- ZKsync seeks to support a networked ecosystem of Layer 2 rollups that are based on ZK Stack.
After its 3.0 release last month, ZKsync is the most recent Ethereum scaling solution to implement a multi-chain design.
ZKsync unveiled its plans for Elastic Chain, an ecosystem of linked Layer 2 rollups that would make use of ZK Stack, the company’s software stack, on July 2.
With the live ZKsync 3.0 protocol upgrade on June 7th, Elastic Chain was able to support the expanding network of interoperable ZK Chains by converting ZKsync’s Layer 1 bridge into a shared router contract.
According to ZKsync, Ethereum’s rollup-centric roadmap successfully decreased transaction prices but divided liquidity and user experience. This issue is resolved by the latest ZKsync 3.0 update, which allows native, trustless, low-cost interoperability between the chains that are powered by ZK Stack. Hence, ZKsync 3.0 becomes The Elastic Chain from a single Ethereum L2.
According to ZKsync, the first chain in the ecosystem is part of its ZKsync Era network, and more than 20 more ZK Stack-based chains are planned to emerge in 2024.
Linked ecological systems
The announcement coincides with the goal of establishing integrated Layer 2 network ecosystems through common infrastructure, as opposed to isolated L2 architectures, shared by a number of Ethereum’s leading scaling solutions.
These projects aim to address Ethereum’s liquidity fragmentation problems, which cause users and assets to be dispersed among an ever-expanding network of Layer 2 and Layer 3 scaling solutions. Twenty Ethereum L2s presently hold more than $100 million in total value locked, according to L2beat.
With its Bedrock update in June 2023, Optimism undoubtedly set the standard for the group, laying the groundwork for the Superchain, an ecosystem of linked chains constructed with the OP Stack.
In response, ZKsync shipped the ZK Stack a few weeks later, opening the door for the project to achieve its goal of Hyperchain scaling, which was initially stated at the October 2022 SmartCon conference.
As part of the Polygon 2.0 strategy, Polygon launched its AggLayer bridge in January 2024, joining the fray as well. Starting with the Polygon ZkEVM network, the bridge enables developers to link any Layer 1 or Layer 2 chain to Polygon’s AggLayer ecosystem.
Impressive cumulative throughput capacity has been reached by Ethereum-aligned rollups, but ZKsync noted that this advancement has significantly worsened network integrity, capital efficiency, and user experience.
Flexible Chain
ZKsync drew attention to the security vulnerabilities and inefficiencies in capital that come with cross-chain bridges, which are presently the main means of transferring assets between various Layer 1 and Layer 2 blockchains.
According to the idea, even in the case that centralized bridges were completely safe, operating them would demand a significant amount of capital due to the requirement for liquidity on each linked chain. The amount of cash required for these bridges will need to increase quadratically as the number of separate blockchains and optimistic rollups rises.
Elastic Chain, on the other hand, is defined by ZKsync as an ecosystem of self-governing chains that are inherently linked at the protocol level, hence promoting capital efficiency and removing obstacles to the free flow of cryptocurrency assets.
It’s a well-integrated multi-chain ecosystem that behaves and feels like a single chain, claims ZKsync.
Elastic Chain facilitates account abstraction, allowing users to register using Passkeys or FaceID instead of seed phrases.
Pullback following airdrop
The announcement comes after the much anticipated airdrop by ZKsync, which on June 17 gave early adopters access to 17.5% of the ZK token supply.
ZK has since reduced its market capitalization to $651 million, despite the token’s initial launch value of over $1 billion.
The Defiant’s cryptocurrency price feeds show that the price of ZK increased 6% in a single day to reach $0.18.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
