Finding the perfect scalability solution for Ethereum has always been a huge challenge. But over the last year, the use of ZK-Rollups has generated quite some buzz. In fact, at some pointed ZK-Rollups were touted as perhaps the best scalability solution for Ethereum and have already been adopted by several protocols. So, what this is all about, and how can you invest in these technologies? First, some highlights:
Zero-Knowledge Rollups (ZK-Rollups) are a series of smart contracts that use off-chain computations before submitting them back on-chain for validation.
The smart contracts simply bundle a huge number of transactions into one and compute them in large chunks.
Several protocols have already adopted ZK-Rollups, including Loopring (LRC) which surged to all-time highs after.
Data Source: Tradingview.com
It is obvious now that ZK-Rollups are going to be huge and as such, we wanted to give you a list of altcoins you can invest in below to take advantage of this technology:
The Mir Protocol (MIR)
The Mir Protocol (MIR) is a scaling solution for Ethereum designed to use ZK-roll ups. In fact, the project is in the process of developing additional ZK roll up solutions. Just last month, MIR was acquired by Polygon (MATIC) in a deal valued at around $400 million.
Polygon is already one of the cheapest chains in the market. The fact that it is going after a ZK-rollup project suggests that this could be a hot industry in the future.
zkSync is an upcoming ZK-roll-up project being developed by Matter Labs. The plan is to issue a native ERC 20 token once the project is fully operational.
The platform has already received up to $50 million in series B funding. Although we don’t have any dates as to when the token will be available, keep an eye on this in 2022.