What is ZKSwap and ZK-Rollup Technology?

ZKSwap is a protocol and decentralized cryptocurrency exchange that is based on ZK-Rollup technology. Its full name is the ZK-Rollups based Swap protocol.

Users of ZKSwap have the ability to exchange Ethereum (ETH) and ERC-20 tokens, and they also have the opportunity to earn Exchange Management Tokens (ZKS) through Community Mining.

ZKS holders have the ability to promote or propose projects to improve the functioning of the protocol, as well as vote on whether or not tokens should be listed on ZKSwap.

What is the ZK-Rollup?

On the Ethereum network, ZK-Rollup is a layer 2 solution that uses zero-knowledge proof as its foundation.

ZK-Rollup lessens the strain placed on Ethereum’s primary network by consolidating individual transactions and offloading some of the processing work to a third party.

Proofs requiring no prior knowledge are produced on an ongoing basis by the solution (zk-SNARKs). They are utilized by ZK-Rollup to facilitate transactions on the blockchain as well as negotiate the statuses of the primary network and the second layer.

What exactly is meant by “community mining”?

Users of the ZKSwap exchange work together to ensure the continued safety and liquidity of the platform through a process known as “community mining.” Reward points for community mining are distributed in the form of ZKS tokens.

Community mining encompasses the following:

Offering liquidity (also known as Proof-of-Liquidity-Mining, or PoL). During the Proof-of-Location phase, the exchange will disperse 14 million ZKS as payment for commissions in the Ethereum network (also known as Proof-of-Gas, or PoG). The production of zero-knowledge proofs (also known as Proof-of-ZK-Snarks, or PoZK) will take place during the PoG, and the exchange will release 9 million ZKS. Trading on ZKSwap (also known as Proof-of-TransFee, or PoT) will take place during the PoZK, and the exchange will release 14 million ZKS. The exchange is going to hand out 9 million ZKS while the PoT is going on.

ZKSwap is hard at work implementing ZKS staking, also known as Smart Contract Staking or Proof of Stake. The cryptocurrency exchange is going to hand out 9 million tokens while the staking is going on.

When was ZKSwap created, and who was its creator?

The members of the ZKSwap team choose to remain anonymous. ZKSwap is said to have approximately twenty knowledgeable blockchain developers on staff, according to the leader of the project, Alex Lee.

In the month of November 2020, ZKSwap initiated a testnet. The initiative was able to get an investment of $1.7 million from Bixin, SNZ, FBG, and Longling Capital within the same month.

ZKSwap’s primary network was first made available to users on February 15, 2021. A free distribution of 80 million ZKS was made available by the exchange on February 20.

How does ZKSwap work?

The ZKSwap platform facilitates user-to-user commerce through the use of Ethereum smart contracts. Additionally, they have the ability to contribute assets to the ZKSwap liquidity pool.

Through the interface provided by zks.app, the protocol can be accessed. It is necessary to have an Ethereum wallet, such as MetaMask, in order to connect.

ZKSwap is synced with the primary network and performs user transactions at the second level. The drawbacks of Ethereum, including its high transaction fees and insufficient network capacity, are rendered moot by ZKSwap’s implementation of this feature.

ZKSwap architecture consists of the following:

• User interface (UI); Ethereum smart contracts; zkswap server It contains a mempool (referred to as Mem Pool), a block proposal module (referred to as Block Proposer), a network state storage module (referred to as State Keeper), and a proof server (referred to as Prover Server).
• Smart contracts built on ZKSwap provide the essential connection between Ethereum and the exchange server. They are responsible for maintaining user balances and storing tokens.
• Transactions are handled by the ZKSwap server in a manner that is separate from the Ethereum network. The process goes as follows:

User transactions are added to the mempool;

The block proposal module groups user transactions;

The state storage module receives transaction data and updates the status of tokens at the second level; and finally, the proof server receives the updated state of the network and verifies the legitimacy of the transactions.

In order to accomplish this, it generates a non-interactive zero-knowledge proof (zk-SNARK) by employing the PLONK algorithm, which stands for “Permutations over Lagrange-bases for Oecumenical Non Interactive Arguments of Knowledge.” The proof server then sends the zk-SNARK to the ZKSwap smart contract that is hosted on Ethereum.

The ZKSwap smart contract validates user transactions and is responsible for receiving zk-SNARKs. Following that, they will have the ability to transfer tokens to Ethereum wallets.

How to Receive ZKS tokens?

ZKS are distributed as rewards to participants of airdrops and community mining on the market. Additionally, ZKS may be bought and sold on the cryptocurrency exchanges Huobi, Poloniex, and Uniswap.

The total number of tokens that will be issued is one billion ZKS. Through community mining and airdrops, ZKSwap will donate sixty percent of this amount, or 600 million ZKS, among users of the protocol.

One year following the initial launch of the main network, the ZKSwap team will be awarded 15% of the issue, which amounts to 150 million ZKS. Another twenty-five percent of the tokens will be distributed to ZKSwap ecosystem developers, investors, and project advisors, in addition to the Uniswap and Gate.io exchanges, for the purpose of providing liquidity for ZKS.