What is zkEVM?
Zero-knowledge Ethereum Virtual Machine, or zkEVM in short, is a type of Ethereum Virtual Machine utilized by developers to execute smart contracts with the help of zero-knowledge proofs, on existing Ethereum infrastructures.
The first practical application of zkEVM was deployed on Matic Network by Polygon Labs on 27th March 2023, with the launch of Mainnet Beta. This gave the world a first glimpse of scaling Ethereum networks by increasing cost efficiency and reducing TPs validation time.
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How Does zkEVM Work?
The main purpose of zkEVM on any blockchain, including Polygon Network, is to run applications designed specifically for the Ethereum environment using the primary programming language, Solidity, and without making any changes to underlying smart contract rules. Being zkEVM compatible, Layer 2 solutions like Matic will be able to offer developers a wide range of tools, token standards, and Ethereum contract patterns, in order to build highly scalable, user-friendly dApps.
In order to understand more easily, we have broken down the working mechanisms of zkEVM into three steps.
zkEVM Execution Environment
Execution environment is the first stage of getting to know zkEVM. Unlike traditional EVM systems, developers can directly run smart contracts on zkEVM, enabling them to execute transactions and update its state, while verifying the authenticity of each transaction through zero-knowledge proof consensus.
However, keep in mind that smart contracts specific rules can’t be edited on zkEVM. Instead it governs the rules and defines what changes developers can do and can’t, hence making it trustworthy.
Proving Circuit
Once a transaction is executed, the next step is verifying that transaction cryptographically, so that its not fraudulent, without exposing the actual underlying information of chain. For that, Proving Circuit on zkEVM validates transactions based on established rules, by producing zero-knowledge proofs about it.
zkEVM Contract Verifier
On Ethereum Blockchain every transaction must be validated and verified through all the nodes, one by one, making it a time-consuming process. To tackle this issue, solutions like zkEVM group a large number of transactions in batches, and then, after verifying information using zero-knowledge proof, submit proof of validation to the Contract Verifier deployed on the primary chain. This is done without processing each transaction individually, hence saving a lot of time and energy as well.
Advantages of zkEVM
Enhanced Security & Privacy
Although Ethereum itself is a very secure Blockchain Network, its nature as a public blockchain doesn’t offer privacy, because anyone with a transaction ID or wallet address can track the activity of others on Blockchain Explorer. However, zk-rollups can help resolve privacy issues to some extent by verifying transactions in batches, without compromising on security.
Reduced Gas Fees & Scalability
Reduced gas fees and improved scalability are two of the primary advantages offered by zkEVM. Aggregating multiple transactions into a single batch, and then validating them as one, decreases the overall computing power required to validate each transaction. Many experts believes that with the zk-rollups method, around 2K transactions can be processed per second, without impacting the transaction cost on Ethereum network. It is worth noticing here that currently Ethereum layer-1 solution is only capable of processing up to 15-30 Transactions per second.
Increased Interoperability
Interoperability is one of the major issues faced by the crypto industry and blockchain in general, and is also one of the major hurdles in making Web3.0 a reality. For those who don’t know about it, interoperability refers to the ability of different blockchains to interact with each others. Unfortunately, currently, blockchains do not have this interactive ability, nor can they share information. For example, a crypto trader can’t transfer his/her ERC-20 tokens directly into a BEP-20 address or TRC-20, nor can they trade and that applies to any direction transaction/trade.
With the help of zkEVM, blockchain developers are optimistic that interoperability can be achieved.
Use Cases for zkEVM
DeFi Applications
Thanks to the decentralized nature and high security, it is worth utilizing in DeFi. This is because it can offer higher throughput at a faster rate compared to traditional methods, which can have confirmation times of up to 7-days for deposit/withdrawals, while minimizing transaction cost. Furthermore, if utilized properly, it can bring interoperability advantages to Decentralized Finance Applications, which will enhance overall user-experience by connecting different blockchain networks with each other, and providing high liquidity across the market.
Gaming and NFTs
Gaming and NFTs are two of the hot topics among most crypto communities, as the market continues to grow. By deploying zkEVM into NFT and gaming ecosystems, developers can create a gamified economy truly owned and used by gamers, making it easy to transfer and trade in-game items (collectible resources such as lands, avatars, weapons) with others at minimal gas fees, compared to Ethereum mainnet.
Supply Chain Management
Supply Chain Management is another area where it can bring numerous advantages by improving the cost efficiency of transactions, while protecting data privacy of sensitive information, such as product pricing, quantity, and supplier information.
Additionality zkEVM also provides the ability to audit. By combining the immutable nature of blockchain technology with the transparency offered by zkEVM, users can trace and verify all the transactions, ensuring regulatory compliance with central authorities, and reducing the risk of fraud.
Challenges & Limitations of zkEVM
Complexity and Learning Curve
Like any advanced cryptographic technology zkEVM is also complex in nature and requires deep understanding of not only Blockchain technology programming, but also zero-knowledge proofs. The complexity of coding and the learning curve can be two major barriers for developers, since a minor error in the programming script can lead to significant functionality and security compromises.
Limited Tooling & Developer Ecosystem
As zkEVM is a relatively new technology, it offers limited development tools and has less resources available online, impacting the technical assistance you’d be able to receive if you were to encounter a bug.
These limitations are directly impacting the overall development of a better blockchain ecosystem, however, experts are trying their best to tackle these issues.
Scalability Concerns
Scalability improvement is one of the primary advantages offered by zkEVM, compared to Ethereum Layer-1 mainnet, by allowing off-chain validation of transactions. But it is not completely exempt from scalability concerns. With increase in demand and number of transactions, generating and verifying zero-knowledge proofs can also become exhausting, leading to slower transactions and increased cost.
Outlook for zkEVM
Potential Impact on Blockchain Technology
Based on facts discussed above, it has a huge potential to impact blockchain technology and change the way we interact with it, thanks to its advantages like interoperability, cost-effectiveness, and faster validation speed.
Adoption and Mainstream Integration
If all goes well because of the interoperability advantage, we believe it will be adopted and integrated across all major blockchain networks, so as to interact with one another without compromising on security and decentralization. However, it is worth noting here that interoperability is not the only contributing factor.
Successful development and deployment of technology and market demand can also impact overall adoption and integration of zkEVM.
FAQs
What is zkEVM and how does it work?
zkEVM is Ethereum compatible Virtual Machine secured by zero-Knowledge Proofs to enhance the user experience by tackling scalability issues and providing higher TPS, without compromising privacy and security of blockchains. It works by carrying and verifying transactions in batches and then validating them as one, on Ethereum base Layer.
What is the difference between zkEVM and traditional EVM?
One of the major differences between the two includes interoperability and privacy. While zkEVM emphasizes interoperability among third-party blockchain networks, traditional EVMs operate within the Ethereum ecosystem and aren’t compatible with other blockchains.In contrast to traditional EVMs, zkEVM offers better privacy by using zero-knowledge proofs to hide sensitive information, while traditional EVM carry out their operation transparently.
Is zkEVM compatible with existing Ethereum applications?
Yes, it is compatible with existing Ethereum applications and developers can use existing Ethereum infrastructure and tools to develop and deploy dApps on zKEVM compatible Chains.
Can zkEVM be used on other blockchain platforms?
Because of its interoperability nature, it can be used on other blockchain platforms with ease, however some technical knowledge will be required.
Are there any security risks associated with zkEVM?
As with any other technology, potential security risks are also associated with zkEVM including vulnerability to hacking because of improper configuration or errors in code, and potential attacks on underlying network. However, thorough security audits, testing and code reviews can easily minimize these risks.
