Huobi Research Institute Predicts zkEVM will inject life into Ethereum

LONDON, Feb. 17, 2022 /PRNewswire/ -- Huobi Research Institute, the leading blockchain research organization, has predicted that invested development in zkEVM, a virtual machine that executes smart contracts while being compatible with zero-knowledge proof computation, will increase the Ethereum blockchain's competitiveness in the coming years, putting an end to talk of how Ethereum's heydays are over.

Layer 2 rollup solutions are widely expected to alleviate current traffic bottlenecks on the Ethereum blockchain so scaling can be achieved, with the potential to play a role on other public chains in the longer term.

In a report titled "Will zkEVM be Ethereum's Savior?", released by Huobi Research Institute, the two mainstream Layer 2 rollup solutions, Optimistic Rollup and Zero Knowledge (ZK) Rollup are compared, with the consensus being that while Optimistic (OP) Rollup currently holds a much larger percentage of the Rollup market versus ZK Rollup, the latter outshines the former via a combination of better performance, lower transaction fees and unconstrained exit times.

Despite its advantages over OP Rollup, ZK Rollup's current major drawback lies with its limited compatibility, compared to OP Rollup. ZK Rollup is currently only compatible with payment and transaction applications, while OP Rollup supports a greater variety of applications. The lack of development for ZK Rollup is a partial factor behind its currently compatibility weakness.

The case for zkEVM

In order for ZK Rollup to achieve larger market share by running smart contracts on Layer 2 for verification on the Ethereum mainnet, a virtual machine, zkEVM holds the key. In addition, two further conditions need to be fulfilled: Firstly, zkEVM needs to be compatible with current EVM so codes on Layer 1 can be executed immediately on Layer 2; secondly, zkEVM needs to be capable of producing proofs for various operations while being efficient with computation and storage resource consumption.

Such a scenario looks set to pass with the development of a new general purpose Zero Knowledge proof scheme called "PLONK". This new proof scheme does not produce the proof by performing calculations on the entire circuit; instead, it focuses on only verifying constraints in the circuit. The whole circuit will be verified so long as the gate and copy constraints are verified. In addition, a trust mark can be attributed to the whole unit instead of the partial, so the verification process is sped up.

Today, ZK Proof-friendly projects such as zkSync 2.0 and Hermez, which are EVM compatible, have been launched in testnet, and the future for zkEVM, and its potential for ZK Rollup and the Ethereum blockchain, looks more promising than ever.

"ZK Rollup has vastly increased total transaction volumes on the Ethereum Highway, and concentrated development of zkEVM will ensure ZK Rollup's capability to provide comprehensive support for various applications, cementing its position as a pioneer in the Rollup space," said Mengchu Jiang, researcher at Huobi Research Institute and co-author of the report. "The potential is magnificent – new projects could be deployed on Ethereum at lower cost while still benefiting for the mature and powerful Ethereum ecosystem."

"zkEVM by no means marks the end-of-the-line for Rollup," said Xiaopeng Han, researcher at Huobi Research Institute and co-author of the report. "The discussion should not be about whether zkEVM will come to pass, but when it will.

To download the full report, click here.

About Huobi Research Institute

Huobi Blockchain Application Research Institute (referred to as "Huobi Research Institute") was established in April 2016. It is committed to researching and exploring new developments in the global blockchain industry. Its goal is to accelerate the research and development of blockchain technology, promote its applications, and improve the global blockchain industry ecosystem. Huobi Research Institute covers industry trends, emerging technologies, innovative applications, new business models, and more. Huobi Research Institute partners with governments, enterprises, universities and other institutions to build a research platform that covers the entire blockchain industry. Its professionals provide a solid theoretical basis and analyze new trends to promote the development of the industry.

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SOURCE Huobi Research