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ZKSpace Novel Layer 2 Protocol Goes Live to Change the Game in ZK-Rollups

Mon, 12/20/2021 - 12:05
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Vladislav Sopov
ZKSpace, a unique second-layer protocol on Ethereum (ETH) mainnet, will merge the benefits of all the best scalability practices implemented by Q4, 2021
ZKSpace Novel Layer 2 Protocol Goes Live to Change the Game in ZK-Rollups
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Contents

While second-layer solutions for Ethereum (ETH) mainnet are on fire in 2021, the space still needs an all-in-one protocol that will empower all red-hot use cases with ZK-Rollups scaling technology.

Introducing ZKSpace, all-in-one crypto ecosystem on L2

At its core, ZKSpace is an ecosystem that unites a decentralized cryptocurrency exchange, a marketplace for non-fungible tokens and a crypto-powered payments protocol. Its “killing feature” is its ability to process major types of Ethereum-based tokens (ERC-20, ERC-721 and so on) through second-layer channels for gas-less and lightning-fast transactions.

The consistency of Layer 1 and Layer 2 is ensured through zero-knowledge (ZK) proofs generated for every transaction. This technology allows for the resources of Ethereum (ETH) mainnet to be preserved in terms of both gas and throughput.

ZKSpace’s decentralized crypto exchange (DEX) module fully mirrors the functionality of Uniswap (UNI), a leading Ethereum-based DEX, but on a second-layer technical basis. On average, the transaction fee for one swap or liquidity operation will be 10 times lower than that of Uniswap, while ZKSpace’s DEX will have the same level of security.

ZKSquare, a payments solution based on second-layer transactions, has already processed  more than one million transactions totaling over $2.5 billion in the last nine months. Compared to the mainstream payment solution for retail users based on fiat currencies, it saved a lot of money on transactional fees.

Last but not least, ZKSpace’s solution for non-fungible tokens (ZKSea) changes the narrative in NFT minting, storage and trading. Like OpenSea on Ethereum, it lowers barriers for digital artists and curators, but ZKSea charges its clients negligible fees. Also, it has a kind of “white label” solution: it unveiled an NFT minting interface for all third-party platforms.

New life of ZKS: one token for many use cases

ZKSpaces’ tokenomics is built on top of ZKS token. As such, ZKS token fuels the richest toolkit among all competitors in the space.

ZKS token is running on the Ethereum (ETH) blockchain. A total of 233 million ZKS tokens are in circulation. Four percent of ZKS are allocated to initial liquidity, 12% will be secured for LP airdrops, 6% of the ZKS supply will fuel different liquidity mining programs and 7.7% of ZKS will be preserved for angel investors and advisors.

ZKS token will be utilized in multiple community incentives. For instance, the Proof-of-Liquidity-Mining program will distribute ZKS between liquidity providers active on  DEX and the NFT marketplace.

A Proof-of-TransFee Mining (PoT) program will stimulate traders on DEX and all accounts that deploy NFTs to ZKSea with subsidies. In the future, 8% of the total ZKS supply will fuel ZKSpace’s community progress in this direction.

A Proof-of-Staking (PoS) program will reward all ZKS holders who lock their tokens into ZKSpace’s staking module.

In addition to liquidity motivation programs, by holding the platform’s native governance token gZKS, the holders will have a say in referendums regarding crucial updates to the protocol of the ZKSpace.

Just as on many leading platforms, ZKS tokens will be used for fee deduction, airdrops and periodic buybacks. As a result, ZKS token will be deflationary-by-default and will provide a sustainable economic basis for ZKSpace’s expansion.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)