zkLink (ZKL): The First Aggregated Layer 3 zkEVM Rollup
The decentralized finance (DeFi) space is plagued by fragmented liquidity and complex cross-chain interoperability. These issues hinder the smooth development and deployment of decentralized applications (DApps) across multiple blockchains.
Enter zkLink, the first aggregated Layer 3 zkEVM rollup, which aims to unify liquidity and simplify blockchain interactions. This article looks into zkLink's innovative use of zero-knowledge proofs to tackle these problems, explores its unique architecture and outlines its road map and tokenomics.
Key Takeaways:
zkLink leverages zero-knowledge proofs (ZKPs) to address issues of fragmented liquidity and cross-chain interoperability in the DeFi space.
Its platform utilizes multi-layered architecture — the Sequencing Layer, Execution Layer, Settlement Layer and DA Layer — each serving a distinct function to ensure system efficiency and security.
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What Is zkLink?
zkLink is a multi-chain Layer 3 rollup infrastructure that uses zero-knowledge technology to unify fragmented liquidity and simplify the development and use of DApps across multiple blockchains.
History of zkLink
zkLink was founded in 2021 by Vincent Yang, an engineer passionate about crypto tech. His web3 journey began with Bitcoin mining in 2019 and gained steam during the "DeFi Summer" of 2020. He witnessed the rapid adoption of blockchain and crypto technologies, particularly on platforms like Uniswap.
However, Yang observed the lack of mature and reliable cross-chain interoperability, a problem that slows DeFi growth due to fragmenting liquidity across different blockchain ecosystems.
Determined to address this challenge, Yang assembled a team of developers and tech experts to work on zero-knowledge bridging technology and distributed computational systems. Their mission with zkLink was clear: Simplify inter-chain communication and make it easier for developers to deploy DeFi apps across multiple blockchains without compromising security.
To realize this vision, zkLink leveraged zero-knowledge proofs, which became the backbone for building the infrastructure powering ZK applications. This approach enabled zkLink to create a seamless environment in which developers could tap into liquidity across various blockchain networks, ultimately advancing the growth and accessibility of DeFi for users worldwide.
What Does zkLink Aim to Achieve?
zkLink seeks to create a seamless, secure and user-friendly environment for trading and deploying DApps across multiple blockchain networks, leveraging the power of zero-knowledge proofs to ensure privacy and scalability with the following features.
Interoperability: zkLink addresses the issue of inadequate infrastructure in order to facilitate crypto token flows across different blockchains and various ZK-rollupLayer 2s.
Liquidity fragmentation: Its infrastructure aims to overcome the issue of liquidity silos that are isolated on distinct chains, unifying fragmented liquidity across ecosystems so users can access and trade assets seamlessly across various L1 and L2 networks without cross-chain bridges.
Scalability: By aggregating liquidity, zkLink reduces the high costs associated with trading across multiple networks, thus enhancing capital efficiency and making trading more affordable and efficient.
Technology stack fragmentation: zkLink seeks to unify the technology stacks of different L1s and L2s, simplifying the development and deployment of DApps across multiple networks. With a unified point for deploying applications, zkLink developers can easily build and manage DApps, regardless of the underlying network.
Complexity and user experience: zkLink aims to provide a simple and cost-effective experience for users by reducing the navigational complexity between blockchains, allowing them to access and manage their assets across multiple networks through a single platform.
Security: zkLink aims to mitigate the risks associated with cross-chain bridging exploits and interchain transaction vulnerabilities by deploying zero-knowledge proof technology, providing secure and efficient rollup solutions for DApps. This approach ensures the integrity and confidentiality of transactions.
How Does zkLink Work?
zkLink operates through a multilayered architecture. Each layer serves a distinct function to ensure the system’s efficiency and security, as follows.
Sequencing Layer
The Sequencing Layer receives user transactions, sequences them and bundles them into batches. These batches are then committed to the Settlement Layer. In cases where an external DA layer is used, the sequencer also transmits transaction data to the DA Layer. Initially, zkLink may start with a centralized sequencer model, but it has plans to transition to decentralized sequencer solutions in order to mitigate risks such as single points of failure and transaction censorship.
Execution Layer
The Execution Layer executes transactions that correctly update the state. zkLink uses ZK Stack’s zkEVM to run smart contracts and prove the correctness of execution using zero-knowledge proofs. This layer ensures only valid transactions are executed, resulting in valid state machine transitions.
Settlement Layer
The Settlement Layer maintains the security and integrity of off-chain transactions. Classic ZK-rollups typically choose a single chain, such as Ethereum, as the settlement layer to verify proofs and settle transactions. zkLink introduces two Settlement Layer deployment solutions paradigms, zkLink Nexus and zkLink Origin, which securely aggregate liquidity and native assets across L1s and L2s.
DA Layer
The Data Availability (DA) Layer makes transaction data available and ensures the capability to reconstruct the rollup states when service halts unexpectedly. zkLink Nexus and zkLink Origin support the primary chain as the DA Layer by default. Additionally, they support Validium, which involves an external DA solution, as zkLink plans to integrate various third-party modular DA solutions to meet diverse developer demands.
Features of zkLink
zkLink Nova
zkLink Nova is the first aggregated Layer 3 zkEVM network designed to unify Ethereum and its Layer 2 rollups. It boasts exceptional composability, interoperability and scalability, all while providing top-tier security through zero-knowledge proofs.
The network offers aggregated liquidity, merging all liquidity within the Ethereum ecosystem for a smooth user experience. It also redefines scalability with hyper-scalability and minimal fees, which endears it to both developers and users.
zkLink Nova uses zkLink Nexus and the advanced ZK Stack from Matter Labs to guarantee formidable security. Also, it acts as a yield multiplier, maximizing returns by allowing investments in one place to reap benefits across multiple layers. It supports a diverse ecosystem of DApps, and enhances user earnings through engagement with DEX hubs and DeFi plays.
zkLink X
zkLink X is an application-specific scaling engine built for high-performance ZK applications. It offers app-specific rollups that enable developers to deploy rollups with highly customizable architecture, which optimizes both cost and performance efficiency. The platform connects to multiple L1 and L2 networks, providing aggregated liquidity and practically unlimited scalability. Zero security compromises are made, as zkLink X leverages zk-SNARK proofs for secure multichain state synchronization. It supports high throughput of over 1,000 transactions per second (TPS) for high performance and efficiency.
zkLink Road Map
zkLink has made significant strides in its development and growth:
2021: The inception of zkLink, focusing on developing zero-knowledge blockchain solutions for the Ethereum ecosystem.
Q1 2023: Upgrade from Alpha 2.0 to Alpha 4.0, allowing nearly unlimited transactions on the platform.
Q1 2023: Launch of ZKEX Testnet 2.0, paving the way for future DApp development.
May 2023: Secures an additional $10 million, bringing total funding to $18.5 million.
May 2023: Completes the second ABDK Consulting Smart Contract & Security Audit.
May 2023: Initiates the Dunkirk Withdrawal Simulation/Asset Recovery Test
June 2023: Key network integration with LayerZero.
December 2023: Launch of the first cross-rollup Layer 3 solution, zkLink Nexus.
2023 Year-End: Achieves over 2 million Alpha Mainnet transactions, integrated with over 16 networks, and forges over 90 strategic partnerships.
Q1 2024: Focus on core SDK features for developers like TS-zkVM circuit extensions and Modular DA. Launch of ZK Oracle pipeline for efficient and secure oracle solutions. Introduction of ZK social login and account abstraction to attract developers.
Q2 2024: Expansion of protocol growth and revenue opportunities. Support for AMM and CLOB in hybrid mode. Emphasis on proof auction markets, NFTs and new trading APIs.
Q3 2024: Development of cross-rollup interoperability functionalities and a new recursive proof verification system. Release of multichain shared Liquidity-as-a-Service.
Q4 2024: Improvement of zkLink’s infrastructure with hardware acceleration solutions and decentralized sequencer services. Anticipation of growth in protocol and zkLink DApp rollups.
ZKL Tokenomics
ZKL is the native utility and governance token of the zkLink protocol. Designed to empower decentralized trading products, such as order book DEXs, AMMs and NFT marketplaces, ZKL serves several key functions within the zkLink ecosystem. It grants developers access to zkLink's rollup infrastructure service, including ZK-proof markets. As the governance token of the zkLink DAO, ZKL allows holders to participate in the protocol's development. It’s also used to pay for zero-knowledge proof computational resources, and to pay fees related to specific app functions.
ZKL’s total supply is capped at 1 billion tokens, making it a deflationary token. As a standard ERC-20 token issued on the Ethereum Mainnet, ZKL will also be available on Ethereum’s connected chains.
The distribution of ZKL tokens is designed to align with the long-term success and decentralization of the zkLink protocol:
Community Treasury: 29.875%
Liquidity Reserve: 4%
Ecosystem Development: 22.5%
Team & Advisors: 20%
Early Private Purchasers: 20.50%
CoinList Sale: 3.125%
Where to Buy ZKL
Looking to trade zkLink tokens? Bybit users can trade the ZKL token ahead of the crowd on the exchange’s Pre-Market Trading platform. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the ZKL Pre-Market Trading page.
Is ZKL A Good Investment?
zkLink is developing innovative zero-knowledge blockchain solutions for the Ethereum ecosystem, including Nexus, its flagship Layer 3 aggregator platform. This move suggests zkLink has strong technical capabilities, and is working on important problems in the space.
However, while ZKL shows promise — given zkLink's technology, team and early traction — it’s still a speculative investment, as the project is in its early stages. Investors should do their own research, understand the risks and only invest what they can afford to lose.
Closing Thoughts
zkLink represents a pivotal moment for DeFi, addressing key issues of fragmented liquidity and cross-chain interoperability through innovative zero-knowledge technology. Its robust architecture, ambitious road map and comprehensive tokenomics position zkLink as a game-changer that’s ready to revolutionize the way DApps are developed and used across multiple blockchains.
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