ZK Rollup technology is a recent innovation in the blockchain industry that allows scaling solutions. This system works by condensing multiple transactions into one block, thus relieving the pressure placed on the network. ZK Rollup Technology, a layer 2 scaling solution, utilizes Zero-Knowledge proofs to move most of the transaction processing off the blockchain network to a secondary layer, resulting in more efficient transactions.
Blockchain technology in cryptocurrency transactions (such as transactions at ecommerce platforms, online betting platforms such as cycling bets, and many more) eliminates the need for a trusted third party, such as a bank or financial institution, to facilitate and verify transactions. Instead, transactions are validated by nodes – networks of users who use complex algorithms to verify their authenticity and add it to the blockchain. The roll-up layer uses Zero-Knowledge Succinct Non-Interactive Argument of Knowledge to provide the validation proof to the blockchain.
How ZK Rollup technology works
The rollup layer consolidates multiple transactions into a single transaction and then verifies its validity using zero-knowledge proofs. These proofs are mathematical formulas that confirm the legitimacy of a transaction without disclosing its details, also known as “proofs of validity.” This is comparable to proving someone is over 21 years old without revealing their exact age.
Once all transactions have been verified, the rollup layer produces a single proof of validity for the blockchain network, known as a ZK-SNARK. This falls under the category of cryptographic proofs, which ensure the transaction’s legitimacy. This proof is then added to the blockchain alongside other transactions confirmed as legitimate through ZK Rollup Technology.
The process of ZK-rollups
ZK-rollup utilizes two on-chain smart contracts, namely the “main” contract and a verifier contract, which serve as anchors and oversee various operations. In a typical ZK-rollup, the second layer consists of an off-chain virtual machine responsible for processing transactions in an off-chain environment separate from Ethereum. This off-chain virtual machine is crucial in boosting scalability and throughput.
ZK-rollups use it to process batches of transactions and generate validity proof posted on-chain to confirm their activity. ZK-rollups are hybrid systems that operate off-chain but rely on Ethereum for various functions. They rely on Ethereum for security as the network verifies the authenticity of each update to the ZK-state rollup and ensures that the data explaining these updates is accessible.
Benefits to consider
ZK-rollups ensure security through the use of trustless cryptographic configurations. This contrasts with optimistic rollups, which rely on trustworthy validators and sequencers. The trustless crypto methods ZK-rollups use make them a safer option, as they utilize validity proofs to validate off-chain transactions and prevent accidental alteration of Ethereum’s state.
ZK Rollup technology is an innovative addition to the blockchain industry that offers a solution for scaling blockchain networks while maintaining their security and privacy. Despite being in its early stages, this technology has already demonstrated its potential to enhance the speed and efficiency of blockchain transactions. As the number of blockchain networks grows, ZK Rollup Technology could become an essential element of the blockchain ecosystem.
Photo credit: The feature image is symbolic and has been done by Julian Tay.