ZK-Rollups: 3 Cryptocurrencies to Explode in 2022 & 2023?

Kryptonite

Cryptocurrency & technical writer.

When it comes to investing in cryptocurrencies, stories often play an important role in identifying promising investment opportunities.

In 2017, there were Initial Coin Offerings (ICOs), Ethereum Killers (NEO, etc.), Interoperability (Wanchain & Icon), and Zero Transaction Fees (IOTA & Nano / Raiblocks).

From 2020 to 2021, Decentralized Finance (DeFi) is a new story that has drawn interest in cryptocurrencies such as MakerDao, Uniswap and Avalanche.

The story of the additional cryptocurrencies in 2021 is as follows:

• Non-fungible token / NFT (Enjin, Bored Ape Yacht Club, Galactic Geckos, etc.)
• Meme coins (Dogecoin, Shiba Inu, Floki dogs, etc.)
• Algorithm Currency Protocol (Olympus DAO, Titan Finance, Wonderland, etc.)
• Binance Smart Chain “Moonshots” (Safemoon, etc.)
• Metaverse & Crypto Gaming (Sandbox, Decentraland, Axie Infinity, Illuvium, My Neighbor Alice, etc.)

Knowledgeable investors understood these stories early on and made some remarkable returns on their investments.

However, this does not mean that you always have to follow the next big story. In fact, I believe it’s best to focus on the basics behind cryptocurrencies instead and build a long-term position.

But at the same time, money usually follows immediately, so it’s important to understand which story is the hottest.

Once you know what the next story is, you can investigate the cryptocurrencies in that story and build a position in a project with a good team and the fundamentals behind it.

One of the stories that is currently receiving a lot of attention is ZK-Rollups. This post describes this technology.

We will also look at three cryptocurrencies that use ZK-Rollup technology, using the secret bonus cryptocurrencies associated with one of the platforms mentioned above. Continue reading to the end to see if you can find it.

ZK-Rollup: I explain like 5 people (ELI5)

Simply put, ZK-Rollup is a smart contract that removes hundreds of transactions from the main blockchain and bundles them into one transaction. Then send the proof of validity back to the main blockchain.

This reduces the amount of data sent over Ethereum’s main blockchain (Layer 1), enabling faster and cheaper transactions.

For more information on ZK-Rollups, read the next section or skip if you already understand how ZK-Rollups works.

What are ZK-Rollups? How does it work?

Zero-knowledge proofs (ZK-Rollups) are smart contracts that extend the Ethereum network by handling multiple transfers from the main blockchain.

ZK-Rollups works by off-chaining hundreds of transfers and combining or “rolling up” them into a single transaction. It then sends SNARK (a brief non-interactive argument of knowledge) to the mainchain as proof of validity.

Block validation using ZK-Rollup is faster and cheaper because it contains less data.

ZK-Rollup One of the options Developed for Layer 2 construction to improve scalability.Another option under development Optimistic rollup.

If you would like to see a more detailed description of ZK-Rollups and Rollup technology in general, we recommend the following resources:

Three ZK rollup platforms with unique cryptocurrencies

As of this writing, there aren’t many ZK-Rollup-based platforms with their own native tokens, so this article contains only three.

Loop ring (LRC)

Loopring (LRC) is a ZK-Rollup Layer 2 solution that enables high throughput, low cost transactions and payments on Ethereum.

It aims to enable anyone to build unmanaged purchase order-based exchanges on Ethereum by leveraging zero-knowledge proofs.

Loopring claims that ZK-Rollups can be used by exchanges to provide traders with quick payments.

Instead of closing transactions directly on the Ethereum blockchain (like other DEXs), ZK-Rollups allows loop ring exchanges to complete calculations off-chain.

This reduces the number of transactions sent to the Ethereum network, speeds up and reduces trader costs.

Loopring has its own token (LRC), which is located at: Binance..Can be used by US investors Kucoin Invest in LRC.

zkSync

zkSync is a Layer 2 scaling solution that offers cheaper and faster transactions than the main Ethereum blockchain (Layer 1).

Use ZK-Rollup technology to process transactions from the Ethereum blockchain while maintaining security and finality.

zkSync was developed by Matter Labs, which received $ 50 million in funding from investors such as Andreessen Horowitz (a16z), Crypto.com, Blockchain.com and Aave.

The advantages of zkSync are:

• Low gas tariff: Gas tariff is equivalent to 1% of Ethereum gas, which is cheaper than using optimistic rollup
• Fast: Over 2000 transactions per second (tps) compared to Ethereum’s 14tps
• Security: Protected by the main Ethereum blockchain
• Friction-free transfer: Easily move ciphers between layers 1 and 2 without delay
• Censorship Resistance: Assets can be returned to Layer 1 at any time

zkSync currently has no native token, They are planning to release one. If you don’t want to miss it, we encourage you to follow their social channels.

Immutable X (IMX)

Immutable X is a layer 2 scaling solution for trading Ethereum NFTs. Use ZK-Rollups to enable instant transaction confirmation, over 9,000 transactions per second, and zero gas charges.

Since Immutable X is Layer 2 of Ethereum, NFT ownership is unaffected as it inherits the security and finality of the Ethereum blockchain.

Immutable X was developed By the company behind God’s Unchained, a free-to-play NFT trading card game similar to the popular Hearthstone.

The Immutable X Marketplace will initially be used to trade God’s Unchained cards, but over time it will open up to other gaming assets.

The advantages of Immutable X are:

• Gas charges for peer-to-peer transactions are zero.
• Set your own transaction fees.
• There is no storage risk. The user holds the private key.
• Up to 9,000 + TPS.
• It is not a centralized sidechain.
• Protected by Ethereum. True Layer 2 that inherits Layer 1 security.
• NFTs created or traded on Immutable X are 100% carbon neutral.

One of the great benefits of Immutable X is that there are no gas charges for trading NFTs. This simplifies the process of trading NFTs between users and facilitates mass adoption.

Immutable X looks very promising, especially as it covers three major stories in the crypto space, ZK-Rollups, NFT, and Gaming. It is also supported by NFT trading card games, which have the potential to be mass-adopted.

As the Immutable X exchange matures and attracts assets from additional game developers, you can see this project grow huge.

Immutable X has its own token (IMX), which is located at: Kucoin. As a bonus recommendation, Kucoin also has God’s Unchained cryptocurrency (GODS).

Conclusion

Loopring (LRC) Binance.. If you live in the United States, you can find it in Kucoin.

Immutable X (IMX) is available at Kucoin With God’s Chainless (GODS).

zkSync hasn’t released a platform token yet, Follow their social channels Stay up to date on the release date.

Did you enjoy this story? Feel free to check out the following useful resources:

CEX exchange— —It is a good exchange where you can buy Bitcoin, Ethereum, Polygon (MATIC), Polkadot (DOT), Binance Coin (BNB), etc. from anywhere in the world with cash. Available all over the world

BitPanda— —If you live in Europe, it is one of the best exchanges to buy cryptocurrencies with cash, such as Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC). Only available in Europe, Canada and Mexico

Kucoin -A great exchange that allows users to trade over 750 different cryptocurrencies, including new low market cap cryptocurrencies. Available all over the world including the United States.