ZKSync launches long awaited token in beginning of zero-knowledge tech era
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ZKSync, an Ethereum Layer 2 scaling solution developed by Matter Labs, has officially confirmed the launch date for its highly anticipated token for next week. Like other Layer 2s, zkSync presents itself as an efficient and low-cost method for Ethereum transaction processing. Current Ethereum Layer 2 solutions are so-called ‘Rollups’. They combine transactions made on the Layer 2 and ‘post’ them to the Layer 1 ‘Mainnet’ for validation. Most existing rollups like the popular Optimism and Arbitrum Layer 2s are so-called ‘Optimistic’ rollups. Zero-knowledge based rollups have the potential to be both cheaper and more secure. That is achieved thanks to zero-knowledge cryptography that can prove a certain condition without needing to reveal its full content. This saves on computation and storage.
As always with recent token launches, many traders kept a close eye on the launch announcement. So-called ‘airdrop farmers’ were engaging with zkSync for years in the hopes of a large token allocation. To some extent, the airdrop did not disappoint. A total of 695,232 wallets were eligible. This was calculated by zkSync on the basis of engagement with protocols and applications on its platform. On the other hand, as has become common, significant numbers of users voiced their disappointment across forums, X and other community channels. To filter out ‘industrial airdrop farmers’, known as sybils, zkSync had applied fairly strict criteria that also excluded many legitimate users.
Other projects, such as zkSync competitor Starknet, which also uses zero-knowledge technology, have faced similar user anger in the past. The risk is that post-airdrop, the chain becomes a ghost-town with little activity as airdrop farmers move on. However, in the case of zkSync, that may not happen. For one, the total airdrop amount of over 17% of all tokens is more generous than most recent token launches. Also, a fairly large amount of tokens remains unallocated to reward future use. Clearly, there is more to come. But what will matter most over the long-run will be if zkSync can prove the superiority of its technology and enable new use-cases with negligible fees. If the chain can help to bring back users to Ethereum who have left for fast, low-cost chains such as Solana, few of today’s users will have reason to complain.
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