Ethereum Welcomes Layer-2 Scaling Solution for Private Transactions and Atomic Swaps
After seven months, a Zero-Knowledge Proof Optimistic Rollup (Zkopru) implementation for Ethereum is ready for testing as per the latest update on July 19, 2020. The Layer-2 fraud-proof solution not only introduces privacy to ether, ERC-20, and ERC-721 transactions but also supports private atomic swaps.
Zkopru Brings Privacy and Scaling to Ethereum
Zkopru is implemented on Typescript, an open-source programming language maintained by Microsoft. The language is specifically designed for large applications.
Notably, this implementation uses zk-SNARKs to build on private transactions and will significantly enhance the performance of on-chain Ethereum transactions. It also uses Optimistic Rollup to manage blocks. Its developers said Zkopru’s throughput is 105 when the gas limit is at 11.95 million and the block generation time is 13.2 seconds. Every Zkopru account manages both a Layer-1 and Layer-2 key pairs.
As expected, Zkopru–more so if it gains greater adoption, will ease the Ethereum network. The primary chain continues to struggle as the smart contracting platform dominates DeFi and the dApp scene. A recent observation notes that all ERC tokens are more valuable than ETH’s market cap invalidating the Fat Protocol Thesis.
The spike in the number of Ethereum addresses explains why Ethereum Gas fees have been consistently treading above Bitcoin despite the latter being historically known for its fee problem.
The Ethereum Fees Problem
The quest to lower Ethereum on-chain fees has forced Vitalik Buterin to wade into the discussion. To ease the main chain, he suggested the lifting of non-complex transactions to Layer-2 channels like Rollup.
If Zkopru is finalized, it will enable Ethereum transactions to be processed privately, cheaply, and away from the main chain. Interestingly, the pay-in-advance feature enables users to withdraw assets from Layer-2 before transaction finalization.
The update reads in part,
“Anyone can request an instant withdrawal by setting the instant withdrawal fee for each withdrawal note. Then, anyone can pay in advance for the unfinalized withdrawals and get the fee for them.”
The $8 Million Cost of Congestion
With miners always searching for the best deals, their propensity to choose transactions posted with above-rate network fees over others portend trouble.
Recently, a network clog dented Maker forcing them to churn more MKR tokens to plug the $8 million hole after zero bids were placed for ETH collateral.
As reported by BTCManager, DeFi and the development of Layer-2 scaling solutions will drive Ethereum adoption.