What is Zero-Knowledge Rollup?
A blockchain scaling technique that bundles hundreds of transactions into a single proof, improving throughput while maintaining privacy through zero-knowledge proofs.
ZK-rollups combine two innovations: scaling through batching and privacy through zero-knowledge proofs.
How It Works
- Hundreds of transactions are collected off-chain
- A zero-knowledge proof is generated that verifies all transactions are valid
- Only the proof (tiny compared to the raw transactions) is submitted on-chain
- The main chain verifies the proof in a single operation
Privacy Benefits
- Transaction details can remain private while the proof guarantees correctness
- Observers see only the proof, not individual transaction data
- Enables private smart contract execution at scale
Projects
- zkSync: General-purpose ZK-rollup for Ethereum
- StarkNet: Uses STARKs (no trusted setup needed)
- Polygon zkEVM: EVM-compatible ZK-rollup
Relevance to Privacy
ZK-rollups demonstrate that privacy and scalability aren't mutually exclusive. DERO's homomorphic encryption approach achieves similar goals through a different cryptographic path.
Related Terms
Privacy Coin
A cryptocurrency designed with built-in privacy features that hide transaction amounts, sender and receiver addresses, or both.
Zero-Knowledge Proof
A cryptographic method by which one party can prove to another party that they know a value, without conveying any information apart from the fact that they know the value. This allows authentication and verification without exposing sensitive data.
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