# What is ZKsync?

**Published by:** [babnaa](https://paragraph.com/@babnaa/)
**Published on:** 2024-10-14
**URL:** https://paragraph.com/@babnaa/what-is-zksync

## Content

ZKsync is a Layer-2 scaling solution for Ethereum, developed by Matter Labs and backed by major investors like a16z, OKX, and ConsenSys. It leverages Zero-Knowledge Rollup (ZK-Rollups) technology to enable faster, cost-effective transactions while inheriting Ethereum’s security and decentralization. ZKsync raised over $458 million in funding and plays a significant role in addressing Ethereum's scalability challenges.What is Layer 2 and Why is it Important?Layer-2 solutions, like ZKsync, are built on top of Layer-1 blockchains (such as Ethereum) to improve scalability without changing the underlying network’s key features. Ethereum, being the most widely used blockchain, experiences high gas fees and slow transactions during periods of congestion, which impacts user experience. Layer-2 solutions help alleviate these issues by processing transactions faster and more cheaply while still benefiting from Ethereum’s security infrastructure.How ZKsync WorksZKsync uses ZK-Rollups, which bundle multiple transactions off-chain and generate a proof of validity (Zero-Knowledge Proof) to verify them on-chain. This reduces gas costs and improves transaction speed without compromising on security. A major milestone was the launch of zkEVM (Zero-Knowledge Ethereum Virtual Machine) in March 2023, making ZKsync one of the pioneers in implementing zkEVM on the Ethereum mainnet. The zkEVM is a virtual machine compatible with Ethereum’s EVM (Ethereum Virtual Machine), allowing developers to write smart contracts in Solidity and benefit from both ZK-Rollups and Ethereum's existing infrastructure.Key Features of ZKsyncOptimized Performance:Supports low gas fees using ETH and ERC-20 tokens.Faster transaction finality compared to other Layer-2 solutions like Optimism and Arbitrum.Security and Decentralization:ZK-Rollups offer higher security than Optimistic Rollups since transactions are verified instantly.ZKsync supports Layer-2 NFTs and has open-source code, encouraging community collaboration.Account Abstraction (AA):Allows wallets to act like smart contracts, offering flexibility in payment methods and transaction management.Key features include:Pay with any token: Users can use other tokens to pay transaction fees, which are converted to ETH.Seedless wallets: Social recovery wallets eliminate the need for traditional seed phrases.Batch transactions: Users can sign multiple transactions in a batch.Automated payments: Similar to Apple Pay but decentralized, users can schedule automatic transfers or subscriptions.zkEVM and Its BenefitsThe zkEVM technology enables smart contract execution using Zero-Knowledge Proofs, ensuring data correctness and validity. With zkEVM, smart contracts on ZKsync are fully compatible with Ethereum, allowing developers to maintain consistency in coding and programming methods. This integration makes ZKsync a seamless platform for projects that want to scale smart contracts without sacrificing compatibility with the Ethereum ecosystem.ZKsync’s Advantages Over Other SolutionsLower Fees: Transactions on ZKsync are more affordable than those on Ethereum Layer-1.Faster Settlement: ZKsync processes transactions quicker than Optimistic Rollups due to instant proof verification.Enhanced Security: ZK-Rollups offer a stronger security model with no reliance on fraud proofs.SummaryZKsync is a powerful Layer-2 solution built to enhance Ethereum’s scalability by offering faster, cheaper, and more secure transactions. Through zkEVM, ZKsync ensures full compatibility with Ethereum, making it easy for developers to deploy smart contracts. The use of Account Abstraction also introduces innovative wallet features, improving usability and transaction management. By reducing gas fees and improving transaction speed, ZKsync addresses some of Ethereum's key challenges while maintaining its decentralization and security.

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