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Summary:

• According to Lookonchain monitoring, the three giant whale addresses have increased their holdings by about 1.95 million LDOs in the past week. The Lido Finance V2 version upgrade voted to allow users to withdraw the pledged ETH. There are giants on the chain who continue to deploy the LSD track, and they are optimistic about the future growth of the track. sex. This article sorts out the latest developments in the zkSync Era ecosystem for everyone, and draws the following conclusions:

• The emergence of zkSync Era has reduced transaction costs by 50 times compared to before, and the zkSync ecosystem is growing exponentially;

• Many ecosystems have deployed and migrated to the zkSync network, involving DeFi, cross-chain bridges, NFT and other fields;

• The zk-EVM competition is fierce, and the zero-knowledge technology used by zkSync Era has yet to be improved and confirmed.

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1. About zkSync Era

With the launch of Arbitrum and SuiNetwork mainnets one after another, the most popular dark horse mainnet on the entire network is the zkSync Era network. On March 24 this year, zkSync officially announced that the zkSync Era network is officially open to all users. zkSync Era, one of the most supported projects in the crypto space, has raised over $450 million from a16z, Dragonfly, Lightspeed, and more. The congestion and high transaction fees of the Ethereum network make people more favorable to Layer 2 expansion solutions.

zkSync’s $450 million in financing will have a major impact on its own development and opportunities for mass adoption. Many institutions are also developing zk-EVM this year, including Binance, polygon, zksync, starknet, scroll, aztec, and Fox The parent company consensys is laying out.

BitKeep COO Moka also said: "BitKeep wallet is the first to access zkSync Era. You can manage your assets on zkSync Era through BitKeep APP and plug-in web wallet. With the upgrade of zkSync 2.0 "combinability" function, we will be in Swap, NFT and other aspects support the zkSync ecosystem in all aspects, lowering the threshold for everyone to experience the zkSync ecosystem, and jointly develop the Rollup ecosystem with zkSync.”Recently, BitKeep will jointly hold a Twitter Space with the theme of Diving into zkSync: An Ecosystem of Opportunities with zkSync, and invited Bayo Akins, Infrastructure BD Lead zkSync, Jimmy Yin, Co-Founder @iZUMi Finance, Mikayla, Operation Manager @Orbiter, Ervin, Co-Founder of Star Protocol and zkSync Name Service and Gua, BD of SyncSwap attended this event. welcome everybodyGo to the event site.

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zkSync Era is a blockchain ecosystem based on zkSync technology, which aims to realize high-performance, low-cost smart contracts and blockchain applications. zkSync Era is completely open source, the code is free to view, modify and fork, zkSync 2.0 is now zkSync Era, and zkSync 1.0 is now zkSync Lite. The transaction cost is 50 times lower than before, and it even crushes Ethereum at a speed of 2000 TPS. The high efficiency and low price of zkSync Era have attracted great attention from capital and continued to develop rapidly.

Figure 1 ：Data from Dune @makaineko

In the weeks since the release of the zkSync Era and Polygon zkEVM, the zkSync ecosystem has seen rapid growth. By the end of Q1, the total locked value of the zkSync ecosystem was close to $200 million. BitKeep has launched the zkSync Era main network to support Swap one-click exchange. You can use BitKeep to experience the zkSync Era ecology. At the same time, BitKeep will soon launch the gas fee transaction function.

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1.2 Principle and advantages of zkSync Era

zkSync's architecture combines two protocols: zk-Rollups and validium. They are defined as zk-EVM (smart contracts) and zkPorter (off-chain data availability). Below is an explanatory diagram showing how the latter works.

Figure 2 ：From twitter @milesdeutscher

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• Highlights of zkSync Era:

With mainnet-level security, completely independent of third parties

• zkSync Era will adopt a multi-layer security mechanism and be equipped with an independent monitoring and risk mitigation mechanism to ensure the security at the mainnet level. Unlike other custody layer solutions, zkSync Era is not only decentralized, but also completely independent of third parties, which means that users can control their own digital assets without worrying about assets being attacked by centralized third-party service agencies. zkSync Era is also on-chain verified and immutable, providing a high level of security.

Powerful LLVM compiler

• LLVM is one of the most mature compiler technologies in the world. Using the LLVM compiler can bring significant performance gains and developer experience improvements. On Era, developers can take advantage of the LLVM compiler to achieve efficient compilation and execution of smart contracts.

zkSync Era supports EVM-compatible smart contracts without permission, which means that anyone can issue and interact with smart contracts without the permission of a third-party centralized authority. Developers can redeploy the Ethereum L1 project on zkSync 2.0, as long as the code does not involve problems and deploy a new smart contract, it can save the trouble of changing the underlying basic code.

Figure 3: Matter Labs

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According to Anthony Rose, account abstraction provides a less fictional way for more people to interact with applications on the blockchain. One of zkSync’s main goals going into 2023 is to make it easy and natural for users to interact on-chain, he said. Just like web2 users don't need to know HTML or HTTPS to surf the web, Anthony believes that zkSync will be able to use account abstraction to provide users with the same silky interactivity. zkSync envisions being able to turn user accounts into smart contracts themselves, potentially allowing for a greater degree of flexibility while also improving the overall user experience

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1.3 The difference between zkSync, zkSync Era and ZK EVM

zkSync is a zk Rollup solution that is highly compatible with the EVM of the Ethereum Virtual Machine. The biggest advantage of zkSync is that it allows developers to use Solidity, the development language of Ethereum smart contracts, to deploy their projects in a low-cost and highly scalable Layer environment. application, while improving its TPS without affecting security and decentralization, it can process tens of thousands of transactions per second and reduce gas costs by about 99%.

The full name of zk-EVM is Zero Knowledge Ethereum Virtual Machine, and Chinese is the zero-knowledge Ethereum Virtual Machine we often hear this year. Simply understand it is to use a technology called "zero-knowledge proof" to execute this smart contract, which can provide higher privacy, security and faster speed. It is a major technological innovation in the industry this year and once became a hot topic in the market. topic. In addition, zkSync is the first project launched on zk-EVM.

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Matter Labs officially stated that more than 150 projects have deployed on zkSync or expressed their willingness to deploy it. These projects have a combined value of more than $65 million, but there are still many applications that have not yet made it to mainnet.

Figure 4 : From zkSync.io

image descriptionBitKeep has already supported the zkSync main network and its ecological applications. This article lists only some DApps on the zkSync 2.0 network. More DApp experiences can be found in the, use the BitKeep wallet to activate the zkSync account and experience the latest zero-knowledge proof technology.

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How popular is the ecology of zkSync Era? The number of independent users reached 260,000 within 12 days of the mainnet launch, and the current number of independent addresses is 530,000+. This data is quite amazing in the world of web2, and the amount of locked positions has soared to 100 million US dollars, ranking second only to dydyx.

Figure 5: Data from Dune @makaineko

The gas fee to Ethereum through the official cross-chain bridge has risen to 5 US dollars, and the gas fee for a single swap in the spot regionalized exchange on the main network is also as high as 1.3 US dollars. You must know that it is a Layer 2 network, compared with Optimism And the gas fee of 0.3 US dollars on the Arbitrum network shows the market's optimism and love for zkSync Era. Of course, the high gas fee is inevitably fueled by the wool party.

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Since its launch in March 2023, the zkSync Era ecosystem has developed rapidly. We have summarized some high-quality projects for you, covering various fields such as DeFi, cross-chain bridges, and NFT. Let us take a look at how far these projects have developed and discover which applications have leading potential.

Figure 6: From defillama

ORBITER FINANCE

Orbiter Finance is a decentralized Rollup cross-chain bridge that helps Ethereum native assets transfer between L1 and L2 instantly. The cross-chain bridge allows different blockchains to interact without restricting users to only be active on the same block. For example, Orbiter Finance can bridge funds from the Ethereum L1 blockchain into a zkSync L2 environment, before bridging these valuable assets back to L1, which can be done at a much lower cost. The emergence of cross-chain bridges helps users participate in more applications, services, and option interactions, avoiding inaccessibility.

Syncswap

Figure 7: Data from defillama

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Syncswap is a decentralized exchange for spot trading. It currently ranks first on the Internet with a lock-up volume of 37.7 million US dollars. The point is that it has not yet issued coins.

SpaceFi

Its main features include: support for multiple AMM algorithms, highly customizable handling fees, and Gas Refund and other functions. The project is still in a very early stage, but it is already the leading project of the zkSync Era network. It has a leading effect and can maintain focus.

SpaceFi is a cross-chain web3 platform based on EVM and zksync, which solves issues such as asset cross-chain and interoperability. In addition, SpaceFi also cooperates with Celestia to bring modularization and other solutions to the EVM ecosystem. Product functions include Defi, NFT, space base, etc., and the current lock-up volume is 7.8 million US dollars.

Nexonfi

As a Web3 cross-chain application platform, SpaceFi also supported zkSync Era for the first time, and launched DEX, Farm, PlantNFT and other products on March 28.

It is also clearly stated in the white paper that token holders will receive dividends from their agreement, and it is also clearly stated in the token economic model that 61% is used as a community incentive. At present, there is no currency issued, and the lending project is often a star project on the Internet. As the first lending agreement on the ZK era network, everyone can continue to follow up.

iZUMi Pro

Figure 8: Data from defillama

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Tevaera

iZUMi Finance recently completed a round of financing of US$22 million, and plans to use this round of financing to support the early liquidity of iZiSwap Pro on the zkSync Era network. iZiSwap Pro is an order book DEX product on the iZUMi Finance chain. It adopts iZUMi's innovative discrete liquidity AMM (DL-AMM) model, which is completely based on the chain and achieves 100% decentralization.

zkSync Name Service

As a chain game platform, similar to TreasureDAO of the arbitrum chain, its first game, TevaRun, is currently in the testing phase of the Goerli testnet. The key point of this project is that the project will develop its own dedicated game blockchain network TevaChain, which is built on the basis of zk. Simply put, Layer 2 is to expand the capacity of Ethereum, and TevaChain is to expand the capacity of zkSync. As a game platform, it is definitely more competitive than a single game. In addition, its specially developed Layer 3 game chain is also worth looking forward to.

zkSync Era is a permissionless network, and any project can be deployed, so everyone must invest rationally, pay attention to the security of their wallets and do not arbitrarily authorize signatures to prevent wallets from being stolen. The BitKeep wallet now supports one-click addition of the zkSync mainnet and the above-mentioned DAPP applications. You can use BitKeep to participate in the zkSync ecological experience.

3. Competitive product analysis

ZK Rollups

ZK Rollups uses zero-knowledge proof verification to perform Rollups, and can provide up to 2000 TPS under peak load! Even more notable is that ZK Rollups is the only L2 scaling solution that can scale with a system that can provide an entire order of magnitude of scaling: zkPorter can deliver up to 20,000 TPS.

Figure 9:From zkEVM website

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The architecture of zkSync 2.0 includes zk-rollup and validium. The combination of the two is also called "volition" because it gives users the freedom to choose between zk-rollup and validium.

Optimistic rollups

Compared with Optimistic Rollups, ZK Rollups has a higher level of security because it does not need to introduce other trust assumptions, and relies on Ethereum and zero-knowledge proof algorithms to ensure security. This security is by using mathematical methods to verify the correctness of transactions while avoiding malicious behaviors and ensuring the safety and reliability of the entire system. It should be noted that although ZK Rollups have advantages in terms of security, there may be some challenges in terms of implementation complexity and performance.

Optimistic rollups are a technique for scaling the Ethereum network that relies on publishing public information to validate transactions on-chain. This method of verification opens a "challenge window" when suspicious information is found, and other validators and users can challenge transactions showing suspicious information to reveal possible malicious behavior. The challenge window takes some time to provide this verification, usually 7 days. Therefore, if you want to bridge the tokens in the L2 environment back to the L1 chain on the Optimistic rollups network, you may need to wait for a challenge period of up to 7 days.

Arbitrum

The essential difference between Op Rollups and ZK Rollups is that everyone in ZK can participate in the certification through PoW certification, while OP prefers to choose a group of trustworthy authenticators to supervise the entire packaging transaction process.

Polygon zkEVM

Arbitrum is a Layer 2 protocol project that utilizes the Optimistic Rollup model. It currently has the highest TVL in Layer 2. Benefiting from the first-mover advantage, Arbitrum is the most advanced in terms of applications, transaction volume, and market share. Arbitrum conducts multiple rounds of fraud proofs when verifying. At the same time, Aribitrum transactions are not executed on Layer 1, and it has its own virtual machine, which is more compatible with the ETH network.

zk-Rollups transactions such as zkSync rely on cryptography and mathematical proofs to verify the authenticity of transactions, which means that the transaction speed of zk-Rollups is much higher than that of other Rollups, and transactions can be processed as quickly as mathematical proofs. Even Vitalik Buterin recognizes the long-term advantages of zk-Rollups.

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4. Opportunities and developmentzkSync Era is one of many projects currently developing zk-EVM, others include StarkNet, Polygon Hermez, and Scroll. All zk-EVMs are not the same,There is an obvious trade-off between composability (how close to the original EVM contract) and high performance (how fast zk-Rollups run).

In this trade-off, zk-Sync chooses high performance at the expense of composability.

At present, there are mainly four different types of zk-EVM, and these four types are shown in the figure below:

zkSync designed zkSync Era for high performance, specifically choosing to maintain source code compatibility (Solidity and Vyper), which brings additional security benefits. When redeploying to L2, the EVM project does not require any code changes, reducing the risk of vulnerabilities and attacks by maintaining the best practices that have been battle-tested on L1. This also means that L2 platforms can ensure less buggy, more secure deployments by using the same code base as in L1, while reducing the time and cost of redeploying to L2.

Faced with the triangular problem of the Ethereum network, it is difficult to achieve scalability, security, and decentralization at the same time. While many projects are trying to bring scalability to the chain, each solution and technology has its own unique tradeoffs and use cases. zkSync has demonstrated greater efficiency, seamless transactions, and lower costs for DApps.

It can also be seen from this article that many projects on the zkSync network are still in the early stages, with limited information disclosure, low project quality, and no super high APY income support, it is difficult to retain user funds. In addition to continuing to promote the development of the zkSync mainnet, it is also necessary to expand the zkSync application ecosystem, encourage more project parties and developers to join the zkSync ecosystem, and further promote the development and application of zkSync. From the perspective of the roadmap, in the future, we will continue to improve the prover technology acceleration hardware facilities, and the compiler will integrate modern programming languages ​​that support LLVM, as well as the innovation of zkSync 3.0.

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5. Summary:

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Reference：

1. Exploring zkSync: An introduction to rollups and layer 2 s

2. https://era.zksync.io/docs/dev/building-on-zksync

3. https://zksync.io/

4. https://blog.matter-labs.io/

5. https://vitalik.ca/general/2022/08/04/zkevm.html

6. https://twitter.com/milesdeutscher

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disclaimer

BitKeep does not have any relationship with any third party involved in this report that affects the objectivity, independence, and impartiality of the report. The materials and data cited in this report come from compliant channels, and BitKeep does not make any guarantees for their authenticity, accuracy or completeness.

The conclusions and opinions in the article do not constitute any investment advice on related digital assets. BitKeep is not responsible for any losses caused by the use of the content of this report. Digital asset contract trading is an innovative product with high risks and strong professionalism. Please judge your investment ability rationally and make investment decisions prudently. The information, opinions and speculations contained in this article only reflect the judgment of the researchers on the date of finalizing this report. In the future, based on industry changes and updates of data information, there is a possibility of updating opinions and judgments.BitKeepfocus on

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