Demystifying How ZK-Rollups Work: A Deep Dive into Layer-2 Scaling

A total of 151,045 pending Ethereum transactions highlights its ongoing scalability issues. This transaction backlog and high fees somehow affect the network’s usability and stability. In order to address these challenges, several layer 2 solutions are introduced and ZK Rollups have emerged as the potential solution to resolve the scalability issues. 

In this blog, we will explore what ZK rollup projects are and how they work for a deeper understanding.

What are ZK-Rollups?

ZK-Rollups are layer-2 scaling solutions that offload computation and state storage to off-chain networks while keeping transaction data on-chain to enhance blockchain scalability. This innovative approach boosts transaction throughput and lowers costs.

The Working of ZK-Rollups 

Two Main Components of ZK Rollups

• On-Chain Contracts: Smart contracts on Layer-1 blockchain manage ZK rollup protocols, track deposits, store blocks, and verify zero-knowledge proofs.

• Off-Chain Virtual Machine: An independent off-chain VM executes transactions, stores states, and generates validity proofs verified on-chain for accuracy.

Execution Process

The following are the steps involved in the execution process of ZK rollup projects- 

• Sequencing: Layer-2 operators, called sequencers, gather and process transactions off-chain, bundling them into batches submitted to the zk-rollup smart contract on Layer-1.

• Proof Generation: A validity proof, either a zk-SNARK or zk-STARK, is generated for each transaction batch. This proof mathematically confirms the validity of the transactions without disclosing their data.

• Proof Verification: The zk-SNARK or zk-STARK validity proof is submitted to the Layer-1 smart contract, which verifies it and updates the state root, ensuring accurate and secure state transitions proposed by the rollup.

Conclusion

The way ZK rollups enhance the transaction throughput and blockchain scalability, no doubt it has a promising future and will surely redefine the blockchain landscape. Today, businesses are increasingly investing in this technology. Hire the top blockchain development company to access the solution that can future-proof your business operations.