New zkSync sidechain brings privacy and decentralization at a few cents to Ethereum users

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The Ethereum (ETH) scaling solution zkSync 2.0 was developed by combining the EVM-compatible zkRollup and zkPorter, an off-chain data availability system, dubbed as “the engine for mass crypto adoption.”

Because the two are interoperable and composable, contracts and accounts on the zkRollup side are able to seamlessly interact with accounts on the zkPorter side and vice versa. 

1-3 cent transaction fees 

ZK rollup is an L2 solution for increased scalability that, in short, bundles, or “rolls-up,” hundreds of transfers into a single transaction. Each batch generates a cryptographic proof, a so-called ZK-SNARK, that gets posted on L1.

Meanwhile, an off-chain data availability system, zkPorter, allows two orders of magnitude more scalability than rollups.

The data availability of zkPorter accounts is secured by the so-called Guardians, who participate in proof of stake (PoS) with the zkSync token. 

Besides leveraging “cryptoeconomic guarantees of the data availability,” PoS in zkSync also brings a high level of security, with Guardians only being able to freeze the zkPorter state, but without power to steal funds. In such a scenario, zkRollup users will remain able to withdraw their funds.

Users can choose between the two security thresholds. Those who prefer all data available on-chain can opt to stay on the rollup side, while exponentially cheaper fees may attract fee-sensitive users and vigorous traders on the zkPorter side of the state.  

On a side note, when paying for gas, users can opt for any popular ERC-20 token.

Major partnerships 

Most recently, Huobi revealed it will offer direct fiat onramp and offramp to zkSync.

“Huobi users will no longer need to pay expensive mainnet transaction fees to deposit and withdraw assets from zkSync, and zkSync users will be able to leverage Huobi’s liquidity and scale,” said the Seychelles-based cryptocurrency exchange in the partnership announcement.

The partnership followed Huobi Ventures strategic investment in Matter Labs, the company behind zkSync, responsible for pioneering ZK proofs on Ethereum.

Meanwhile, another major crypto service platform, Blockchain.com, is getting ready to onboard the next billion users to the Matter Labs’ protocol.

“We believe rollups and ZK technology are a powerful pathway to scale blockchains without sacrificing security. zkSync makes it easy for developers to adopt this powerful technology, which will help bring crypto to the next wave of users,” said Samuel Harrison, Partner at Blockchain.com Ventures, as the company joined the list of zkSync’s strategic funding partners.

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