Zero-knowledge rollups (ZK rollups) are a popular scaling solution in the blockchain industry due to their ability to enhance the throughput of networks. In this article, we will introduce Polygon, Mina, Dusk network, in addition to the previously mentioned ZK rollup projects and coins, and cover the fundamentals of ZK rollups, how they work, and the challenges they face.
What are ZK Rollups?
ZK rollups are a layer 2 scaling solution that aggregates multiple transactions into a single transaction on the blockchain using zero-knowledge proofs. This method can reduce computational costs, improve network throughput, and enhance scalability on blockchain networks.
Current Challenges
As more users join blockchain networks and create more transactions, the limited capacity for processing transactions makes them slower and more expensive to use. ZK rollups aim to solve this scalability issue.
How do ZK Rollups work?
When a user performs a transaction on a ZK rollup network, they submit it to a blockchain smart contract. The smart contract aggregates several transactions into a single transaction using a technique called a Merkle tree. The Merkle tree enables the smart contract to provide a single proof that confirms the legality of all transactions in the tree while keeping the details of each transaction private.
Top ZK Rollups and Coins
zkSync is a trustless scaling and privacy engine for Ethereum that uses ZK rollups to provide fast and cheap transactions while maintaining high security and privacy.
Loopring is a decentralized exchange (DEX) built on the Ethereum blockchain that uses ZK rollups to enable high throughput, low cost, and high trading frequency.
StarkWare is a leading provider of ZK rollup technology that offers scaling solutions for Ethereum and other blockchain networks.
Polygon is a layer 2 scaling solution for Ethereum that uses various scaling technologies, including ZK rollups, to enhance its throughput and reduce its cost.
Immutable X is a layer 2 scaling solution that uses ZK rollups to enable fast and cheap transactions for the Ethereum network.
Panther Protocol is a privacy-preserving DeFi platform that leverages ZK rollups to ensure privacy and confidentiality for its users.
ZigZag is a decentralized exchange that uses ZK rollups to enable fast and low-cost transactions on the Ethereum network.
Mina is a blockchain that utilizes zk-SNARKs to enable lightweight and verifiable data proofs without any tradeoffs on privacy or scalability.
Dusk Network is a privacy-oriented blockchain that leverages zero-knowledge cryptography, including ZK rollups, to offer scalable and confidential smart contracts for commercial applications.
Challenges with ZK Rollups
Although ZK rollups are promising, they face several limitations. Smart contracts that rely heavily on external data sources, such as Oracle data, may not function properly with ZK rollups. Additionally, when users withdraw funds from the rollup and return them to the main blockchain, they may incur higher gas fees.
Conclusion
ZK rollups are a promising technology that can significantly improve the scalability and throughput of blockchain networks. As the technology evolves, these limitations may be addressed, and more applications may be built on top of ZK rollups. If you want to utilize ZK rollups, research and explore the top ZK coins available in the market, including Polygon, Mina, Dusk network, and the previously mentioned ZK rollup projects and coins.
