Tracking Zero-Knowledge Rollups on Ethereum

ZkSync has seen the most amount of activity since deploying on Ethereum

article-image

wacomka/Shutterstock modified by Blockworks

share

Zero-knowledge rollup technology projects have been making headlines lately.

Polygon launched its zkEVM (zero-knowledge Ethereum virtual machine) technology on the Ethereum mainnet just three days after ZkSync Era entered the public eye. Other projects such as Scroll, a zk-rollup technology focused on scaling Ethereum and Starknet, are also gaining traction. 

All of these projects, despite their complicated terms, have the same goal — to scale the Ethereum blockchain.

Rollup technology is built on top of an existing blockchain. It is designed to batch or bundle transactions and execute them off chain, ultimately reducing the amount of block space required to make a transaction. This means cheaper gas fees as fixed costs are now shared between the batched user transactions.

Unlike optimistic rollup technology that assumes information in a transaction is accurate, developers have designed zk-rollups so that the technology itself can determine if the information is executed accurately without disclosing the information on the mainnet.

How are the rollups tracking?

Zk-rollup technology is still very much in its infancy, and iterations are still being made to the tech although it is now publicly available to users.

Arbitrum and Optimism still hold the majority of user funds, and their ecosystems boast the two most popular optimistic rollups. Arbitrum secures almost 67% of the market share and Optimism secures a little over 20%, information on L2Beat shows. 

Of the different zk-rollup technologies, zkSync has seen the most adoption, with an estimated $244 million bridged onto the layer-2. Of this, roughly $117 million has been deployed onto DeFi contracts on the layer-2, according to information from DeFiLlama. 

By comparison, its competitors Starknet and Polygon’s zkEVm have seen roughly $37 million and almost $5 million bridged, respectively. 

ZkSync Era now has 22 protocols deployed on-chain, and Polygon’s zkEVM has 10 — its latest being the decentralized exchange Uniswap.

Zk-rollup technology is still very new, and ongoing audits and iterations to ensure the safety and security of these layer-2s are still being made. Blockworks Research recently published a research report offering a deep dive into the future of zk-rollup technology and how it may impact Ethereum moving forward.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Cosmos Hub: ATOM Economic Zone

Research

Replicated Security, the Hub’s Validation-as-a-Service offering that went live in March, is the first step in bringing value accrual to ATOM stakers.

/

article-image

Kenya’s central bank doesn’t seem enamored by the idea of a CBDC but hasn’t slammed the door shut yet

article-image

Both Ethereum and Solana have enjoyed vibrant DeFi environments, but this has not yet been the case for Cosmos

article-image

As Japan takes important step forward on stablecoins, industry participants say, proposed US laws around such crypto assets remain in flux

article-image

Stablecoins offer global financial access and on-chain transactions without limitations, while FedNow falls short in terms of utility, global reach and inclusivity

article-image

Connext wants to make using layer-2s and layer-3s a seamless experience

article-image

GameStop has been dabbling in Web3 initiatives since at least January 2022