What is Ethereum Layer 2 network ZKsync and how does it work?

ZKsync is a Layer 2 scaling solution for Ethereum that aims to increase the network's transaction throughput while reducing transaction fees. It is built on top of ZK-rollup technology, which allows for aggregating multiple transactions into a single proof that can be verified on the Ethereum blockchain. 

In this article, we will explore what ZKsync is, how it works and its potential impact on the Ethereum ecosystem.

How does ZKsync work?

The ZKsync platform aims to enhance the Ethereum network by addressing its key issues of low scalability and high transaction fees. 

The platform utilizes a technology known as zk-Rollups, which is a type of zero-knowledge proof that enables the aggregation of multiple transactions into a single one, processed off-chain and then verified on the Ethereum blockchain. This method significantly reduces the computational burden on the main Ethereum network, thereby lowering the associated transaction fees and speeding up transaction times.

Some Layer 2 networks use optimistic rollups, which assume transactions are authentic unless proven otherwise. Instead, Layer 2 networks that use zero-knowledge proofs, like ZKsync, generate a proof that all transactions are genuine on a regular basis. The cost of submitting this proof to the Ethereum blockchain is why these networks tend to have higher fees than their optimistic counterparts.

Developed by Matter Labs, ZKsync was introduced with the aim of preserving the security and decentralization of the Ethereum blockchain while improving its efficiency. The system is particularly attractive to users and developers because it maintains compatibility with Ethereum's existing smart contracts and tools, which facilitates a seamless integration for decentralized applications looking to benefit from faster and cheaper transactions. 

Moreover, ZKsync is designed to be a trustless protocol, meaning that it does not rely on any intermediary or custodian to hold or validate user funds. Instead, it operates in a decentralized manner, with all assets secured on the Ethereum blockchain via smart contracts. This structure not only preserves the intrinsic security features of Ethereum but also enhances user sovereignty over their assets. 

The ZKsync ecosystem also includes bridges, such as the ZKsync bridge and third-party bridges, that facilitate the seamless transfer of assets between the Layer 1 and Layer 2 networks, further solidifying its position as a user-friendly and efficient scaling solution. With these mechanisms in place, ZKsync is poised to support a wide range of applications and use cases on the Ethereum network, promising a more scalable and cost-effective future for its users.

The ZKsync airdrop

Like most Layer 2 networks, ZKsync uses a sequencer to gather new transactions and a prover to create the zero-knowledge proof that the transactions are genuine. However, this is currently largely centralized.

As part of Matter Labs’ plans to decentralize the network, it is introducing a token called ZK. This will be used to govern the network as it becomes decentralized. 

The token is being handed out to a range of ecosystem participants, including those that have used the network over the last few years. The airdrop criteria was largely focused on having high usage of either the ZKsync Era network or its precursor, ZKsync Lite. Some 33% of the token supply will be allocated to the Matter Labs team and its investors.

Token allocations are currently available, and the token will be distributed in June, the project has said.