The Rise of zkSync: Over 200,000 Independent Deposit Addresses

According to reports, according to data from Dune Analytics, the number of independent deposit addresses in zkSync Era has exceeded 200000, reaching 210049 at the time of writing, and the current total lockup amount is $93430469.

Data: The number of independent deposit addresses of zkSync Era has exceeded 200000

Here’s what you need to know about the reports stating that the number of independent deposit addresses in zkSync Era has exceeded 200,000, reaching 210,049 at the time of writing, and the current total lockup amount is $93,430,469.

What is zkSync?

zkSync is a Layer 2 scaling solution for Ethereum that uses ZK-rollups. In essence, it allows for the processing of up to 2000 transactions per second (tps), significantly improving the scalability of the Ethereum network. It works by bundling multiple transactions off-chain and committing them to the Ethereum mainnet while ensuring that the transactions remain secure and transparent.

Why is the number of independent deposit addresses increasing?

There are several reasons that contribute to the increasing number of independent deposit addresses in the zkSync Era. One of the most significant factors is the lower gas fees compared to the Ethereum mainnet. With the gas fees on the mainnet reaching an all-time high in early 2021, users are looking for more affordable scaling solutions.
Another contributing factor is the ease of use of the zkSync network. With an intuitive interface and simple deposit and withdrawal processes, zkSync is becoming more accessible even to non-tech-savvy users. Additionally, zkSync supports a wide range of ERC-20 tokens, providing users with more options for interacting with the network.

How does the total lockup amount impact the network?

The current total lockup amount of $93,430,469 indicates the amount of funds that have been deposited into the zkSync network. This is a positive sign for the network’s growth and overall adoption rate.
As the total lockup amount increases, it provides more liquidity to the network, making it more attractive to new users and businesses. This can ultimately lead to increased use cases and more significant developments on the platform.

What are the benefits of using zkSync?

One of the significant benefits of using zkSync is the faster transaction processing times. With up to 2000 tps, transactions can be completed in seconds. This makes it an ideal solution for high-frequency trading and other time-sensitive operations.
Additionally, zkSync’s lower gas fees make it a more cost-effective solution compared to the Ethereum mainnet. This can benefit small businesses and individuals who may not have the budget to afford high gas fees.

What are the challenges of using zkSync?

While zkSync offers several benefits, it also comes with its own set of challenges. One of the primary concerns is the limited number of DApps currently available on the platform. As the platform is still in its early stages, more developers need to create DApps to provide users with a broader range of options.
Another challenge is the reliance on a trusted setup. While zkSync ensures transparency with its rollup architecture, it still relies on a trusted setup ceremony to guarantee security. The ceremony requires participants to run a secure computer program, and if any corrupt participants are included, the security of the network could be compromised.

Conclusion

The growth of independent deposit addresses on the zkSync network is a promising sign for the platform’s development and adoption. With faster transaction processing times and lower gas fees, it offers businesses and individuals alike a more affordable and practical solution to interact with the Ethereum network. However, there are still challenges that need to be overcome for zkSync to reach its full potential.

FAQs

1. How secure is zkSync?
The zkSync network aims to provide a high level of security through its ZK-rollup architecture. However, it still relies on a trusted setup ceremony, which could be compromised if corrupt participants are included.
2. Can I use zkSync for high-frequency trading?
Yes, zkSync’s fast transaction processing times make it an ideal solution for high-frequency trading and other time-sensitive operations.
3. Is zkSync more affordable than the Ethereum mainnet?
Yes, zkSync’s lower gas fees make it a more cost-effective solution compared to the Ethereum mainnet.