In 2017, Bitcoin found its way into the media, and as more individuals became interested in the blockchain, network congestion increased. Ethereum was designed to confirm transactions faster than Bitcoin. However, its transaction throughput is insufficient to support a wide audience. It is frequently congested, and even basic smart contract actions may be costly.
Layer 2 Scalability Solutions
A ZK-rollup chain is a protocol that is managed by Ethereum smart contracts and runs on the Ethereum blockchain. Users’ balances and transaction data may be stored on or off the blockchain, resulting in a trade-off between scalability and security. Validiums are zero-knowledge systems that keep data on the blockchain. Volitions are hybrid systems that let users select whether to keep their data on-chain or off-chain, making the decision dynamic. The solutions mentioned here all include zero-knowledge cryptography as a common denominator.
Zero Knowledge and Ethereum
A ZK-rollup chain is a protocol managed by Ethereum smart contracts and runs on the Ethereum blockchain. Users’ balances and transaction data may be stored on or off the blockchain, resulting in a trade-off between scalability and security. Validiums are zero-knowledge systems that keep data on the blockchain. Volitions are hybrid systems that let users select whether to keep their data on-chain or off-chain, making the decision dynamic. The solutions mentioned here all include zero-knowledge cryptography as a common denominator.
ZK-rollups are dependent on the core Ethereum protocol for the following reasons:
- Censorship: Most ZK-rollups process transactions and production batches and deliver blocks to Layer 1 via a “supernode” (the operator). Although this increases efficiency, it also increases the danger of censorship: unscrupulous ZK-rollup operators may censor users by failing to include their transactions in batches.
- Access to data: ZK-rollups broadcast state information to Ethereum for every off-chain transaction, making it available to all network participants. Validity proofs confirm the validity of state transitions, while data retention on-chain is required for permissionless, independent verification of the L2 chain’s status. Users must be on-chain to interact with the rollup since they can only query their account balances or do actions that need state data if they have access to state data.
- Transaction finality: Ethereum is a settlement layer with ZK-rollups, ensuring that bad actors do not disrupt the chain. It also ensures that user actions cannot be reversed, adding more security and dependability. As a security measure, ZK-rollups allow users to transmit transactions directly to the rollup contract on Mainnet.
Bottom Line
Ethereum is a computerized blockchain that enables the construction of decentralized, permissionless, censorship-resistant apps and organizations. The Ethereum Virtual Machine (EVM) state is stored in each node, and broadcast requests are checked, validated, and performed. Transaction requests and the status of the EVM are stored on the blockchain, which is agreed upon by all nodes. After transactions are validated and broadcast on the blockchain, cryptographic methods prohibit tampering.
