{"id":88973,"date":"2023-08-09T09:04:45","date_gmt":"2023-08-09T09:04:45","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&p=88973"},"modified":"2023-08-09T10:15:36","modified_gmt":"2023-08-09T10:15:36","slug":"zero-knowledge-rollups-zk-rollups","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/zero-knowledge-rollups-zk-rollups","title":{"rendered":"Zero knowledge rollups (zk rollups)"},"content":{"rendered":"

What Are Zero Knowledge Rollups (ZK Rollups)?<\/span><\/h2>\n

Zero-knowledge rollups are <\/span>layer-2<\/span><\/a> (L2) scaling solutions that significantly enhance the throughput and efficiency of blockchain networks.<\/span><\/p>\n

zk rollups allow a large number of off-chain transactions to be bundled together, compressing them into a single data packet known as a “rollup” and then submitting the summarized data to the main blockchain<\/a><\/span>\u00a0for verification. <\/span><\/p>\n

How Do ZK Rollups Work?<\/span><\/h2>\n

Zero-Knowledge Rollups (or zk rollups) are emerging as a groundbreaking solution that addresses blockchain challenges of scalability, security, and efficiency.<\/span><\/p>\n

The ‘rollup’ method ensures that the blockchain network can validate multiple transactions without needing to process each individually, reducing congestion and lowering transaction costs.<\/span><\/p>\n

The concept of “zero-knowledge” in zk rollups refers to the ability to prove the validity of transactions without revealing any sensitive information about them.<\/span><\/p>\n

This ensures the utmost privacy and security, making zk rollups an appealing option for various applications, including <\/span>decentralized finance (DeFi)<\/span><\/a>, <\/span>non-fungible tokens (NFTs)<\/span><\/a>, and scalability-focused projects. This sets zk rollups apart from other scaling solutions.<\/span><\/p>\n

By employing zero-knowledge proofs, zk rollups ensure that the validity of <\/span>transactions<\/span><\/a> is mathematically verifiable without revealing the actual transaction data. <\/span><\/p>\n

This results in significant efficiency gains, as the main blockchain only needs to confirm the validity of the compressed rollup rather than each individual transaction.<\/span><\/p>\n

How Are Zk Rollups Applied to Blockchain Protocols?<\/span><\/h2>\n

Zero-knowledge rollups are gaining significant traction as a promising scaling solution for various blockchain protocols, including some of the most popular platforms in the crypto space.<\/span><\/p>\n

Application to Ethereum<\/h3>\n

Ethereum<\/span><\/a>, as the world’s leading smart contract platform, has been at the forefront of exploring zk rollups to address its scalability challenges. With a rising number of <\/span>decentralized applications (dApps) <\/span><\/a>and the popularity of DeFi protocols, Ethereum’s transaction throughput has become a bottleneck, leading to congestion and high transaction fees.<\/span><\/p>\n

zk rollups offer a game-changing solution for Ethereum’s <\/span>scalability<\/span><\/a>. By compressing multiple transactions into a single rollup, zk rollups alleviate the burden on the main blockchain, significantly increasing the number of transactions that can be processed within a given timeframe. This dramatically reduces transaction fees and faster confirmation times, making Ethereum more efficient and user-friendly.<\/span><\/p>\n

Projects like “Optimism” and “zkSync” are prominent examples of ZK Rollups implementations for Ethereum. They enable smart contract execution within the rollups, allowing developers to build complex dApps without sacrificing scalability or security.<\/span><\/p>\n

Application to Layer 1 Blockchains<\/h3>\n

Beyond Ethereum, ZK Rollups have also been applied to various Layer 1 blockchains. These are the main blockchain networks where transactions are directly processed and verified. Examples of Layer 1 blockchain protocols<\/a>\u00a0that have adopted or are considering ZK Rollups include:<\/span><\/p>\n