Overview of ZK-Rollups vs Layer 1 (L1)

Summary: Rollups, or Layer-2 (L2) networks, provide a way to scale on-chain while also inheriting the security of their underlying Layer-1 (L1) blockchain (i.e. Ethereum). ZK-Rollups are a type of rollups that use zero-knowledge (ZK) technology to provide maximum data security without compromising on performance.

Blockchain networks face a scalability challenge: base Layer-1 (L1) chains, such as Ethereum, offer high security and decentralization, but at the cost of limited throughput and high fees. Layer-2 (L2) solutions address this by processing transactions off-chain and periodically submitting compressed results to Layer 1. In a ZK-Rollup (zero-knowledge rollup), the L2 bundles many transactions and generates a validity proof attesting to the correct new state. This succinct cryptographic proof is verified on Ethereum L1, which inherits Ethereum’s security guarantees for the L2 without replicating all execution on-chain. By offloading execution and utilizing proofs, ZK-Rollups significantly enhance throughput and efficiency while maintaining trustlessness. They achieve faster finality (with no week-long challenge delays) and lower costs per transaction, as minimal data is posted on-chain. In short, a ZK-Rollup, such as ADI Network, can handle many more transactions at a fraction of the L1 cost, without compromising on security.