Layer 1 platforms such as Ethereum have struggled with scalability for some time. Their inability to solve the issues of ludicrous gas fees, poor network connectivity and slow transaction speed due to a high influx of traffic has hindered everyday people from using these layer 1 platforms. There had been other proposed solutions but these all came at the expense of decentralization and security.
SO WHAT ARE ZK ROLLUPS
ZK Rollups are an emerging ingenious solution to change layer 1 platforms for the better. ZK Rollups are a layer 2 platform. A layer 2 platform is built on the back of a layer 1 to help it scale. These layer 2 platforms share tasks so that a layer 1 platform is not overwhelmed or exhausted and unable to function optimally.
Also referred to as ZKP (Zero-Knowledge Proof), Zk Rollups can take over the validation and proof process of a congested layer 1 platform. The reason it’s called zero-knowledge is because the transactions are processed off-chain through smart contracts and then added to the blockchain. In doing so, all the necessary computation is done by the ZK Rollups and the only registered change the layer 1 needs to record is the change in wallet values on-chain. It basically is a technology that demonstrates that you have information without actually sharing information.
While a platform like Ethereum can only process 15 transactions per second, a ZK Rollup will allow a minimum of 1000 per second. All the transactions are bundled together, dramatically lowering gas fees. In complete opposite fashion to layer 1s, Rollups function far better with higher traffic and more transactions, and they also become faster and cheaper for users. Once ZK Rollups are ready for use on Eth 2.0, the transaction rate could go beyond 100K per second.
Various leading Rollups such as ZK Sync, Immutable X, and Starknet are all in a tech race to create the most efficient and adaptable Rollup as well as obtain the most users for the Ethereum 2.0 network. Even Polygon, a leading Ethereum sidechain, is considering potentially pivoting their trajectory and transforming their layer 2 sidechain into a ZK Rollup project. It’s early days for Rollups, so expect a lot more development in this sector over the coming months.
