Zero-knowledge (ZK) solutions have become the most adopted scaling method to boost intrinsic network performance globally on the Ethereum blockchain network by service providers in the industry.
For years, scaling difficulties on the Ethereum (ETH) based blockchain network has been a major developmental problem in the cryptocurrency community. Exorbitant gas fees and network lag during busy transaction hours are to blame.
Scalability In The Ethereum Blockchain
The essence of the scalability dilemma is that the Ethereum blockchain network provides the best-decentralized service under normal circumstances. However, when the number of benefits to be offered grows exponentially, the network encounters various difficulties.
These issues might range from delayed network processing times to transaction failure, all of which are detrimental to the growth of Ethereum-based blockchains.
Different IT professionals have recommended numerous solutions and protocols in light of these advancements over the years.
ZK Protocol And Earlier Solutions
As previously noted, several potential solutions have been presented and deployed on various Ethereum-based blockchains as early as January of this year. Arbitrum and Optimism are two excellent instances of such protocols. They utilize promising solution-based technology to boost network performance.
However, except for Arbitrum, the enthusiasm surrounding those protocols has died down. Users have voiced out that the new optimistic-based solutions also have relatively high costs when the network is at its total capacity.
The Zero-Knowledge (ZK) proof solution is built on the concept that proof of transaction can be transmitted among transacting members without revealing any transaction specifics. When this protocol is implemented, the network will execute transactions instantaneously whenever the protocol’s requirements are met, significantly reducing the network’s processing redundancy.
When optimistic-based technologies were making headlines, protocols using the ZK solutions protocol discreetly revealed their potency.
Adoptions Of ZK-Proof Protocol
Since the break out of ZK technologies earlier this year and subsequent appreciation of its relevance, various exchanges have adopted the innovative technology, both centralized and decentralized.
Through its partnership with StarkWare, dYdX, a decentralized crypto exchange platform, was the first to deploy ZK-solutions technology. The platform has had some success, and it has been able to process a more significant 24-hour trading volume than Coinbase on occasion.
Loopring (LRC) is another innovative protocol that uses ZK solutions to eliminate high transaction costs and increase upturn, enabling LRC to reach a new peak price of $3.83 in early November.
Following last week’s severe market-wide sell-off, ZK-proof solutions have become a watchword in the crypto sector.
The announcement of Polygon’s purchase of Mir, a project producing two subsets of zero-knowledge proofs, PLONK and Halo, made headlines in the industry, putting Zk-solutions in the center stage even more.
The acquisition deal, which costs a total of $400 million and an equivalent of 250 million MATIC tokens, aims to facilitate research and support all significant growth methodologies and technologies currently available. The projection was revealed by Polygon co-founder Sandeep Nailwal in his press release last week regarding the platform’s new buy.