ZK Roll up is a layer-2 blockchain scaling solution that bundles multiple transactions into a single transaction and reduces the load on the main chain. The solution uses zero-knowledge proofs to ensure the validity of the transactions and enables high throughput with low fees.
Several crypto tokens use the concept of ZKP. This has enabled the blockchains to scale up rapidly and also provide services to participants at a minimal fee. Below are a few well-known examples which use ZKP. Kindly note that this list has been provided based on internal research. Investors should do their own research before deciding to take a buy or sell decision. This information should not be treated as an investment recommendation.
Read more: What is ZK Rollup
MATIC
Matic is the native token of the Polygon network, which is one of the most widely used blockchain networks available today. It was built to scale the Ethereum Network. The polygon network allows developers to build networks of Ethereum-compatible transactions. It is thus called Ethereum’s “Internet of Blockchains”.
The Polygon network reduces the burden on the main Ethereum network by using ZK Roll-ups.
LRC
The Loopring Protocol’s LRC token utilizes ZK Rollups as its layer-2 scaling solution. Specifically, LRC uses a ZK Rollup-based decentralized exchange (DEX) to enable fast, cheap, and secure trading of ERC-20 tokens on the Ethereum blockchain. This is achieved by batching multiple trades together in a single transaction and verifying their validity on the Ethereum blockchain. This allows the LRC DEX to achieve high throughput, while still maintaining the security guarantees of the Ethereum network.
MINA
The MINA token is the native crypto of the MINA network. The MINA token is used for transaction fees and also for governance on the MINA network. The network brands itself to be the “ World’s lightest blockchain”. The network uses Zero-knowledge proofs to make its operations fast and affordable.
The Apps and smart contracts built on the MINA network enable the users to share proofs of their data rather than the data itself. This allows the users to share information without compromising their privacy. According to the MINA website, there is currently work being done to establish a bridge between MINA and Ethereum. This can potentially allow dApps on Ethereum and other chains to access information on the MINA network using the Zero-knowledge proof system.
DUSK
The DUSK crypto is the native token of the DUSK network, a privacy focussed blockchain platform. The DUSK network enables businesses to tokenise their financial instruments and automate expensive processes.
Powered by Zero-Knowledge technology, organizations can use the DUSK network to issue tokens that are driven by privacy-preserving smart contracts. The use of Zero-knowledge technology makes transactions of the DUSK network instantaneous to near-instantaneous(<15 seconds). This gives the network an edge in speed over older blockchains like Bitcoin and Ethereum.
Zcash
Zcash was the first project to implement Zk-SNARKS. Zk-SNARKS stands for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge”. This is a novel form of Zero knowledge cryptography making the Zcash ecosystem one of the strongest privacy focussed networks.
This technology refers to a consensus mechanism where one can prove the possession of information without actually revealing it. This system also allows verification to happen without any interaction between the prover and the verifier.
Conclusion
Zero-knowledge proofs are an innovative way to make blockchain solutions agile. With the number of applications and smart contracts being built on blockchains rising rapidly, Zk Roll-ups provide an effective solution to help blockchain scale efficiently without fearing the misuse of data. Zero-knowledge proofs are hyper-focused on privacy which makes them an imminently needed solution.
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