As a researcher with experience in blockchain technology, I’m excited about the recent development of ZK Compression on Solana. The potential cost savings and scalability gains are significant, especially for large-scale operations such as airdrops to a million users. The use of zero-knowledge proofs and sparse state trees is an innovative approach that could revolutionize how data is stored on the blockchain.
The Solana blockchain network has introduced a fresh feature called ZK Compression, which was developed in partnership between Light Protocol and Helius Labs.
Launched on June 21, the solution aims to slash on-chain storage costs by 99%.
With ZK Compression, developers can theoretically save vital data on Solana’s less expensive storage by using zero-knowledge proofs for data compression. This approach maintains the security and performance levels of the blockchain.
Through the use of sparse state trees, data hashes of off-chain information are kept on-chain for verification, thereby guaranteeing data integrity while drastically reducing storage expenses.
Based on Light Protocol’s information, compressing 100 token accounts using ZK Technology can save approximately 0.0004 SOL in storage costs, contrasting the typical 0.2 SOL expense—resulting in a remarkable reduction of around 5000 times.
As an analyst, I’m thrilled to share exciting news with you all. Today, we’re taking a significant leap forward by integrating ZK (Zero- Knowledge) compression directly onto Solana’s L1 (Layer One), eliminating the need for L2 (Layer Two) solutions. This game-changing development challenges previous assumptions about Solana’s scalability on the L1.— mert | helius | hSOL (@0xMert_) June 21, 2024
As a data analyst, I’ve observed that for massive-scale events like airdrops involving over a million users, potential expenses can be significantly reduced from an estimated $260,000 down to approximately $50.
Mert Mumtaz, CEO of Helius, highlighted the significant cost savings and scalability benefits that ZK compression has brought about.
“I summarize that by compressing on-chain state, we can achieve a 10,000x improvement in scale and move one step closer to constructing The Financial Computer – a globally accessible, unstoppable, atomic state machine synchronizing data at the speed of light.”
Austin Federa, Solana’s Head of Strategy, noted that this new approach addresses the expensive issue of on-chain account storage.
As a crypto investor, I’ve come to understand that ZK Compression brings about cost savings akin to what cNFTs achieved for NFTs in terms of tokens and accounts. This means that we can expect the creation of new products that will draw more users to the blockchain.
As a crypto investor following the Ethereum ecosystem closely, I’ve noticed some concern among community members regarding the latest proposed primitive. For instance, Alex Gluchowski, the founder of ZKSync, voiced his critique on X in a recent statement.
As a researcher, I’ve come across a significant shift in the blockchain landscape. The monolithic theory surrounding Solana has crumbled unexpectedly, leaving an impressionable mark. In contrast, ZKsync has been steadily advancing Ethereum’s future with asynchronous composable zero-knowledge (ZK) technology. This week, they unveiled a major development.
In a Reddit post, Ethereum investor Ryan Berckmans expressed criticism towards the recent announcement, labeling his disapproval as “unjustified obfuscation” instead of calling it “unethical BS” for not clearly identifying the new approach as a Layer 2 network.
“Their new product is actually an L2. L2s are a winning model,” Berckmans stated.
Likewise, within the cryptocurrency community, individuals including Adam Cochran have argued that Solana’s compression tool functions similarly to a Layer 2 solution. However, the developers of this tool have chosen to present it in a different way.
Despite Mert’s forceful objections and derisive remarks, compression in the context of blockchain technology is referred to as Level 2 (L2) processing. This is evident from the very posts he commends, which clearly state:
— Adam Cochran (adamscochran.eth) (@adamscochran) June 23, 2024
Cochran pointed out, “Someday, the Solana community will understand that what they’ve constructed is an effective L2 solution with validity rolls up, rather than a single monolithic chain.”
Anatoly Yakovenko, the co-founder of Solana, countered by highlighting both the similarities and differences between ZK Compression and Layer 2 solutions:
As a crypto investor, I find ZK Compression to be unique among L2 (Layer 2) scaling solutions due to its simplicity. Unlike other networks, it doesn’t rely on a security council multisig, chain ID switching, a governance token, or an external sequencer for its functionality. Instead, it uses Zero-Knowledge Proofs (ZKPs), which enable the verification of transactions without revealing their contents, offering enhanced privacy and scalability.
Anatoly commented, “Validators on the Solana network continue to receive all transaction fees. Essentially, it functions similar to a Layer 2 solution without the common criticisms associated with Layer 2s.”
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2024-06-24 13:00