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About project:

The zkSync network is a layer-2 functionality, developed by the New York-based company Offchain Labs, which seeks to solve the congestion that the Ethereum network has been experiencing by improving how smart contracts are validated.

The platform leverages the security provided by the Ethereum mainnet but allows smart contracts to run on a separate layer to reduce congestion within the network.

This technique is called ‘transaction rollups’ (explained in sROT detail by the developers here) and consists of batches of transactions and records that are validated on the lower layer to then be moved to layer-1’s mainnet – in this case, the Ethereum mainnet.

zkSync compensates nodes that actively validate the smart contracts powered by the zkSync chain (known as aggregators) with ETH and they are responsible for adding the blocks to the first layer – the Ethereum mainnet.

How does zkSync work?
The zkSync One ecosystem is a layer-2 mainnet which powers smart contracts that will later be validated by the Ethereum network (layer-1).

Fees charged by zkSync will be paid in ETH and the development team expects a reduction of around 50 times the usual fees paid per transaction on layer-1. This means that it should be cheaper to run zkSync smart contracts than to run them on the ETH mainnet directly.

On 29 May 2021, zkSync launched its Beta version and quickly attracted the interest of DeFi app developers, who are constantly seeking to reduce the fees that users incur for using the Ethereum network at peak times.

There is now a bustling ecosystem of dApps on zkSync, whether it’s the decentralised exchange (DEX) GMX or liquidity management platform DeFiEdge.

zkSync has also seen a range of upgrades to its protocol. Its zkSync Nitro update went live in August 2022, which improved throughput and interoperability.


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