Discover the zkSync Ecosystem

Introduction to the zkSync Ecosystem

zkSync is one of the most highly anticipated and promising Layer 2 scaling solutions built on zk-Rollup architecture. In August 2022, zkSync 2.0—also known as zkEVM—officially launched on the Ethereum mainnet, marking a historic milestone for zkSync’s transition to mainnet. The zkEVM mainnet was scheduled for release in November 2022, with its codebase planned for open-sourcing. Improved compatibility between zkSync and Ethereum will significantly boost migration opportunities for applications from Ethereum, as zkSync delivers better performance than solutions leveraging Optimistic Rollup.

Upcoming sections will highlight the zkSync technical team, its solution architecture, and key projects across the ecosystem, as presented by leading crypto wallet platforms.

History and Funding of Matter Labs

Alex Gluchowski and Alexandr Vlasov founded Matter Labs in 2018 to scale Ethereum at Layer 2. In March 2019, the team earned a grant from the Ethereum Foundation, recognizing their breakthroughs in scaling technology. By March 2021, Matter Labs completed a $6 million Series A round, with major investors such as Placeholder and Dragonfly participating. This funding round notably expanded Matter Labs’ ecosystem partnerships, bringing in some of the most prominent companies and founders in crypto.

In November 2021, Matter Labs closed a $50 million Series B round led by A16Z, one of the premier venture capital firms in blockchain. zkSync 1.0 launched on Ethereum mainnet in June 2020, ushering in a new phase in Ethereum scaling solutions.

zkSync 1.0: The First Generation

zkSync is an Ethereum Layer 2 scaling solution. zkSync 1.0 deployed a unique prototype focused mainly on payments. This initial release showcased the potential of zk-Rollup technology to address Ethereum’s scalability challenges.

zkSync 1.0 delivers several key advantages:

Low transaction fees: zkSync 1.0 offers fees that are substantially lower than those on Ethereum Layer 1, making transactions accessible for users of all budgets. This is especially advantageous for low-value transactions that would otherwise be cost-prohibitive on Ethereum mainnet.

Fee flexibility: Users can pay transaction fees with various tokens, not exclusively ETH, providing greater flexibility and reducing friction during transactions.

High transaction efficiency: Transactions are confirmed in minutes, far faster than typical Layer 1 confirmation times. This enhanced speed makes zkSync 1.0 ideal for applications needing quick finality.

Rapid withdrawals to L1: Withdrawals to Layer 1 are completed within 15 minutes, a dramatic improvement over Layer 2 solutions using fraud proofs (like Optimism and Arbitrum), which take about seven days. This feature is critical for users requiring fast liquidity.

Despite zkSync 1.0’s technical achievements, its usage remains limited due to lack of EVM (Ethereum Virtual Machine) compatibility. zkSync 1.0 is primarily used as a payment method, leveraging low fees and high efficiency for withdrawals. This limitation led to the development of zkSync 2.0, featuring full EVM compatibility.

zkSync 2.0: The Evolution Toward zkEVM

The key difference between zkSync 2.0 and zkSync 1.0 is EVM compatibility—zkSync 2.0, known as zkEVM, enables developers to migrate existing Ethereum applications with minimal modifications.

If you’re familiar with introductory articles about Optimism and Arbitrum, zkSync 2.0’s approach will be easy to understand. Like those solutions, zkSync 2.0 migrates applications from Ethereum Layer 1 to Layer 2, but leverages zk-Rollup instead of Optimistic Rollup technology. This technical distinction gives zkSync significant advantages in security and transaction finality speed.

Comparison with Other Layer 2 Solutions

Optimistic Rollup platforms—such as Arbitrum and Optimism—were among the first Layer 2 solutions deployed, with numerous DApps already running on these networks. In terms of user count (unique addresses), Optimism has seen notable success, primarily due to the OP token incentive program driving user engagement. However, zkSync’s unique address count has surged in recent months, growing by as much as 15%. While zkSync 1.0’s functionality remains limited, zkSync is rapidly closing the gap with Arbitrum in Layer 2 adoption.

Technical Architecture of zkSync 2.0

zkSync 2.0’s architecture features two core protocols: zk-Rollup and Validium. Their combination, known as "volition," empowers users to choose between zk-Rollup and Validium based on specific requirements.

zkEVM: This engine powers the EVM-compatible zkRollup, delivering Layer 1 security and robust smart contract capabilities. Developers can write smart contracts in Solidity and other Ethereum-compatible languages, streamlining the migration of existing applications. This compatibility is crucial for widespread adoption, lowering technical barriers for developers.

zkPorter: An off-chain data availability system, zkPorter supports far greater scalability than traditional rollups by storing data off-chain and securing it with zero-knowledge proofs. This hybrid design enables zkSync 2.0 to optimize for scalability, security, and decentralization.

As zk-Rollup technology was covered in earlier articles, detailed technical exposition is omitted here. It’s important to note, however, that zk-Rollup leverages zero-knowledge proofs to verify transactions without disclosing sensitive information, ensuring both privacy and security.

How to Add zkSync Mainnet

To use zkSync, add the zkSync mainnet to your crypto wallet. The process is simple:

Step 1: Launch your crypto wallet and open the network settings.

Step 2: Select “Add Network” or “Custom Networks.”

Step 3: Search for “zkSync” in the available networks list using the search box.

Step 4: Select zkSync from the search results and check the relevant box.

Step 5: Enter your six-digit password or security code to confirm network addition.

Step 6: After completion, zkSync appears in your network list, allowing you to switch whenever you need to transact.

Always ensure you’re adding the official zkSync network—not a fake or test network. Verify network details from official sources before adding any new network to your wallet.

zkSync Ecosystem Outlook

The zkSync ecosystem is expanding rapidly following the launch of zkSync 2.0. EVM compatibility is expected to attract developers and projects seeking the benefits of zk-Rollup technology. With low fees, high transaction speed, and Ethereum-level security, zkSync is positioned as one of the most promising Layer 2 blockchain solutions.

As more projects deploy on zkSync and the community grows, expect significant innovation in decentralized applications, DeFi (DeFi), and additional blockchain use cases. zkSync’s future is bright, driven by ongoing advancements in zkEVM technology.

FAQ

What is zkSync and how does it work as a Layer 2 solution for Ethereum?

zkSync is a Layer 2 scaling solution that accelerates transactions and reduces fees on Ethereum by leveraging zero-knowledge proofs. It processes transactions off-chain while maintaining high security. The ZK token serves as the governance mechanism for the ecosystem.

What are the main advantages of using zkSync compared to other scaling solutions?

zkSync offers native interoperability, shared liquidity, rapid confirmations, and lower transaction costs, delivering Ethereum-grade security with enhanced efficiency.

How can I transfer my funds from Ethereum to the zkSync network?

Connect your wallet to the official zkSync site, access the Ethereum-zkSync bridge, enter the ETH amount, and confirm the transaction. Your funds will appear in your zkSync wallet in minutes.

What applications and protocols are available in the zkSync ecosystem?

The zkSync ecosystem includes zkSync Era for fast, low-fee transactions, LayerZero protocol for cross-chain interoperability, and a range of DeFi, NFT, and payment applications built on the network.

What are zkSync’s transaction costs and processing speed?

zkSync provides extremely low transaction costs and ultra-fast processing speeds thanks to zk-proof technology, enabling efficient and cost-effective transactions for users.

Is zkSync safe to use? What security risks should users consider?

zkSync is secure, with audited protocols and protected smart contracts. Risks include potential vulnerabilities in smart contracts and possible exploits. Security depends on rigorous development standards and ongoing audits.