ZK-Rollups: Explained

Ethereum's potential is vast, but transaction speeds can be slow and costly. Enter ZK-Rollups, a revolutionary layer 2 scaling solution that revolutionizes the way you interact with Ethereum. This innovative technology promises faster, cheaper, and more efficient transactions, all without compromising security.

Let’s explore the inner workings of ZK-Rollups, discover how they're paving the way for a smoother and more scalable future for Ethereum.

What are ZK-Rollups?

Zero-Knowledge Rollups, or ZK-Rollups, are a revolutionary Ethereum scaling solution. By bundling transactions into batches and executing them off-chain, ZK-Rollups reduce the data that needs to be posted on the blockchain.

Operators submit summarized changes instead of individual transactions, accompanied by validity proofs ensuring the accuracy of these changes. Crucially, ZK-Rollups maintain their state through a smart contract on Ethereum, requiring validity proofs for state updates. This approach minimizes delays in fund transfers to Ethereum, unlike optimistic rollups. ZK-Rollups employ data compression techniques to optimize on-chain data publication, ultimately reducing fees for users while maintaining transparency and security.

Before We Get Started

Before we explore ZK-Rollups in more detail, it’s important to remember that you can buy Ethereum using Trust Wallet.

Did you know that you can use Trust Wallet as your secure Ethereum wallet? You can download Trust Wallet as a mobile app, or you can install the Trust Wallet Extension for your desktop browser.

How do ZK-Rollups Work?

ZK-rollups tackle the limitations of Ethereum by bundling transactions. Imagine them as an express lane for transactions, speeding things up without compromising security. Here's how it works:

Batching Transactions Off-Chain

ZK-rollups group a large number of transactions together and process them off-chain, meaning outside the main Ethereum blockchain. This reduces the amount of data cluttering the main chain.

Validity Proofs for Efficiency

Instead of sending every single transaction individually to the main chain, ZK-rollup operators submit a condensed summary of the changes required for the entire batch. They also generate cryptographic proofs, called validity proofs, that guarantee the accuracy of these changes.

Smart Contracts

A smart contract deployed on the Ethereum network acts as the ZK-rollup's control center, maintaining its current state. To update this state, ZK-rollup operators must submit a validity proof for verification by the smart contract.

Faster Transactions

Unlike optimistic rollups (another scaling solution), ZK-rollups don't require a waiting period for finalizing transactions on Ethereum. Once the validity proof is verified by the smart contract, the transactions are considered final, allowing for faster movement of funds between the ZK-rollup and Ethereum.

Data Compression for Lower Fees

ZK-rollups write transaction data to the Ethereum blockchain as calldata, which is a specific area for data used in smart contract calls. To minimize calldata and reduce fees for users, ZK-rollups employ compression techniques. For instance, they might represent accounts with an index instead of their full addresses, saving a significant amount of data.

In essence, ZK-rollups offer a powerful combination of speed, security, and cost-efficiency for Ethereum transactions. By processing transactions off-chain and using validity proofs, they ensure a smooth and scalable future for the Ethereum network.

ZK-Rollups and Ethereum

While ZK-rollups process transactions off-chain for speed and efficiency, they rely on Ethereum's robust security for final settlement and other crucial functions. Here's how Ethereum safeguards ZK-rollups:

Data Availability

ZK-rollups publish essential data for every processed transaction onto Ethereum. This data, stored as calldata, allows anyone to reconstruct the ZK-rollup's state and verify the chain independently. This transparency is crucial for preventing censorship and ensuring trust in the system.

Transaction Finality

Ethereum acts as the final executor for ZK-rollup transactions. Only when the on-chain contract accepts the validity proof is a transaction considered finalized. This eliminates the risk of malicious actors tampering with the ZK-rollup, as all transactions require Ethereum's approval. Additionally, Ethereum guarantees the immutability of finalized transactions, preventing them from being reversed.

Censorship Resistance

While most ZK-rollups rely on operators to execute transactions and submit them to layer 1, this setup introduces a potential risk – censorship. A malicious operator could block user transactions. To counter this, ZK-rollups allow users to submit transactions directly to the rollup contract on the mainnet if they suspect censorship. This empowers users to bypass the operator and force an exit from the ZK-rollup back to Ethereum.

ZK-rollups leverage Ethereum's security blanket for final settlement, data availability, and censorship resistance. This powerful partnership between on-chain and off-chain functionalities paves the way for a more scalable and secure future for Ethereum.

Pros and Cons of ZK-Rollups

Pros of ZK-Rollups

• Validity proofs guarantee the accuracy of off-chain transactions and prevent operators from executing invalid state changes.

• Transaction finality is accelerated as state updates are confirmed once validity proofs are authenticated on L1.

• Security relies on trustless cryptographic mechanisms rather than the integrity of incentivized actors as seen in optimistic rollups.

• Essential data to restore the off-chain state is stored on L1, ensuring security, resistance to censorship, and decentralization.

• Users enjoy increased capital efficiency and prompt withdrawal of funds from L2.

• There is no reliance on liveness assumptions, and users are not obligated to validate the chain for fund protection.

• Improved data compression can aid in reducing Ethereum calldata publishing costs and minimizing rollup fees for users.

Cons of ZK-Rollups

• The computational and verification costs associated with validity proofs are significant and can lead to higher fees for rollup users.

• Creating EVM-compatible ZK-rollups is challenging due to the intricate nature of zero-knowledge technology.

• Generating validity proofs necessitates specialized hardware, fostering centralized control of the chain by a minority of parties.

• Centralized operators (sequencers) may exert influence over transaction sequencing.

• Hardware prerequisites might limit the number of participants capable of driving chain progression, heightening the risk of malicious operators freezing the rollup's state and censoring users.

• Some proving systems (e.g., ZK-SNARK) necessitate a trusted setup that, if mismanaged, could compromise the security model of a ZK-rollup.

How to Buy Ethereum (ETH) Using Trust Wallet

You can buy crypto, including Ethereum, using Trust Wallet, via our trusted partners. Here’s how:

• Select “Buy” from the home screen.

• Search for “Ethereum” or “ETH” and select it.

• Choose the currency you want to use, then enter the amount of ETH you want to purchase.

• Select the third party provider & payment method you’d like to use.

• Select the Buy button and complete the remaining steps.

Closing Thoughts

ZK-Rollups are a game-changer for Ethereum scaling. By combining the security of the Ethereum blockchain with the efficiency of off-chain processing, ZK-Rollups pave the way for a future of Ethereum

While ZK-Rollup technology is still under development, the potential is undeniable. As research and development progress, we can expect even faster processing times, lower fees, and more user-friendly ZK-Rollup solutions.

Remember that in addition to Ethereum, Trust Wallet lets you manage and interact with 10M+ crypto assets across 100+ blockchains. Download the latest version of Trust Wallet today.

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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.