zk-Rollups is one of the upcoming major narratives, and zkSync is also a highly anticipated project in the zk-Rollups field. Next, let’s give a comprehensive introduction to zkSync.

01

Project Introduction

To address Ethereum's scalability issues, zkSync uses zk-Rollups technology to improve transaction throughput, cost, and privacy while taking into account EVM compatibility.

These innovative technologies emerge with one purpose in mind, and that is to achieve mass adoption.

02

technology

Compared with other L2 technologies, zkSync provides higher security and efficiency, with expected performance of 3000-20000 TPS.

At the same time, to meet its mass adoption goals, zkSync will also implement technologies such as account abstraction, L3, and ZKPorter.

(Translator's Note: zkPorter is an account-based, trustless extension protocol protected by a concise zero-knowledge proof.)

03

Track status

L2beat lists over 10 L2 blockchains with TVL ranging from thousands to billions of dollars. The most commonly used ones currently are Optimistic Rollups and ZK Rollups.

Optimistic Rollup supports fast and cheap transactions, but sacrifices security and decentralization (main projects include Optimism, Arbitrum, Metis). ZK-Rollup provides privacy, scalability and low transaction costs, but has deployment and complexity risks (main projects include Starknet, zkSync).

04

team

Matter labs is the company behind zkSync, a company from Germany founded by CEO Alex G. in 2018 and has grown to over 50 employees.

The team consists of experienced developers, researchers and entrepreneurs as well as core members in communications such as Zoe Gadsden (COO), Ankur Rakshit (CFO), Steve Newcomb (CPO) and Shazia Hasan.

05

Financing situation

Matter Labs has raised $258 million across 5 rounds of funding since 2018, with BitDAO committing an additional $200 million in five tranches of $40 million to bootstrap the zkSync ecosystem.

These rounds were led by top investors, venture capital firms, and investment firms.

06

Tokenomics

zkSync has not disclosed information about its token economics, which has led to various speculations among users and investors. But the team stated that 70% of the tokens will be used for community and ecosystem development, and 30% will be given to the team and investors, so an airdrop is still very possible.

07

route map

The Baby Alpha phase will be released in Q4 2022 and will be tested with live ammunition.

Fair Onboarding will welcome projects within the ecosystem to join and focus on functional systems in closed testing in the first quarter of 2023.

After a security review, it is expected to be fully launched in the second quarter of 2023, and TPS will be higher than ETH.

08

ecosystem

As mentioned above, zkSync is not fully launched yet, but has already attracted over 150 projects with a TVL of $65 million.

If fully launched, zkSync will become the largest L2 launch in history, and Uniswap, Aave, Curve and other protocols will be included.

(zkSync ecological diagram)

It is worth noting that 70% of the $200 million in funds from BitDAO will be used for strategic investment and liquidity provision in the ecosystem. This allocation makes me bullish on the entire ecosystem.

09

data

With the launch of mainnet and Baby Alpha, 400,000 users have brought in $65 million in TVL through over 800,000 transactions.

Although not yet at full capacity, $ETH transfers are more efficient and cheaper than Optimistic Rollups, and zkSync is also the second cheapest Swap solution.

10

core competitiveness

To succeed and drive mass adoption, zkSync will work hard on key narratives.

These include:

L2 narrative

ZK proofs

EVM compatibility

$458 million in financing

11

Community and Marketing Analysis

Projects need strong communication and narrative to succeed on the L2 circuit, and that's the case with zkSync, which despite some questionable growth spikes still has over 500,000 followers and ranks second in brand awareness.

12

risk

ZkSync faces technical and communications challenges, including ZK technology, complex mathematics and encryption, trusted setup, EVM compatibility, intense competition and regulatory risks.

Despite raising $458 million in funding, achieving mass adoption will likely require a more robust strategy.

13

in conclusion

zkSync aims to achieve mass adoption, and to do so, it has successfully attracted a number of stakeholder groups.

A very exciting project globally. Its emergence makes the current ecosystem more colorful. So I’m really looking forward to what they’ll do next!