Recently, the number of zero-knowledge (zk) rollups projects has been increasing, each of them aiming to increase the scalability of Ethereum’s blockchain. These projects are Polygon, Scroll, and Starknet.

Zk-rollups operate by batching or bundling transactions and executing them off chain, essentially reducing the space used by transactions on a blockchain. This also results in cheaper transaction fees, as the costs are shared between the bundled user transactions.

Unlike the optimistic rollup technology which simply assumes that information in a transaction is accurate, zk-rollups are designed in such a way that the technology itself can ascertain if the information is correct without disclosing it on the main chain.

As of now, the majority of user funds on zk-rollups is held by Optimism and Arbitrum, with the latter controlling approximately two-thirds of the market and the former having a little more than 20%.

Of the different developing zk-rollup technologies, zkSync has been producing the most acceptance and development. Around $244 million have been transferred onto this layer-2, with $117 million of it having been used on DeFi contracts.

Starknet and Polygon's zkEVM, on the other hand, have seen much less funds being used, with $37 million and $5 million being respectively transferred onto the layer-2s.

The systems can now boast of 22 protocols being used on zkSync and 10 on Polygon's zkEVM, with the most recent being the decentralized exchange Uniswap.

Ongoing audits and developments are still being conducted on zk-rollup technology to guarantee its safety and security. A research report published by Blockworks Research delves into the role of zk-rollup technology in the future of Ethereum.



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