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What is a Zero-Knowledge Rollup?

A zero-knowledge rollup, often known as a ZK-rollup, is a layer 2 scaling solution that improves transaction speeds and lowers costs by combining on- and off-chain processes. These rollups work by moving computation and state off-chain and then bundling transactions into batches to bring them on-chain for verification.

In a ZK-rollup, verifications are conducted using advanced cryptographic techniques that are known as zero-knowledge proofs. These proofs ensure a transaction’s integrity by verifying statements without revealing details about the statement itself, helping to ensure privacy. Any observer can verify those statements, but all they’ll need to know is the final proof. Additionally, by optimizing the use of on-chain resources and decreasing network load, ZK-rollups are able to reduce overall transaction costs.

There are some drawbacks to ZK-rollups, most notably that they are technically complex and require specialized knowledge to utilize. However, the emphasis on user privacy makes them a useful solution for applications where privacy is paramount, such as financial transactions or sharing sensitive data. And despite their complexity, ZK-rollups have been growing in popularity among builders, who appreciate their impact on usability, as well as users who want faster and cheaper transactions.