For a while now, Ethereum’s scalability problems have been making headlines. Also, the network congestion issues and exorbitant gas fees have been the target for Ethereum development.
There has been ongoing speculation that the solution to these issues are ZK rollups. ZK rollups, also known as Zero-Knowledge rollups, are a scaling remedy tool, which runs computation off-chain but uses zero-knowledge proofs to validate on-chain. This is a system whereby a party can verify that another party has such information without disclosing the details of that information.
At the beginning of this year, protocols that chose to utilize optimistic rollups like Arbitrum and Optimism made headlines, and we’re considered as the best solution to Ethereum scaling.
At the same time optimistic rollup solutions became popular, protocols that used the ZK rollups model displayed their capabilities quietly.
dYdX was one of the earliest adopters of ZK-rollup technology. The decentralized perpetual and futures exchange platform has recorded some successes and in some cases, managed to process a greater 24-hour trading volume than Coinbase.
Polygon, which is the major Ethereum layer-2 scaling solution, was in the news for its huge acquisition of companies that specializes in ZK proofs.
Furthermore, zKSync and Matter Labs developed a scaling solution which has been able to raise about $50 million in a funding round that was led by Andreesen Horowitz
Zero-Knowledge rollups could win the day with everyone searching for a way of scaling Ethereum effectively
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Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.