Thread by @laishawadhwa

Gm web3 fam!

Its finally day 26 of #web3glossary🚀
And with this, series has come to an end

Z: zk Rollups

By learning you'll teach and by teaching you’ll learn. Sharing on web3 terms & jargons for the last 1 month was a great learning experience for me and I hope for you too

Let's get to the thread now?

Having to spend $20 or more in gas fees for a single txn is not ideal if you want to complete a DeFi trade

If you've been hearing zk or zero knowledge, you're not alone. It's the next big thing in web3
With an increase in the number of Dapps, ...

there’s a need for faster processing speeds & cheaper txns.

That’s when layer 2 solutions came in.

Zk rollups are also a layer 2 scaling solution that increases throughput on Ethereum Mainnet by moving computation & state-storage off-chain

👇👇

How do they work?🤔
Zero Knowledge proof (ZKP) is a sort of cryptographic proof in which the prover can demonstrate to the verifier that a particular statement is true without ever communicating it
For eg, let’s say your friend is red-green colour-blind (while you are not)....

..and you have two balls: 1 red & 1 green, but otherwise identical
You want to prove to him they are differently-coloured, without revealing which one's red and green ball
That’s what ZKP help you achieve - a way to prove that you know something without revealing what you know

More on it here: en.wikipedia.org/wiki/Zero-know…

If you’ve played @WordleStats you’ve probably come across this
It’s a way to prove that you have the solution without revealing what the solution is by sending a screenshot of the final board
With zero knowledge of the actual answer...

..everyone can confidently agree that you have the correct result
This is the essence of a ZKP!
Another application of ZKPs is to maintain data privacy in industries like Healthcare, financial services & identity solutions
ZKPs allow such companies to retrieve & use information..

from the data without actually looking at it

Let’s get to the technical details of how ZK works

ZK rollups use Zero Knowledge Proofs to consolidate & validate a large no. of txns off the chain
Then, they submit the transactions as one onto Layer 1 mainnet of Ethereum
👇👇

Instead of mining 1000s of txns individually, they are rolled up into a single txn .
This single txn takes form as a validity proof, also known as a
Succinct, non-interactive argument of knowledge (SNARK)
OR
Succinct, transparent argument of knowledge (STARK)
👇👇

SNARKs and STARKs are the same concept as a cryptographic transaction hash. Both are acronyms for the method by which the two parties prove their knowledge

SNARKs are estimated to require only 24% of that gas that STARKs would require.
Implies transacting with SNARKs would be far cheaper for the end-user.
The proof size for SNARKs is much smaller than STARKs, implies it would take less on-chain storage.

Starknet,a zk-rollup is used in @dYdX and ImmutableX for perpetual contracts on Ethereum.

Protocols like @loopringorg , @zksync , @iearnfinance and @zerion_io also use zero-knowledge rollups

That's a wrap for Day 26 and #web3glossary series as well

It all started from here on Day 1

https://twitter.com/laishawadhwa/status/1551469133019365376?s=20&t=r8OzFd72bizIl1XlzwnQzA

Feeling overwhelmed with jargons in web3 can be exasperating!

These bookmark-worthy threads on #web3glossary will definitely help you understand web3 better🚀🚀

Also, the knowledge share doesn't stop here.
A lot of you reached out suggesting topics in web3 you'd like to see a thread on!

Always open to more suggestions n ideas, keep 'em coming!

If you like the series-
⏩Follow me @laishawadhwa for more such web3 gyaan!

WAGMI 🚀🚀