Layer zero is the first layer of a blockchain. This layer connects with all other protocols to create interconnected value chains. Layer 0 offers an advanced alternative to smart contracts. One of the biggest issues for blockchain networks is scalability. Layer 0 can be used across many applications, such as crypto coin wrapping, creating rewards, and data validation. Layer zero acts as a root layer, enabling cross-chain interoperability with Layer 1 protocols like Ethereum and Bitcoin.

Developers can deploy networks that relay across many nodes using Layer 0 blockchains. Layer zero is an innovative way to solve scalability issues without altering the underlying structure of the existing blockchain. They can also enable users to build dApps and other blockchain-based solutions like minting crypto tokens and validating data sources.

How does Layer Zero work? ​

There are three vital components of a layer 0 blockchain:

The main chain is the primary blockchain, which stores transaction data from various L1 blockchains. Sidechains are independent Layer 1 blockchains that can have their consensus mechanisms and validator nodes. Sidechains share the security of the mainchains as they are the most decentralized. There are multiple ways to share security. A user may be required to stake the layer 0 token to become a validator on layer 1. This type of security means any attempt to submit fraudulent transactions may result in losing both Layer 0 and Layer 1 stakes. Another method is when Layer 1 shares its network state, transaction history, and account balances with Layer 0 to keep a backup in case Layer 1 records are compromised. Cross-chain transfer mechanism enables crypto data and tokens to be transferred between chains securely.

Problems that Layer 0 Solves

Interoperability

The ability of blockchains to communicate with another chain is known as interoperability. This feature enables a more closely linked network of crypto services, offering a better user experience. Blockchain networks using layer zero protocols can interact with other blockchains without bridges. Layer 0 uses multiple iterations of cross-chain protocols to enable one blockchain to build on another blockchain’s features. This feature helps to achieve greater efficiency and increases transaction speeds.

Developer flexibility

Layer 0 blockchains offer easy-to-use development kits and an easy interface to encourage developers to build their blockchain solutions on them. Layer zero protocols enable developers the flexibility to customize their blockchains while defining their crypto token issuance models. Developers can also control the type of dApps they want to build using Layer 0 protocols.

Scalability

Blockchains like Bitcoin are often congested because a single Layer 1 protocol is being used for all vital functions like achieving consensus, ensuring data availability, and executing transactions. Layer zero can solve this scalability issue by delegating main functions to different blockchains. Blockchains built on the same Layer 0 protocol can each enhance a specific task to increase scalability. For example, execution chains can process a high number of transactions per second.

Layer 0 examples

Polkadot

Gavin Wood created Polkadot to enable developers to build their blockchain protocols. Polkadot uses a main chain known as the Polkadot Relay Chain. Parallel chains, or parachains, are independent blockchains built using this protocol. The relay chain is used as a bridge between Parallel chains to allow data communication. A method of splitting blockchains known as sharding is used for processing transactions efficiently.

This protocol uses a proof-of-stake (PoS) system for consensus and network security. Blockchain projects participate in auctions to bid for slots to use this protocol. The first project to be approved in Polkadot was in December 2021.

Avalanche

The Avalanche blockchain uses a tri-blockchain infrastructure consisting of the Exchange Chain (X-chain), Contract Chain (C-chain), and Platform Chain (P-chain). Avalanche was launched by Ava Labs in 2020 to focus on DeFi protocols. The three chains are configured to handle vital functions within the blockchain ecosystem, aiming for increased security, high throughput, and low latency. Crypto assets can be created and traded using the X-Chain. Smart contracts can be created on the C-chain. Finally, the P-Chain is employed to coordinate subnets and validators. The flexible structure of Avalanche enables fast and inexpensive cross-chain swaps.

Cosmos

The Cosmos network has a proof-of-stake blockchain mainnet known as Cosmos Hub. It also consists of customized blockchains called Zones. The Cosmos Hub transfers crypto assets and data between Zones. The Hub also provides a shared layer of security.

Developers can design their crypto tokens with custom block validation and other features because each zone is customizable. The Inter-Blockchain Communication (IBC) protocol enables interaction between Cosmos apps and services. This protocol allows the free transfer of crypto assets and data across independent blockchains. The Cosmos network was launched by Ethan Buchman and Jae Kwon in 2014.

Conclusion

Layer 0 protocols are viable alternatives to smart contracts. This protocol offers a solution to the scalability issues of blockchain networks. There are a few successful layer zero platforms, such as Cosmos and Polkadot, that have hosted many dApps and Layer 1 protocols. Layer zero technology can enhance blockchain network scalability while maintaining decentralization and network security.

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Due to limitations on transaction throughput on the Ethereum Mainnet (i.e. layer 1), developers proposed layer 2 protocols to handle transactions off layer 1 so as to improve Ethereum’s performance and user experience.

zkSync is a layer 2 solution created by Matter Labs. The team solves Ethereum scalability with Rollup (i.e. one of the mainstream implementing layer 2 solutions) based on zero-knowledge proofs.

How does zkSync’s solution work?

zkSync is a L2 protocol based on ZK Rollup architecture.

• ZK: Stands for Zero Knowledge.

• Rollup: One of the layer 2 solutions that perform transaction execution outside the main Ethereum chain (layer 1), but post transaction data on layer 1.

• ZK Rollup: ZK Rollup bundles hundreds of transfers off-chain and generates a cryptographic proof, known as a SNARK (succinct non-interactive argument of knowledge). This is known as a validity proof and is posted on layer 1.

The security of Rollup is determined by the validity and availability of data.

• Validity: Ensure that the state has been verified to prevent validators from modifying data on layer 2 to steal users’ assets.

• Availability: Keep data available for layer 2, ensuring that users have the data to be able to withdraw assets from layer 2 to layer 1 at any time.

zkRollup posted bundled data on layer 2 to ensure the validity and availability of data. Inheriting the security properties of layer 1, while performing execution outside of layer 1, is a defining characteristic of zkRollup.

Main features

* Extremely low transaction fees

* ~1/100th of mainnet costs for ERC-20 tokens and ~1/30th for ETH transfers Trustless protocol

* Funds are cryptographically secure, as in the Ethereum mainnet

* Users are always in control of their funds

* No requirement for operational activity to keep the funds safe

zkSync Wallet

Take imToken for example, first download and install imToken (https://token.im/ ) and create/import an identity wallet.

Learn more about Layer 2

Layer 2

In order to scale Ethereum to accommodate a growing number of users, developers have proposed 2 solutions, namely, layer 2 and sharding (a layer 1 scaling solution).

Layer 1 refers to the Ethereum blockchain itself, and layer 2 is a network or technology that operates on top of Ethereum to improve its scalability and efficiency.

Mainstream layer 2 solutions include ZK Rollup, Optimistic Rollup, Plasma, State Channels, Validium, etc.

ZK Rollup

ZK stands for Zero Knowledge, which means that a prover can convince a verifier that an assertion is correct without providing any useful information to the verifier.

Rollup is a collective term for solutions designed to improve the performance of the Ethereum mainnet by handling transactions off-chain while keeping part of the data of each transaction on-chain.

ZK Rollup = Roll Up Transaction + Zero Knowledge Proof (zk-SNARK)

In a nutshell, ZK Rollup is a L2 scaling solution in which all funds are held by a smart contract on the mainchain, while computation and storage are performed off-chain. For every Rollup block, a state transition zero-knowledge proof (SNARK) is generated and verified by the mainnet contract.

Matter Labs

Matter Labs, the development team behind zkSync, is an engineering team passionate about liberty, blockchain and math. Their head office is in Berlin, but they work across the globe (mostly Europe).

Matter Labs scales Ethereum with zero-knowledge proof technology with the mission to accelerate this ongoing financial revolution.

zkSync Block Explorer

zkSync Block Explorer is an open source web tool that stays synchronous with the zkSync network and allows you to view information about blocks, transactions, state root hashes, account addresses on zkSync.

zkSync Roadmap

The project’s roadmap is planned for scalable payments, smart contracts, privacy, and censorship resistance.

Scalable payments: zkSync is currently working to build a secure and scalable digital asset payment solution.

Smart contracts: zkSync will introduce efficient, secure, Turing-complete, multilingual smart contracts in Zinc and Solidity. Learn more

Privacy: At the moment, all transactions in zkSync, just like in Ethereum, are transparent. The team plans to enable privacy in the future.

Censorship Resistance: A common problem with scalable solutions is that most users cannot participate in validation and the network tends to be centralized. zkSync intends to tackle this issue by introducing an independent consensus mechanism with two different roles: Validators and Guardians.

zkSync also plans to launch their token in the future.

zksync Ecosystem

https://ecosystem.zksync.io/

Learn more

zksync website

https://zksync.io/

Matter Labs website:

https://matter-labs.io/