First of All, I’m here to discuss what’s the reason why Defi users should be awared on Layer 2, and how zkSync can help to achieve mass-adoption and way forward for future.
Starting from 2020 we can see accelerated growth in Defi. There’re many new users knew Cryptocurrency and seeked opportunity in yield farming and liquidity provider.
Total Value Locked (USD) from 2020–2022
Ethereum is the blockchain which has maximum TVL. Users like to do transaction on Ethereum because it can provide stability and highly secured transaction.
Once there’re accelerated growth in number of users due to popularity in the cryptocurrency, the transaction fee (gas fee) are extremely expensive when Ethereum blockchain is congested such as the moment they need to buy or sell instantly when Bitcoin (BTC) crash, or the moment they need to mint the famous non-fungible tokens (NFT). Sometimes, Ethereum gas price keeps expensive the entire day and they need to pay expensive transaction fee because they can’t prolong or wait til another period of time.
Ethereum Gas price in Gwei
Therefore, there’s principle of L1 Ethereum scaling solution. Here we will introduce about Rollups solution.
What is Rollups solution?
To make it simple, we can understand from below infographic. The concept is about rolling lot of transactions together and send to process outside Ethereum chain before sending the result back to Ethereum. Proof of transaction is also recorded in L1 Ethereum.
Rollups solution
Following this principle, it can reduce high load utilization but still get benefit of security of L1 Ethereum.
Two of rollups solution which are well-known includes
Optimistic rollups
Arbitrum
Optimism
Zero Knowledge rollups (ZK rollups)
zkSync
Optimistic and Zero Knowledge rollups comparison
What’s zkSync?
zkSync is a Layer 2 Ethereum scaling solution which offers low gas fee and fast transactions but still adop very high security.
it uses Zero Knowledge proof and on-chain data availability to make user’s fund safe since Zero Knowledge proof is an unique method where one party (the prover) can prove the truth of specific information to another party (the verifier) without disclosing any extra information.
zkSync provides the following benefits to users:
Low cost: The gas fee is very low & also cheaper than optimistic rollups
Security: highly secured by Ethereum blockchain
High speed transaction
Flexible transfer: transfer assets between L1 and Layer 2 instantly within 10 minutes.
What’s the example of use cases in zkSync?
Trading assets on Zigzag exchange which was established as the first Decentralized Exchange (DEX) on zkSync.
Trading, Earning, Staking on Argent wallet.
Now, it’s time to move forward with Layer 2. Enjoy zkSync and you can learn more in the following links.
Official website：https://zksync.io/
Twitter：https://twitter.com/zksync
Discord: https://discord.com/invite/px2aR7w
Overview：https://docs.zksync.io/userdocs/
Ecosystem：https://ecosystem.zksync.io/