Hey! Are you looking for the best ZK-Rollup Coins to invest in?

Look no further in this blog post, we will take a look at the top zk-rollup coins on the market, based on factors such as market cap, community support, and technological development.

In this blog post, we will talk about what zk-rollups are and how they work.

What are ZK-Rollup Coins?

Primarily, ZK-rollup coins are cryptocurrencies that use zero-knowledge proofs to scale the Ethereum network.

These ZK-Rollup Coins are attached to projects. Additionally, It provides secure, fast, and reliable transactions on the Ethereum blockchain.

Further, these Coins belong to ZK-Rollup platforms. Which are ecosystems and applications that aim to achieve a variety of goals.

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What Are Zero-Knowledge Rollups?

Zero-Knowledge Rollups (ZK-Rollups) is a form of layer 2 scaling solution for blockchain technology. They allow for off-chain computation while maintaining on-chain security.

This means that the bulk of the computation and data storage occurs off of the main blockchain. The final results are still recorded on the main blockchain for transparency and immutability.

One of the key features of ZK-Rollups is their use of zero-knowledge proofs. These allow for private transactions and increased scalability.

Additionally, ZK-Rollups also use a technique called “optimistic execution” which allows for transactions to be executed off-chain first and only be recorded on the main chain if there is a dispute. This reduces the number of on-chain transactions and thus reduces the “gas fees”.

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ZK-Rollup Coins?ZK Rollup?

Similar to Optimistic rollup, ZK -rollup combines numerous off-chain Layer 2 transactions.

And then, send them to Ethereum as a single transaction. ZK-Rollup uses the validity of proofs to instantly identify whether or not transactions are valid.

Instead of assuming, they are real until proven otherwise. Due to the technology’s complexity and ability to execute arbitrary codes, producing an optimistic rollup is easier.

Rather than developing ZK-Rollups that are EVM -EVM-compatible.

Further, zero-knowledge rollup ( or zk -Rollup ) is a layer-2 scalability solution. Additionally, that enables blockchains to validate transactions faster and at a cheaper rate.

Moreover, these Rollups use a cryptographic proof technique called Zero-knowledge. Essentially, Proofs (ZKPs) instantly prove the validity of transactions.

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How does ZK-Rollup Coins Work?

ZK rollups bundle multiple transactions together and process them off-chain, before posting the results back to the Ethereum Mainchain.

This significantly reduces the load on the Ethereum network and allows for transactions to be processed much faster and more cheaply.

Furthermore, to understand how zero-knowledge rollup operates, at least for the most prominent projects.

We must look at how they are organized with Ethereum serving as the basic settlement layer.

The usual ZK-Rollup is built on Ethereum. It is supported by two on-chain smart contracts.

Additionally, the main contract and a verifier contract.

Further, these contracts serve as anchors and are in charge of a variety of functions. The main contract saves the blockchain and tracks fund deposits and withdrawals.

Moreover, the verifier contract, on the other hand, validates zero-knowledge proofs sent to Ethereum, the base layer.

The second layer of a typical ZK – Rollup is occupied by an off-chain virtual machine.

The off-chain environment is referred to as an off-chain virtual machine. Further, it is the major factor that promotes scalability and throughput.

So, ZK-Rollup uses this machine to process batches of transactions. Additionally, it posts a validity proof on-chain to confirm their activity.

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Advantages of ZK-Rollup

a. Scalability

ZK rollups can process thousands of transactions per second, which is significantly more than the Ethereum mainnet can handle.

b. Security

ZK rollups are just as secure as the Ethereum mainnet, if not more so. This is because they use zero-knowledge proofs to verify transactions, which is a very secure cryptographic technique.

c. Privacy

Mainly, ZK rollups help improve the privacy of Ethereum users by hiding the details of their transactions from the public ledger.

d.Cost-effectiveness

Essentially, ZK rollups significantly reduce the gas fees associated with Ethereum transactions.

1. It ensures the correctness of off-chain transactions. Additionally, it prevents operators from executing invalid state transactions.
2. This helps you benefit from greater capital efficiency and can withdraw funds from L2 without delays.
3. As L1 will become tougher to use because of high congestion, people will flock to ZK-Rollups as it provides better services.

Chiefly, zk-rollups could be used to create decentralized exchanges (DEXs) that are faster, cheaper, and more private than existing DEXs.

These rollups can create new financial applications, such as decentralized lending and borrowing platforms.

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Here are some Quotes from Fans of ZK rollup Coins.

“ZK-rollups are the future of Ethereum. They will make Ethereum much scalable, secure, and private.”-Vitalik Buterin.

“These ZK rollups are the most important development in Ethereum since the launch of smart contracts.”-Anthony Sassano, co-founder of ETHHub.

“ZK rollups have the potential to revolutionize the way we use Ethereum. They will make Ethereum more accessible and usable for everyone.” – Me!

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Top 5 ZK-Rollup Coins

1. Immutable X (IMX)

It is the first layer-two scaling solution for NFT on Ethereum built with STARK zk -rollup.

It uses zero-knowledge cryptographic methods to create a fast, low-fee, and secure marketplace for NFTs.

You are also given the ability to create your NFTs on the platform which will all be 100% carbon neutral.

Chiefly, this platform runs on the Ethereum runs on the Ethereum blockchain and boasts zero trading fees for peer-to-peer trading, efficient scalability, and the ability to create NFTs in bulk. And then, be able to trade them instantly after their creation.

It can also be used to create a range of applications and not just NFTs. Its goal of providing carbon-neutral NFT creation is impressive and could be an industry-standard in the future.

Price – $0.66

Market Cap – $521 M

Max Supply – 2 Billion

2. Loopring (LRC)

It is an open protocol designed for building a decentralized exchange. So, it gives you full control of your funds, as a result, it has been a popular platform for many Ethereum users.

The Loopring platform is an open-source decentralized exchange and payment protocol.

It is built on the Ethereum blockchain and employs ZK-Rollups to provide quick, low-fee transactions for you.

On this platform, you can securely and even privately trade various available assets and provide liquidity with speed and efficiency.

It continues to evolve and develop. It is still in beta, but developments are moving quickly and, in the future, it seems it will be offering a lot more to you.

Price – $0.292

Market Cap – $388 M

Max Supply – 1.37 Billion.

3. (DYDX)

It is a decentralized margin trading platform that leverages ZK-Rollups.

Price – $1.57

Market Cap – $245 M

Max Supply – 1 Billion.

4. Syscoin (SYS)

Chiefly, Syscoin is a blockchain that allows for the merge-mining of both Bitcoin and Syscoin.

Syscoin itself can be stacked to earn rewards and in the future, you would most likely need Syscoin to pay transaction fees.

The Syscoin blockchain takes advantage of Bitcoin’s security and combines it with Ethereum’s dApp abilities to create a robust chain that chooses the best parts of both blockchains.

Another interesting element of Syscoin is its ZK-Rollups. By using zero-knowledge proofs, Syscoin will be able to handle more transactions on the network and provide greater interoperability with other networks.

Combining Syscoin and ZK-Rollups makes Syscoin a very unique project.

It is a smart contract platform that supports the Web 3 ecosystem with low fees, decentralized Layer-1 security, and Layer-2 – 2 scalability.

Price – $0.154

Market Cap $115 M

Max Supply – 751.4 M

5. Hermez Network (HEZ)

Especially, it is an open-source payment network on the Ethereum blockchain. That enables you to send and receive payments securely with low transaction fees and high speeds by using ZK-Rollups to batch thousands of transactions into one batch.

The Hermez token called $HEZ can mainly be used to help validate transactions on the network and pay for transaction fees.

It chooses validators through a virtual auction. Validators are rewarded in $HEZ and 40% of validators successfully bid in an auction is sent to the Ethereum developer community.

In 2021, Hermez was acquired by Polygon and rebranded as Polygon Hermez.

As a result, the Polygon tokens $MATIC and $HEZ are integrated and can be swapped freely on the Hermez website.

Since Hermez is a part of the growing Polygon ecosystem, interesting developments on the Hermez network may be revealed in the future.

Hermez is a decentralized ZK-Rollup focused on scaling payments and token transfers.

Price – $4.21

Supply – 100 M

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What is a Rollup?

Rollups are bundles of transactions that are rolled up (thus the name).

The final rolled-up transaction is reported as a single transaction to the Ethereum network.

Advantages of Rollup – Rollup reduces expenses by dividing the cost of an Ethereum transaction.

Additionally, the a minor cost of rolling up batches of transactions among users.

Furthermore, Rollup also accelerates things. The Rollup is really fast. And then, the Ethereum blockchain only processes one transaction rather than several.

This is useful because Ethereum’s unaided transaction rate is roughly 15 transactions per second.

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Where Can You Purchase ZK-Rollup Coins?

You should sign up on any crypto exchange or brokerage to buy these coins. After creating an account you can then add funds to your account and use your funds to purchase your chosen ZK-Rollup coin.

ZK-Rollup coins are great investments as they are becoming the backbone of many blockchain ecosystems and platforms.

What is Optimistic Rollup?

Optimistic rollups include processing a large number of transactions. Further, carrying out computation off-chain, and “rolling” them up into a smaller transaction.

And then, that is published to Ethereum’s execution layer. Transactions are presumed to be authentic until proven otherwise.

Hence, the moniker optimistic rollups. Before Optimistic rollup transactions are confirmed on Ethereum’s main chain.

Further, a window of opportunity exists for disputing potentially fraudulent transactions. Thereby, presenting fraud evidence.

Moreover, all pending transactions are confirmed onto Ethereum once the fraud-proof dispute time has passed.

Compared to other techniques like Zero-Knowledge rollups, Optimistic rollup Layer 2s tend to prolog transaction confirmation times.

Because they are designed to apply fraud proofs.

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Will Polygon (MATIC) become a Rollup?

Firstly, Polygon (formerly MATIC Network) is a Web 3 startup. Additionally, it is building products to scale Ethereum and encourage mass adoption.

Secondly, the company’s core product, the Polygon proof-of-stake (PoS) sidechain, has become a popular alternative. Moreover, Ethereum due to its low fees and faster transactions.

Currently, Polygon is developing a suite of zero-knowledge rollups (ZK rollups ) to increase throughput on Ethereum. Essentially, without sacrificing decentralization or security.

Moreover, ZK – Rollups process transactions off-chain and reduce computation on the base layer to tackle scalability.

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What is Polygon Zero?

Firstly, Polygon Zero is a ZK -Rollup solution specifically designed to reduce the computational cost of generating validity proofs.

These ZK-Rollups can indeed increase scalability. Additionally, their functionality is limited due to the time-intensive and costly proof-generation process.

Furthermore, Polygon Zero solves this problem by using “recursive proofs”, which are faster than existing prover systems.

Essentially, these recursive proofs come from Plonky 2. A proving mechanism developed by the team behind Mir Protocol.

Moreover, Mir Protocol was a project exploring recursive ZK proofs to scale decentralized applications (dApps). Until the team’s acquisition by Polygon.

Mir Protocol’s core team continued to work on scalable proofs.

Essentially, this led to the launch of Plonk 2 early in January 2022.

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Polygon Zero – Conclusion

Firstly, Polygon Zero is designed to be compatible with the Ethereum Virtual Machine (EVM). Additionally, it can batch up to 3,000 transactions per block.

Although, Polygon Zero is yet to go live, further breakthroughs in cryptography research.

And then, it may position it as the dominant ZK-Rollup project in the Ethereum ecosystem.

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If you want to see a more detailed explanation of ZK-Rollups and Rollup technology in general, I recommend the following resources:

• ZKP Science
• Layer 2 Rollups – Ethereum.org
• ZK-Rollups – EthHub.io

Final thoughts

It is still relatively early days for ZK-Rollups but things can change quickly. As an investor, you will be investing in up-and-coming tech in the crypto world and the ZK-Rollup coins you buy will go through many developments and changes.

It is easy to become disillusioned and distracted by so many projects trying to offer similar things or claiming to have solved something in zero-knowledge cryptography that may not be true.

Another issue is that many concepts in the ZK-Rollup project can be hard for the average investor to understand fully. And this can make the space seem a little alienating. Don’t you think so?

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