Zero knowledge rollups or ‘ZK rollups’ are providing innovators with another solution for doing Ethereum-based blockchain transactions. It’s a relatively new process based on layer 2 scalability and sidechains, in order to reduce transaction time and gas fees, as well as adding other efficiencies to the process. The ZK rollup is, by many accounts, a feature of its times: though DeFi promises frictionless transactions and permissionless verification, in general, the original blockchains can get “clogged” with a high volume of transactions, triggering the kind of side-traffic setups that layer 2 can facilitate.
About ZK Rollups
A ZK rollup includes two types of users called transactors and relayers. Also, the transaction data gets related to the network with certain return data, including ‘to’ and ‘from’ addresses, a value, and a network fee.
Something called a SNARK proof (the full name is Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) presents a hash of the blockchain state, with core users being familiar with the initial state itself. The idea with this is that a user or party can verify that something is true, or in this case, owned, without revealing its actual content. Through the use of certain “arithmetic circuits,” this verification can be accomplished with a far less burden of cost than a full verification. In the parlance of the card-playing world, the zk-SNARK would be like showing your pocket hand to other players, but with the cards face-down.
For practical purposes, this can be as immutable as the blockchain itself, although some caveats do apply.
Benefits of ZK Rollups
One of the benefits of zero knowledge rollups is reduced fees per transfer. Another is the parallel computing model that these processes used to conduct layer 2 sidechain verification on an Ethereum blockchain, which is essentially made for these kinds of utility. In general, having less data in each transaction promotes throughput and scalability.
Another way to think of the transaction and relaying system is as the return data in a code function within some traditional programming language. That data, ported to the right destination, is a snapshot with the hash for effective verification. The system is only getting the data that it needs, no additional data, which would pad the transaction.
Although some point out that ZK rollup trust processes are still in their infancy, and that older systems tend to promote centralized use, the zero knowledge rollup is very much an appealing structure in handling some kinds of decentralized finance assets.
Using ZK Rollups for NFTs
The emergence of the ZK rollup model dovetails with new markets for nonfunctional tokens or NFTs, where market operators are reporting record transaction volumes and sales.
OpenSea, the biggest market, crows when it hits volume benchmarks. Anecdotally, we’re also seeing this growth in the sale of prominent NFTs from artists and musicians and others, or community-created “meme NFTs” that are also selling for rather large amounts of money when compared to U.S. dollars or other national currencies.
Immutable X is a game-changing platform that is innovating the use of ZK rollups for the sale and purchase of NFTs. Having this kind of efficient and scalable verification process in play helps with the overall goal of eliminating gas fees for users. This is part of the core mission of Immutable X as a new type of exchange – to offer new investors and traders the ability to make transactions without gas fees which are traditionally based on the costs and markup of conducting the transaction itself. This fee-free model is growing popular with hodlers and assorted investors who are tired of paying portions of ETH for their transactions. But there’s a lot more to love about Immutable X, too, as the API-driven liquidity machine promises an enhanced environment for crypto and NFT-related dealings. Take a look at some of the functionality around NFTs for a new market that’s poised to take off in successive market quarters.
