- It is clearly seen by all of us that in recent years, there has been a trend ongoing between various cryptocurrency companies.
- Nowadays, most cryptocurrency companies have decided to begin with their own layer-2 blockchain solution, Ethereum.
Behind Optimism, OP Labs has just gotten some heat in the past about not having fraud secure its mainnet, which eventually includes the CEO of Offchain Labs. There are also some promising innovations that have come up when everyone needs additional security standards so that security and safety can be maintained in various transactions.
Meaning of Zero Knowledge Proof
This is nothing but a cryptographic technique where there is no information that needs to be revealed during a transaction except for the exchange of some value known to both the prover and verifier. This is the idea behind zero-knowledge proof which the user can prove to another user.
Also, there are some properties of Zero Knowledge Proof and they are Soundness, Zero-Knowledge, and Completeness. There is also a surprising pattern and it has many top Ethereum aficionados predicting the most promising layer-2 blockchains that will not be using the OP Stack’s rollup technology.
The main difference between finalizing transactions and optimistic rollups is that they are almost instantaneous, but on the other side, optimistic rollups are just a process that can take minutes or even days to finalize. This is the latest issue with the particular protocol and the dissonance between the recent commercial track record and the widely held vision for the future has raised the question of whether the OP stack is an interim solution for companies or not.
Coin base’s Chosen Blockchain Brand Sees Zero Threat from Zero Knowledge
Blockchains that are built on top of a base blockchain are called Ethereum Layer 2 and they are the ones that enable cheaper and faster transactions. Also, over the last six months, they have very quickly released new scaling products to the overall market.
The ‘Base’ layer 2 of the recently announced cryptocurrency exchange named Coinbase was the one that was built using Optimism’s OP Stack, a customizable blockchain framework that allows developers to create their own chains using Optimistic Rollup technology.
Also, the entire Crypto venture capital firm Andreessen Horowitz (a16z) has also worked with OP Stack to develop their own solutions, while Binance’s BNB Chain has launched an Ethereum-compatible testnet blockchain using the same technology.
There is also the concept of one trade-off which eventually means that zero-knowledge rollups always tend to be more technically complex and many of the projects that ultimately use them are also considered to be in a more immature state of development. Coming towards the other downside of zero knowledge, which is based systems, they tend to be very computationally intensive along with requiring specialized hardware.
One should always remember that zero-knowledge has great potential to save costs while preserving the privacy of different users. Similarly, it is also very easy to use the same technologies that support zero knowledge and are also very efficient.