ZkSync 2.0 as a Scaling Solution For Projects on ETH Network

ZkSync ecosystem is known as a popular zero-knowledge rollup solution for the Ethereum blockchain. ZkSync 2.0 architecture specifications can reduce gas fees and speed up transactions without compromising their security. 

In this article, our IdeaSoft blockchain experts will explain the benefits of  ZkSync for crypto projects, its major benefits, and potential challenges for crypto projects.

Reasons for Choosing ZkSync 2.0 Technology for Crypto Solutions

Before you start implementing any tech solution, it’s essential first to evaluate its full potential for your crypto project. When it comes to the ZkSync features, there are several reasons why this protocol is so popular for crypto-based projects.

Improved DeFi Development

ZkSync 2.0 plays a major role in DeFi solutions development, as it features excellent scalability and high transaction speed without affecting the project’s security or decentralization. Additionally, its zero-knowledge proof method makes it one of the most efficient Layer-2 solutions for this type of project. 

High-End Compatibility

An important advantage of projects on ZkSync is the ability to ensure the smooth performance of different protocols through a single environment. This feature is exceptionally important for dApps, in which the ZkSync 2.0 ecosystem can provide a vast number of financial services, innovations, and tools to maximize the effectiveness, efficiency, and user-friendliness of dApps interfaces.
You can also read about building dApp on Solana.

Pros & Cons of ZkSync 2.0

The ZkSync 2.0 Layer-2 solution offers many advantages for crypto-based projects, including:

• Low Gas Fees. ZkSync era offers up to 100 times cheaper gas fees compared to Layer-1 solutions. Being a zero-knowledge rollup solution, the ZkSync protocol is more cost-effective than optimistic rollups.  
• Increased Transaction Speed. ZkSync features over 2,000 tps, while the standard Layer 1 solutions can provide up to 14 tps. Moreover, released in 2022 ZkSync 2.0 offers up to 100,000 tps speed. 
• Improved Security. The ZkSync Layer-2 solution provides security that is on par with Layer-1 blockchains – an identical security level to Ethereum.
• Easy Transfers & Withdrawals. ZkSync features a smooth asset transaction between Layer-1 and Layer-2 blockchains. Additionally, the assets can be withdrawn at any time. 
• EVM Compatibility. You can run smart contracts and dApps with nearly zero intrusion on code lines with ZkSync projects.

However, as with any other solution, this might cause difficulties in crypto development, such as: 

• Transaction Processing Problems. Since the general EVM is still in its early stages of development, it might cause numerous issues for the ZkSync 2.0 network. 
• Risks of Transaction Loss. Some major wallets and exchange platforms aren’t synchronized but support Layer-2 networks, which can incorrectly guide users to send a transaction to Layer-2. If it is not recognized by the network, such transactions can be irretrievably lost. 
• Consensus Mechanism Security Compromise. Aimed to improve the transaction speed, practical Byzantine fault tolerance (pBFT) and delegated proof-of-stake (DPoS) consensus networks are centralized, which can affect the protocol’s overall security.  

ZkSync For dApps

So far, this solution has become a solid foundation for over 100 projects across different scopes. Explore the major scopes and projects based on ZkSync technology in the table below:

Being a solid background for hundreds of successful projects, ZkSync has become a long-term tech solution that should definitely be on your radar. 

ZkSync Comparison with Other Layer-2 Solutions

As we have reviewed before, zkSync 2.0, or zkSync era, is an upgrade to the zkSync protocol, a layer-2 scaling solution built on top of Ethereum using zkRollups. The solution aims to provide fast and low-cost transactions while maintaining a high level of security through zero-knowledge proofs. 

ZkSync 2.0 promises to have improved scalability, reduced withdrawal times, and a more user-friendly experience. Yet, for a better understanding of its advantages, it seems relevant to compare it to other existing layer-2 networks running successfully in the decentralized space. In this article, we will review Optimistic rollups and Plasma.  

ZkSync Rollups vs. Optimistic Rollups

Advantages of zkSync 2.0:

• zkSync 2.0 generally offers faster transaction processing times compared to Optimistic Rollups, as it doesn’t require the wait time for challenge periods before finalizing transactions.
• zkSync 2.0 might have lower transaction fees due to its off-chain aggregation, whereas Optimistic rollups require data availability on-chain, leading to higher costs.

Advantages of Optimistic Rollups:

• Optimistic rollups can support more complex smart contracts directly on layer-2, while zkSync 2.0 might initially have limitations in this area.
• Optimistic Rollups may have a simpler setup process for projects already using Ethereum, as it doesn’t require as much modification to existing smart contracts.

In general, my own view is that in the short term, Optimistic rollups are likely to win out for general-purpose EVM computation and ZK rollups are likely to win out for simple payments, exchange and other application-specific use cases, but in the medium to long term ZK rollups will win out in all use cases as ZK-SNARK technology improves.

A complete guide to rollups by Vitalik Buterin

Potential Challenges of This Ethereum-Based Solution

Once you’ve decided to launch a project using the ZkSync environment, it’s also important to find out about the common challenges you might face with its implementation. This will help you get ready for various situations during the Zk rollup and also consider the best ways to quickly and efficiently resolve issues. 

Since this system is relatively new to the crypto world, some of the most frequent challenges it can bring are: 

1. Network Security. To achieve faster performance, the ZkSync network adopts PBFT and DPoS protocols. Both of them have a centralized architecture, which makes the entire network relatively insecure. 
2. Contract Address Issues. Simply put, the contract address doesn’t have any corresponding private keys. So, if the tokens are transferred to this type of address, there’s a high risk of permanent loss of assets. Realizing that issue, Matter Labs has released a solution for executing an “on-chain” type changePubKey transaction to claim the address.
3. Token Mapping Problem. Both tokens issued on ZkSync and the ETH mainnet maintain a fixed mapping relationship that is managed manually. This means you’ll need to manually submit the token information to the ZkSync team if it is initially unknown on the network. 
4. General EVM Support. The general EVM is still evolving, which adds more complexity to its proper utilization in crypto projects. 
5. Synchronization Complexity. A majority of today’s wallets and exchange platforms are not synchronized. Such problems can result in many transactions to Layer-2 networks being sent by mistake. As a result, if the system does not yet support Layer-2 solutions, a recharge is usually unavailable.  

Knowing about these specifics of zkSynk solutions will help you leverage its potential in full for your projects across all development stages. However, if you still have some questions concerning its implementation for your crypto solution – IdeaSoft experts are always here to help!

The Importance of Security and Auditing

Despite the fact that zkSync cryptographic proofs enable to provide a high level of security, making it resistant to attacks and tampering, it does not eliminate the need for a thorough and rigorous audit.

Security Is a Continuous Effort

It is crucial to emphasize that security is an ongoing process, not a one-time task. While zkSync’s design may offer a robust foundation, it is essential to continually monitor and address potential security risks as the technology evolves and new threats emerge.

In general, all Layer-2 solutions are susceptible to certain specific vulnerabilities that auditors and smart contract architects should be aware of. These vulnerabilities include risks related to hot-wallet key exploits, liveness assumptions, mass exit assumptions, and more. It is crucial to consider them during both the development and auditing processes to ensure a robust and secure implementation. [MatterLabs research]

Hidden Vulnerabilities

Even with the most secure design principles, there might still be hidden vulnerabilities that can be discovered through audits. The auditing process helps identify these weaknesses, providing an opportunity to rectify them before the system goes live, reducing the risk of potential exploits.

Shall we not forget that zkSync is still an emerging solution at its early stage. Therefore, it is worth mentioning that cryptographic constructions that have been available in the public domain for an extended period have had more opportunities for scrutiny and potential vulnerabilities to be identified. Therefore, it becomes increasingly crucial for teams implementing and auditing cryptographic systems that employ advanced and recent primitives to exercise higher levels of competency and scrutiny.

Ensuring Trust and Reliability

Auditing reinforces the project’s commitment to transparency, trust, and reliability. Users and investors are more likely to engage with a project that has undergone a thorough audit, knowing that security has been prioritized, and potential risks have been mitigated to the best extent possible.

Best Practices to Apply ZkSync for Your Crypto Project

When applying zkSync for crypto projects, it’s essential to follow best practices to ensure a smooth and secure integration. Here are some guidelines to consider:

1. Evaluate Use Case Suitability: Assess whether zkSync is the right fit for your project’s use case. While zkSync provides significant benefits for certain applications, it may not be suitable for all types of projects. Analyze the scalability, security, and cost advantages it offers in comparison to other layer-2 solutions and the Ethereum mainnet.
2. Security First Approach: As we discussed before, prioritize security throughout the development process. Conduct regular security reviews, adopt secure coding practices, and engage experienced auditors to ensure the smart contracts and the overall architecture are free from vulnerabilities.
3. Gradual Adoption: Consider a phased approach to zkSync adoption. Gradually transition your project’s functionality to the layer-2 solution, starting with less critical components, and then expand to more complex features as confidence in the technology grows.
4. Educate Your Users: Educate your users about zkSync and its benefits. Transparently communicate how their funds and transactions will be managed on the layer-2 solution, addressing any potential concerns related to security or operational changes.

Remember that each project is unique, and implementing zkSync requires careful consideration of the specific requirements and objectives. 

Summary

To conclude, ZkSync is a prospective solution that can potentially boost the performance of hundreds of Ethereum-based projects. The protocol can improve the transaction’s efficiency and speed without compromising its security. Due to these characteristics, analysts believe ZkSync has great potential to contribute to the further evolution of the DeFi ecosystem. 

Now you understand the basics of the ZkSync Layer-2 protocol, and have a better understanding of its value for your crypto projects. Should you have any questions about this solution, or need expert assistance in project development – feel free to contact us anytime! With years of experience in a wide range of crypto solutions, the IdeaSoft team is always aware of the latest trends in the tech world. Discover how to successfully develop your project with the ZkSync protocol and reach the highest ROI right away!