Scalable open solutions for Ethereum are one of the most critical issues in the blockchain industry, and such solutions are referred to as Layer-2. We have witnessed many problems with Ethereum being clogged with thousands of transactions, causing a lot of frustration for NFT buyers and Defi traders. One of the most innovative and sought-after solutions is the upcoming launch of Polygon’s zkEVM technology.
So what exactly is zkEVM? How is it different from ZkRollup? What are the projects using zkEVM? Let’s find out more about zkEVM in the content of the article below.
Contents
What is ZkEVM?
ZkEVM (Short for Zero-Knowledge Ethereum Virtual Machine) is a variant of Ethereum Virtual Machine (EVM) that allows the creation and execution of smart contracts in a zero-knowledge environment.
To better understand what ZkEVM is, let’s separate the two concepts ZK (1) and EVM (2).
(1) ZK stands for Zero-Knowledge Proof (ZKP) – a cryptographic technology that allows one party to prove to another (the verifier) that they know a value x, without revealing any information other than the fact that they know the value x.
A simple example to help you imagine how Zero-Knowledge (ZKP) works:
- A goes to a liquor store and buys liquor, the seller asks to see A’s ID to check if he is old enough to buy liquor.
- A says, “I can prove that I am over 18, but I will not show you my ID.”
Somehow, A proves that he is over 18 without showing his ID to the liquor seller.
In general, ZKP provides both flexibility and choice for users who want to control and have freedom over their information. If we combine blockchain technology and ZKP, many use cases can be discussed.
(2) EVM (Ethereum Virtual Machine) – is the Ethereum virtual machine. Simply put, EVMs act as intermediaries in executing smart contracts on the Ethereum network. Each Ethereum node is equipped with its own EVM, ensuring the security and decentralization of the network.
=> In summary, the combination of (1) and (2) has created ZkEVM. ZkEVM allows the execution of smart contracts while still protecting the privacy of contract terms and data related to that contract. This is achieved through zero-knowledge proofs, which are cryptographic proofs that allow one party to prove to another that a statement is true without revealing any additional information about the statement.
There are many types of zkEVM, and it is important to distinguish them. Each type tries to build the best zkEVM but approaches it in different ways:
- Type 1 (Fully equivalent to Ethereum) – These zkEVMs do not change any part of the Ethereum system and strive for complete equivalence. Examples include Taiko and PSE.
- Type 2 (Fully equivalent EVM) – These zkEVMs look like Ethereum but differ in data structures and state trees. Examples include Scroll and Polygon Hermez.
- Type 2.5 (Fully equivalent EVM, except for gas costs) – These zkEVMs significantly increase gas costs to accommodate specific operations in EVM that are difficult to prove with zk. This can cause issues with development tools, so developers need to be careful when deploying dApps here.
- Type 3 (Partially equivalent to EVM) – These zkEVMs are nearly equivalent to EVM but must sacrifice some features and remove those that are difficult to implement in a zkEVM system. Very few projects want to do type 3, and it should be considered a transitional state until they move to type 2.5 or type 2.
- Type 4 (Only equivalent in high-level programming languages) – These zkEVMs are compatible at the language level (Solidity, Vyper). They take Smart Contracts written in these languages and allow them to be compiled in another language used to build the zkEVM system. Currently, zkSync is one of such implementations of zkEVM.
You can find a more in-depth technical explanation as well as the advantages and disadvantages of each type of zkEVM in Vitalik’s blog HERE
What is the difference between ZkRollup and ZkEVM?
Many people, when learning what ZkEVM is, often confuse it with ZkRollUp. To help distinguish them, we will talk about ZkRollUp:
What is zk-rollup?
zk-rollup is a type of Layer 2 acceleration solution for blockchain networks. It allows transactions to be processed off-chain and then “rolled up” into a single on-chain transaction, reducing the load on the main blockchain and increasing transaction processing capacity.
In a zk-rollup, transactions are processed by a group of validators responsible for ensuring the accuracy of the transactions. These validators create a zero-knowledge proof (ZKP). This ZKP is then added to the on-chain transaction, allowing the transaction to be verified without having to process each transaction on the main blockchain.
Comparing zkEVMs and zk-rollups
A significant difference between zk-rollups and zkEVMs is that zk-rollup focuses on scalability, while zkEVM focuses on privacy.
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zk-rollup allows processing a large number of off-chain transactions while still maintaining the safety and integrity of the main Ethereum chain.
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zkEVM enables the execution of smart contracts in a way that protects privacy, allowing for the creation of private, confidential transactions on the Ethereum platform.
Both zk-rollup and zkEVM are significant innovations that can help improve the scalability and privacy of Ethereum. They both have the potential to significantly enhance the capabilities of the Ethereum platform and make it more useful for a range of applications.
Top 6 Current Best zkEVM Projects
After understanding the basics of zkEVMs and zk-rollups, let’s take a closer look at different projects implementing zkEVMs. Below are the highest-rated zkEVM projects currently.
zkSync
zkSync is a Layer 2 enhancement solution for Ethereum, aimed at increasing the usability and speed of the Ethereum network. It is based on zero-knowledge proofs that allow for transaction verification without revealing the underlying data. This enables zkSync to process transactions off-chain, meaning they are not recorded on the Ethereum blockchain. Instead, they are recorded on an off-chain data structure called a “Merkle tree”.
Strengths:
- A key feature of zkSync is the use of “optimistic transfers”, allowing users to send and receive transactions without waiting for confirmation on the Ethereum blockchain. This significantly reduces transaction time and allows for increased transaction processing capacity. Additionally, zkSync uses various other technologies to enhance usability and security. These technologies include signature aggregation, which allows compressing multiple signatures into a single one, and multi-chain support, helping zkSync interact with other blockchain networks.
- Overall, zkSync aims to provide a usable and secure platform for decentralized applications (dApps) and other projects based on Ethereum. By enabling faster and more efficient transactions, it aims to make it easier for developers to build and deploy dApps and for users to interact with them.
Challenges:
- One of the main challenges faced by zkSync is the need to balance scalability with security. While the use of Zero-Knowledge Proofs (ZKP) and other technologies allows for faster and more efficient transactions, it also leads to additional complexity and potential vulnerabilities. Thus, zkSync is continually striving to improve and refine its technology to ensure it is as safe and robust as possible.
Despite these challenges, zkSync has made significant progress since its launch in 2020 and has garnered strong support from developers and users. Its unique approach to scaling Ethereum has attracted significant attention and investment, and it is poised to play a key role in the future development of the Ethereum ecosystem.
StarkNet
Starkware is the company that developed the StarkNet protocol. StarkNet is a Layer 2 scaling solution aimed at enhancing the performance and scalability of blockchains, especially those utilizing smart contracts. The primary goal of StarkNet is to enable the creation of large-scale decentralized finance (DeFi) applications. By using StarkNet, DeFi developers can create more efficient and scalable applications capable of handling larger transaction volumes.
- The key feature of StarkNet is the use of STARK, a zero-knowledge proof system that allows users to prove the correctness of computations without revealing the underlying data. This enhances privacy and security on the network and the ability to perform complex calculations without the need for a trusted third party.
- StarkNet also utilizes sharding, a technique that allows dividing the blockchain into multiple smaller chains or “shards” that can be processed in parallel. This enables higher throughput and faster transaction times, as each shard can be processed independently of the others.
- StarkNet has been integrated with several popular blockchains, including Ethereum, Binance Smart Chain, and Polkadot. This allows developers to build DeFi applications on these platforms using StarkNet without worrying about scalability.
- Beyond DeFi, StarkNet is also used in supply chain management, voting systems, and medical research. The flexibility and scalability of the protocol make it an attractive option for many use cases.
Overall, Starkware’s StarkNet protocol represents a significant advancement in blockchain technology. Its use of STARK and sharding provides higher efficiency, privacy, and scalability, making it an ideal solution for various applications, especially in the DeFi space.
Polygon’s zkEVM
The blockchain project Polygon has recently introduced a new technology called Hermez zkEVM. This technology is designed to improve the scalability and privacy of the Ethereum blockchain.
Hermez zkEVM aims to address the scalability issue of the Ethereum blockchain by using zero-knowledge proofs to enable faster and cheaper transactions on the Ethereum network. In addition to improving scalability, Hermez zkEVM also enhances the privacy of the Ethereum network. By using ZKP, Hermez zkEVM allows for confidential transactions that hide specific details of a transaction from all parties except the sender and receiver.
Hermez zkEVM is a promising development for the Ethereum network and the broader blockchain community. By improving scalability and privacy, it has the potential to make the Ethereum network more appealing for a range of decentralized applications and use cases. It will be interesting to see how this technology is adopted and how it will impact the future development of the Ethereum network and other blockchain platforms.
Scroll
Scroll is a decentralized protocol aimed at bringing scalability and enhanced security to the Ethereum blockchain. One of the key features of Scroll is the use of zk-rollups, a type of Layer 2 enhancement solution that allows for faster and cheaper transactions while still ensuring security for the main blockchain.
In a zk-rollup, transactions are bundled and verified by a smart contract on the main blockchain. This allows for much higher transaction processing speeds, as the burden of verifying each individual transaction is removed from the main chain and taken up by the zk-rollup contract. Scroll focuses on creating an EVM-compatible zk-rollup, meaning it can support the same programming languages and smart contracts as Ethereum. This is important as it allows developers to easily migrate their current applications to the Scroll network without changing any code.
Overall, Scroll is a promising project that brings the benefits of zk-rollups to the Ethereum ecosystem. By creating an EVM-compatible solution, Scroll can provide developers with a simple way to scale their applications and leverage the efficiency and enhanced security of zk-rollups. As the Ethereum network continues to grow and the demand for scaling solutions increases, projects like Scroll will play a key role in the evolution of the blockchain industry.
Consensys and Infura
Consensys and Infura, two of the most notable names in the Ethereum ecosystem, are working on a new version of the Ethereum Virtual Machine (EVM) called zkEVM. This project aims to improve Ethereum’s usability, a major challenge for the platform.
Consensys and Infura are working to integrate zkEVM into the Ethereum mainnet, allowing anyone on the network to use it. This is an exciting development for the Ethereum community, as it has the potential to solve some of the usability challenges that have slowed down the platform in the past.
Although the company has not disclosed many details about this project, its implementation approach, and other aspects, it remains one of the most exciting projects for developers to watch. Consensys has built some of the core infrastructure for the Ethereum ecosystem, and it would not be surprising if this zkEVM deployment becomes one of the most popular names in this field.
Taiko
Taiko introduces itself as a “Type 1 zkEVM – Fully Decentralized, Ethereum Equivalent zk-rollup” on its website. They argue that being a Type 1 zkEVM is one of their main differentiators from other projects on this list. They do not change much of Ethereum’s architecture, including hash functions or gas costs. By doing so, they can reuse client implementations with minimal modifications.
One of the main benefits of using a Type 1 zkEVM like Taiko is the ease of migration without needing many changes in your code. For example, you can deploy on Ethereum L1 and then move to Taiko. Conversely, you can also deploy on Taiko first and then move to any EVM-compatible chain.
Daniel Wang is the founder of Taiko, previously the founder of Loopring until he stepped down from that position in 2021. This occurred just before Loopring signed an agreement with Gamestop. While there is some speculation in the community about why this happened, there is no discord between the two parties.
Except for zkSync, which is in testnet, and Polygon zkEVM set to launch on March 27, most other zkEVM projects are still in the development phase and do not have a specific launch date. However, given what they are doing and aiming for, these are all projects worth looking forward to. Hopefully, this article has helped you understand what zkEVM is and find investment opportunities with projects in the prominent ZK group
