Home Cryptocurrency New zkSync sidechain brings privacy and decentralization at a few cents to Ethereum users

New zkSync sidechain brings privacy and decentralization at a few cents to Ethereum users

by Gordon James

Synchronizing the Ethereum and Bitcoin blockchains is a major challenge, but zk-SNARKs technology could solve this problem at a low cost. The new sidechain will be called “zkt” to emphasize its focus on privacy and decentralization.

The “zksync token” is a new sidechain that brings privacy and decentralization to Ethereum users. The zksync token also has the potential to bring in $1.25 billion in market cap.

The EVM-compatible zkRollup and zkPorter, an off-chain data availability system termed “the engine for widespread crypto adoption,” were combined to create the Ethereum (ETH) scaling solution zkSync 2.0.

Contracts and accounts on the zkRollup side may effortlessly interact with accounts on the zkPorter side, and vice versa, since the two are interoperable and composable. 

Transaction fees of 1-3 cents 

In summary, ZK rollup is an L2 scalability solution that bundles, or “rolls-up,” hundreds of transfers into a single transaction. Each batch creates a ZK-SNARK, a cryptographic proof that is uploaded on L1.

Meanwhile, zkPorter, an off-chain data availability solution, scales two orders of magnitude better than rollups.

The so-called Guardians, who use the zkSync token to participate in proof of stake (PoS), ensure the data availability of zkPorter accounts. 

PoS in zkSync not only leverages “cryptoeconomic assurances of data availability,” but it also adds a layer of protection, with Guardians only being able to freeze the zkPorter state, not steal cash. Users of zkRollup will be able to withdraw their money in this case.

The two security thresholds are available to users. Those who like all data on-chain may remain on the rollup side, while fee-sensitive users and active trades may flock to the zkPorter side of the state because to exponentially lower costs.  

zkPorter by @zkSync has transaction costs as low as 1-3 cents while being much more safe and decentralized than any other L1 or sidechain.

Why? In 5 tweets, ELI5!

⬇️⬇️⬇️

November 16, 2021 — angelfish.eth (@0xangelfish)

On a side note, users may pay for gas using any popular ERC-20 token.

Major collaborations 

Huobi just announced that direct fiat onramp and offramp to zkSync would be available.

“Huobi customers will no longer have to pay exorbitant mainnet transaction fees to deposit and withdraw assets from zkSync, and zkSync users will be able to take advantage of Huobi’s liquidity and scalability,” the Seychelles-based cryptocurrency exchange stated in a statement.

@HuobiGlobal is introducing fiat onramps and offramps to zkSync thanks to a strategic investment from @huobiventures! https://t.co/MjumVSC3gX

We’re hiring! — zkSync (@zksync) 16 November 2021

Huobi Ventures made a strategic investment in Matter Labs, the startup behind zkSync, which is credited with pioneering ZK proofs on Ethereum.

Meanwhile, Blockchain.com, another major crypto service platform, is preparing to enroll the next billion customers on Matter Labs’ network.

We’re ecstatic to announce that @blockchain will be scaling crypto via the zkSync network! https://t.co/c2sD6hXXtT

We’re hiring! — zkSync (@zksync) 17 November 2021

“We think that rollups and ZK technologies are an effective approach to grow blockchains while maintaining security.” As Blockchain.com Ventures joined the roster of zkSync’s strategic financing partners, Samuel Harrison, Partner at Blockchain.com Ventures, stated, “zkSync makes it simple for developers to embrace this powerful technology, which will help bring crypto to the next wave of customers.”

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New zkSync sidechain brings privacy and decentralization at a few cents to Ethereum users

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The “zksync exchange” is a new sidechain that brings privacy and decentralization to Ethereum users. The project is currently in early stages, but the developers are promising full transparency for investors.

Related Tags

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