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- ZK-Rollups could solve the concerning scaling issues on the Ethereum blockchain
- ZK-Rollups became a buzzword in the blockchain ecosystem
- The solution comes as developers endeavor to bolster throughput capabilities while curtailing transaction costs
- Protocols using the solutions we’re able to garner notable growth
Ethereum is the famous and leading altcoin that has introduced the concept of smart contracts. As the network boasted in 2014, the crypto ecosystem witnessed DeFi and NFTs. Although the Ether blockchain has different potentials and several rooms to grow, scalability has concerned its developers. Primary issues, including high gas fees and congestion during high demand, remain a point of contention within the digital ecosystem. However, Zero-Knowledge Rollups (ZK-Rollups) could fix the issues completely.
ZK-Rollups steps into the limelight
ZK-Rollups has become the delinquent trending solution for scalability on the Ether blockchain. Indeed, the solution comes as developers endeavor to bolster throughput capabilities while curtailing transaction costs. This fix is a kind of scaling that runs computations off-chain and delivers them on-chain through validity proof.
Protocols using the solution has demonstrated its capabilities
Few protocols have already adopted the optimistic ZK-Rollups solutions. Notably, these platforms have also demonstrated their capability. dYdX, the decentralized perpetual and futures exchange, is one of the early adopters of the solution. dYdX adopted the technology through its partnership with StarkWare, whose StarkNet Network is a permissionless decentralized rollup.
Notably, the platform has seen a decent amount of success to date. And has managed to process a higher 24-hour trading volume compared to Coinbase.
Besides, Loopring (LRC), another protocol that has utilized the solution to reduce transaction tariffs and boost up its throughput potentials. Notably, the protocol could garner help drive its LRC price to a new ATH of above $3.5 in early last month.
Rollups could be the next rotation for traders
As last week traders in the crypto market witnessed a flash crash, ZK-Rollups became a buzzword in the ecosystem. Simultaneously, Polygon, one of the rapidly growing blockchains of the year, acquired Mir protocol for about $400 million worth of MATIC tokens. Notably, the project is building two subcategories of the rollups proof that is known as the PLONK and Halp.
According to Sandeep Nailwal, Polygon’s co-founder, the acquisition has explored and encouraged all meaningful approaches and technologies available in the current scenario.
