What is ZKsync (ZK)?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 6 min
In short
ZKsync is a layer 2 network that batches Ethereum activity to make it cheaper. It uses zero-knowledge proofs so that Ethereum can mathematically verify that transactions executed elsewhere were carried out correctly. Development is led by Matter Labs, and a governance token, ZK, was distributed in 2024.
Key points
- A ZK rollup: it batches transactions and posts only a validity proof to Ethereum
- Because correctness is proven rather than challenged, withdrawals can finalise faster in principle
- Offers an EVM-compatible execution environment through its own compiler toolchain
- Pursuing an Elastic Network design in which many chains share the stack and interconnect
Definition
A layer 2 rollup network that proves the correctness of its execution to Ethereum using zero-knowledge proofs.
Because every Ethereum node repeats the same computation, gas prices rise as usage grows. Layer 2 networks move that work outside, executing transactions elsewhere and recording only the results on Ethereum. ZKsync is the variety that does this with zero-knowledge proofs.
The advantage of proofs is that correctness is established mathematically rather than by waiting for someone to object. Optimistic rollups require a challenge window before withdrawals settle; a validity proof removes that wait in principle. The cost is the computation needed to generate the proof.
The engineering difficulty was translating EVM instructions into a form that proofs can handle. ZKsync compiles Solidity and similar code into its own intermediate representation and runs it on a purpose-built virtual machine. Most existing contract code works unchanged, though some low-level behaviour differs.
The ZK token was distributed in 2024 and is used for governance of the network's direction. Gas is paid in ETH. Matter Labs also licenses the same stack for building other chains and is working on connecting them to each other.
Watch out for
- · Transaction sequencing is still operator-run, so an outage there affects users
- · Bugs in the proof system or bridge contracts could affect asset movement; audits do not eliminate this
- · The ZK token is not used to pay gas, and holding it does not reduce fees
Frequently asked questions
Does holding ZK make gas cheaper?
No. Gas is paid in ETH; ZK is used for voting on how the network is governed.