Matter Labs unveils a Layer-2 scaling solution for Ethereum ahead of the Istanbul upgrade

Matter Labs, a Layer-2 blockchain scaling research and development outfit, released the testnet of its flagship solution, called ZK-Sync. The sidechain allows Ethereum users to outsource processing responsibilities to a more performant layer in terms of transaction speed and cost. ZK-Sync uses rollup contracts alongside zero-knowledge proofs (ZKPs) to help ensure sidechain and cross-layer transfers remain private yet valid.

Why it matters:

• Matters Labs efforts to launch on Ethereum are practical only because of the upgrades added to the network’s impending Istanbul hard fork. Once in effect, EIP-2028 will lower the gas per byte of Calldata operations by a factor of four, from 68 down to 16 gas per byte. Calldata gas requirements were previously too high for “ZK-Sync-styled contracts,” so the upcoming upgrade is a welcomed opportunity for the layer-2 scaling development firm. Cheaper transaction costs would also benefit similar scaling solutions and could spark a surge in competition among layer-2 networks seeking to scale Ethereum. Istanbul is set to activate at block 9,069,000, which most anticipate will arrive this Saturday, Dec. 7.
• Any innovation in blockchain scaling is bound by the Scalability Trilemma, which states a network, sidechain or base layer, in the pursuit of performance, must trade off either security or decentralization. In the case of ZK-Sync, a group of validators manages the transfer of funds and the packaging of final account values into Ethereum blocks, a less than desirable system in terms of decentralization. An additional risk is the untested nature of rollup contracts. While exciting, rollup technology is still in development, yet these cross-chain solutions could end up storing massive amounts of capital. Since these contracts would potentially act as juicy honeypots for hackers, security, and with that, excessive testing, is paramount.