As an experienced analyst, I am genuinely impressed by the groundbreaking innovation introduced by Light Protocol and Helius Labs in the form of ZK Compression on the Solana blockchain. The potential for cost savings and enhanced scalability is immense, as demonstrated by Light Protocol’s examples of reduced costs for developers.
Light Protocol and Helius Labs, both well-known Solana developers, have unveiled an advanced technology called “ZK Compression.” The objective of this game-changing innovation is to markedly improve the scalability and cost savings of applications operating on the Solana blockchain. By officially announcing this novel approach, these firms aim to transform the way data is stored and managed within the Solana network.
Through state compression, ZK Compression technique enables developers to store particular types of data economically using Solana’s less costly ledger space instead of account space. This methodology entails generating a “digital fingerprint,” or hash, of off-chain data and depositing it on-chain for validation. The mechanism utilizes a structure known as “sparse state trees” to accomplish this, as outlined in the ZK Compression documentation.
As a researcher examining Light Protocol, I can share that this innovative technology brings about a significant cost savings for developers. For example, storing 100 compressed token accounts costs around 0.000004 SOL, while the typical expense hovers around 0.2 SOL – a remarkable reduction of over 5000-fold in price. Furthermore, compressing a PDA (Program Derived Address) account can result in cost savings up to 160 times greater. Light Protocol guarantees the authenticity of the compressed state through small zero-knowledge proofs or validity proofs.
Crypto Community Initiates a Debate
As a crypto investor, I’ve been closely following the insights shared by Helius Labs founder Mert Mumtaz on social media platform X. He recently drew attention to the significant cost savings that can be achieved in the crypto world. To put it into perspective, he gave an example: “Consider a company conducting an airdrop to reach one million users. The cost for this would have amounted to over $260,000 just for state fees alone during normal market conditions. But now, the same transaction costs around $50 – a mind-blowing 5,200x reduction in cost.”
Although there’s been considerable enthusiasm among the Solana community regarding the introduction of the new primitive, it has drawn scrutiny from certain members within the Ethereum community. Alex Gluchowski, the founder of ZKsync, voiced his concerns about it in relation to X.
The entire theory surrounding Solana’s monolithic structure has been shattered unexpectedly. On the other hand, ZKsync has been steadily developing an asynchronous and adaptable zero-knowledge (ZK) infrastructure for Ethereum. A significant announcement regarding this is forthcoming.
As a researcher studying the cryptocurrency market, I’d like to contribute my perspective to the ongoing discussion regarding Ethereum’s latest announcement. Ryan Berckmans, an Ethereum investor and price data analyst, has raised concerns about the characterization of this new approach. He criticized the lack of clarity in labeling it as a Layer 2 network, instead referring to it as “unethical BS.” Berckman firmly believes that Layer 2 solutions are the future, stating, “Their new product is actually an L2. L2s are a winning model.”
As a Solana investor, I’ve been following the ongoing debate about the merits of Zero-Knowledge (ZK) compression versus traditional Layer 2 solutions. In response to recent criticisms, Solana co-founder Anatoly Yakovenko eloquently defended ZK Rollups in our community’s Discord channel, highlighting several compelling advantages:
This second-layer (L2) solution doesn’t require a multisignature from the Security Council, eliminating the need for users to switch chain IDs. Additionally, it doesn’t necessitate a governance token or an external sequencer. Solana validators continue to collect all transaction fees. Essentially, it functions as a second-layer solution without the common complaints associated with such systems.
This discovery highlights the continuous advancements and cut-throat competition in the blockchain sector. ZK Compression signifies a major leap for Solana, possibly establishing a new benchmark for effectiveness and capacity in blockchain development.
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2024-06-24 11:19