L2 Labs has announced the launch of ZKSpace, a full-featured layer2 protocol based on ZK-Rollups. The team says the new protocol is designed to alleviate the suffering of Ethereum users by facilitating cost-efficient transactions, plus excellent scalability and security.
L2 Labs Unveils ZKSpace
The decentralized finance (DeFi) industry continues to witness exponential growth, with the total value locked (TVL) in DeFi projects now sitting at more than $180 billion, among which the TVL of Ethereum-based projects ranks first, according to DeFiLlama,
While the allure of yield farming and liquidity mining, amongst others, have succeeded in attracting millions of users to public chains and decentralized exchanges, GameFi andNFTs have ushered in playability and collection value to these networks, making them popular even outside the blockchain ecosystem.
Due to the current performance limit of regular blockchain networks, the exploration of the game field is still very much in its early stage. However, NFTs on the other hand have maintained an impressive level of popularity, with more and more influential persons from all walks of life focusing on purchasing, and issuing NFTs, with most of these people using Ethereum as their preferred network.
For context, OpenSea, the world’s largest NFT platform saw more than $3.4 billion worth of Ethereum-based NFT transactions in August 2021, an increase of more than 10x that of July 2021.
Despite the huge success of Ethereum and other public chains in recent years, these networks still face numerous challenges, including extremely high gas fees, a number of transactions per second (TPS), and more. For instance, a simple token swap of $100 on a DEX like Bancor or Uniswap often attracts a transaction fee of over $100.
ZKSpace Making DeFi Accessible to All
In a bid to make it possible for crypto market participants without deep pockets to continue to enjoy the dividends of decentralized finance (DeFi), L2 Labs, has launched ZKSpace, a full-featured Layer-2 protocol based on ZK-Rollups.
For those who are unaware, ZK-Rollups is a new Layer-2 scalability solution designed to offer users better security, cost-efficiency, and increased TPS, as compared to other solutions such as Plasma.
The L2 Labs team has made it clear that ZKSpace is a full-featured layer-2 protocol in the sense that it facilitates a vast array of transactions including DEXes, NFT minting, and payments, with support for both ERC20 and ERC721 token standards.
“In the future, the ZKSpace protocol can further improve layer-2 performance and will issue more products to enhance the user experience, extending the ecosystem environment of Layer-2 protocols. L2Labs will also promote the multi-chain ecological strategy of ‘Layer-2 for all,’ and deployment is considered according to the ecological development of public chains like BSC and Solana,” the team wrote.
What’s more, the L2 Labs team has hinted that a vast array of decentralized finance projects including ZKSwap, and ZKSquare are increasingly taking advantage of ZK-Rollups to offer users cutting-edge services with near-zero transaction fees.
“ZKSwap has implemented the complete function of Uniswap on Layer-2, reducing gas fees to a tenth of a percent, while ensuring the same security as Layer1. At present, there have been two updated ZKSwap mainnet versions, V1 and V2, achieving a series of remarkable milestones and running stably for nearly one year,” the team added.