Scaling with zkSync Era
Revolutionizing Ethereum Scaling
Last updated
Revolutionizing Ethereum Scaling
Last updated
Our initial thesis for building on Arbitrum was that layer 2 solutions would facilitate the transition of ETH to the global economic settlement layer.
We believe that zkSync Era is crucial to achieving this goal and turning our thesis into reality.
What does all of this mean for Parallax?
With the increasing TVL on zkSync Era, we anticipate a growing demand for yield infrastructure tools for individuals, DAOs, and treasuries. Parallax aims to meet this demand by offering all available products on zkSync.
Our objective with a potential zkSync integration is to become the leading provider of yield infrastructure for zkSync tokens and assets. To achieve this, we plan to collaborate with emerging zkSync protocols to enhance their liquidity and generate additional revenue for their LPs.
First, let's understand what zkSync is.
zkSync is a solution for Ethereum that addresses transaction speed and cost issues.
It achieves this by utilizing zero-knowledge proofs to process transactions off-chain and only sending a compressed proof to the main chain. This approach reduces gas fees and processing time.
zkSync also offers enhanced privacy features and is compatible with Ethereum's smart contracts, enabling projects to benefit from layer 2 scaling while still leveraging the Ethereum ecosystem.
zkSync has been the subject of much discussion recently, particularly since Arbitrum's airdrop announcement. Parallax believes that zkSync is the next prominent chain.
Fast forward to today, during the ETH Seoul event, Vitalik expressed a preference for Zero-Knowledge Rollup (ZK-Rollup). He emphasized that while Optimistic Rollups might take longer to develop, ZK-Rollup technology has a strong foundation that will soon make it the optimal scaling solution for Ethereum.
Here's why we think ZK-Rollup will gain traction:
ZK-Rollup is a technology that offers faster transaction times compared to Optimistic Rollup because it utilizes cryptographic validity proofs. With ZK-Rollup, there are no waiting periods for transaction validity challenges, resulting in quicker transaction processing.
Vitalik firmly believes in ZK-Rollup's ability to overcome challenges, as significant progress is being made in this space.
For instance, ZK-Rollup Layer 2 projects such as Scroll, zkSync, Polygon zkEVM, and BNB Chain ZkRollup are designed to be compatible with a range of smart contracts.
