A Deep Dive into zkLink

Earlier this month, we announced the zkLink Community Sale, scheduled to take place January 25, 2024 at 18:00 UTC.

By connecting various L1 blockchains and L2 networks, zkLink’s versatile ZK-Rollup infrastructure enables developers and traders to leverage aggregated assets and liquidity from different chains and offer a seamless multi-chain trading experience, contributing to a more accessible and efficient DeFi ecosystem for all.

We sat down with the zkLink team to learn more about what problem they are solving, how they simplify the user trading experience while ensuring security and privacy of user transactions, their thoughts on the developing L2 ecosystem in 2024, and their post-launch growth strategy.

Let’s dive in.

1. What is zkLink and what problems does it solve?

zkLink is a multi-chain infrastructure solution for high-performance ZK applications. zkLink’s flagship Layer 3 solution, Nexus, is based on zero-knowledge technology that aims to empower the next generation of decentralized trading products by improving performance while reducing the costs of trading DApps such as order book DEXs, AMMs, NFT marketplaces, and more.

zkLink solves the problems related to liquidity fragmentation, multi-chain DApp deployment composability, blockchain navigation complexity and lastly, cross-chain transaction security. Using our SDK and zkSNARKS, a type of ZK-proof, zkLink connects numerous Layer 1 and Layer 2 ecosystems together, enabling native DeFi assets on distinct ecosystems to communicate between each other. This connection allows developers to easily facilitate multi-chain activity and DApp deployments in an efficient and secure manner.

2. What do you expect will be the biggest development or evolution that the L2 ecosystem will experience in 2024?

Layer 2s have re-emerged in the spotlight, in particular, with the growth of Arbitrum and Optimism, in which they surpassed many alternative Layer 1 networks such as Solana and Avalanche in TVL, revenue, and DEX volumes in September 2023. Arbitrum and Optimism have been the fastest growing Layer 2 ecosystems – and with the launch of Coinbase’s “Base”, Layer 2s experienced re-invigorated attention and popularity.

However, in 2024, the biggest developments and evolutions for the Layer 2 market will come from the continued advancement of ZK-Rollup solutions, the launch of various mainnets from Taiko and Scroll, and token launches and airdrops from Starknet and Linea.

Ecosystem-wise, Layer 2s are still progressing on deploying additional applications from Layer 1s and enabling smoother features and functionality for developers to easily port their DApps, for example from Ethereum.

Lastly, with the Ethereum protocol’s own upgrades, Layer 2 Rollups may see a reduction in their transaction costs, which will better incentivize users and developers to engage more with the various Layer 2 ecosystems.

3. How does zkLink ensure the security and privacy of user transactions?

The straightforward answer here is zero-knowledge-proof technology, in which our protocol employs zk-SNARKs to shield transaction information. While transactions are verified and recorded on the blockchain, details like sender, recipient, and transaction amount remain private.

A classic ZK-Rollup network typically selects a single chain such as Ethereum as the settlement layer to verify proofs and settle transactions. As a reminder, the settlement layer maintains the security and integrity of all off-chain transactions. However, in comparison to a classic ZK-Rollup architecture, zkLink employs a new type of ZK proof that simultaneously deploys the rollup contracts on multiple L1 blockchains and L2 networks at the same time.

zkLink sends ZKPs to the Layer 2s who then submit the ZKPs to Ethereum, which are then verified by Ethereum smart contracts. Therefore, the transaction finality on a zkLink Nexus L3 rollup is ultimately achieved on Ethereum, which is widely recognized for its security guarantees. This is why we’re called a multi-chain ZK-Rollup.

4. How does zkLink simplify the user trading experience?

zkLink’s user experience improvements are at the forefront of simplifying the trading experience. Firstly, it offers interoperability by facilitating seamless token transfers across different blockchains and ZK-Rollup Layer 2s, eliminating the need for users to navigate complex processes when trading on multiple platforms. zkLink also provides a unified platform that aggregates liquidity from various chains, allowing users to access broader pools of liquidity and engage in more efficient trading experiences without worrying about slippage.

Self-sovereignty is another critical feature of zkLink where we allow users to retain control over their assets without having to delegate custody to centralized exchanges (CEXs). This not only enhances the users' control over their assets but also reduces the impact on decentralization and minimizes censorship risks.

Lastly, security is a paramount concern for any trading platform, and zkLink addresses this issue by implementing robust security measures to protect against cross-chain bridging exploits and inter-chain transaction risks. This level of security reassures users, allowing them to trade with confidence, knowing their assets are safeguarded. All these factors combined make zkLink a comprehensive solution that simplifies the user trading experience in DeFi.

5. What are liquidity silos and how does zkLink solve them?

Liquidity silos refer to cryptocurrency coins & tokens that are dispersed across different blockchain ecosystems that cannot be utilized by other networks due to the siloed nature of blockchains.

However, zkLink’s multi-chain ZK-Rollup infrastructure connects developers and their users to easily access multiple blockchain ecosystems such as Ethereum, Rollup VMs, and other mainstream EVM-compatible systems. More importantly, this design does not rely on a cross-chain asset bridge, thereby eliminating efficiency and security issues.

As a result, applications using zkLink’s rollup infrastructure solution will be able to access and deploy various native tokens across the connected Layer 1s and Layer 2s, including FTs and NFTs, thus allowing users to trade multi-chain assets and manage their tokens from a single wallet interface.

6. What mechanisms are in place to ensure the sustainable growth and decentralization of the protocol?

zkLink is taking proactive steps to ensure the sustainable growth and decentralization of its protocol through several key ways.

First, the rapid expansion of zkLink’s ecosystem partners is a cornerstone of this strategy. We are actively pursuing partnerships and collaborations to broaden and diversify our ecosystem and network. This approach will create a robust foundation for sustained growth and development, ensuring that the zkLink ecosystem remains dynamic and expansive.

In addition, zkLink has introduced development grants aimed at incentivizing and supporting external developers. We anticipate attracting a diverse range of talent and ideas, which will enhance our innovation and contribute significantly to the zkLink protocol's sustainability. These grants are crucial for encouraging the creation of innovative solutions within the upcoming zkEVM ecosystem, fostering a vibrant and decentralized developer community.

Furthermore, to streamline the deployment of zkEVM DApps, zkLink is establishing a development support hub. This hub is envisioned as a resource center that provides guidance, tools, and support for developers. It's designed to facilitate the efficient creation and deployment of DApps, thereby bolstering our protocol's ecosystem. These mechanisms collectively will contribute to the sustainable growth and decentralization of zkLink, and make it a resilient and forward-thinking protocol in the industry.

7. What is the best way to get involved in the zkLink community?

The best way to get involved in our community is to follow and engage with our social media accounts including Twitter, Discord, and Telegram – and to engage with our protocol directly, we have just recently released the Playground mainnet, a teaser for our zkLink Nexus Layer 3 solution. We reward our community heavily through frequent campaigns and other initiatives, especially to those who participate on our community channels, create content, and contribute to our mission.

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