TL;DR

That’s not a secret that Ethereum has still some crucial pain points other projects are trying to solve. ZkSync was developed by an engineering team at Matter Labs to “increase Ethereum's throughput, but to fully preserve its foundational values – freedom, self-sovereignty, decentralization.” The project has fundraised capital from top investors to scale the security and values of Ethereum. Did they succeed? Let’s find that out!

Know Your ABCs: Few Words About ZkSync

**ZKSync ** is a layer-two (L2) blockchain for Ethereum that uses zk-rollups as scaling technology. Zk-rollups roll up transactions off the Ethereum network and send the transaction proofs to Ethereum. Thus, hundreds of transactions are scraped up in one, which is verified and secured by Ethereum.

Zero-knowledge-proof systems have so-called proactive cryptographic security. Zk-rollup solutions claim that a particular transaction is correct without revealing the proof of it. Simply put, zk-rollups appeal to a “rely on me” approach. It could sound a bit odd to a layperson, but still, zero-knowledge proofs are considered one of the most promising scaling and privacy solutions for Ethereum.

What Is a Rollup?

Rollups work by tying up or ‘rolling up’ off-chain transactions into a smaller transaction that gets sent to Layer 1. By sending the transactions back to Layer 1, rollups inherit the security and finality of the Ethereum blockchain.

There are two types of rollup: Zero-knowledge (ZK) and Optimistic. The 1st option stands for a use of a complex piece of cryptography called a zero-knowledge. It utilizes proof to prove a transactions’ validity without knowing too much about the transactions’ specifics (and thus the name). The 2nd solution is referred to as “optimistic” as they assume that all the Layer 2 transactions are valid until it is proven to be otherwise.

We’re only covering ZK rollups here.

What Is a ZK Roll-up?

Each bundle of transactions is sent to an off-chain prover that generates a cryptographic proof called SNARK that the transactions are valid. If generating the proof is rather hard, verifying that the proof is verified is easy. That means it can be sent to Layer 1 and accepted right in a smart contract. It makes it possible to have almost frictionless transfers between Layer 1 and 2.

ZKSync’s Highlights

• Low gas fees: Gas fees can be up to 100 times lower compared to Ethereum while still inheriting the ETH mainnet security;

• High speeds: 2000+ transactions per second (tps) compared to 14tps on L1;

• Safety: It’s secured by the main Ethereum blockchain;

• Smooth transfers: Move your crypto between L1 and Layer 2 with no delays;

• Censorship free: It’s possible to move your assets back to L1 at any time.

ZKSync vs Optimistic Rollups vs Starkware

• Of course, ZKSynk isn’t the only layer o the market, it has straight competitors such as ZKSync has two main competitors: the L2s using optimistic rollups — Arbitrum and Optimism and also L2 solution using zk-proof scaling technology – Starkware. These are the main differences between zkSync and optimistic rollups:

• Zk-proof solutions’ on-chain speed is higher because there is no waiting period during which the transaction can be debated.

• Zk-proofs demand a lot more computing power, so they are less suited for DApps with a lot of on-chain activity.

• Optimistic rollups run smart contracts on the Ethereum network directly, while zk-rollups do not.

How to Use ZKSync

Using ZkSync is quite easy, just follow these easy steps:

1. Connect your browser-type wallet to the zkSync wallet;

2. Fund your account;

3. Transfer the funds to use for this transaction into another ZkSync (not necessary);

4. Delve into the zk-rollup ecosystem with the funds.

There is also a detailed tutorial on the official website. We didn’t mention it here, as it’s way too thorough for the blog post. :)

The Best DeFi DApps on ZKSync

According to Zk_Daily, an educational channel, there are about 200+ projects running or about to run on zkSync but there is no need to observe all of them, as the best is good enough.

Let’s have a look at some of the best DeFi platforms using zksync technology. Those will be:

1. Curve: a popular stablecoin exchange;

2. Yearn Finance: a yield optimizer;

3. Taker Protocol: DAO-based liquidity protocol.

• Curve (CRV) is a stablecoin-oriented decentralized exchange (DEX) that is one of the oldest exchanges on the market, along with Uniswap, to spread the AMM model. Curve on zkSync does not yet have the massive total value locked (TVL) it has on other blockchains, it could grow bigger as zkSync becomes quite popular and widely used.

• Yearn Finance (YFI) is a yield-compounding protocol that applies different investment strategies to generate an ROI on its vaults.

  Yearn Finance became popular on the Ethereum blockchain and shortly went to other chains. At the moment it supports Ethereum, Fantom and Arbitrum on its platform, but users can also access Yearn on zkSync with  Argent, a wallet provider.

• Taker Protocol is a DAO-based liquidity protocol for crypto assets. It allows users to liquidate and rent different types of crypto assets, including  NFT (non-fungible tokens), synthetic assets and tokens. Users can also delve into NFT lending and renting. Taker Protocol is available in testnet.

ZKSync Token & Potential Airdrop

There is no such thing as ZKSync Token yet but there are multiple ways how to become eligible for a potential airdrop. Here are some of the most evident and easiest ones.

Quests on Crew3

Go to zkSync’s Crew3 Questboard and complete the quests. Tasks are quick and simple: follow them on social media, read their articles, and complet quizzes.

Donate on Gitcoin

Gitcoin is a community platform that funds and coordinate new open-source developments. To donate, just go to the “grants” page. Pay with the zkSync network for lower transaction fees.

Interact With the ZkSync Ecosystem

First of all, go to zkSync Bridge to bridge your assets to zkSync Era. There will be a fee for the transaction, so ensure that you have enough ETH in your wallet to pay for the transaction expanses. With the assets bridged to zkSync Era, you deposit liquidty into zkSync.

As you know, ZkSync has a bundle of protocols. Check out some of the top zkSync ecosystem projects you could interact with to maximize your chances of a potential zkSync airdrop and double your rewards:

1. Orbiter Finance

2. ZigZag Exchange

3. Argent

4. SyncSwap

5. Mute.io

Join ZkSync Name Service

ZkSync Name Service is an omnichain name service empowering users to start their Web3 profile. Here’s how to start at the ZkSync Name Service:

1. Go to zkSync Name Service;

2. Find an available domain name. If you find one that you want to obtain, click “Available”;

3. Tab “Request to register with ETH” and approve the transaction. It costs around US$6.5 to buy a domain.

Final Thoughts

ZkSync sounds like a decentralized finance future. The project’s main focus on flexibility, sustainability, and community-driven innovation can’t be beaten. This innovation provides users and developers with a highly efficient liquidity solution. The project's protocol and platform packed with features offer a unique experience and divide the DeFi sector ‘Before’ & ‘After’ zkSync rollups period.