# ZkSync

**Published by:** [Mayank Agrawal](https://paragraph.com/@mayank-agrawal/)
**Published on:** 2023-03-20
**URL:** https://paragraph.com/@mayank-agrawal/zksync

## Content

zkSync is a Layer 2 blockchain protocol that eliminates Ethereum’s inherent congestion with zero knowledge proofs. Matter Labs’ creation is on a mission to accelerate the mass adoption of crypto for personal sovereignty. It is designed to unlock the full potential of trustless blockchain technology while scaling the core values of Ethereum. With initial funding from the Ethereum Foundation, zkSync has already powered over 14 million high-speed transfers. zkSync is a layer 2 solution for transferring Ether and ERC20 tokens. The L2 protocol positions itself as a scaling and privacy engine for Ethereum. The project is built on zero knowledge (ZK) rollup architecture for “unlimited” Ethereum scaling.Layer 2 on Ethererum is a type of architecture implementation for scaling. The purpose of layer 2 rollup is to address the inherent drawbacks of Ethereum – slow transactions and high gas fees due to limited throughput. Layer 2 solution for scaling works by separating ownership from the computation. In Layer 2 blockchain protocols, smart contracts hold all assets on the main chain. At the same time, the off-chain component is responsible for computation and storage. As a result, Layer 2 solution gives a high transaction rate and L1 level of security. zksync History- zkSync project started in the Summer of 2020. However, Matter Labs, the startup behind zkSync, has worked on Layer 2 scaling zero knowledge proofs since at least 2019. Launched in June 2020, the first interaction delivered 300 transactions per second. zkSync 2.0 brought qualitatively different features, such as Account Abstraction and EVM support through Solidity and Vyper. zkSync 2.0 is now zkSync Era. On February 16, 2023, Matter Labs announced the rebranding of zkSync 2.0 into zkSync Era. zkSync Era is the first zero-knowledge EVM for Ethereum. As part of Fair Onboarding Alpha, registered projects are open to deploy and test their dApps on the mainnet. With the MIT/Apache 2.0 license, the new release is fully open-source. While developers are in the final testing mode with limited token bridging, Matter Labs is actively pursuing security audits and bug bounty programs. The mainnet will remain closed to end users until Full Launch Alpha, the next and final milestone of zkSync Era.Matter Labs teamMatter Labs is the creator of zkSync. This is a mostly-European team with headquarters in Berlin. Matter Labs keeps a low profile, with only the CEO and co-founder Alex Gluchowski and a few other c-level managers publicly representing the startup. Matter Labs’ vision is to create the first EVM-compatible zero knowledge rollup supporting general-purpose applications in Solidity without costly gas fees and performance barriers. zkSync fundingzkSync is, first and foremost, a startup. It relies heavily on external funding. Matter Labs has raised to $400 million from two dozen VC funds, crypto incubators, and investors. Among its major and first backers are Ethereum Foundation, Dekrypt Capital, Placeholder, Dragonfly Capital, and 1kx. Once they started going, zkSync also secured funding from USV, BitDAO, OKX Blockdream Ventures, and Huobi Venture.

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