Erik Weijers, 4 months ago
On many fronts developers are working to increase the scalability of Ethereum: both in terms of the number of transactions and lower transaction costs. This week, Polygon announced the launch of their so-called zero-knowledge (zk) Ethereum Virtual Machine. It is the first the zk-rollup technology compatible with Ethereum.
Until now, no party had managed to create so-called zero-knowledge rollups. By the way, the actual launch of the zkEVM is not expected until 2023.
To understand what this "zk-machine" is, we must first understand what rollups are. Rollups bundle hundreds of transactions on a second layer (Layer 2). To eventually be settled on the - in this case Ethereum - main chain, all that needs to be presented is a proof of validity of the transaction data - and not all the transaction data themselves. The latter is, in fact, what takes up a lot of space on the blockchain and thus makes blockspace expensive.
What are zero-knowledge proofs? It concerns a form of cryptography where parties can prove to each other that information is valid without revealing the information itself. Unlike other cryptographic techniques that encrypt and transfer all data, zero-knowledge proofs do this with scattered, non-revealing pieces of the information. For example, zk-proofs would allow you to prove that you are the owner of a passport without having to show the passport. The technology prevents malicious parties from intercepting private data.
The main promises of Polygon zkEVM are a significant reduction in current Ethereum network costs - about 90%, according to the team's estimate. In addition, a dramatic increase in throughput is promised. The goal is to increase the number of transactions to the level VISA currently achieves: about 1,700 per second. While achieving this, the technology would still rest on the security and decentralization of the Ethereum blockchain.
Polygon (formerly Matic Network) has been around since 2017 and was the first well-structured platform to build scalable applications on Ethereum. Developers can quickly "click together" their own Ethereum-compatible blockchain or app with Polygon. Since the beginning of 2021, the network has been growing fast. Both in terms of number of users and price of the Matic token.
Nov 25, 2022
When exchange FTX crashed in the second week of November, Solana had a million dollars in cash on there. Hardly a sum to lose sleep over: according to Solana, it's less than one percent of their reserves. But still, the entanglement of FTX and Solana makes one wonder: does this spell insurmountable trouble? Or will Solana pull through, which would imply it is a great time for investors to stack some SOL?
Nov 25, 2022
Chainlink is a vital part of DeFi infrastructure. Its technology allows to track data that is not on the blockchain and provide it to dApps and protocols. This includes price feeds for decentralized exchanges but is not limited to this use-case.
Nov 23, 2022
Litecoin is one of the oldest cryptocurrencies out there and started as a fork of Bitcoin’s code in 2011 that integrated several notable changes. It has no smart contract capabilities like Ethereum or any other fancy tech that is part of new projects like Fantom, Avalanche or Solana. Despite that lack of hipness, Litecoin is pumping.
Nov 22, 2022
Last weekend in Edinburgh, Cardano's parent company announced its new sidechain Midnight. It will be a smart contract blockchain that allows users to exchange data without revealing more than they want to. Cardano expects businesses to be interested in Midnight. One of the reasons business shy away from public blockchains, is precisely their lack of privacy.