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What are ZK-Rollups and why they're the best investment you can make in 2022.

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by COINS NEWS 278 Views

First of all, what are ZK-Rollups?

Well, simply put, zero-knowledge rollups or zk-rollups is a Layer 2 scalability solution that allows blockchains to validate transactions faster while also ensuring that gas fees remain minimal. Zk-rollups manage to perform better than traditional Layer 1 blockchains like Ethereum because they combine on and off-chain processes.

Layer 2 solutions and zk-rollups are the beginning of the next era of blockchain technology and advanced cryptocurrency systems.

ZK-Rollups work essentially without presenting new security, trust, or assumptions, that would otherwise affect the decentralization of the L1 they are running on. This is pure scaling without any trade-off. It is favoured as a way to scale a blockchain by a factor of 50–100x, at minimum, its literally like saying that Blockchains are going 5G.

Why is this important?

For one they lower the gas fees instantly (looking at you ETH). Also they boost the speeds by huge amounts.

But the main focus is scalability. We've been experiencing the lack of scalability in the Top 10 Smart Contract Platforms for a reason, its because they can't handle the amount of transactions being made.

That's where ZK-Rollups come rollin, in ZK-Rollups the more users use it, the more scalable it becomes, without sacrificing decentralization.

If you want a more in-depth information on ZK-Rollups and blockchains read this article.

Where to invest?

So you want to invest in ZK-Rollups, there's some projects that are researching and implementing ZK-Rollups, I'll list them here and please do research on them before investing.

Syscoin (SYS)

Loopring (LRC)

Immutable X (IMX)

Dusk Network (DUSK)

Polygon (MATIC)

Those are my top picks for ZK-Rollup projects, but there are some more that still don't have enough credit to list them here.

If you have any projects you think should be here feel free to drop in and talk about them.

submitted by /u/niddLerzK
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