ZK Rollups Explained: Unlocking the Future of Ethereum Layer 2 Scaling

What are ZK Rollups? Why Does Ethereum Need Them?

Ethereum is the financial hub of the blockchain world, but as user numbers grow, network congestion has become a major challenge. Gas fees soar, transaction confirmation times slow down—these issues discourage many users. While Ethereum 2.0 is underway, the most direct solution lies in Layer 2 (second-layer networks).

Among them, ZK Rollups have become the most promising scaling solution. Simply put, ZK Rollups work like building a “fast lane” for Ethereum:

• Pack multiple transactions off-chain
• Verify the validity of these transactions using zero-knowledge proofs(zero-knowledge proof)
• Submit only the proof back to the Ethereum mainnet

This approach ensures security while significantly increasing transaction speed and reducing costs.

ZK Rollups vs Optimistic Rollups: Why the Former Is Superior

Both Layer 2 solutions are popular, but ZK Rollups have three clear advantages:

1. Unbeatable Security
Optimistic Rollups assume transactions are valid by default and only verify them if challenged. This means there is a “challenge period” during which users must wait to confirm finality. ZK Rollups, on the other hand, cryptographically verify each transaction—once confirmed, it is truly final without waiting.

2. No Trusted Intermediaries Needed
Optimistic Rollups rely on honest validators, whereas ZK Rollups replace trust assumptions with mathematical proofs—making them truly decentralized.

3. Enhanced Privacy Protection
In ZK Rollups, transaction details are hidden within proofs, and only the proof itself is submitted to the mainnet, offering far superior privacy compared to other solutions.

Top ZK Rollup Projects to Watch in 2025

1. Manta Network (Manta Pacific)

TVL: $851M | Launch: September 2023 | Token: MANTA ($0.07, -0.66%)

Manta’s killer feature is privacy DeFi. It uses zk-SNARKs to enable users to trade and swap crypto assets in a fully private environment—transaction amounts and participant identities are encrypted but still verifiable.

Its growth after launch has been impressive, quickly surpassing some mainstream exchange Layer 2 solutions, ranking among the top five Ethereum Layer 2 networks by TVL. For privacy-focused DeFi users, this is currently the best choice.

2. Linea

TVL: $202M | Launch: August 2023 | Token: LINEA ($0.01, +1.61%)

Linea emphasizes “high performance.” It focuses on transaction throughput and cost optimization, being especially friendly to developers—existing Ethereum applications can migrate seamlessly.

In early 2024, Linea announced a token airdrop plan. While the specific token use cases are not fully disclosed yet, as a Layer 2 network aiming to be the top choice for DeFi and high-frequency trading, its prospects are promising.

3. Polygon zkEVM

TVL: $115M | Launch: March 2023 | Token: MATIC

The biggest advantage of this project is full Ethereum compatibility. It executes transactions off-chain and verifies them with ZK proofs, providing users and developers with an experience identical to Ethereum.

As part of the Polygon ecosystem, zkEVM benefits from extensive network effects and synergy with other Polygon solutions, making it highly attractive to projects already in the Ethereum ecosystem.

4. StarkNet

TVL: $170M | Launch: February 2022 | Token: STRK ($0.08, -2.56%)

StarkNet uses STARKs technology (different from zk-SNARKs), which offers two benefits:

• No trusted setup: Unlike zk-SNARKs, which require complex initialization, STARKs are simpler
• Quantum resistance: When quantum computing threatens blockchain security in the future, STARKs remain secure

StarkNet supports general computation, meaning any complex smart contract can run on it, offering great potential.

5. zkSync Era

TVL: $555M | Launch: March 2023 | Token: ZKS

As one of the leading projects in the ZK Rollup space, zkSync Era is developed by Matter Labs and currently has one of the highest TVLs among Layer 2 solutions. Its advantages include:

• EVM compatibility: Existing contracts can be deployed directly without code changes
• Good user experience: Low gas fees, high throughput
• Active community: Ample funding and ongoing development

6. Scroll

TVL: $63.46M | Launch: October 2023 | Token: None yet

Scroll is a rising star, implementing high throughput and low latency with zk-SNARKs. It emphasizes EVM compatibility, allowing seamless integration with the existing Ethereum ecosystem. Mainly targeting DeFi applications and high transaction volume scenarios.

7. Aztec Protocol

Launched: 2017 | Token: None yet

Aztec has taken a unique approach: programmable privacy. Its Noir programming language allows developers to choose whether transactions are public or private. Use cases range from confidential transactions to anonymous voting.

Aztec aims for full decentralization, with all key components becoming autonomous before mainnet launch, aligning with Ethereum’s ethos.

8. ZKFair

Launched: December 2023 | Token: ZKF (Market Cap $163M)

ZKFair’s uniqueness lies in anti-front-running. On many DEXs, large traders’ transactions can be front-run (raced), but ZKFair uses ZK proofs to guarantee the fairness of transaction ordering, ensuring small traders also get fair treatment.

9. DeGate V1

Launched: September 2022 | Token: DG (Market Cap $21.14M)

A ZK Rollup-based DEX optimized for large trades, offering low slippage and low costs. Attractive to institutions and big traders.

10. ZetaChain

Launched: February 2021 | Token: ZETA ($0.07, -1.92%)

ZetaChain’s broader goal is cross-chain communication. It uses zk-SNARKs to securely transfer data and assets across different blockchains, enabling a single application to access liquidity from multiple chains simultaneously.

11. Taiko

Launched: January 2024( Testnet) | Funding: $37M

Taiko adopts an innovative “based sequencing” architecture, where L1 block producers act as orderers, eliminating centralization risks. This design greatly simplifies trust assumptions in Layer 2.

Challenges Facing ZK Rollups

• Technical complexity: Zero-knowledge proofs involve advanced cryptography, making ecosystem development difficult
• Flexibility limitations: Not all transaction types can be efficiently processed
• Data availability: Full transaction data must be available on-chain
• Proof generation efficiency: Cryptographic computations are resource-intensive, potentially becoming a bottleneck
• User adoption: Market and developer education take time
• Governance complexity: Protocol upgrades require multi-party coordination

Bright Future for ZK Rollups

Despite challenges, ZK Rollups are gaining momentum. As technology improves and application ecosystems expand, ZK Rollups are poised to become a key driver of Ethereum’s large-scale adoption.

From privacy DeFi to cross-chain interoperability, from high-frequency trading to payment settlement, ZK Rollups are using technological innovation to address blockchain scalability issues—this is not just an Ethereum upgrade but an evolution of the entire blockchain industry.

Summary

The core of ZK Rollups explained is: Replace trust with mathematics, and off-chain computation with on-chain security. They are redefining what true decentralized Layer 2 networks look like, laying the foundation for blockchain applications serving billions of users. Whether you are a developer, investor, or user, understanding ZK Rollups has become an essential part of participating in Web3.