Decentralized Exchange Liquidity Aggregator 1inch Network Implements zkSync

According to reports, the decentralized exchange liquidity aggregator 1inch Network has added support for zkSync, a Layer2 solution for expanding Ethereum networks.

1 inch Network deployed to zkSync Era

The 1inch Network, a decentralized exchange liquidity aggregator, has recently announced that it has integrated zkSync, a Layer2 solution for expanding Ethereum networks. This integration brings numerous benefits to the 1inch Network, including faster transaction processing, lower transaction fees, and increased scalability. This article will explain in detail what zkSync is, how it works, and why the integration with the 1inch Network is significant.

What is zkSync?

zkSync is a Layer2 scaling solution that uses zero-knowledge proofs (ZKPs) to verify transactions on the Ethereum blockchain. It was developed by Matter Labs with the goal of improving transaction throughput and reducing gas fees on Ethereum. Essentially, zkSync creates a separate layer on top of the Ethereum blockchain where transactions can be processed without requiring every node on the network to verify each transaction.

How does zkSync work?

To understand how zkSync works, it’s essential to understand what ZKPs are. A zero-knowledge proof is a cryptographic protocol that enables one party to prove possession of certain information to another party without revealing the information itself. In zkSync, ZKPs are used to verify the validity of transactions without revealing any sensitive information, such as the amounts being transferred.
When a user submits a transaction to the zkSync network, a smart contract verifies the transaction’s validity and then generates a proof. The proof is sent to the zkSync operator, who aggregates multiple proofs and submits them to the Ethereum network. Because the proof contains all the necessary information to verify the transaction, nodes on the Ethereum network can confirm the transaction without having to execute it, significantly reducing the gas fees and processing time required.

Why is the integration with the 1inch Network significant?

The integration between zkSync and the 1inch Network brings several significant advantages to users. Firstly, zkSync enables faster transaction processing times compared to the Ethereum network’s base layer. This is because zkSync can handle up to 2,000 transactions per second, compared to Ethereum’s current capacity of approximately 15 transactions per second. This fast transaction processing time is essential for users looking to take advantage of arbitrage opportunities or execute trades quickly.
Secondly, zkSync can significantly reduce gas fees for users. Transaction fees on Ethereum can be prohibitively high, making it uneconomical for users to execute trades, especially for smaller transactions. However, with zkSync, gas fees for trades can be reduced by up to 100 times, which could make investing in DeFi more affordable and accessible for a broader range of users.
Finally, the integration of zkSync and the 1inch Network increases scalability, enabling the 1inch Network to handle more transactions and users smoothly. With the growing popularity of decentralized finance (DeFi) applications, the integration of zkSync provides a solution to Ethereum’s scalability issues and allows for the efficient execution of trades.

Conclusion

The integration of zkSync and the 1inch Network is a significant step forward in addressing some of the scalability and transaction processing issues faced by Ethereum. By implementing a Layer2 solution such as zkSync, the 1inch Network can provide its users with faster transaction processing times, reduced gas fees, and increased scalability. These benefits could play a vital role in attracting more users to DeFi and driving the growth of the decentralized finance ecosystem.

FAQs

Q: What is the 1inch Network?
A: The 1inch Network is a decentralized exchange (DEX) aggregator that allows users to access multiple DEXs in one place to find the best prices for trades.
Q: Can zkSync be used with other DeFi applications?
A: Yes, several DeFi protocols have already integrated zkSync, including Aave and Curve.
Q: Is zkSync secure?
A: Yes, zkSync is a secure and audited Layer2 scaling solution that uses zero-knowledge proofs to protect user privacy while still ensuring the validity of transactions.