5 A B C D E F G H I K L M N O P R S T U V W Y Z

ZK-Rollup

A ZK-Rollup is a specific form of Layer-2 solution for overloaded blockchains. The abbreviation ZK stands for Zero Knowledge – so the technology is based on zero-knowledge proofs.

With a ZK-Rollup, multiple transactions are combined and written down in the form of a single transaction on the underlying blockchain (the Layer-1). This transaction serves as a SNARK, i.e. as proof of the correctness of all money transfers mapped with it.

The aggregation significantly reduces network fees while increasing transaction speed. Compared to similar Layer-2 solutions, ZK-Rollups are considered particularly promising because they solve scaling problems while still offering the security of Layer-1.

ZK-Rollups are not to be confused with Optimistic Rollups. The latter are considered significantly less complex, but also slower and less secure. Due to their complexity, ZK-Rollups are not yet mature in 2022, according to Ethereum inventor Vitalik Buterin.