In this section, we will delve deeper into the differences between the Layer-2 DEX Infrastructure and zkRollups.
Both Layer-2 solutions and zkRollups are methods to enhance the scalability and efficiency of blockchain networks like Ethereum, but they have different underlying mechanisms. Here’s a breakdown of the key differences between the Layer-2 DEX Infrastructure and zkRollups.
Layer-2 DEX Infrastructure (Batching):
- Mechanism: In the Layer-2 DEX Infrastructure, transactions are first processed off-chain in a separate Layer-2 environment. After processing and validation, these transactions are batched together into a single aggregated transaction that is then sent to the Ethereum mainnet.
- Processing: The Layer-2 processing involves validating transactions and ensuring protocol compliance before they are batched.
- Aggregated Transaction: The batches of transactions are added to the Ethereum network as a single aggregated transaction, reducing the number of individual transactions on the mainnet.
zkRollups:
- Mechanism: zkRollups use a cryptographic technique called zero-knowledge proofs to bundle a large number of transactions into a single succinct proof. This proof is then posted to the mainnet.
- Processing: In zkRollups, the heavy computation happens off-chain. The proof submitted to the mainnet attests that the off-chain computation was done correctly and that the transactions are valid.
- Data Availability: zkRollups require data availability on-chain, which means the data related to transactions must be accessible on the Ethereum mainnet.
Key Differences:
- Transaction Data: In Layer-2 solutions like batching, only the aggregated result of transactions is posted on the mainnet. In zkRollups, the proof attesting to the correctness of the off-chain computation is posted, but the transaction data itself can be kept off-chain.
- Data Availability: zkRollups require on-chain data availability for users to verify the correctness of transactions. In batching, transaction data is processed off-chain but ultimately posted on-chain.
- Computation: zkRollups rely heavily on cryptographic proofs, which can be complex to generate. Batching focuses on processing and validation of transactions, then posting aggregated results.
- Flexibility: zkRollups can potentially support complex smart contracts and arbitrary computations. Batching often focuses on specific use cases, like decentralized exchanges.
- User Experience: zkRollups can offer a seamless user experience since the computation is off-chain, while users interacting with Layer-2 solutions might experience delays during the off-chain processing.
Both approaches aim to alleviate congestion and reduce costs on the Ethereum network, but they achieve these goals through different technical methods. Layer-2 batching focuses on aggregating transaction results, while zkRollups use cryptographic proofs to bundle and verify transactions. The choice between the two depends on the specific use case and trade-offs that developers and users are willing to make.