By the end of this lesson, you will be able to:
BNB Chain's ZkBNB is an innovation targeted to have a significant impact on building large-scale BNB Smart Chain-based applications with guaranteed security and transaction speed, faster finality, and significantly reduced transaction fees. Its launch follows the launch of BNB sidechains earlier this year, a framework for creating sidechains within the BNB Chain ecosystem.
In the context of blockchain, zero-knowledge refers to a proof system where one can prove possession of certain information, without revealing the actual information. This allows for greater privacy and security in transactions on the blockchain. Zero-knowledge proof (ZKP) is a cryptographic technology that allows the truth of a piece of information to be verified without revealing the information itself. Zero-knowledge proofs are expected to play an increasingly crucial role in the world of blockchain and Web3 as their applications are expected to become more widely adopted.
zkRoll-ups are a scaling solution for blockchain networks that facilitates the batching of multiple transactions into a single, larger transaction that is then recorded on the blockchain. zkRoll-ups facilitate bundling of hundreds of transactions into a single batch off-chain and generate a cryptographic proof to prove the validity of all the transactions. zkRoll-ups provide a balance between scalability and security and are suitable for high-scale, low-latency settings.
ZkBNB is built on ZK (Zero Knowledge) Rollup architecture. zkRollups is a Layer-2 solution where all the computations and state changes are done off-chain, that is on a sidechain. In this architecture, a summary of the changes along with some cryptographic proofs for proving the validity of these changes are posted to the Mainnet.
Like zkRollups, ZkBNB has the capability to bundle (or "roll-up") hundreds of transactions into a single batch (Rollup Block) off-chain and generate a cryptographic proof. These proofs can come in the form of SNARKs (succinct non-interactive argument of knowledge), which can prove the validity of every single transaction in the Rollup Block. It ensures that all funds are held on the BSC, while computation and storage are performed on BNB Sidechains with less cost and fast speed. Furthermore, thanks to the use of zk-SNARK proofs, ZkBNB shares the same security as that of BNB Smart Chain.
There are several reasons why one might choose to use zkBNB, which is the implementation of zero-knowledge proofs on the BNB Smart Chain.
Compliance: With zkBNB, decentralized finance (DeFi) applications can prove compliance with regulations without revealing any private information of the users.
Scalability: By using ZK-Rollup technology, zkBNB allows for increased scalability on the BNB Smart Chain, enabling more transactions to be processed per second.
Security: ZkBNB shares the same security as BNB Smart Chain does. Users do not have to trust any third parties or keep monitoring the Rollup blocks in order to prevent frauds.
Cost-effective: zkBNB is more cost-effective than other privacy-preserving solutions, as it does not require the use of an off-chain solution such as a sidechain or a layer 2 solution.
Currently, ZkBNB implements the following features:
Same Security as that of L1: The ZkBNB shares the same security as BSC does. Due to the use of zkSNARK proofs, the security is guaranteed cryptographically. Users do not have to trust any third parties or keep monitoring the Rollup blocks in order to prevent frauds.
Seamless L1-L2 Communication: BNB and BEP20/BEP721/BEP1155 tokens created on BSC or ZkBNB can flow freely between BSC and ZkBNB. Built-in instant AMM (Automated Market Maker) swap: ZkBNB allows digital assets to be traded without permission and automatically by using built-in liquidity pools.
Built-in NFT marketplace: Developers can build marketplaces for crypto collectibles and NFTs (non-fungible tokens) out of the box on ZkBNB. Fast transaction speed and faster finality: With performance a key priority for BNB Smart Chain, ZkBNB puts up astonishing figures with an ability to support 100 million addresses and handle up to 10 thousand transactions per second (TPS), which are unparallel figures in the blockchain industry. Gas Tokens: The gas token on the ZkBNB can be either BEP20 or BNB, with fees up to 10x lower
"Full exit" on BSC: If a user feels that his transactions are censored by ZkBNB, at any time, they can request a "full exit" operation to withdraw funds. This means users can withdraw funds at any time.
User experience has always been the top priority for the BNB Smart Chain. This is why ZkBNB was built with blockchain-based games and social media projects in mind.
In a nutshell, all the developers in the Web3 community can take advantage of the incredible features offered by ZkBNB. In particular, anyone looking to develop NFT dApps, can make the most of ZkBNB thanks to the built-in NFT marketplace and API services. These features make it simple to setup an 'out-of-the-box' marketplace for crypto collectibles and NFTs.
Developers who wants to transfer BNB and other digital tokens (BEP20/BEP721/BEP1155)
Individuals looking to perform transactions with efficient gas fees and rapid transaction processing can benefit from utilizing blockchain technology that prioritizes low fees and fast processing times.
ZkBNB offers a set of robust REST API services, ensuring that developers with previously established gaming or content projects can launch their projects on Web3 quickly and seamlessly with ZkBNB.
ZkBNB-based built-in naming service offers legible names in transactions, even storing all user addresses and receiving crypto, tokens, or NFTs. This feature of human interaction, although simple, goes a long way to lending a sense of agency to a space that is looking to attract new users.
ZkBNB is a Layer-2 scaling solution built on top of the BNB Smart Chain (BSC) that uses Zero-Knowledge proofs to improve transaction throughput and reduce fees. Here are some potential use cases for ZkBNB:
Decentralized Finance (DeFi): ZkBNB can be used to support DeFi applications such as decentralized exchanges (DEXs), lending platforms, and stablecoins. By using ZK proofs to bundle transactions together, users can save on gas fees and benefit from faster transaction times.
Gaming: ZkBNB can be used to build blockchain-based games that require fast, secure, and low-cost transactions. This can help to improve the user experience and increase adoption of blockchain gaming.
NFTs: ZkBNB can be used to support the creation, trading, and ownership of non-fungible tokens (NFTs) on BSC. By leveraging ZK proofs, users can ensure that their NFT transactions are secure and efficient.
Supply chain management: ZkBNB can be used to build blockchain-based supply chain management solutions that require fast and secure transactions. By leveraging ZK proofs, users can ensure that their transactions are transparent and immutable.
Voting and governance: ZkBNB can be used to support voting and governance systems that require secure and tamper-proof transactions. By leveraging ZK proofs, users can ensure that their votes are counted accurately and that governance decisions are made fairly and transparently.
Overall, ZkBNB has the potential to improve transaction throughput and reduce fees on BSC, making it a useful tool for a wide range of blockchain-based applications.