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Circle Integrates zkSync for USD Coin

Circle, one of the largest stablecoin producers, has expanded its support for Ethereum’s layer-2 solution zkSync to include its own stablecoin, USD Coin (USDC). This integration expands the possibilities for Ethereum developers and users, letting them to benefit from zkSync’s zero-knowledge proofs and rollup technology. Increasing the Reach of USD Coin With the inclusion of zkSync, USDC is now available on 16 blockchains, including Ethereum, Solana, Base, Arbitrum, and more. This extension allows developers to build on a stable foundation provided by Circle, assuring the reliability and sustainability of their apps and services. Leveraging zkSync’s technology zkSync uses zero-knowledge proofs and rollups to execute transactions on layer 2 of the Ethereum network with record speed and low cost. Zero-knowledge proofs enable the evaluation of transaction integrity without disclosing the underlying data, guaranteeing privacy and security. Rollups combine many transactions from the Ethereum core layer into a single transaction, which increases scalability and lowers costs.The integration of zkSync with USDC offers a number of advantages for organisations and developers:1. Quick and low-cost transactions Using zkSync’s unique data compression mechanism, developers may enjoy low-cost transactions on the Ethereum network. This scaling solution greatly decreases petrol expenses and increases transaction throughput, making it more affordable to both individuals and companies.2. Improved security and privacy. zkSync’s zero-knowledge proofs give cryptographic assurances of transaction validity, assuring the transaction’s integrity. This increased security feature is critical for banking apps and DeFi protocols, where trust and privacy are essential.3. Native Account Abstraction Developers may use zkSync’s built-in account abstraction to perform social wallet recovery, subscription payments, and network fee payments in USDC. This functionality improves user experiences and broadens the use cases for USDC in the Ethereum ecosystem.Growing the zkSync ecosystemAs of April 9, 2024, the zkSync ecosystem has over 180 decentralised apps and 5.7 million unique active wallet addresses over the previous 30 days. This rising development and user community illustrates that layer-2 solutions like zkSync are becoming more popular and in demand.Circle’s commitment to Ethereum’s futureCircle’s integration of zkSync with USDC is consistent with its aim of increasing Ethereum’s throughput while maintaining its core ideals of freedom, self-sovereignty, and decentralisation at scale. Circle aspires to foster innovation and development within the Ethereum ecosystem by offering access to a reliable and scalable infrastructure for developers and companies alike.Conclusion Circle’s adoption of zkSync to its native stablecoin, USD Coin, is another key step towards the establishment of the Ethereum layer-2 ecosystem. zkSync’s zero-knowledge proofs and rollup technologies provide developers with a strong platform for rapid, low-cost transactions and better security. This integration underlines Circle’s commitment to Ethereum’s future and its objective of boosting scalability while maintaining the network’s essential principles.

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Ethereum Scaling Solution zkSync to Launch Mainnet in 3 Months

Ethereum Layer 2 scaling solution zkSync announced that it will be going live on mainnet in the coming three months.

Project developer Matter Labs announced that zkSync 2.0 would be compatible with the Ethereum Virtual Machine (EVM) upon its launch.

“The project is hoping to become the first zk proof-based scaling solution for EVM smart contracts available in a live production environment upon its mainnet launch,” The Block reported.

Scripting languages for EVM-based apps, Solidity and Vyper, will also be supported by zkSync.

The technology behind zkSync is based on zero-knowledge rollups, and ZKRollups is used by Layer 2 networks to allow faster and cheaper transactions than the Ethereum mainnet, The Block reported. Other solutions include optimistic rollups, sidechains, and state channels.

Backward compatibility with older versions of the solutions will also be available on zkSync 2.0, the announcement added to help project developers to upgrade to the new version.

The announcement further elaborated that there will be a three-step process for the mainnet launch. The first launch in November will happen, excluding external projects. Prior to the second launch, there will be audits and then a fair alpha launch. Ultimately, the final stage will be the full mainnet launch slated for the end of 2022.

zkSync Parent Firm Sets to Launch Layer 3 Testnet ‘Pathfinder’ in Q1 2023

Matter Labs has announced its pending testnet launch – a new layer 3 Ethereum scaling prototype called ‘Pathfinder,’ which will be released in the first quarter of 2023 and could turn out to be the first Layer 3 network built on the Ethereum blockchain.

Matter Labs is the Ethereum development firm behind zkSync, a Layer 2 scaling network on Ethereum that is set to launch later this month.

A layer 2 network is built and connected to the base layer (Ethereum). It improves scalability, enabling it to process more transactions at a lower cost.

In Matter Labs’ latest Medium blog post, the firm announced its layer 3 launch, described as the “path towards unlocking unlimited scalability and customization.”

This Layer 3 network will amplify all the benefits of Layer 2 and enable limitless scaling with limitless customization.

“With zkSync’s Layer 3 solution, developers will be able to choose from 3 data availability options all using the same proving infrastructure for their project. Developers can choose their own trade-offs between price, performance, and security,” said Matter Labs in the announcement.

The firm further stated that their Layer 2 solution, zkSync, is there to provide the necessary foundation for the scaling of Ethereum in the ecosystem without devaluing its security or decentralization. But beyond that, it is their vision that unlimited scalability, and as a result, mass adoption comes from Layer 3 and beyond.

Furthermore, Matter Labs explained that the layer 3 solution, Pathfinder, will replace non-native bridges with native bridges (or “HyperBridges”) and enable native bridging between blockchains.

Native bridging is moving tokens from one blockchain to another without locking or giving tokens to an intermediary ‘escrow’ bridging platform.

Once zkSync finally launches its layer 3 network, it could solve one of the industry’s main pain points, as billions of dollars have been stolen through exploits of non-native bridges between Layer 1 and layer 2 blockchains in the past year.

Last week, the crypto industry witnessed another on-chain hack, with roughly $100 million of Binance Coin (BNB) stolen after an exploit occurred on a bridge between blockchains.

According to figures from blockchain analytics firm Chainalysis, a total of $2 billion has been lost to breaches on cross-chain bridges this year.

With this massive amount of money lost to breaches on cross-chain bridges, a Layer 3 network like Pathfinder, which enables the act of native bridging, could be just what the industry needs to avoid these bridge hacks.

Matter Labs to Reveal its ZkSync Token Specification in November 2022

Steve Newcomb, chief product officer at zkSync’s development company, Matter Labs, has disclosed in a Twitter Spaces discussion that the native token for the Ethereum scaling solution zkSync will be revealed in the first week of November.

Newcomb made this announcement shortly before zkSync plans to debut its core network which has been in construction back in 2021.

Furthermore, when questioned about the release date of a prospective zkSync token, Newcomb said. “In the first week of November, and I don’t wanna cause too much of a flurry here, look for us to make a statement that many people are waiting for relating to tokenomics.”

While Newcomb acknowledged that the token information would soon be available, he described the rumors of an airdrop—a free token distribution to zkSync users as false.

Matter Labs Raised $50 million in a Series B Funding

Back in November 2021, Andreessen Horowitz (a16z) headed a $50 million Series B funding round for Matter Labs to finance the creation of zkSync.

zkSync is a ZK rollup-based Ethereum scalability solution that uses zero-knowledge (ZK) proofs to rely on Ethereum for security while concurrently bundling transactions off-chain to deliver swift and less expensive crypto transactions.

The firm is preparing to launch the mainnet, which it claims will completely support Ethereum smart contracts on the ZK-Rollup, in an ecosystem branded “zk-EVM.”

Following zkSync’s mainnet debut, more than 100 projects expressed interest in using it to distribute their apps. Interestingly, Uniswap, the biggest decentralized exchange by value, passed a legislative bill recently to run its version 3 exchange on zkSync after the mainnet launch.

Arbitrum Airdrop Boosts zkSync Growth

In recent news, Arbitrum, a layer-2 scaling solution for Ethereum, announced an airdrop of its ARB governance token, which has generated significant hype within the blockchain community. The airdrop is expected to reward eligible receivers with the token by March 23. The hype around the airdrop has helped another layer-2 scaling solution, zkSync, experience significant growth in the last week.

ZkSync, another layer-2 scaling solution for Ethereum, supports nonfungible tokens (NFT), and atomic swaps and transfers of Ether (ETH) and ERC-20 tokens within the Ethereum network. Despite not having a native token or announcing any airdrop, zkSync has seen a surge in the number of addresses bridging to its platform. According to data from crypto on-chain analytic firm Nansen, over 39,000 addresses have bridged over $871 million to zkSync in the last seven days, with the number of addresses bridging to zkSync surging by 5x in the last week.

Many proponents of zkSync believe that they will be rewarded with an airdrop in the near future, similar to Arbitrum’s recent airdrop. After the Arbitrum airdrop, zkSync and StarkNet are regarded as the upcoming airdrops with the most potential value. On March 17, nearly 5,000 people deposited more than 536 ETH using the zkSync bridge, and almost 3,000 users deposited over 234 ETH using the StarkNet bridge.

Although zkSync is not conducting an airdrop, the enthusiasm around the Arbitrum airdrop has led many proponents to believe that they could be rewarded in the future. However, scammers have attempted to use Arbitrum branding to conduct fake and scam airdrops, which highlights the importance of verifying the authenticity of such promotional tools.

A crypto airdrop is a promotional tool used by crypto projects to generate hype around their projects. The crypto projects behind these airdrops often directly deposit digital tokens into the wallets of active blockchain community members as a gift. The eligibility criteria for these airdrops may include specific requirements, such as spreading awareness around the project, among others.

Not all crypto airdrops are equally valuable due to multiple factors, such as the project’s use cases and the people behind the projects, among others. However, layer-2 solutions like Arbitrum, Optimism, and zkSync have established themselves in the blockchain community and have proven records, which has attracted more traders to the Arbitrum airdrop. As a result, it could prove to be more valuable than the usual crypto airdrops.

Symbiosis Integrates zkSync to Enhance Token Swaps

Symbiosis, a cross-chain automated market maker, has recently integrated zkSync, a layer-2 scaling protocol, to enhance the speed and reduce the fees of token swaps on its platform. The integration allows users to make any-to-any native asset swaps across Ethereum Virtual Machine (EVM) and non-EVM networks without having to switch between different wallets and interfaces.

The decentralized exchange (DEX) was launched in March 2022 and has already processed over $100 million in total transaction volume in stablecoins. It offers single-sided stablecoin pools that provide zero impermanent loss to liquid providers and facilitates “any-to-any” native asset swaps on its platform.

The integration of zkSync aims to make liquidity transition to and from zkSync “secure, fast and cheap.” It also expands the variety of token swaps through the DEX, supporting any-to-any native swaps to and from zkSync. This additional functionality enhances the user experience of value-added services built on top of Symbiosis.

According to Simeon Avramov, co-founder of Symbiosis, layer-2 scaling protocols like Optimistic and ZK-rollups are crucial for various decentralized finance (DeFi) platforms and services. They are lowering the entry barriers in terms of the price per swap and user experience of value-added services built on top. Avramov believes that zero-knowledge rollups could outcompete Optimistic Rollup solutions like Arbitrum and Optimism.

Avramov also emphasizes the importance of cross-chain players and interoperability layers to support zero-knowledge solutions as soon as possible. “ZK represents an inevitable and natural evolution among scaling solutions,” he said.

The integration of zkSync is a significant development for Symbiosis, as it will enhance the speed and reduce the fees of token swaps on its platform. This will attract more users and provide a better user experience. Symbiosis serves over 12,000 unique wallet addresses and has an average of 3,000 daily transactions.

Moreover, the scaling technology is not limited to Ethereum or other smart contract blockchains. The Swiss-based nonprofit ZeroSync Association is currently developing zero-knowledge proof tools that will allow Bitcoin (BTC) users to expedite the process of verifying individual blocks and, eventually, the entire blockchain.

In conclusion, the integration of zkSync is a significant milestone for Symbiosis, as it enhances the speed and reduces the fees of token swaps on its platform. It also expands the variety of token swaps and improves the user experience. The use of zero-knowledge proof technology in scaling solutions is an inevitable and natural evolution, and it is crucial for cross-chain players and interoperability layers to support zero-knowledge solutions as soon as possible.

Aave to Launch on zkSync with Overwhelming Support from Community

The Aave community has spoken, and the results are in. A proposal to launch the decentralized exchange (DEX) Aave on the zkSync Era Mainnet has received overwhelming support, with over 99% of AAVE tokenholders casting ballots voting in favor of the move.

The proposal, which was first pitched on March 26, outlined plans to launch the third version of the lending and borrowing protocol on the zero-knowledge Ethereum Virtual Machine (zkEVM). The launch will initially be limited to USD Coin (USDC) and Ether (ETH).

The proposal’s success in the “temperature check” stage means that the next steps listed in the proposal will be pursued. This will involve further discussion, followed by risk parameter evaluation and the finalization of the proposal. If successful, the proposal will then be submitted for on-chain governance approval.

While only around 0.02% voted against the proposal, and a further 0.02% abstained from voting, the overwhelming support from the Aave community is a significant milestone for the project. Deploying on zkSync has the potential to introduce new users to decentralized finance, as well as cementing Aave’s position as a premier borrowing platform within the zero-knowledge ecosystem.

The Aave community previously voted to deploy the Aave V3 codebase on zkSync’s v2 Testnet, which was approved in another off-chain vote. With this latest vote, Aave is another step closer to deploying on the zkSync Era Mainnet.

Aave is not the only decentralized exchange looking to leverage the benefits of zkSync. Uniswap is also set to launch on the scaling solution from Polygon after a successful governance proposal was passed.

Aave’s journey to this point has not been without its challenges. In November 2022, the platform changed its governance procedures after it was hit by a $60 million short attack that ultimately failed. However, the project has emerged from this setback with renewed vigor and determination, as evidenced by the overwhelming support for its latest proposal.

Overall, the launch of Aave on zkSync has the potential to be a game-changer for the decentralized finance space, and it will be interesting to see how the project progresses in the coming months.

Ethereum Layer 2: A Simplified Overview

Common Ethereum Layer 2 projects include Optimism, Arbitrum and zkSync. Tokens from some of these projects, such as ARB (Arbitrum) and OP (Optimism), have been available for trading. This article aims to explain the concept of Layer 2 in straightforward terms.

As blockchain technology continues to evolve, Ethereum has established itself as a leader in smart contracts and decentralized applications. However, its growing popularity has brought about challenges, particularly in terms of scalability and transaction costs. To address these issues, Layer 2 (L2) solutions were introduced, designed specifically to navigate these hurdles.

What is Layer 2 (L2)?

Layer 2, often abbreviated as L2, refers to a secondary framework or protocol built atop the existing blockchain (Layer 1 or L1). The primary objective of L2 solutions is to increase transaction throughput and reduce associated costs, all while maintaining the security and decentralization properties of the main chain.

The Basics: Layer 1 vs. Layer 2

Layer 1 (L1) is the foundational blockchain layer. Think of Ethereum or Bitcoin; these are L1 blockchains. They form the bedrock upon which L2 solutions are constructed. L1 handles the core consensus, maintains the network’s security, and records all transactions.

Layer 2 (L2), on the other hand, operates atop L1 and can process transactions off-chain or in a more scalable manner. The results are then settled back onto the main chain, ensuring the security and immutability of the primary blockchain.

The Promise of Layer 2

Lowered Transaction Costs: L2 solutions, by handling numerous transactions off-chain and consolidating them into one L1 transaction, can markedly decrease the expense of each transaction.

Improved Transaction Capacity: Compared to conventional L1 blockchains, L2 solutions are capable of processing a greater volume of transactions every second (TPS), tackling a primary concern in the world of cryptocurrency.

Maintained Security: Even though transactions might be processed off-chain, they eventually settle on the main chain, inheriting the security properties of L1.

Diving Deeper: Types of Layer 2 Solutions

1. Rollups: These are a popular L2 solution where transactions are processed off-chain and then bundled or “rolled up” into a single transaction that’s recorded on L1. There are two main types of rollups:

Optimistic Rollups: Transactions are assumed to be valid unless proven otherwise. If a transaction appears suspicious, it can be challenged and verified.

Zero-Knowledge Rollups (ZK-Rollups): These use cryptographic proofs to validate transactions off-chain. Only the proof, which is much smaller in size, is submitted to L1.

2. State Channels: These are off-chain corridors where multiple transactions can occur between participants. Once the series of transactions is complete, the final state is settled on the main chain.

3. Plasma: A framework that allows for the creation of child chains branching from the main chain. These child chains can operate independently and report back to the parent chain periodically.

Layer 2 in Action

Several projects are pioneering the L2 space:

Arbitrum: An Optimistic Rollup solution aiming to make Ethereum transactions more cost-effective.

Optimism: Another Optimistic Rollup, focusing on scaling Ethereum and enhancing its overall efficiency.

zkSync: A ZK-Rollup platform that offers a scalable, low-cost solution for Ethereum transactions.

Conclusion

Layer 2 solutions represent a promising step forward in addressing the scalability and cost issues associated with current blockchain networks. As these solutions continue to evolve and mature, they could pave the way for broader adoption of blockchain technologies and a more efficient decentralized future.

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