What Is a Zero Knowledge Rollup?

A zero knowledge rollup is a type of layer 2 scaling solution that relies on zero knowledge cryptography (e.g. ZK-snarks or ZK-starks) to trustlessly record transactions that happen on the layer 2 and subsequently validate those transactions using a cryptographic proof system that is verified by a smart contract on the main underlying blockchain. 

As a zero knowledge rollup relies on a smart contract to validate the proof of the transactions in the layer 2, the system has some inherent benefits, such as higher transaction throughput and finality time compared to Optimistic rollups. Examples of production apps that are running on zero knowledge rollups are the DeversiFi decentralized exchange and the Immutable X NFT exchange. 

Zero knowledge rollups tend to support custom and specialist apps that are specifically coded for the rollup technology. However, several rollup projects are working on releasing zero knowledge rollups that will allow projects to launch their smart contracts on the layer 2 without any additional code development.

Author: Ross Middleton, co-founder and CFO at DeversiFi  

Ross is the co-founder of DeversiFi, a layer 2 decentralized finance (DeFi) trading platform powered by StarkWare’s scalable technology. He is responsible for finances as well as looking after DeversiFi’s project partners and biggest customers. 

Previous to DeversiFi, Ross worked at the Ethfinex and Bitfinex exchanges. Before joining crypto, Ross was a professional energy trader and analyst in London for ten years. He worked on global energy trading desks at companies such as Centrica, Gazprom and RWE to deploy funds into advanced proprietary fundamental-backed trading strategies. Outside of the trading world, he is a committed angel investor and Ironman triathlete. Ross brings a wealth of both non-traditional and traditional asset trading and commercial experience as well as connections to the alternative finance space. Ross holds a BSc in economics.