DeFi
September 28, 2022
What is Token Burn and it's effects on price
An A-Z guide on token burning and how it is largely impacting the cryptocurrency industry.
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Polygon, the top firm of blockchain which also is an excelling Web3 infrastructure manufacturer, on twitter on July 30, has declared the announcement of zkEVM, the world’s first zero knowledge (ZK) scaling solution for Ethereum, as they claimed, is the “pathway to get there”.
How this helps in the cryptocurrency market is that it generates power from ZK proofs that help reduce transaction costs, while increasing throughputs and gradually improve the working with Ethereum. Let’s not forget we benefit Ethereum L1’s complete security too.
Ethereum has witnessed major development in the DeFi smart contracts and it has gained much popularity with the NFTs but that has alarmed the network to a large extent. The biggest threat to the booming Ethereum blockchain is that it’s consumption of massive power per transaction.
It works on the backbone of PoW (proof of work) consensus which enables miners who solve complicated mathematical problems first, to win newly minted coins by updating the ledger.
This process requires the usage of technically strong computers and in the process, a hefty amount of power is lost.
Digicomist claims that Ethereum harnesses 106.93 TWh of energy per year which can compete with Kazakhstan’s power consumption and leaves a carbon footprint equal to that of Morocco. We know the world is in a crisis of power and we mindlessly cannot afford to lose it. China and Kosovo have already banned cryptocurrency mining owing to the power loss crisis.
Secondly, Ethereum is also famous for speed lagging. A maximum of only about 15 transactions can be processed by Ethereum per second. So its safe to say that Ethereum definitely needs some significant improvements.
Talking of the newly launched zkEVM, Polygon has already explained why the construction of zkEVM was a bit of a task. But the good news is that users get to see a reduction in costs but an improvement in speed. It's a win-win situation. Not only that, Polygon zkEVM is compatible with EVM and the working is the same as Ethereum’s.
Polygon zkEVM is a layer 2 scaling solution that allows its developers to quickly execute transactions and that too at an affordable rate, and also execute smart contracts off-chain while maintaining the data lineage on the trusted Ethereum blockchain.
Blockchains that are constructed on top of a Layer 1 base layer are referred to as Layer 2 blockchains. zkEVM is abbreviated for zero knowledge Ethereum virtual machine. As said before, zkEVM is claimed to be compatible with Ethereum's protocols while maintaining low costs due to the potential of zk proofs and retaining Ethereum’s powerful security.
Enough said about Polygon zkEVM, let’s delve into its the main features :
The best part about the newly launched zkEVM is that it is 100% EVM compatible. Smart contracts of Ethereum can be carried out in zkEVM without any alteration in any line of conduct. Moral of the story - this is just like Ethereum but is scaled to another level by the unbelievable scaling potency of ZK technology.
As already talked about before, Polygon zkEVM has also managed to have Ethereum level security while leveraging the power of ZK proofs and reduction in transaction cost and increased throughput.
For the smoothest computing, zkEVM’s zkSNARK uses Ethereum L1s fewest resources as applicable. zkEVM makes use of the architecture that resists enforced censorship and promotes a decentralized design by default. Polygon zkEVM further uses an EVM processor (extendable) with a brand new zk-assembly language.
The same code, tools, apps, etc. that developers and users use on Ethereum can be used on Polygon zkEVM, but with considerably faster throughput and less cost.
Users can deposit assets from Ethereum and conduct off-chain transactions after developers deploy their current contracts to the zkEVM. These transactions are compiled into batches, and each batch's validity is supported by a zero-knowledge proof. Owing to this, we can say that the zkEVM takes over Ethereum L1's security and that its operators cannot rob the user assets.
Scalability, security, and Ethereum compatibility should be the three pillars of the ideal Web3 infrastructure. Offering all of these features at once has hitherto not been feasible from a practical standpoint.
This is eventually accomplished by Polygon zkEVM, a ground-breaking technology that starts a new chapter in mainstream adoption, according to co-founder Mihailo Bjelic of Polygon.
Polygon has promised to have a public testnet very soon and scrutinize its drawbacks. They admitted that like every typical case in crypto, this won't end up perfect either. But with such added benefits in here, people will be onboard on this journey soon.
Many people were convinced as well as sad thinking that zkEVM was at least a few years away, but Polygon has proved them wrong. Not only that, they pose significant competition with other zero-knowledge L2s.
The mainnet launch for zkEVM is scheduled for early 2023, and Polygon has made some of the source code and roadmap available. The public testnet is anticipated to go live later this summer.
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