The issue of Ethereum’s high fees is on the rise. The NFTs fever, decentralized finance (DeFi) and the price increase attracted more users to the network.
As a result, a “bottleneck” was formed due to the network’s lack of capacity to meet all demand.
For this, second layer scalability solutions, such as Zk-rollups, were created. On March 24, the Hermez Network officially launched this solution on Ethereum.
The project’s CEO, David Schwartz, talked to CriptoFácil and explained about the project.
Lightening the weight
Second-tier solutions, as the name suggests, are protocols that process transactions outside the main blockchain.
In this way, the amount of data processed is reduced, relieving the burden on the network. In the case of Ethereum, zk-rollups are a way to create scalability in the second layer.
In view of the complexity of the topic for first-timers, David Schwartz explains in a simplified way:
“A zk-rollup is a compression technique whereby transactions are processed outside the main blockchain. However, the guarantee that the transactions were processed correctly is given through the ‘zero-knowledge’ technology. ”
He adds that, in this case, the effectiveness can be up to ten times. That is, a transactional process can occupy ten times less space within Ethereum.
Schwartz goes on to explain that:
“In the case of correction, the system can generate a zero knowledge proof which is written on the Ethereum blockchain, along with the compressed transaction data that is needed to reconstruct the complete state. ”
Through this solution, Hermez Network allows transactions in Wrapped Bitcoin (wBTC), USDT, Dai, Ether and HEZ (project token) to be executed more quickly and cheaply.
With the entry of Ethereum 2.0, zk-rollups will work even better with the network, through improvements in terms of encryption and data availability.
Vitalik Buterin, inclusive, spoke recently about this relationship between Ethereum 2.0 and rollups, ensuring good connectivity.
Very good, but how do I use it?
It is possible to use zm-rollups from Hermez Network, reducing transaction costs in some ways.
David Schwartz explains how to do it through the platform:
“Users have an online wallet at Our site, where they can deposit funds already in the second tier and transact. ”
In addition, as the project gains more popularity, exchanges and other platforms are likely to adopt Hermez Network’s zk-rollups.
Thus, in the interface of these platforms, it will be explicit how to use this scalability solution to pay lower fees.
What about smart contracts?
As stated, DeFi and NFTs contribute to the “swelling” of the Ethereum network through smart contracts executed.
Schwartz says that the low transactions offered by zk-rollups also apply to smart contracts:
“Zk-rollups create blocks that offer lower rates for transactions and for executing smart contracts. I am sure that the DeFi branch will be able to benefit from the main features of zk-rollups, such as quick transactions. ”
Although Ethereum 2.0 did not fully migrate to the Proof of Participation (PoS) mechanism, rollups represent a valid scalability solution until then.
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