What Is zkSync? Ethereum ZK Rollups and the ZK Token Explained
zkSync is a layer 2 network that reduces Ethereum's workload. It uses zero-knowledge technology to process transactions quickly and inexpensively while drawing on Ethereum's security. This guide distinguishes the often-confused ZK token and gas fees and explains the risks.
What is zkSync?
zkSync is a layer 2, or L2, scaling solution operating on Ethereum. Ethereum's mainnet, the base beneath layer 2, can become slow and expensive during congestion. zkSync bundles many transactions and records their results on Ethereum. This compressed submission structure is called a rollup.
The “ZK” in its name refers to zero-knowledge proofs. A mathematical proof demonstrates that the bundled transactions followed the rules, allowing the results to be trusted without a separate challenge-waiting period.
Why are fees lower?
Recording every individual transaction on Ethereum incurs a cost. zkSync bundles hundreds together, spreading Ethereum's recording cost over many transactions. This is why its gas fees can be lower than mainnet fees.
| Feature | Ethereum mainnet | zkSync: ZK rollup |
|---|---|---|
| Processing location | Directly on mainnet | Bundled on L2 |
| Fees | Relatively high | Relatively low |
| Security basis | Its own consensus | Proofs recorded on Ethereum |
| Withdrawal verification | Not applicable | ZK proofs support more immediate verification |
Do not confuse the ZK token with gas
A common source of confusion is the network's ZK token, mainly used for ecosystem operations and governance. Transaction gas is paid in ETH. Holding ZK does not mean your fees are automatically paid with it.
- ZK token: An ecosystem asset used for governance and related purposes.
- Gas fees: Paid in ETH.
- The two have entirely different roles.
Risks before using the network
Convenience comes with precautions. No new technology has zero risk.
- Bridge risk: Mistakes or fraudulent sites while moving assets between Ethereum and zkSync can cause losses. Always verify the official route.
- Smart contract risk: Applications on L2 can contain code defects and vulnerabilities. Follow basic scam-prevention practices.
- Centralization: Some powers may remain with the operator while decentralization develops.
- Token volatility: ZK and other token prices can fluctuate sharply.
zkSync is one of several approaches to Ethereum scaling, and views differ on whether it is a better solution. This article explains the technology and structure and is not investment advice. No one guarantees a token's future price or returns. Research thoroughly and decide carefully.
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