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Where the narrative goes,the money follows.Spectacular gains can be made this way,if you’re early enough.Despite everyone’s insistence on focusing on fundamentals and building a long term position, it is very important to recognise and accept the way the real world actually works so you can place yourself in an advantageous position. Once you know what the next narrative is, you can research cryptocurrencies within that narrative and build a position with the projects that have a good team and fundamentals behind them.
One narrative that has been attracting a lot of attention recently is ZK-Rollups and they will be our point of discussion in this article.
What are ZK-Rollups?
Zero-knowledge Rollups(ZK-Rollups) are smart contracts that are able to take thousands of transactions off the main blockchain and roll them up into one,single transaction. The ZK-Rollup smart contract then analyses and verifies this transaction,sending an instantly verifiable SNARK(succinct non-interactive argument of knowledge) back to the main chain as proof of validity. This reduces the amount of data being sent through Ethereum’s main blockchain,leading to faster and cheaper transactions. All this is made possible through cryptographic zero-knowledge proofs(ZKPs), a way of authentication, where one party(the prover) can prove to another party(the verifier) that a given statement is true while the prover avoids conveying any additional information apart from the fact that the statement is indeed true. ZK-Rollups are just one of the options being developed to tackle the scalability problem as we impatiently wait for Ethereum 2.0(LOL)
“The unique thing about zero-knowledge proofs is that they stay small even when the work that is verified with them grows significantly,” observes Lucas Vogelsang, Co-founder and CEO of Ethereum-powered DeFi platform Centrifuge, “This will make them very attractive even as blockchains themselves scale more.” This means that even if Ethereum eventually delivers its “consensus layer”, it will not render the technology redundant.
ZK-ROLLUP COINS TO INVEST IN
Syscoin (SYS)
Syscoin is a proof-of-work blockchain with two layers that provides infrastructure for the development of Web 3.0 apps.Syscoin offers the best of both worlds. It takes advantage of Bitcoin’s security and combines it with Ethereum’s dApp abilities to create a fast, privacy-focused finance suite. On the syscoin chain,miners can mine both Bitcoin and Syscoin(SYS),the blockchain’s native token simultaneously in what is known as merge-mining. Syscoin can also be staked to earn rewards. Using ZK-rollups, Syscoin is able to handle more transactions on the network,Syscoin had a strong start to 2022,reaching an ATH of $1.31 on 2nd January. With multiple use cases in various crypto sectors such as NFTs, Web 3.0 and the metaverse AND predictions of reaching 210,000 TPS in Q1 2022, i’m bullish on SYS for 2022 and beyond.
Loopring (LRC)
Loopring is a zkRollup layer 2. It allows for high throughput, low-cost trading and payment on Ethereum. Loopring also allows developers to build their own decentralised exchanges. Users of the platform can securely and even privately trade various available assets and provide liquidity with speed and efficiency making it a very popular platform for Ethereum users. The protocol allows users to create a non-custodial, order book-based exchange on the Ethereum network using zero-knowledge proofs (ZKPs). With the non-custodial exchange, users have control over the private keys in order to keep the crypto and funds secured.Its utility token,loopring(LRC) fuels all operations on the protocol and reached ATHs of $2.00 on January 3rd. We expect a full bounceback once Bitcoin stabilises.
Immutable X (IMX)
Immutable X is the first Layer 2 for NFTs on ethereum. They use zero-knowledge cryptography methods to create a fast,low fee and secure marketplace for NFTs. You’re able to mint 100% carbon neutral NFTs, even in bulk, and immediately trade them. Immutable X also offers;
- Zero gas fees for peer to peer trading
- Massive scalability up to 9000+ TPS
- Allows you to set your own trading fees.
Immutable X can be used to create a range of applications,not just NFTs and its focus on carbon-neutrality will soon become an industry standard.
Where can I buy ZK-Rollup coins now?
If you do decide to invest in any of the coins,I would recommend .All three coins mentioned above can be purchased and traded on the platform as well as over 80 crypto spot trading pairs. This world-renowned exchange, headquartered in Singapore, is a one-stop trading platform that offers not only cryptocurrency but derivatives, Forex and commodities as well. Bityard also offers copy trading, allowing you to copy trades made by professional traders. A stickler for financial compliance, The following regulatory authorities regulate this broker:-
•Australia’s AUSTRAC
•The American Money Services Businesses
•The MTR of Estonia for the European Union
•Singaporean Accounting and Corporate Regulatory Authority (ACRA)
Final Thoughts
Zk-rollups are by far the easiest way to scale high-throughput transactions while still inheriting the security of the L1 and Ethereum isn’t the only blockchain that is heavily investing in this technology.Polygon purchased scaling startup Mir Protocol for $400 million in August 2021 and a Polygon-focused ZK Rollup is expected to land later this year. The crypto sector is still an exciting space and will continue to come up with creative solutions to its problems.
This article was written as part of a PUBLISH0X contest in partnership with Bityard who will donate 50,000 SHIB through The Giving Block.The Giving Block is helping to change the world by allowing over 1000 NGOs, charities, schools and faith-based organisations receive funds as crypto. Check them out to see how you can help.
