Blockchains have traditionally faced challenges in achieving a high level of trust-minimization for applications that require low cost and high speed. In order to empower people with the benefits of trust-minimization, blockchains are required to be able to process more transactions than they are currently capable of processing while keeping the transaction costs considerably lower to enable ordinary people to tap into the Web3 space.
The blockchain landscape is prioritizing blockchain scalability to make the technology highly scalable and have smart contracts serve as the backbone of various major industries, like insurance, finance, gaming, logistics, and more. One approach to scale blockchains is using ZK rollup solutions, which move computation and state-storage off-chain and store transaction data on-chain.
Understanding ZK-Rollups
A zk rollup is a layer-2 scaling technique that shifts computation and state off the main blockchain onto secondary networks, while still recording transaction data on the main layer-1 blockchain, such as Ethereum. These state changes are processed off-chain and validated on-chain using zero-knowledge proofs.
ZK rollup projects significantly boost transaction throughput and reduce costs while maintaining the security of the underlying layer-1 network for final settlement. Rather than posting every transaction individually on-chain, ZK-rollups periodically post batches of validated transactions from the layer-2 network to the layer-1 blockchain, leveraging the censorship resistance and security of the base layer for settlement. Additionally, rollups often utilize data compression methods to minimize the amount of data uploaded to the layer-1 network.
Business Benefits of Investing in ZK-Rollup Projects
ZK-rollups provide various benefits, which has contributed to their growing popularity and adoption among businesses.
- Enhanced Scalability
ZK rollup projects augment the scalability of blockchain networks by batching multiple transactions into a single block. This paradigm results in lower computational burden and lesser transaction processing demands on the main chain, thereby enhancing transaction throughput significantly. Consequently, networks are able to manage a higher volume of transactions, which leads to quicker confirmations, reduced congestion, and an improved user experience.
- Cost Efficiency
One of the key benefits of ZK rollup solutions is their potential for reducing gas fees. By processing several transactions within a single Rollup block, users are spared from paying individual transaction fees. This method significantly lowers transaction costs compared to executing transactions directly on the main chain, making blockchain technology more accessible and practical for a variety of applications, including microtransactions and high-volume transaction environments.
- Robust Security
ZK rollup solutions are fortified by high security standards of the main blockchain while enhancing scalability. ZK-proofs ensure that only valid transactions are recorded on the main chain that verifies the accuracy of these transactions through cryptographic proofs and smart contracts. It maintains its role as the ultimate authority on the integrity of Rollup blocks. In addition, ZK Rollup inherits the security benefits of the underlying blockchain, such as decentralization and immutability, ensuring the overall security of the system.
- Improved Speed and Stability
ZK Rollup project addresses Ethereum’s issue of slow network operations during peak demand by processing transaction verifications and bundling on a separate layer from the main net. This separation frees up space on the main net, which was previously occupied by these processes. With more efficient resource management and streamlined operations, networks can run faster and more stably.
Get In Touch
Top 10 ZK-Rollup Projects
The following includes a list of top ZK rollup projects:
1. StarkNet
Total Value Locked: $233 million
Launch Date: February 2022
Native Token: STRK — used for gas fees, staking, and governance
StarkNet is positioned as one of the best ZK rollup projects. It utilizes STARKs (Scalable Transparent ARguments of Knowledge), which is a zero-knowledge proof technology that is designed to augment privacy and scalability. StarkNet executes and verifies transactions off-chain with STARKs, following which it posts proofs to the Ethereum mainnet, achieving substantial scalability while maintaining transaction security and privacy.
StarkNet’s support for general computation allows it to execute any smart contract, which provides a versatile platform for developers.
Key Advantage
The implementation of STARKs ensures that StarkNet is both highly secure and scalable without the need for a trusted setup. Additionally, STARKs offer quantum-resistant security, making the platform robust against future technological advances.
2. zkSync Era
Total Value Locked: $122.8 million
Launch Date: March 2023 (Full Mainnet launch)
Native Token: ZKS – used for gas fees, staking, and governance
zkSync Era is another remarkable project that makes it mark in the top ZK rollup projects list. zkSync is a brainchild of Matter Labs, and the project leverages ZK-rollup technology to enable greater scalability and enhanced user experience while ensuring compatibility with Ethereum. zkSync Era executes transactions off the chain and aggregates them into a single proof submitted to the Ethereum mainnet, leveraging zero-knowledge proofs for improved efficiency and security.
The platform aims to reduce transaction fees and increase throughput, thereby addressing two significant challenges faced by the Ethereum mainnet.
Key Advantage
zkSync Era retains EVM compatibility, enabling the execution of Ethereum smart contracts. This feature is particularly beneficial for developers who want to transition to Layer-2 solutions without needing to rewrite their code.
3. Polygon zkEVM
Total Value Locked: $12.37 million
Launch Date: March 2023 (Mainnet Beta launch)
Native Token: MATIC – used for gas fees and governance
Polygon zkEVM is one of the well-known ZK EVM projects. It belongs to the Polygon suite and provides a scalable ZK rollup solution compatible with Ethereum. It executes transactions off-chain and validates transactions on-chain by using ZK proofs. It ensures seamless compatibility with existing Ethereum tools and contracts.
Given that Polygon ZK rollups are a part of the Polygon ecosystem, they benefit from network effects and the synergy with other solutions offered by Polygon, which fosters a robust Layer-2 environment.
Key Advantage
Polygon zkEVM is compatible with existing Ethereum smart contracts and tools. This contributes to its high accessibility among developers who are familiar with the Ethereum ecosystem.
4. Loopring
Total Value Locked: $69.12 million
Launch Date: December 2019
Native Token: LRC – used for building decentralized exchanges (DEX)
Loopring is one of the renowned ZK rollup Layer-2 projects, and it is primarily tailored for decentralized exchanges (DEXs) and payment systems. It enables non-custodial trading by matching buyers and sellers without holding users’ funds. Unlike many DEXs that rely on automated market maker (AMM) models demanding substantial liquidity, Loopring enables DEXs to utilize an order book approach. This method requires less liquidity and provides a trading experience more akin to traditional centralized exchanges.
Key Advantage
Loopring distinguishes itself through its capacity to greatly improve scalability and efficiency across blockchain networks. It achieves this by consolidating numerous transactions off-chain into a single ZK-rollup block, which is subsequently validated on-chain. This strategy substantially decreases the computational burden and transaction expenses typically linked with blockchain operations. As a result, Loopring ZK-rollup not only boosts transaction throughput but also alleviates congestion on the main Ethereum network, leading to swifter confirmation times and reduced fees for users.
5. Linea
Total Value Locked: $202 million
Launch Date: August 2023
Native Token: LINEA – used for gas fees
Linea is a Layer-2 scaling solution utilizing ZK rollup solutions to enhance transaction speeds and reduce costs. It operates by processing transactions off-chain and consolidating them for submission, employing zk-SNARKs for validation.
Additionally, Linea prioritizes developer integration, aiming to streamline the building and deployment of Ethereum applications.
Key Advantage
Linea stands out with its strengths in scalability and speed, delivering higher throughput compared to many competitors in the space.
6. Scroll
Total Value Locked: $836 million
Launch Date: October 2023 (Bridge Deployment)
Native Token: No token as of now; may launch in the future
Another project in the ZK rollups list is Scroll – a ZK Rollup solution designed to optimize throughput and minimize latency. Scroll achieves minimum latency by leveraging zk-SNARKs to compress transactions. These transactions are processed off-chain and grouped into a single zk-SNARK proof, which is subsequently moved to the Ethereum mainnet to validate transactions.
Scroll is compatible with the EVM and enables seamless migration of Ethereum smart contracts existing on the platform.
Key Advantage
The primary focus of Scroll lies on maximizing throughput while simultaneously reducing costs. This makes it an attractive option for DeFi apps and other use cases that involve high transaction volumes, offering a more efficient alternative.
7. zkFair
Total Value Locked: $18.58 million
Launch Date: December 2023
Native Token: ZKF – used for governance, gas fees, and earning rewards through gas fees
ZKFair operates as a decentralized exchange leveraging ZK rollup solutions to ensure fair trade execution and prevent front-running.
Using zero-knowledge proofs, ZKFair processes transactions off the chain and consolidates them on Ethereum. Its notable feature is its capability to prevent the manipulation of transaction order – a prevalent issue in many other DEXs.
Key Advantage
ZKFair distinguishes itself with its ability to prevent front-running and manipulation of trade orders, creating a more equitable trading environment. This approach appeals to traders who prioritize transaction integrity in decentralized trading platforms.
8. Manta
Total Value Locked: $43.46 billion
Launch Date: September 2023 (Testnet launch)
Native Token: MANTA – used for staking, governance, and paying fees for the privacy-focused DeFi platform
Manta Network is one of the top ZK rollup projects, and it specializes in ensuring privacy for DeFi transactions. It operates on Ethereum’s Manta Pacific layer-2 and employs zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) to safeguard transaction privacy.
By utilizing zk-SNARKs, Manta Network enables users to conduct cryptocurrency transactions and swaps with complete privacy. It encrypts transaction details, such as assets and amounts, yet these details are verifiable for authenticity.
Key Advantage
Manta Network distinguishes itself through its strong focus on privacy within the DeFi sector, a feature often lacking in other DeFi platforms. Additionally, this Ethereum layer-2 network prioritizes interoperability, aiming to establish a privacy layer for all DeFi applications across diverse blockchains.
9. Taiko
Total Value Locked: 13.18 million
Launch Date: January 2024 (testnet)
Native Token: TAIKO – used for governance and network operations
Taiko is leading innovation in the Ethereum ecosystem by utilizing ZK-EVM and ZK rollups to develop a decentralized Layer 2 blockchain protocol. It aims to ensure full compatibility with Ethereum to enable existing Ethereum dApps to seamlessly deploy without the need for any modifications.
Key Advantage
A standout feature of Taiko’s technology is its innovative “based” sequencing approach, distinguishing it from other ZK rollup projects. In this system, the sequencer functions akin to an air-traffic controller. It bundles transactions for finalization, driven directly by layer-1 blockchain or the base layer rather than operating as a centralized entity. This innovation addresses concerns prevalent in existing rollup technologies, where centralized sequencers could pose risks as single points of failure or potential targets for censorship.
10. ZetaChain
Total Value Locked: $2.68 million
Launch Date: February 2021
Native Token: ZETA – used for governance, gas fees, and cross-chain communication for the interoperability platform.
ZetaChain leads the way in establishing “universal bridges” across blockchains by leveraging ZK rollup solutions for secure and efficient cross-chain communication. It utilizes zk-SNARKs to validate transactions on one blockchain without disclosing sensitive information from another, facilitating smooth asset and data transfers between different blockchain networks.
Key Advantage
ZetaChain enables interoperability and cross-chain functionality, which further empowers decentralized applications to seamlessly utilize assets and data from multiple blockchains. In addition, ZetaChain leverages “ZetaML” technology for the execution of smart contracts off-chain, further enhancing its capabilities in the decentralized ecosystem.
Contact Our Experts
Conclusion
ZK rollup solutions provide an innovative technology that can potentially redefine the scalability paradigm of Ethereum. They promise to make the Ethereum ecosystem, and the overall blockchain ecosystem, more scalable, efficient, and robust by enabling efficient processing of transactions off-chain with data integrity and security.
ZK rollups’ ability to address the existing limitations paves the way for widespread adoption of blockchain technology, which can further transform the way we interact with the world.
