Zero-knowledge proofs allow users to prove the validity of information without revealing any of the specific details. This technology has been applied to scaling Ethereum, which had caused an increase in transaction speeds and fees. Zero-knowledge rollups (zk rollups) can reduce these transaction costs by compressing data making more efficient use of Ethereum blockspace. To perform zk rollups, transactions are batched and validated by Ethereum without revealing the actual transactions. The cost of writing data to the mainnet from a zk rollup decreases as more transactions occur since the fixed cost is divided between all users. This is contrary to Ethereum mainnet, which sees higher fee costs with an increase in users and transactions. The current method of posting data requires a fee but this is projected to change under EIP-4844, or 'Proto-Danksharding', when it is part of the Cancun upgrade. This is expected to reduce the data availability cost and ultimately, over the long run, fees associated with layer-2s using zk proofs will continue to diminish.
Mary King
- 2023-03-30
What are Zero-Knowledge Rollups?
This article explains Zero-Knowledge Rollups and how they reduce Ethereum transaction fees by compressing data. It also looks at the fixed cost associated with zk proofs on the Ethereum mainnet which is expected to reduce long-term fees on layer-2s.
