Layer 2 networks became the hot topic in 2023. We can see the rise of new projects that offer scalability solutions, while adding additional privacy features to layer 1 blockchains. The launch of Arbitrum’s token has already become one of the most prominent crypto events in 2023. Now we see the rise of zkSync Era, which is already seen as the main competitor to existing layer 2 solutions.
What’s the Difference Between ZK and OP Rollups?
Arbitrum and zkSync Era represent two different technologies: Optimistic Rollups and Zero Knowledge (ZK) Rollups:
- Optimistic Rollups are Ethereum scaling solutions that use proof of fraud and run on an EVM-compatible Optimistic Virtual Machine (OVM).
- ZK Rollups are the way to scale a blockchain using zero-knowledge proofs: ZK-SNARKs or ZK-STARKs. To put it simply, ZK Rollups prove the correctness of transactions without disclosing their content.
Privacy, scalability, and compatibility are three important factors while accessing these two technologies:
- Compatibility with Ethereum smart contracts is one of the biggest advantages of Optimistic Rollups. However, they provide a relatively low level of privacy. Theoretically, this technology can scale Ethereum by 10-20 times.
- In theory, ZK Rollups provide faster transactions with a high level of privacy. A drawback of this technology is the complexity of the calculations. According to estimations, ZK Rollups can scale Ethereum up to 200 times.
Data analysis allows us to compare L2 solutions and make some conclusions about their efficiency.
Detecting Differences Through a Data-Driven Approach
Which solution is better and more efficient? CryptoRank compared L2 networks using the following indicators
- Total value locked (TVL)
- 30D transactions
- Transaction per second (TPS)
- Swap token fee
- Total Value Locked: Arbitrum and Optimism have already captured the impressive share of TVL that gives Optimistic Rollups an advantage. However, zkSync and Polygon zkEVM show a rapid growth in TVL, which is a positive fact for ZK Rollups.
- 30-day transactions: Here we see a slight lead for Optimistic Rollups: 44 million against 33 million.
- Transactions per second: Optimistic Rollups appear to work faster with an average of 2.3 TPS compared to 1.5 TPS for ZK rollups.
- Swap token fees: It is now cheaper to swap assets through Optimistic Solutions with an average fee of $0.24.
Conclusion
Despite the fact that ZK Rollups are theoretically more attractive, Optimistic Rollups currently appear to be a more efficient and attractive solution. Now OP Rollups are cheaper, faster, and more popular among users. The reason is simple – they have already onboarded crypto users and developers who trust the technology. Additionally, their use and popularity has also been boosted by the ARB airdrop.
However, ZK Rollups are gaining popularity very quickly. With more projects coming into mainnet, this technology has a chance to compete with Optimistic Rollups in the near future.
