Ethereum Scalability (ETH) Networks have been controversial for years within the crypto ecosystem, primarily due to high charges and network congestion during periods of peak demand.
The latest solution that emerges as the final fix to Ethereum’s scalability issues is the Zero Knowledge Rollup (ZK Rollup). This is a form of scaling in which calculations are performed off-chain and sent on-chain via proof of validity.
Zk rollup season
— Cryptwarlord.eth (͡ ° ͜ʖ ͡ °) (@ CryptoWarlordd) December 7, 2021
Earlier this year, protocols that chose to use optimistic rollups such as Optimism and Arbitrum dominated the headline and were touted as the best solution for scaling in Ethereum, except for Arbitrum. Protocol hype has subsided, and traders have pointed out that when network demand peaks, even optimistic rollups are higher than desired.
Early success in 2021
While optimistic roll-up solutions are in the limelight, the protocol with the ZK roll-up model has quietly demonstrated its functionality.
DYdX, a decentralized permanent and futures exchange, was one of the earliest adopters of ZK-rollup technology through a partnership with StarkWare, a decentralized ZK-Rollup that the StarkNet network does not permit.
To date, the platform has been quite successful and sometimes managed to handle it. Higher 24-hour trading volume From Coinbase.
Loopling (LRC) is another protocol that leverages ZK rollup to reduce transaction costs and accelerate throughput capabilities, raising LRC prices to a record $ 3.83 in early November. ..
ZK rollup could be the next “rotation” for traders
Following a sharp market-wide sellout last week, the ZK rollup has re-emerged as a buzzword in the crypto sector.
Polygon, the Ethereum Network’s Layer 2 platform, was noted for the announcement of the acquisition of Mir, a project to develop two subcategories of zero-knowledge proof known as PLONK and Halo.
The 250 million MATIC token investment by Polygon, which already offers some of the lowest rates of protocols on the Ethereum network Made an effort “At this stage, research and encourage all meaningful scaling approaches and technologies,” said Sandeep Nailwal, co-founder of Polygon.
Another long-awaited protocol that has been gaining attention lately is zkSync, a scaling solution created by Matter Labs that secured $ 50 million in a Series B round led by Andreessen Horowitz in early November.
According to Digital Delphi, the two major projects running on zkSync are the decentralized exchange ZigZag and a funding platform called Gitcoin.
An analyst at Delphi Digital said:
“according to L2 charge, The price of token swap through zkSync’s ZigZag is the lowest. “
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and transaction movements carry risks. When making a decision, you need to do your own research.