Yesterday, zkSync, the protocol in charge of developing Ethereum (ETH) scaling platforms, announced the test network release of an Ethereum Virtual Machine compliant Zero-Knowledge rollup (zkEVM) years ahead of schedule.
The Ethereum Virtual Machine (EVM) is the environment in which all Ethereum wallets and contracts run, and it is in charge of creating the chain’s rules from block to block. The new test network is the first to use a ZK rollup capable of running the whole Ethereum ecosystem, and it will provide valuable data into how well zero-knowledge technology scales blockchains.
ETH rollups have adopted two alternative approaches to expanding the base layer in recent years, classed as Optimistic and Zero-Knowledge. Both methods have gained traction, with Arbitrum being the most well-known Optimistic chain and DyDx using ZK technology for their leveraged trading application. Because the whole Ethereum environment, which provides customizable smart contracts, would be too computationally intensive, ZK rollups have traditionally focused on giving a single type of application per chain, similar to DyDx.
Ethereum roll ups
Huobi Research did a little digging and shared their results for ETH’s latest tech. With better performance, fewer transaction fees, and unconstrained departure times, ZK Rollup outperforms OP Rollup. ZK Rollup has a huge advantage and has the potential to be a major player in Ethereum scaling.
When compared to OP Rollup, the biggest disadvantage of ZK Rollup, according to Huobi, is compatibility. It is only compatible with payment and transaction apps, as shown below, whereas OP Rollup supports a wider range. ZK Rollup has not received adequate development, resulting in a TVL-based market share of only 3.6 percent of the Layer 2 Ethereum market.
ZK Rollup has raised overall transaction volume by over 500 times for ETH, raising TPS to 2000, which is on par with the current VISA payment system. It will be able to handle more situations and provide complete support for numerous applications as a result of the extensive development of zkEVM, reinforcing its position as a pioneer in the Rollup market. The amount of traffic on Ethereum may be greatly reduced if data could be transported more quickly.
Will it be ETH’s salvation?
To begin with, the zkEVM gives Ethereum a greater chance in the face of severe competition from freshly formed public chains like Solana, Avalanche, Fantom, and others.
As a result, these public chains will lose their performance comparative advantage and will need to separate themselves from one another and adopt more innovative techniques to attract consumers and build their ecosystem. Second, more recently established applications might be deployed on Ethereum at a reduced cost while still benefiting from the Ethereum ecosystem’s maturity and strength.
Overall, zkEVM is crucial. Perhaps the question should be “when zkEVM will come” rather than “if zkEVM will come.”