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zkSync

zkSync is a layer-2 scaling solution for Ethereum, developed by Matter Labs, designed to enhance transaction speed and reduce costs while maintaining Ethereum’s security. Launched as zkSync Lite in June 2020, it evolved into zkSync Era, a zero-knowledge rollup (ZK-rollup) platform, with its mainnet debut on March 24, 2023. Using zero-knowledge proofs, zkSync processes transactions off-chain and submits cryptographic proofs to Ethereum, enabling high throughput and low fees. As of March 2025, zkSync Era boasts over $760 million in Total Value Locked (TVL), ranking it among the top layer-2 networks.

How zkSync Works

  1. ZK-Rollups – Transactions are bundled off-chain, verified with zero-knowledge proofs (zk-SNARKs), and settled on Ethereum’s layer-1 for security.
  2. Transaction Processing – Sequencers collect and batch user transactions, while provers generate proofs to ensure validity.
  3. EVM Compatibility – zkSync Era supports Ethereum Virtual Machine (EVM)-compatible smart contracts, allowing seamless dApp migration.
  4. Asset Bridging – Users transfer ETH and ERC-20 tokens between Ethereum and zkSync via bridges, with near-instant confirmations.
  5. Governance – The ZK token, launched in June 2024, enables community voting on protocol upgrades and ecosystem decisions.

Key Features

  • Scalability – Capable of up to 2,000 transactions per second (TPS), far exceeding Ethereum’s base layer.
  • Low Fees – Offers sub-cent transaction costs, even during Ethereum peak times.
  • Security – Inherits Ethereum’s robust security through cryptographic proofs.
  • Account Abstraction – Simplifies user experience with customizable wallet options, like gasless transactions.

Benefits of zkSync

  • Cost Reduction – Drastically lowers gas fees, making DeFi and NFT interactions affordable.
  • High Throughput – Scales Ethereum to handle millions of transactions, supporting mass adoption.
  • Developer Friendly – EVM compatibility eases integration for existing Ethereum projects.
  • User Accessibility – Features like paying fees in transferred tokens enhance usability.

Risks and Challenges

  • Security Incidents – EraLend, a major zkSync protocol, lost $3.4 million in a July 2023 reentrancy attack, shaking confidence.
  • Complexity – Zero-knowledge proofs are computationally intensive, potentially slowing proof generation.
  • Airdrop Criticism – The June 2024 ZK token airdrop faced backlash for favoring insiders over active users, impacting community trust.
  • Adoption Hurdles – Competes with established layer-2s like Arbitrum and Optimism, which dominate market share.

Use Cases of zkSync

  1. DeFi Trading – Users swap tokens cheaply on platforms like 1inch, integrated with zkSync since February 2025.
  2. NFT Minting – Artists mint NFTs with low fees, leveraging zkSync’s speed.
  3. Payments – Enables fast, low-cost ETH and ERC-20 transfers for everyday use.
  4. Gaming – Supports scalable blockchain games with high transaction demands.

Examples or Case Studies

  1. ZK Airdrop – In June 2024, zkSync distributed 3.675 billion ZK tokens to 695,232 wallets, one of the largest layer-2 airdrops.
  2. EraLend Exploit – A $3.4 million hack in July 2023 dropped EraLend’s TVL by 70%, highlighting ecosystem risks.
  3. 1inch Integration – Announced February 7, 2025, this partnership boosted zkSync’s DeFi accessibility with cross-chain swaps.

zkSync has emerged as a powerful layer-2 solution, tackling Ethereum’s scalability woes with fast, affordable transactions anchored in cryptographic security. With over $760 million in TVL and integrations like 1inch by March 2025, it’s a key player in DeFi’s growth. However, past security breaches and airdrop controversies underscore the challenges of balancing innovation with trust. As zkSync continues to refine its technology and ecosystem, it holds strong potential to shape Ethereum’s scalable future.

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