets back to Layer 1 at any time
zkSync does not currently have a native token, but they're planning on releasing one. I recommend following their social channels if you don't want to miss out.
When it comes to investing in cryptocurrency, narratives often play an important role in identifying promising investment opportunities.
In 2017 we had Initial Coin Offerings (ICO's), Ethereum Killers (NEO, for example), Interoperability (Wanchain & Icon), and zero transaction fees (IOTA & Nano/Raiblocks).
From 2020 - 2021 Decentralized Finance (DeFi) was the new narrative, bringing interest to cryptocurrencies such as MakerDao, Uniswap, Avalanche, etc.
Additional cryptocurrency narratives in 2021 included:
Non-Fungible tokens/NFTs (Enjin, Bored Ape Yacht Club, Galactic Geckos, etc.)
Meme Coins (Dogecoin, Shiba Inu, Floki Inu, etc.)
Algorithmic Currency Protocols (Olympus DAO, Titan Finance, Wonderland, etc.)
Binance Smart Chain "Moonshots" (Safemoon, for example)
Metaverse & Crypto Gaming (The Sandbox, Decentraland, Axie Infinity, Illuvium, My Neighbour Alice, etc.)
Savvy investors caught on to these narratives early and made some spectacular gains on their investments.
However, this doesn't mean you should always chase the next big narrative. In fact, I believe it's best to focus on the fundamentals behind a cryptocurrency instead and build a long-term position.
But at the same time, it's important to understand which narratives are attracting the most attention since the money usually follows soon after.
Once you know what the next narrative is, you can research cryptocurrencies within that narrative and build a position with the projects that have a good team and fundamentals behind them.
One narrative that is attracting a lot of attention right now is ZK-Rollups, and we'll be looking at this technology in this post.
We'll also look at three cryptocurrencies which use ZK-Rollup technology, with a secret, bonus cryptocurrency that is related to one of the platforms mentioned. Keep reading until the end and see if you can find it.
If you decide to invest in ZK-Rollup related cryptocurrencies , I recommend using Kucoin to easily buy and sell cryptocurrency, including the ones mentioned in this post. Kucoin is available worldwide, including the USA.
Explained simply, a ZK-Rollup is a smart contract that takes hundreds of transactions off the main blockchain and bundles them into a single transaction. It then sends a validity proof back to the main blockchain.
This reduces the amount of data being sent through Ethereum's main blockchain (Layer 1), enabling faster and cheaper transactions.
For a more detailed explanation on ZK-Rollups, read the next section or skip ahead if you already understand how they work.
Zero-Knowledge Rollups (ZK-Rollups) are smart contracts that scale the Ethereum network by processing multiple transfers off the main blockchain.
ZK-Rollups work by taking hundreds of transfers off-chain and combining or "rolling" them up into a single transaction. It then submits a SNARK (succinct non-interactive argument of knowledge) back to the main chain as proof of validity.
Validating a block with a ZK-Rollup is faster and cheaper since less data is included.
ZK-Rollups are one of the options being developed for Layer 2 construction to increase scalability. Another option being developed is Optimistic Rollups.
If you want to see a more detailed explanation on ZK-Rollups and Rollup technology in general, I recommend the following resources:
At the time of me writing this, there aren't many ZK-Rollup-based platforms with their own native token, hence why only three are included in this article.
Loopring (LRC) is a ZK-Rollup Layer 2 solution that allows for high-throughput, low-cost trading and payments on Ethereum.
It aims to allow anyone to build non-custodial, order book-based exchanges on Ethereum by leveraging zero-knowledge proofs.
With ZK-Rollups, Loopring claims its exchanges can offer faster settlements for traders.
Instead of settling trades on the Ethereum blockchain directly (like other DEX's do), ZK-Rollups enable Loopring exchanges to complete computations off-chain.
This reduces the number of transactions being submitted to the Ethereum network, increasing speed and reducing costs for traders.
Loopring has its own token (LRC), which you can find on Binance. US based investors can use Kucoin to invest in LRC.
zkSync is a Layer 2 scaling solution that offers cheaper and faster transactions than the main Ethereum blockchain (Layer 1).
It uses ZK-Rollup technology to process transactions off the Ethereum blockchain while still maintaining its security and finality.
zkSync was developed by Matter Labs which received $50 million in funding from investors including Andreessen Horowitz (a16z), Crypto.com, Blockchain.com, Aave, and more.
zkSync's benefits include:
Low gas fees: Gas fees are equal to 1% of Ethereum gas & cheaper than using optimistic rollups
High speeds: 2000+ transactions per second (tps) compared to 14tps on Ethereum
Security: Secured by the main Ethereum blockchain
Frictionless transfers: Easily move your crypto between Layer 1 and Layer 2 without delays
Censorship resistance: You can move your assets back to Layer 1 at any time
zkSync does not currently have a native token, but they're planning on releasing one. I recommend following their social channels if you don't want to miss out.
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