zkLink Deep Dive: How to Find Unity in a Multi-Chain World?

Original title: "zkLink Deep Decryption: How to Find Unity in a Multi-Chain World?"

Original author: Viee, Biteye

From Layer 1, Layer 2 to Layer 3, the blockchain island effect has become more and more significant, and multi-chain interconnection has also attracted more attention. One gives birth to two, two gives birth to three, and three gives birth to all things. We don’t know yet whether there will be L4, L5, and Ln above L3. One of the most pressing issues at present is how to combine the scattered liquidity islands. zkLink has proposed a solution to aggregate multi-chain liquidity around this issue.

This article will focus on the technical principles, current status and development routes of zkLink, and comprehensively analyze the multi-chain aggregation layer based on ZK-Rollup technology - zkLink.

01 What is zkLink and what problem is it trying to solve?

With the development of blockchain technology, from the continuous emergence of public chains such as Ethereum and Solana on the first layer (L1), to the rise of Arbitrum, Optimism, zkSync and Starknet on the second layer (L2).

While meeting the needs of different users, it also brings problems such as liquidity fragmentation and high cross-chain costs. In addition, developers face programming languages and tools of different chains when deploying dApps, which also increases the complexity.

Imagine that there is a country composed of islands, with inconvenient transportation and an immature financial system. Each island (blockchain) has its own independent currency and trading system.

You want to shop between different islands (such as Ethereum, Solana, Arbitrum), but every time you cross the island, you need to exchange currency, pay handling fees, and worry about losing money.

This is the interaction dilemma currently faced by blockchain users: decentralized liquidity, high transaction costs, and insecurity.

How to make cross-chain transactions as convenient and secure as on the same chain? zkLink has given the answer.

(Source: zkLink official website)

By unifying L2 and L1 through zero-knowledge proof (ZKP) technology, zkLink achieves multi-chain state synchronization and native asset aggregation.

Tokens issued on different L1 chains and L2, such as USDT Ethereum, USDT BSC, etc., aggregated by the same entity, will be merged into a single USDT token in zkLink Rollups.

In other words, this island nation has a comprehensive trading center that brings together the currencies of different islands on one platform, without the need to frequently exchange currencies, pay high fees, or worry about asset security. This is the multi-chain liquidity aggregation function achieved by zkLink, which makes it far beyond the "cross-chain bridge".

Based on this, zkLink has created two major products: zkLink Nova and zkLink X

zkLink Nova is the first aggregated L3 zkEVM Rollup network built on Ethereum and Ethereum L2, using the zero-knowledge Ethereum Virtual Machine (zkEVM) to aggregate assets on multiple L2 networks on Ethereum to solve Ethereum's liquidity and asset dispersion problems.

zkLink X is an aggregated Rollup infrastructure that supports customized multi-chain dApp development, connecting L2 and L1, making developers feel like they are building applications on a single chain, but in fact they can access the liquidity of multiple chains.

Going back to the analogy of blockchain and island, zkLink Nova is like a universal shopping card, allowing you to shop (interact) freely between shopping malls on various islands without having to exchange currency repeatedly.

And zkLink X is like a universal toolbox. No matter what type of shopping mall store (dapp) you want to build, you can customize it according to your needs, just like building blocks, and these stores also support currencies from different islands.

In this way, zkLink not only integrates the liquidity scattered on different chains, reduces transaction costs and security risks, but also simplifies the multi-chain deployment of dApps, improves user experience and ensures the security of dApp development.

02 What solutions does zkLink provide, and how does it stand out from the "multi-chain war"?

Multi-chain and cross-chain are already commonplace topics, but we need to know that zkLink is not a cross-chain bridge, but a chain that aggregates multi-chain liquidity.

So, how does zkLink achieve multi-chain aggregation?

The zkLink protocol is a multi-chain ZK-Rollup infrastructure consisting of four layers, including the Settlement Layer, Execution Layer, Sequencer Layer, and Data Availability Layer. These layers are independent of each other and support customized application Rollup deployment. Among them, the core value of the zkLink protocol is mainly in the settlement layer and execution layer.

(zkLink protocol architecture Source: zkLink official website)

zkLink's settlement layer is the core part, similar to an aggregated settlement center, which can integrate multiple chains and ensure that each transaction can be verified on multiple chains through synchronization technology to prevent fraudulent operations.

There are currently two settlement solutions: zkLink Nexus and zkLink Origin, which target different network integration requirements.

zkLink Nexus: Connects Ethereum and its L2 network, inheriting the security of Ethereum.

zkLink Origin: Can connect to other L1 public chains (such as Solana) and Ethereum to provide a wider range of integration.

Traditional cross-chain vs multi-chain aggregation

Trading between different blockchains will increase costs and complicate the experience. Both "traditional cross-chain" and "multi-chain aggregation" are solutions to this problem. Let's take an example. Think about exchanging tokenA on chainA for tokenB on chainB through DEX. What is the most primitive way?

First, you need to install a wallet and buy Gas tokens for chainB;

Next, users need to trade tokenA for stablecoins or other intermediate tokens that can be bridged to chainB;

Finally, users need to buy tokenB on the local DEX.

Compared with cross-chain transactions, it will be obviously more complicated and more wear-prone, so the emergence of cross-chain bridges has improved this experience to a certain extent.

However, the cost of cross-chain token transactions is still high, and users still have difficulty in seamless and cheap token interactions between different chains.

In addition, traditional cross-chain solutions are usually highly centralized and vulnerable to hacker attacks, which leads to the risk of user funds being stolen.

Unlike traditional cross-chain solutions, zkLink provides a more secure multi-chain settlement solution, namely Nexus and Origin mentioned above, both of which utilize zero-knowledge proof technology (ZKPs).

zkLink creatively applies zero-knowledge proof to multi-chain interoperability, adopts a decentralized decentralization design, does not require a third party to guarantee the security of assets and transactions, and at the same time ensures the security and consistency of transactions and state transitions, reduces the risk of asset custody, and greatly improves security and efficiency.

From Layer 2 to Aggregated Layer 3

In addition to multi-chain aggregation, zkLink also has a highlight in that it builds the third layer zkLink Nova, which combines the liquidity islands of Ethereum L2.

Why build L3 and unify the liquidity of the L2 ecosystem?

We all know that the rise of the L2 craze has added a layer of "highway" to Ethereum, making transactions faster and cheaper, but at the same time it has created a non-interoperable and decentralized blockchain landscape in which liquidity is trapped on isolated chains.

Native assets on different L2s of Ethereum (such as ARB, OP, MANTA, etc.) cannot be traded interoperably, and transfers are often time-consuming and expensive. Different assets are scattered across various L2 networks, which leads to a waste of liquidity.

More and more L2s, side chains, and decentralized applications have caused liquidity fragmentation, which runs counter to the goal of achieving Ethereum's ease of use.

This is the price of Ethereum's development of L2, which disperses liquidity across dozens of blockchains and urgently needs to improve interoperability and efficiency through more advanced solutions.

Compared to most L3s that are designed to meet specific application needs and deployed on a single L2 (such as Starknet or Arbitrum), zkLink Nova is a general L3 aggregation network built on Ethereum and multiple L2 networks, with Ethereum and its L2 acting as a settlement layer.

So zkLink builds L3 zkLink Nova not only to make each layer cheaper than the previous layer, but also to hold the vision of "one Nova to go around the world".

(Source: zkLink official website)

In short, ETH deposited from different L2s will automatically merge into the same ETH on Nova.

The same ERC-20 tokens bridged from different networks, such as USDC.Ethereum, USDC.Arbitrum and other source tokens can be merged into the same USDC on Nova. The merged USDC has unified liquidity when used on Nova, thereby improving scalability and optimizing user experience.

zkLink vs other aggregation solutions

Many L2s are actually aware of the problem of liquidity fragmentation and are trying to deal with it. For example, OP's Superchain, Polygon's AggLayer, and zkSync's Hyperbridge unify liquidity by providing a unified bridge or shared sorter.

But they are only suitable for their independent sub-ecosystems and specific technology stacks. In this case, having multiple different technology stacks may exacerbate liquidity fragmentation and cross-chain interoperability problems and lead to a more divided Ethereum ecosystem.

In contrast, any assets on Layer 2 connected by zkLink Nova can be bridged to the Layer 3 network for fast and interoperable transactions. Although the atomic interoperability of cross-aggregation transactions is sacrificed, it provides the broadest liquidity that can aggregate the entire Ethereum ecosystem.

（zkLink Nova protocol architecture Source: zkLink official website）

03 From now to the future, zkLink and the new cross-chain era

Development status

Since the launch of the mainnet in March 2024, the zkLink Nova ecosystem has made great progress. As of early May, it has covered more than 90 project partner projects (the official figure was released at the end of March, and the data has not been synchronized yet) involving DeFi, tools, social, games and NFTs, etc.

On March 14, zkLink Nova launched the first season of the "Aggregation Parade" reward event, which lasted for one month. Tokens including ETH, L2 native tokens, stablecoins, LST and LRT have the opportunity to obtain Nova points, encouraging users to deposit assets into the L3 Nova mainnet.

In short, users can obtain Nova points through cross-chain, staking and inviting new users, which can be exchanged for ZKL tokens in the future.

Currently, the second season of the "Aggregation Parade" reward event is in progress, and Nova points can be increased by interacting with dApps that cooperate with zkLink Nova.

Event details: https://blog.zk.link/aggregation-parade-phase-ii-defis-turn-to-blossom-on-zklink-nova-7b30e2ab1d82

（zkLink Ecosystem Source: zkLink Official Website）

From the above activities, it can be seen that the team has made great efforts to promote the user growth of the zkLink Nova ecosystem, and the data performance is also very impressive.

The currently running Alpha mainnet has used zkLink technology to conduct more than 2 million transactions and generate 500,000 unique addresses.

According to DefiLlama, as of May 22, zkLink Nova TVL exceeded US$1 billion, an increase of 156% in the past month, and has become the Layer 3 network with the highest TVL.

(zkLink Nova total locked amount Source: zkLink Nova official website)

Financing

In terms of financing, zkLink raised $4.68 million through CoinList community sales in January this year. In May last year, zkLink completed a $10 million strategic financing, with Coinbase Ventures, SIG, BigBrain Holdings and others participating.

So far, zkLink has raised a total of $23.18 million, which will further develop the Nova protocol.

ZkLink's investors are more strategic partners, not only providing funds and manpower, but also investing more resources to deepen cooperation with zkLink.

(zkLink Investors Source: zkLink Official Website)

Future Outlook

Currently, the zkLink Nova mainnet has been launched, and the team is upgrading the light node oracle network ZK Oracle that verifies the cross-chain status as part of improving the zkLink X protocol.

In the future, zkLink will also undergo a series of important upgrades, including support for external data availability (DA) solutions, decentralized proof auction markets, etc.

ZkLink’s sorting service is now centrally managed, and the team plans to integrate decentralized solutions such as Espresso, Astria, and Fairblock in the future to reduce centralization risks. In addition, the ZKL token is about to be launched, and the team is preparing for TGE.

It can be seen that zkLink is constantly improving on the road to bringing unprecedented liquidity aggregation to Ethereum and its L2.

If the previous realization of "seamless on-chain interaction" was a dream, then perhaps zkLink is turning dreams into reality.

（zkLink Roadmap Source: zkLink Official Website）

04 Summary

Which layer will be the final winner in the battle between L1, L2 and L3, only time can reveal the answer. At the same time, the market will also tell us that L1 and L2 will always have their necessity to exist, and this is not a zero-sum game.

The future is destined to be an era of multi-chain coexistence, and zkLink will also become a key hub, connecting the various components and systems of the L1 and L2 ecosystems.

It can be imagined that zkLink is leading a more interconnected multi-chain new era, bringing more new opportunities.

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