From Layer 1, Layer 2 to Layer 3, the island effect of blockchain has become more and more significant, and multi-chain interconnection has attracted more attention. Two is born, three is born from two, and all things are born from three. We still don’t know whether there will be L4, L5, and Ln above L3. One of the most urgent issues at the moment is how to combine the scattered islands of liquidity. Focusing on this problem, zkLink proposed a solution to aggregate multi-chain liquidity.
This article will focus on the technical principles, current situation and development route of zkLink, and provide a comprehensive analysis of the multi-chain aggregation layer based on ZK-Rollup technology - zkLink.
With the development of blockchain technology, from the continuous emergence of first-layer (L1) public chains such as Ethereum and Solana, to The rise of second layer (L2) such as Arbitrum, Optimism, zkSync and Starknet.
While meeting the needs of different users, it also brings about problems such as liquidity fragmentation and high cross-chain costs. In addition, developers face programming languages and tools from different chains when deploying dApps, which also adds to the complexity.
Imagine that there is a country composed of islands, with inconvenient transportation and immature financial system. Each island (blockchain) has its own Independent currency and trading system.
You want to shop between different islands (such as Ethereum, Solana, Arbitrum), but you need to exchange currencies and pay handling fees every time you cross the island. , and you still have to worry about losing your money.
This is the interactive dilemma currently faced by blockchain users: liquidity is dispersed, transaction costs are high, and it is not safe.
How to make cross-chain transactions as convenient and secure as on the same chain? zkLink has the answer.
(Source: zkLink official website)
Unify L2 and L1 through zero-knowledge proof (ZKP) technology, zkLink realizes multi-chain State synchronization and native asset aggregation.
Tokens issued on different L1 chains and L2 aggregated by the same entity, such as USDT Ethereum, USDT BSC, etc., will be merged into a single USDT in zkLink Rollups Token.
In other words, this island country has a comprehensive trading center that brings together the currencies of different islands on one platform, eliminating the need to frequently change currencies. Pay high fees or worry about the safety of your assets. This is the multi-chain liquidity aggregation function implemented by zkLink, making it far beyond a "cross-chain bridge".
Based on this, zkLink has created two main products: zkLink Nova and zkLink X
zkLink Nova is the first aggregated L3 zkEVM Rollup network built on Ethereum and Ethereum L2. It uses the zero-knowledge Ethereum Virtual Machine (zkEVM) to aggregate assets on multiple Ethereum L2 networks. Solving Ethereum’s liquidity and asset dispersion issues.
zkLink applications, but they actually have access to multi-chain liquidity.
Going back to the analogy between blockchain and small islands, zkLink Nova is like a universal shopping card, allowing you to shop in shopping malls on various small islands. Free shopping (interaction) between them without the need to repeatedly exchange currencies.
ZkLink X is like a universal toolbox. No matter what type of shopping mall store (dapp) you want to build, you can customize it according to your own needs, just like building blocks. And these stores also support currencies from different islands.
In this way, zkLink not only integrates liquidity scattered on different chains, reduces transaction costs and security risks, but also simplifies the multi-chain deployment of dApps , improve user experience and ensure the security of dApp development.
Multiple chains and cross-chains are already commonplace topics, but we need to know that zkLink is not a cross-chain bridge, but an aggregated multi-chain liquidity chain.
So, how does zkLink achieve multi-chain aggregation?
zkLink protocol is a multi-chain ZK-Rollup infrastructure composed of four layers, including settlement layer (Settlement Layer), execution layer (Execution Layer), Sequencer Layer and Data Availability Layer, these layers are independent of each other and support customized application rollup deployment. Among them, the core value of the zkLink protocol is mainly in the settlement layer and execution layer.
(zkLink protocol architecture source: zkLink official website)
zkLink’s settlement layer, as the core part, is similar to an aggregated The settlement center can integrate multiple chains and use synchronization technology to ensure that each transaction can be verified on multiple chains to prevent fraudulent operations.
There are currently two settlement solutions: zkLink Nexus and zkLink Origin, each targeting different network integration needs.
zkLink Nexus: Connects Ethereum and its L2 network, inheriting the security of Ethereum.
zkLink Origin: Can connect to other L1 public chains (such as Solana) and Ethereum to provide wider integration.
Traditional cross-chain vs. multi-chain aggregation
Transactions between different blockchains will lead to increased costs and complicated experiences. Whether it is "traditional cross-chain" or "multi-chain aggregation", they are all solutions to this problem. Let's take an example and think about exchanging tokenA on chainA for tokenB on chainB through DEX. What is the most original way?
First, you need to install a wallet and purchase chainB's Gas tokens;
Next, Users need to trade tokenA for stablecoins or other intermediate tokens that can be bridged to chainB;
Finally, users need to purchase tokenB on the local DEX.
Compared with cross-chain transactions, they are obviously more complex and have higher wear and tear, so the emergence of cross-chain bridges has improved this experience to a certain extent.
However, the cost of cross-chain token transactions is still high, and it is still difficult for users to seamlessly and cheaply interact with tokens between different chains.
In addition, traditional cross-chain solutions usually have a high degree of centralization and are vulnerable to hacker attacks, which leads to the risk of user funds being stolen.
Different from traditional cross-chain solutions, zkLink provides a more secure multi-chain settlement solution, namely Nexus and Origin mentioned above. The solutions all utilize zero-knowledge proof technology (ZKPs).
zkLink creatively applies zero-knowledge proof to multi-chain interoperability and adopts a decentralized decentralized design without the need for a third party to ensure the security of assets and transactions. , while ensuring the security and consistency of transactions and state transitions, reducing the risk of asset custody, and greatly improving security and efficiency.
From Layer 2 to Aggregation Layer 3
In addition to multi-chain aggregation, another highlight of zkLink is that it builds the third layer zkLink Nova, which combines the liquidity islands of Ethereum L2.
Why build L3 to unify the liquidity of the L2 ecosystem?
We all know that the rise of L2 craze has added a "highway" to Ethereum, making transactions faster and cheaper, but at the same time it also Creating a non-interoperable and decentralized blockchain landscape where liquidity is trapped on siled chains.
Native assets (such as ARB, OP, MANTA, etc.) on different L2s of Ethereum cannot conduct interoperable transactions, and transfers are often time-consuming and expensive. Different Assets are dispersed across various L2 networks, which leads to a waste of liquidity.
More and more L2, side chains and decentralized applications have caused liquidity fragmentation, which is contrary to the goal of achieving Ethereum's ease of use.
This is the price of Ethereum's development of L2. It will spread liquidity to dozens of blockchains, and there is an urgent need to improve interaction through more advanced solutions. Operability and efficiency.
In contrast to most L3s that are designed to meet specific application needs and deployed on a single L2 (such as Starknet or Arbitrum), zkLink Nova is built on Ethereum A common L3 aggregation network on top of Ethereum and multiple L2 networks, Ethereum and its L2 together serve as the settlement layer.
So zkLink builds L3 zkLink Nova not only to make each layer cheaper than the previous layer, but also to have "one Nova can take over the world" Vision.
(Source: zkLink official website)
Simply put, ETH deposited from different L2 will be automatically merged on Nova for the same ETH.
The same ERC-20 tokens bridged from different networks, such as USDC.Ethereum, USDC.Arbitrum and other source tokens can be merged into the same USDC on Nova , the merged USDC will have unified liquidity on Nova to improve scalability and optimize user experience.
zkLink vs other aggregation solutions
Many L2s are actually aware of the problem of liquidity fragmentation and are trying to deal with it. For example, OP's Superchain, Polygon's AggLayer, and zkSync's Hyperbridge unify liquidity by providing a unified bridge or shared sequencer.
But they only apply to their independent sub-ecosystems and specific technology stacks. In this case, having multiple different technology stacks could exacerbate liquidity fragmentation and cross-chain interoperability issues and lead to an even more fragmented Ethereum ecosystem.
In contrast, any layer 2 asset connected by zkLink Nova can be bridged to the layer 3 network for fast and interoperable transactions . Although atomic interoperability of cross-aggregation transactions is sacrificed, it provides the broadest liquidity that can aggregate the entire Ethereum ecosystem.
(zkLink Nova protocol architecture source: zkLink official website)
Development status
Since the launch of the mainnet in March 2024, the zkLink Nova ecosystem has achieved tremendous development. As of early May, it has Covering more than 90 project partner projects (the chart was officially released at the end of March, the data has not been synchronized yet) involving DeFi, tools, social networking, games and NFT, etc.
On March 14th, zkLink Nova took advantage of the trend and launched the first quarter of the "Aggregation Parade" reward event. The event lasted for one month, including ETH, L2 native tokens, stable coins, Tokens such as LST and LRT have the opportunity to earn Nova points, encouraging users to deposit assets into the L3 Nova main network.
Simply put, users earn Nova points by cross-chain, staking and inviting new users, which can be redeemed for ZKL tokens in the future.
Currently, the second season of the "Aggregation Parade" reward event is underway. Nova points can be increased through interaction with the dApp that cooperates with zkLink Nova.
Event details:
https://blog.zk.link/aggregation-parade-phase-ii- defis-turn-to-blossom-on-zklink-nova-7b30e2ab1d82
(zkLink ecosystem source: zkLink official website)
It can be seen from the above activities that the team has made great efforts to promote user growth of the zkLink Nova ecosystem, and the data performance is also very impressive.
The currently running Alpha mainnet has used zkLink technology to conduct more than 2 million transactions and generate 500,000 unique addresses.
According to DefiLlama, as of May 22, zkLink Nova TVL exceeded US$1 billion, with an increase of 156% in the past month, becoming the Layer 3 network with the highest TVL .
(zkLink Nova total lock-up amount source: zkLink Nova official website)
Financing
In terms of financing, zkLink raised US$4.68 million through CoinList community sales in January this year. In May last year, zkLink completed a US$10 million strategy. Financing, Coinbase Ventures, SIG, BigBrain Holdings, etc. participated.
To date, zkLink has raised total financing of $23.18 million and will further develop the Nova protocol.
zkLink’s investors are more strategic partners, not only providing funds and manpower, but also investing more resources to deepen cooperation with zkLink.
(zkLink investor source: zkLink official website)
Future Outlook
At present, the zkLink Nova main network has been launched, and the team is upgrading the light node oracle network ZK Oracle to verify the cross-chain status as an improvement to the zkLink X protocol a part of.
In the future, zkLink will also undergo a series of important upgrades, including support for external data availability (DA) solutions, decentralized proof auction markets, etc.
ZkLink’s sorting service is now centrally managed, and the team plans to integrate decentralized solutions such as Espresso, Astria and Fairblock in the future to reduce centralization risks. In addition, the ZKL token is also about to be launched, and the team is preparing for TGE.
As can be seen, zkLink continues to improve on the road to bringing unprecedented liquidity aggregation to Ethereum and its L2.
If the previous realization of "seamless on-chain interaction" was a dream, then perhaps zkLink is turning the dream into a reality.
(zkLink roadmap source: zkLink official website)
Which layer will be the final winner in the battle between L1, L2 and L3, only time can tell Reveal the answer. At the same time, the market will also tell us that L1 and L2 will always have their existence, and this is not a zero-sum game.
The future is destined to be an era of multi-chain coexistence, and zkLink will also become a key hub, connecting various components and systems of the L1 and L2 ecosystems.
It is conceivable that zkLink is leading a new era of more interconnected multi-chains, bringing more new opportunities.
zkLink, a multi-chain and aggregated multi-rollup Layer 3 infrastructure, has announced its ZKL token distribution, set to begin on 22 July at 12pm UTC (8pm SGT). Will it be the solution to unlocking DeFi’s full potential?
CatherinezkLink aims to unify L2s and L1s, enhance user experience through zero-knowledge proof (ZKP), and promote secure dApp development.
JinseFinanceBitget Wallet's Task2Get Season 5 features zkLink's Nexus Alpha mainnet, offering NFT rewards and ZKL tokens. Explore Web3 opportunities with Bitget Wallet.
Huang BoDiscover the zkLink Explorer whitelist and join the exclusive community token sale. Seize the opportunity to participate in the sale of 31.25M ZKL tokens, a key milestone in zkLink's ecosystem expansion
MiyukiAs zkLink prepares for the $ZKL token launch, it marks a significant step towards achieving its mission of streamlining the zero-knowledge rollup ecosystem in 2024. The upcoming developments outlined in the 2024 Technical Roadmap promise exciting prospects for the community's involvement in shaping the future of DeFi.
Huang BozkLink develops zero-knowledge (ZK) blockchain solutions for the Ethereum ecosystem.
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