What Is zkSync?

1. What Is zkSync?

zkSync is a Layer 2 scaling solution for Ethereum that leverages zero-knowledge rollups (ZK-rollups) to provide faster, cheaper, and more scalable transactions without compromising on security. Developed by Matter Labs, zkSync inherits the security of Ethereum while drastically reducing gas fees and increasing throughput. By processing transactions off-chain and rolling them up into a single proof, zkSync enables Web3 applications to scale to millions of users without congestion or high costs. It is designed to support both payments and smart contracts with full EVM compatibility via zkSync Era.

2. Why zkSync Was Created

Ethereum, while powerful and secure, struggles with scalability and high transaction costs, especially during times of network congestion. zkSync was created to address these limitations by offering a high-throughput, low-cost, and secure environment for decentralized applications. The project aims to unlock mass adoption of Web3 by making blockchain transactions fast, accessible, and affordable—without sacrificing decentralization. Traditional scaling methods often compromise on security or decentralization, but zkSync achieves all three through the use of ZK-rollup technology.

3. How zkSync Works

1. Users submit transactions (e.g., token transfers, smart contract interactions) through a Layer 2 interface on zkSync, just like they would on Ethereum.
2. zkSync batches thousands of transactions together off-chain and compresses them into a single proof using zero-knowledge cryptography.
3. A succinct validity proof (SNARK) is generated, mathematically confirming that all the batched transactions are valid according to Ethereum rules.
4. The SNARK is posted to Ethereum Layer 1, where it is verified by a smart contract. This ensures security is inherited directly from Ethereum.
5. Once the proof is accepted, zkSync updates its Layer 2 state, and users can see their balances or assets updated accordingly.
6. Users can withdraw assets from zkSync back to Ethereum with cryptographic assurance of validity, without long delays.

4. Key Features of zkSync

• ZK-Rollup Architecture: Inherits Ethereum security while reducing gas costs by up to 100x
• EVM Compatibility (zkSync Era): Supports existing Solidity-based smart contracts and tools
• Fast Finality: Transactions are confirmed in seconds with cryptographic proof
• Low Fees: Enables microtransactions and broader access to DeFi and NFTs
• Account Abstraction: Smart contract wallets with customizable logic supported natively
• Interoperability: Bridges assets easily between Ethereum and zkSync with major dApp integration

5. Who Can Use zkSync?

• Retail users seeking fast, affordable crypto transactions and dApp access
• Developers building scalable dApps with full EVM support
• Enterprises launching high-volume applications like games, payments, or identity solutions
• Institutions engaging in DeFi and on-chain data at scale with reduced operational cost

6. What Is the $ZK Token?

$ZK is the native token of zkSync, designed to power its growing ecosystem. While not launched at the time of writing, it is expected to fulfill several roles within the network:

• Staking: Validators may stake $ZK to participate in proof generation and help secure the network
• Governance: Token holders can vote on protocol upgrades, fee models, and ecosystem growth
• Incentives: Rewards for developers, liquidity providers, and ecosystem contributors
• Fee Utility: Potential use for transaction fees or discounted network services