What is zkSync? Information about ZK Token

What is zkSync?

zkSync is a Layer-2 scaling solution developed by Matter Labs in June 2020. It aims to reduce transaction costs, increase transaction speed, and ensure security on Ethereum through the use of ZK Rollups technology.

Similar to Optimistic Rollups, zk-rollups aggregate transactions off the mainnet and submit a transaction proof to Ethereum. This process consolidates multiple transactions into a single batch and verifies them through the Ethereum network.

The Development Journey of zkSync

zkSync Lite (zkSync 1.0)

zkSync Lite, the initial version of zkSync, was launched in mid-2020. This version was primarily designed to support payment transactions with a processing capacity of up to 3,000 transactions per second (TPS). However, due to the growing demand for higher throughput and the need to support smart contracts, the development team continued to innovate and elevate zkSync to a new level.

zkSync Era (zkSync 2.0)

In March 2023, zkSync introduced the zkEVM mainnet, known as zkSync Era. As the name suggests, this is an EVM (Ethereum Virtual Machine) compatible zk-rollup. Developers can directly use Solidity or other Ethereum programming languages to create smart contracts on zkSync Era, significantly reducing barriers and costs associated with migrating to zkSync.

Another highlight of zkSync Era is zkPorter, a sharding solution developed by Matter Labs to significantly enhance transaction throughput. With zkPorter, zkSync can achieve processing speeds of up to 20,000 TPS, compared to 3,000 TPS in the previous version.

Advantages and Disadvantages of zkSync

Advantages

• High Performance: zkSync provides fast transaction processing, making it suitable for DeFi applications and other use cases.
• Low Transaction Fees: Reduced transaction fees make zkSync more accessible and attractive to users.
• Seamless Integration: zkSync can easily integrate with existing Ethereum applications and smart contracts, creating numerous development opportunities within the blockchain ecosystem.
• EVM Compatibility: zkSync Era fully supports EVM through zkEVM, allowing smart contracts on zkSync to be compatible with Ethereum.
• High Security: Leveraging Ethereum as the base layer, zkSync Era relies on Ethereum to defend against network attacks.
• Open Source and Flexible: As an open-source protocol, zkSync allows the community to develop and customize it according to the needs of individual applications or projects.

Disadvantages

• Centralization Concerns: Some users worry that zkSync might lead to excessive centralization due to its reliance on validators or operators. If key validators are compromised, it could affect the platform’s security.
• Potential Security Risks: Despite using zero-knowledge technology to protect privacy and verify transactions, the complex software and protocols involved may still pose security risks.
• Dependency on Participants: zkSync depends on validators and operators for its operation. This dependency could raise concerns about the compatibility and reliability of these participants.
• Risk of Inaccurate Information: In some cases, zero-knowledge technology might result in inaccurate information, affecting the integrity of transactions.

Team

zkSync is developed by Matter Labs, a Germany-based company with extensive experience in ZK proofs and computer cryptography. Below are details about Alex Gluchowski – Co-Founder & CEO:

• Master’s degree from Technische Universität Berlin.
• Head of Software Engineering at Clarity AG, Bad Homburg (2007-2009).
• CTO at ExpoGlobus.com (2011-2013).
• Co-Founder and CTO at Somuchmore GmbH (2013-2015).
• Co-Founder and CTO at PaulCamper (2015-2017).
• Director of R&D at Entropy Labs (2017-2018).
• CEO of Matter Labs since December 2018.

Investors

zkSync has raised over $458 million through more than 5 funding rounds:

• Seed (Dec 23, 2019): $2 million from 1kx, Hashed Fund, etc.
• Series A (March 2021): $6 million from Binance, Coinbase Ventures, Balancer, Aave, Curve…
• Series B (Nov 2021): $50 million from a16z, Blockchain.com, Crypto.com, Bybit, Consensys, OKEx, Covalent…
• January 2022: Received $200 million from BitDAO to build the zkSync ecosystem.
• Series C (Nov 2022): $200 million led by Blockchain Capital and Dragonfly, with other investors like Light Speed Venture Partners, Variant, a16z…

What is ZK Token?

Basic Information about ZK Token

• Token Name: zkSync
• Ticker: ZK
• Blockchain: zkSync Era
• Contract: 0x5A7d6b2F92C77FAD6CCaBd7EE0624E64907Eaf3E
• Total Supply: 21,000,000,000 ZK

ZK Token Allocation

zkSync announced the following allocation for the ZK token:

• Token Assembly: 29.3%
• Ecosystem Initiatives: 19.9%
• Airdrop: 17.5%
• Investors: 17.2%
• Team: 16.1%

ZK Token Release Schedule

Tokens allocated to investors and the development team will be unlocked over 4 years from June 2024 to June 2028, with a one-year cliff. In June 2025, 3.66% of the total supply will unlock from the team and investor allocation. After June 2025, a maximum of 0.82% of the token supply will unlock monthly until June 2028.

ZK Token Trading

ZK Tokens have been listed on major exchanges such as Binance and Bybit.

Roadmap

After the listing and subsequent controversies over the Airdrop for project supporters, the zkSync team has not announced any new development plans.

Similar Projects

zkSync is a Layer-2 solution for Ethereum, similar to projects like Arbitrum, Optimism, and Manta Network.

Project Information Channels

• Website
• Twitter
• Discord

Conclusion

zkSync is a promising Layer-2 solution for Ethereum, with strengths in scalability, security, and privacy. However, its complexity and initial challenges could impact its widespread adoption. The future role of zkSync as a major scaling solution for Ethereum will depend on its development, community acceptance, and competition from other solutions like Optimistic Rollup. Despite this, zkSync’s features and advancements indicate its significant potential in enhancing the Ethereum ecosystem.

However, controversies over the Airdrop have caused some in the community to turn away from the project, a crucial factor for any project aiming for sustainable growth.

Through this article, AZCNews has introduced readers to zkSync and the ZK Token. If you have any questions or need further clarification, feel free to leave a comment below!