Blockchain technology has revolutionized the world with the promise of secure, transparent, and decentralized transactions. However, as more users and applications become part of blockchain networks, scalability becomes an issue. Welcome to Zero Knowledge Rollups (ZKR) – the breakthrough solution that would solve problems around scalability without compromising security or decentralization. What are ZKRs, and how do they revolutionize blockchain? Break it down with us.
What Are Zero Knowledge Rollups?
Essentially, Zero Knowledge Rollups are a form of layer-2 scaling solution that runs on top of existing blockchains like Ethereum. The main aim of ZKRs is to improve blockchain performance by reducing the quantity of data that is being processed on the main chain (also known as Layer 1).
To understand ZKRs, let’s go back to basics. Imagine the blockchain is a large spreadsheet, and a transaction is a row of data that needs to be written down. As transactions happen, the spreadsheet grows larger, making it take longer to process and harder to work with. ZKRs enable to shift a lot of this processing to a secondary system (Layer 2) while keeping a secure connection to the underlying chain.
The Magic of Zero Knowledge Proof (ZKP)
ZKRs employ a robust cryptographic technique known as Zero-Knowledge Proofs (ZKPs). With this technique, one can prove to another that they have information (e.g., the validity of a transaction) without revealing information.
With ZKPs in the instance of ZKRs, it is proved that a set of transactions has been processed correctly on the Layer 2 chain. Instead of broadcasting every single transaction to the main chain, ZKRs only broadcast an overview, called a “proof,” that confirms all the transactions were valid. This reduces the amount of data to be processed on the main chain, making the entire system faster and more efficient.
How Do Zero Knowledge Rollups Work?
To illustrate, consider an overly simplified example: Suppose you’re sending a batch of letters to a friend. Instead of sending each letter individually, you send them all together in one package along with a “summary” report that promises your friend all the letters (transactions) in the package are included and addressed correctly. The summary is like the ZKP — it’s a lightweight proof which assures all the letters in the package are valid.
This is how ZKRs are used in real life:
Transaction Aggregation: Instead of posting every transaction onto the base blockchain, a batch of transactions is aggregated and settled on the Layer 2 network.
ZKP Generation: Upon settling the batch, a ZKP is generated that proves the validity of the whole batch. This proof is mathematically sound and without revealing the actual data of all the transactions.
Posting the Proof: The proof (and not the full transaction data) is posted to the main blockchain only.
Validation: The main blockchain confirms the proof. If it’s valid, the entire collection of transactions is confirmed without necessarily having to process each one of them individually.
Why Are Zero Knowledge Rollups a Game-Changer
Scalability: By processing transactions off-chain and only submitting proofs to the main blockchain, ZKRs significantly reduce the amount of data the blockchain has to process. Transaction speeds are faster, and fees are lower. Ethereum and other blockchains can scale to handle more transactions without loss of performance with ZKRs.
Security: The biggest benefit of ZKRs is that they assist in providing the security of the parent blockchain. Since the ZKPs attest to all the off-chain transactions, there is no need to believe the Layer 2 network like you do in other solutions. The parent blockchain’s security is never compromised.
Lower Costs: Since there are fewer transactions run directly on the blockchain, it is far less costly to run a transaction. This makes decentralized applications (dApps) and users less expensive to maintain, leading to even more adoption of the blockchain.
Decentralization: Unlike other scaling solutions, ZKRs retain the decentralized nature of the blockchain. ZKRs do not require the use of centralized intermediaries, which is one of the core tenets of blockchain technology.
What is the Future of Zero Knowledge Rollups?
ZKRs are still in their infancy stages when it comes to adoption but have already demonstrated spectacular potential to change blockchain horizons. Ethereum, in particular, has been eyeing ZKRs as a solution for its scalability issues. As more developers experiment and implement this technology, we can look forward to quicker, less expensive, and more secure blockchain transactions across the globe.
In the coming years, Zero Knowledge Rollups can be an integral part of most blockchain networks, ushering in decentralized finance (DeFi), gaming, supply chain management, and more.
Conclusion
Zero Knowledge Rollups represent a groundbreaking solution to the scalability problem that has plagued blockchain networks for so long. They make transactions faster, cheaper, and more secure by leveraging the power of Zero Knowledge Proof without letting go of the decentralized essence of blockchains. As blockchain usage grows, it is not hard to believe that ZKRs will be at the heart of making these networks scale effectively to make blockchain technology more practical and viable to apply in use cases all over the real world.
Discover how Zero Knowledge Rollups (ZKRs) are revolutionizing blockchain technology with improved scalability, security, and transaction fees. Discover how ZKRs work and how they can change decentralized networks.
