Let me talk about this first
What is zkSync?
ZkSync is a novel approach to solving Ethereum’s scaling issues.
It is one of the first applications of a technology known as zero-knowledge proofs. zkSync hopes to provide cheaper, faster transactions on the Ethereum blockchain and become home to many popular Ethereum applications. If successful, we could see major decentralized exchanges and DeFi protocols expand to the zkSync layer, giving cryptocurrency users access to these tools at a lower cost.
Created by Matter Labs, zkSync is a user-centered zk rollup platform. zkSync is a Layer 2 extension protocol based on zk-rollup technology, aiming to solve the scalability problem of the Ethereum network. It uses zero-knowledge proof technology to achieve efficient transaction processing and fast confirmation times while ensuring security and decentralization. Like optimistic rollups, zk-rollups will aggregate transactions on the Ethereum mainnet and submit transaction proofs to Ethereum. This means hundreds of transactions are combined into one transaction, verified and secured by Ethereum. zkSync supports the transfer, trading and storage of ERC20 tokens and Ethereum, and provides interoperability with the Ethereum network.
Project Introduction
In 2019, the Matter Labs team began to develop the zkSync network using the ZK Rollup expansion solution. In June 2020, zkSync1.0 was launched, focusing mainly on payments. As a Layer2 expansion layer, the transfer fee on the zkSync1.0 chain is extremely low, and the transaction processing is fast. The fee is not limited to ETH. Other Ethereum standard assets transferred using the network can also be used as fees. Assets entering and leaving the Ethereum mainnet generally take a few minutes to a few hours.
Since zkSync1.0 is not compatible with EVM, the availability of the network is limited and the application scenarios it can support are very limited. However, due to the low transfer fees and instant arrival of funds, the main application direction of zkSync1.0 is still payment.
In February 2022, the public testnet of zkSync 2.0 was launched, achieving EVM compatibility, making it the first blockchain network to utilize the ZK Rollup solution and compatible with EVM. Users can interact with the platform and applications built on it before the mainnet is launched. zkSync2.0 supports developers to deploy decentralized applications on the network using Ethereum's native programming language Solidity. Existing DeFi applications on the Ethereum mainnet can also be integrated into the zkSync2.0 network, allowing developers and users to use this Layer2 network at low cost and high efficiency.
On October 28, 2022, zkSync released the 2.0 mainnet Baby Alpha version. This stage is only used for stress testing and security work, including deploying the end-to-end system to the mainnet. There will be no external projects or users to conduct a series of stress tests on the system to verify that it works properly and performs as expected.
Investment agency:
Why is ZKS the leader in L2? At the beginning of the Ethereum scaling race, optimistic rollups like Arbitrum and Optimism had a huge advantage because this style of rollups was initially more easily compatible with or even completely equivalent to the EVM. This technical affinity makes it easy for applications to port their code and use their favorite tools to migrate from L1 to L2, which is a great UX.
In contrast, the nature of ZK-style scaling causes ZK rollups to start with a custom VM, meaning projects therefore require more extensive work to “interpret” code from the EVM or use new code written from scratch. However, as of March 2023, multiple ZK rollups projects are now apparently close to releasing their own zkEVM implementations!
Advantages and highlights of zksync: zksync uses zero-knowledge proof technology and can achieve a processing speed of up to 2,000 transactions per second.
Low cost: zksync’s transaction fee is very low, which can greatly reduce users’ transaction costs.
High security: zksync uses zero-knowledge proof technology to ensure the privacy and security of transactions.
Ease of use: zksync’s interface is simple and easy to use, and can be easily integrated with other applications.
Perfect ecology: zksync has cooperated with multiple blockchain projects, and the perfect ecology can provide users with more application scenarios.
Over 200 projects — including Chainlink, SushiSwap, Uniswap, Aave, Argent, 1inch, Gnosis, and Curve — have registered interest in deploying on zkSync Era.
zkSync on-chain data
TVL: 58.33 million USD. Among them, ETH and stablecoins are the main locked-in assets. The total locked-in value of the zkSync ecosystem is at a medium-low level among the mainstream Layer 2.
Number of independent addresses: more than 330,000. The number of zkSync independent addresses ranks second in Layer 2, second only to Optimism, but the daily active ratio of addresses is very low, currently only about 0.04%.
This shows that users are optimistic about the overall development of zkSync and have deployed zkSync addresses in advance, but the ecosystem has not yet developed to the stage of sustained prosperity and daily transactions by users.
Ecology
Through its innovative use of ZK-rollups, zkSync presents an attractive opportunity for Ethereum projects aiming to improve scalability and efficiency. Since its launch in March 2023, the zkSync ecosystem has grown significantly. As of August 31, 2023, a total of 87 projects were online on the platform, including:
28 DeFi projects: DEX projects such as SyncSwap, Mute.io and Maverick Protocol, and lending projects such as ReactorFusion and Eralend.
23 NFT projects: zkAnimals, NFTme, Kreatorland, etc.
11 wallets: Argent, Metamask, OKX Wallet, etc.
10 cross-chain bridges: Orbiter Finance, Meson, Celer Network, etc.
7 GameFi projects.
Team Background
Matter labs is the company behind zkSync, a German company founded in 2018 by CEO Alex G. and has grown to over 50 employees. The team is made up of experienced developers, researchers and entrepreneurs as well as core members such as Zoe Gadsden COO, Ankur Rakshit (CFO), Steve Newcomb (CPO) and Shazia Hasan in communication. Together, they are creating a more efficient, cost-effective and secure way to transact on Ethereum.
zkSync Fundraising
zkSync raised $458 million, becoming the largest L2 project with a C round valuation of $2 billion. zksync is the project with the greatest potential and the best chance to become the leading L2 project in the future.
zkSync has completed 5 funding rounds since 2018, raising a total of $258 million from the largest investors, venture capitals, and investment firms, plus a $200 million funding commitment from BitDAO.
Such an amount ensures sufficient funds to develop projects and infrastructure and is the most funded L2.
$200 million Series C funding round led by Dragonfly and Blockchain Capital in November 2022
$200 million in pledged funding from BitDAO in January 2022.
For the zkSync team, 2023 will be similar to 2022, with a crazy amount of new development and key implementations happening throughout the year, leading to a complete working chain by the end of the year.
The ultimate goal of zkSync is: decentralization.
To support Ethereum's mission, the team will decentralize the zkSync 2.0 protocol, including proof generation, block production, and transaction verification. The team is already thinking about how to implement each part of the decentralized system and will provide instructions on how to run a node.
Project Name: ZKSYNC
Token Name: ZKSYNC
Total Tokens: Undisclosed
Investment institutions: a16z, OKX, Coinbase, etc.
100% release after going online, no lock-up release mechanism:
Expected listing: Expected to be in the first quarter of 24 (top five exchanges)
In summary, the zksync token is an innovative Layer 2 solution designed to achieve efficient and secure on-chain asset transfers. It uses zkRollup technology to ensure the security of transactions through zero-knowledge proofs, and greatly increases transaction throughput and reduces transaction fees through off-chain calculations. This solution not only meets the daily transaction needs of users, but also provides developers with a platform for building decentralized applications based on Ethereum. With the continuous development of blockchain technology, we have reason to believe that zksync tokens will play a greater role in the future.
ZkSync is a very promising project that is expected to become an important part of the Ethereum ecosystem and make a positive contribution to the development of the blockchain industry.
I have already mentioned two of the four great kings of L2. I missed OP and ARB. I must not miss ZKS this time.
