How ZK Rollups are changing Ethereum scalability and Bitcoin's position in the ecosystem

Scalability Issue: Why Layer 2 Solutions Have Become a Necessity

Ethereum demonstrates impressive growth, but its success has exposed a critical vulnerability: the network is overwhelmed by user demand. Fees skyrocket, transactions crawl like a turtle, and dissatisfied users seek alternatives. While Ethereum 2.0 promises to address these issues, its rollout is progressing gradually.

In this context, Layer 2 solutions are not just a convenience but a necessity. Among them, ZK Rollups stand out as the most promising technology, promising to unlock Ethereum’s true potential through unprecedented efficiency and cryptographic security. Moreover, interest is growing in similar solutions for other blockchains, including Bitcoin Rollups, which adapt this paradigm for the value network.

How ZK Rollups Work: Cryptography Instead of Trust

ZK Rollups are a Layer 2 scaling solution that operates on a simple principle: they move transactions off the main chain, process them in batches off-chain, and then send a single compact cryptographic proof back to Ethereum.

How it works in detail:

Imagine a bustling city with overwhelmed capacity. ZK Rollups act as smart relays, rerouting transaction flow through side channels. The core technology is Zero-Knowledge Proofs (ZKPs), which allow confirming the integrity of a batch of operations without revealing internal data.

These proofs have three key properties:

• Completeness — if the information is correct, the system will confirm it
• Soundness — false information cannot be validated
• Zero-Knowledge — no private details are disclosed

The workflow consists of four stages:

1. Smart contracts on the main chain set the rules of the game
2. Transactions are processed in a separate off-chain virtual machine
3. The system generates a cryptographic proof of the correctness of the entire batch
4. Validators on the main network verify the proof without inspecting individual operations

Result: throughput increases exponentially, fees drop significantly, and security remains intact.

Advantages of ZK Rollups over Optimistic Rollups and Other Solutions

The Layer 2 market is highly competitive, but ZK Rollups stand out on several parameters:

Security and Finality: Optimistic Rollups assume transactions are valid by default and only verify them if challenged. ZK Rollups verify each operation cryptographically. This means instant finality on the main chain instead of the multi-day challenge period in optimistic models.

No Economic Risks: Optimistic solutions require trust in validators. ZK Rollups rely on mathematics, not participant honesty. No trusted intermediaries, only encrypted verification.

Data Privacy: Details of individual transactions remain hidden within the proof, providing greater confidentiality compared to alternatives.

However, ZK Rollups are more complex to implement and require more computational resources for proof generation — a real trade-off.

Top ZK Rollup Projects Shaping the Market

The landscape of ZK solutions is rapidly evolving, introducing innovative approaches to scalability.

( Manta Network )Manta Pacific### — Privacy Meets DeFi

Current metrics:

• MANTA Market Cap: $33.76M
• Launch: September 2023
• Position: Fourth largest TVL among Ethereum Layer 2 solutions

Manta Pacific focuses on making DeFi truly private. Using zk-SNARKs, it allows users to trade and exchange assets completely incognito. Transaction details are encrypted but mathematically verifiable.

Key feature: It is the only Layer 2 that adds privacy to all DeFi applications, regardless of their original design. Shortly after launch, the project surpassed Base and secured the fourth position.

( Linea — Speed and Simplicity for Developers

Current metrics:

• LINEA Market Cap: $105.57M
• Launch: August 2023
• Focus: Developer integration

Linea chose a strategy opposite to complexity. Using zk-SNARKs, it processes transactions off-chain and sends a proof bundle to Ethereum. The API remains extremely simple for programmers.

Main advantage: Developers can deploy Ethereum applications on Linea with virtually no code changes. Development speed is not sacrificed for functionality.

) Polygon zkEVM — Compatibility as a Strategy

Current metrics:

• TVL: ###millions
• Launch: March 2023
• Token: MATIC

Polygon zkEVM is integrated into the broader Polygon ecosystem, providing network effects. Its main feature is compatibility with EVM tools and Ethereum smart contracts. Transactions are executed off-chain in a compatible environment, then verified with ZK proofs.

Benefit: Developers familiar with Ethereum can work in zkEVM seamlessly.

Starknet — Scalability Without Compromises

Current metrics:

• Starknet Market Cap: $389.83M
• Launch: February 2022
• Technology: STARKs $115 instead of zk-SNARKs###

Starknet uses STARKs — a newer generation of ZK proofs. Their main advantage: no trusted setup required, and they are quantum-resistant. The platform supports universal computations, offering full flexibility in smart contract development.

Difference: Unlike zk-SNARKs, STARKs do not require a pre-setup “ceremony” and are inherently protected against future quantum threats.

( zkSync Era — Rapid Growth with a Focus on Standardization

Current metrics:

• TVL: )millions ###leader by size$555
• Launch: March 2023
• Developer: Matter Labs

zkSync Era focuses on two goals: low fees and high throughput. Using zkRollup architecture, it bundles transactions into a single proof and submits it to the main chain.

Strength: EVM compatibility means existing applications can migrate with minimal code changes.

( Scroll — Competitor for Throughput

Current metrics:

• TVL: $63.46 million
• Launch: October 2023
• Token status: no token yet

Scroll aims for maximum throughput with minimal latency. It uses zk-SNARKs to compress transaction data. Its focus on EVM compatibility allows Ethereum contracts to be ported without modifications.

Focus: High throughput at low costs — ideal for high-volume DeFi.

) Aztec Protocol — Programmable Privacy

Launch: 2017 Token status: no native token

Aztec offers a hybrid approach: smart contract logic can be executed publicly or privately. Privacy is optional, opening doors for anonymous trading and private voting.

Innovation: Developed the Noir programming language specifically for creating ZK circuits. This simplifies life for developers wanting to incorporate ZK proofs into their projects.

ZKFair — Fairness in Decentralization

Launch: December 2023 Token: ZKF ZKF Market Cap: ###millions

ZKFair is a DEX built on ZK Rollups with one mission: to prevent front-running and transaction order manipulation. Using zero-knowledge proofs, it guarantees fair execution of each trade.

Difference: While other platforms fight MEV ###maximizing extractable value$163 , ZKFair addresses the issue architecturally.

( DeGate V1 — Low Fees for Large Operations

Launch: September 2022 Token: DG DG Market Cap: $21.14 million

DeGate V1 is a ZK Rollup-based DEX optimized for minimal slippage. It uses zero-knowledge proofs to batch process transactions off-chain.

Specialization: Large traders find the most favorable conditions here thanks to its optimized architecture.

) ZetaChain — Cross-Chain Communication via ZK

Launch: February 2021 Token: ZETA ZETA Market Cap: $79.29M

ZetaChain builds “universal bridges” between blockchains using ZK Rollups. It employs zk-SNARKs to confirm operations within one network without revealing confidential details in another.

Key difference: It is the first platform allowing dApps to use assets and data from multiple blockchains simultaneously. It also features a unique “ZetaML” technology for executing contracts off-chain, anticipating trends like Bitcoin Rollups.

Taiko — Decentralized Approach in the Layer 2 Era

Launch: January 2024 ###testnet### Funding: (millions

Taiko uses ZK-EVM and ZK rollups to build a fully Ethereum-compatible Layer 2 protocol. Existing dApps operate without modifications, ensuring smooth migration.

Revolutionary feature: The “based” sequence method. In traditional rollup solutions, a single centralized sequencer acts as a dispatcher, packing transactions. This creates a single point of failure and censorship risk.

In Taiko, the sequence is managed directly by the Layer 1 blockchain, eliminating centralization. This simplifies architecture, reduces trust assumptions, and makes onboarding easier for developers. Such an approach foreshadows the future of decentralized scaling solutions.

Challenges Yet to Be Overcome

Despite promises, ZK Rollups face serious obstacles:

• Technical complexity: ZK cryptography requires deep expertise. Implementation demands expertise, and debugging can be arduous.
• Limited flexibility: Not all transaction types scale equally well via ZK. Some operations require adaptation.
• Data management: Accessibility of transaction-related data is critical. Reliable storage and reproduction systems are needed.
• Resource intensity: Generating ZK proofs requires significant computational resources, increasing operational costs.
• Ecosystem maturity: The ecosystem is still young. Investments in infrastructure, developer tools, and user education are necessary.
• Decentralized governance: Protocol upgrades require complex coordination without a single decision-making body.
• Economic viability: While fees decrease, operational costs are rising. A balance between revenue and expenses must be found.

The Future: From Ethereum to a Multi-Chain Ecosystem

Current developments point to a clear trajectory: ZK Rollups are becoming the standard. Researchers are working on reducing complexity, easing integration, and solving liquidity fragmentation issues.

Interest in Bitcoin Rollups is also growing as a way to add functionality to the most secure blockchain without compromising its philosophy. This could mean ZK Rollups extend beyond Ethereum, becoming a universal scaling solution.

With ongoing innovation and collaboration, ZK Rollups have the potential to transform not only Ethereum but the entire blockchain landscape.

Summary

ZK Rollups are not just a technological improvement but a rethinking of how scaling can work. By efficiently processing transactions off-chain while maintaining mathematical correctness and data integrity, they open the door to a new generation of applications: fast, cheap, secure, and truly global.

Their ability to overcome current limitations is not the end but the beginning. Mass adoption of blockchain becomes possible. Users will gain tools that were promised ten years ago. And the landscape will not be limited to Ethereum alone — from Bitcoin Rollups to multi-chain protocols, ZK cryptography is becoming the language of the future of decentralization.