ZKsync is a technology that aims to increase the Ethereum network’s scalability and transaction costs. It utilizes zk-Rollups, a zero-knowledge proof mechanism, to combine numerous transactions into one handled off-chain and confirmed on the Ethereum blockchain. This solution dramatically decreases the computing demand on the leading Ethereum network, resulting in cheaper transaction fees and faster transactions. ZKsync varies from optimistic rollups, which believe transactions are valid unless proven otherwise. Instead, ZKsync consistently creates proof that all transactions are authentic, so its costs exceed optimistic rollups.
Matter Labs Drops “ZK” Trademark Applications
On June 2, 2024, Matter Labs announced abandoning their trademark applications for “ZK.” The decision came after a considerable response from the zero-knowledge group. Researchers such as Shafi Goldwasser and Silvio Micali have condemned the attempt to trademark a phrase extensively used for public benefit.
The zero-knowledge community, which included Shafi Goldwasser, Silvio Micali, Eli Ben-Sasson, and Sandeep Nailwal, contended that zero-knowledge proofs should remain a public asset. Matter Labs’ trademark effort was interpreted as a threat to the concept. In response, Matter Labs acknowledged the difficulties in agreeing on intellectual property problems. They underlined their adherence to open-source ideas while rejecting traditional intellectual property conceptions.
Binance Lists ZKsync
On June 17, 2024, Binance listed ZKsync (ZK) with multiple trading pairs. These pairs included ZK/BTC, ZK/USDT, ZK/FDUSD, and ZK/TRY. This listing was a significant milestone, providing users with diverse trading options.
Binance introduced the ZK Token Distribution Program to address community concerns about token distribution. From June 17 to July 16, 2024, Binance will distribute 10.5 million ZK tokens to up to 52,500 eligible users. Eligibility criteria included conducting at least 50 transactions on ZKSync Era between February 2023 and March 2024.
Moreover, ZKsync utilizes EVM-compatible ZK-SNARK roll-up technology. This technology enhances transaction speed and reduces costs on the Ethereum network. Such innovations have positioned ZKsync as a key player in the Ethereum Layer 2 scaling solutions landscape.
Velocore Hack and Security Measures
In May 2024, a Velocore hack led to a $10 million loss and halted the Linea Blockchain for an hour. This incident underscored the importance of robust security measures in blockchain technology. ZKsync’s emphasis on security and technological advancement continues to reassure its community. Velocore issued an emergency notice about the hacker’s exploitation, resulting in liquidity loss. They confirmed that CPMM pools were affected and that they were working with security teams. Furthermore, Velocore has also requested centralized exchanges(CEX) to freeze the stolen assets to reduce further damages.
The Velocore team discovered the exploit technique and is launching an on-chain negotiation process to resolve the vulnerability. They are also attempting to locate the hackers using the traces left behind. The platform said: “We’ve identified the exploit mechanism and are setting up an on-chain negotiation process.”
Regulatory Challenges Lead to Closure of ZigZag on zkSync LiteThe Hack’s Impact on Velocore’s Native Token
The Velocore attack briefly halted block generation on the Linea blockchain, interrupting the normal flow of activities. Although the blockchain resumed operations after an hour, hackers took advantage of this chance to move over 700 ETH to the Ethereum mainnet. Due to the breach, Velocore’s native token VC suffered a loss of more than 5%.
Conclusion
In summary, the withdrawal of the “ZK” trademark applications and the new Binance listings highlight the project’s commitment to community values and technological advancement. As ZKsync continues to innovate, it remains a significant player in the Ethereum Layer 2 scaling solutions space. Investors and enthusiasts will undoubtedly keep a close watch on its future developments.
