Top 9 ZK Rollup Coins in 2024 That Help in Scaling Ethereum

Introduction to ZK Rollup Coins

In this article, we have listed best zk rollup coins that are based on zero-knowledge rollup technology and have played a crucial layer in taking Ethereum’s scalability to the next level.

We have identified those coins that are based on well-known zero knowledge projects and can perform well in the future, given that the technology behind them has largely changed the Ethereum landscape. But you must DYOR (Do Your Own Research) before you invest your precious money in any of these rollup coins.

Before we move further, let us define what a zk rollup is. ZK stands for Zero-Knowledge and such a rollup is a technology that is used to scale Ethereum transactions and is often called a layer 2 scaling solution. A layer 2 network works separately from layer 1 (for example Ethereum) and is used to make layer 1 more scalable, and secure, and provide low-cost transactions.

A rollup bundles a batch of thousands of transactions into a single, bulky transaction (done via layer 2). These off-chain bundled transactions are verified for their accuracy by on-chain validity proofs. This dramatically scales the throughput (Number of transactions executed per second).

Best ZK Rollup Coins in 2024

1. MATIC

With $9 billion in market cap and a tremendous growth trajectory of Polygon, MATIC easily makes it to the top zk rollup coin list. A native of Polygon, MATIC is also the governance token of the network. The underlying zero-knowledge technology lowers the onus of Ethereum layer 1 to carry out thousands of transactions, thus increasing its scalability. The transactions processed by a rollup are not only faster but the gas fee associated with them is also significantly lower.

The transactions are rolled up into batches of transactions and then a single big transaction is broadcast back to Ethereum. This way, the cost (gas fee) of this single transaction is also divided among the network participants, thus lowering the fee considerably. Just compare these costs to a transaction done on Ethereum and you would be surprised to know that there is a sea difference between the two.

Polygon’s solution is based on creating validity proofs which can prove the accuracy of the transactions carried out on layer 2. The number of transactions that can be carried out on the Polygon Network is about 65000. The founders of Polygon might have discerned the benefits of this technology when they invested $ 1 billion into these zero-knowledge solutions. With the help of the these proofs, the transactions can be immediately confirmed on layer 1.

MATIC, in its initial days, was used for rewarding fundraisers. Later on, as the network proliferated, the Polygon POS (Proof of Stake) started using MATIC as a native token and is now used to pay the transaction fee. Both the validators and stakers are rewarded with MATIC for their contribution to the ecosystem.

MATIC Supply

The total supply of the MATIC token stands at 10 billion out of which more than 9,249,469,069 are currently in circulation.

2. Immutable X

Immutable X is a layer 2 scaling solution for Ethereum that allows the scaling of NFTs. The zero knowledge technology allows the network to provide a cheap and fast way of trading and mining NFTs. Immutable leverages the scalability via zero knowledge rollups and can speed up transactions significantly while lowering the gas fee.

Immutable, one of the Ethereum zk rollup coins, derives all the security features available in Ethereum layer 1. The transactions per second provided by Immutable are about 9000. IMX acts as a governance token of the ecosystem and is also used to pay transaction fees. The community members can vote for the future of the technology. The transaction fee collected is added to the staking pools and stakers can get rewarded in proportion to how much they stake.

IMX solves the scalability issues associated with the layer 1 blockchain trilemma. It also renders liquidity and good developer experience and offers zero gas fees. Immutable is built on STARK technology.

IMX Supply

The total supply of the IMX stands at 2 billion out of which 914,163,546 are currently in circulation.

3. CryptoGPT

One of the other best zk coins crypto is $GPT from CryptoGPT. It is another layer 2 scaling solution that is stated to have merged blockchain with artificial intelligence. It provides a monetization model for AI-driven data under which users can monetize their data while using apps based on gaming, lifestyle, and other niches to earn incentives. This way, in exchange for the data that users provide, they are rewarded with earnings.

The data is then sold in global marketplaces. This “AI to earn” model that allows gathering data with users’ permission lets data stored on-chain, which is then encrypted by the AI engine before being sold to the AI-based companies.

CryptoGPT ensures its security by using the Proof of Activity consensus mechanism. The transactions are scalable and secure and come with a low gas fee. The mass-adoption efforts of the company have resulted in 2 million active users thus streamlining billions of dollars into AI which is expected to bring new use cases in almost every field of human lives.

GPT Supply

The total supply of the GPT stands at 3 billion out of which 180,000,000 are currently in circulation.

If you want to make best of this bear market and want to know how to how a small amount of investment in cryptocurrency can bring you huge returns, join this Master Class by Dirk de Bruin, who has been in crypto space since 2015 and runs crypto education programs for blockchain enthusiasts globally. Good for both beginners and experts.

4. Loopring

With LRC as its native coin, Loopring uses a layer 2 scaling solution to run rollup-based Decentralized Exchange (DEX). The transactions, like other zero-knowledge solutions, are faster, cheaper, and more secure. Like MATIC, Loopring also uses validity proofs to provide a proving solution aimed at the accuracy of the transactions.

LRC, an ERC-20 token, works as a native token for the automated exchange protocol provided by Loopring. Being a DEX, the platform itself does not have any custodial rights over assets owned by its users. Loopring protocol provides a relayer, a wallet, and an app (layer 2).

It is the relayer that creates batches of rollups and helps update off-chain Merkle Trees. It is the relayer that sends data back to Ethereum. The app itself acts as a DEX and is governed by the relayer. The transactions come with zero gas fees and have fast finality.

The wallet has zero knowledge technology integrated into it and allows the trading of crypto. Users can not only buy and sell but can also provide liquidity to the network and can use defi applications.

LRC Supply

The total supply of the LRC stands at 1,373,873,397 out of which 1,331,430,935 are currently in circulation.

5. ZKSpace

It is another layer 2 Ethereum scaling solution that makes transactions fast and secure. It is a decentralized project that is layer 2 DEX and based on the Plonk zero knowledge proofs. By rolling up the transactions into batches, the transaction speed up and this offloads the burden on the main chain. Being a DEX, the complete control of the assets is of the users. Traders can connect to its zks.app and connect their wallets to it for carrying out transactions.

It is an AMM-modeled DEX that is based on zero-knowledge. Provides a unique payment service called ZKSquare. It also provides an NFT marketplace that goes by the name of ZKSea for buying and selling NFTs. Loopring uses a layer 2 server for tracking users’ transactions and sending these approved transactions to a swap engine for further processing. The ZKSpace security is taken care of by Ethereum-based smart contracts.

Users can stake the tokens using the PoS staking system

ZKS Supply

The total supply of the ZKS stands at 1 billion out of which 197,440,000 are currently in circulation.

Quantum Leap is a cryptocurrency Video Course for beginners who want to dive into the basics and want to know how investing in crypto can add to their financial freedom. A course that tells you the wealth-building secrets even if you have no prior experience in the blockchain technology. A great way to be well-informed on crypto and making a fortune out of it.

6. MINA

Unlike other solutions listed here, MINA is a layer 1 blockchain network and MINA is its native coin. This protocol is popular for being the lightest blockchain network that can easily fit into your mobile. As the blockchain size is only 22 kb, the entire blockchain network can be saved on your mobile without making it slow. MINA acts as a governance token and is also used as a medium of transaction fees. In MINA protocol, every participating node can verify the blockchain by spending only a few data kilobytes.

As it uses zero knowledge proofs, users, instead of sharing their entire data, need to prove that the data is valid. As the proof is light, MINA makes it easy for the participants to do away with the problem of storing the entire blockchain data. MINA ensures privacy, scalability, and high energy consumption problems associated with the other layer 1 solutions.

The zero-knowledge proofs are generated using SNARK (Zero-Knowledge Succinct Non-interactive Arguments of Knowledge) which enables creating them based on a few data blocks (instead of storing the whole history). The protocol comprises three actors:

Block Producers: Those who mine blocks and add them to the blockchain. They earn block rewards for creating blocks.
Snarkers: Those who produce a lightweight proof called SNARK. They get incentives from block producers.
Verifiers: Those who verify the proof provided by snarkers.

MINA Supply

The total supply of the MINA stands at 1,028,623,133 out of which 894,354,194 are currently in circulation.

7. Aleph Zero

AZERO is the rollup coin that works behind the Aleph Zero privacy-enhancing, PoS-based project. It comes with the features like fast finality, high efficiency, security, and an enterprise-ready network. It is based on a Directed Acyclic Graph (DAG) to provide scalability.

DAG is a data modeling tool that allows storing transactions as vertices and edges instead of blocks, so it resembles a graph and affords more data storage as compared to conventional blockchains. It also allows several transactions to be validated simultaneously. Aleph Zero uses Zero Knowledge Proofs and multi-party computation systems to enhance privacy.

AZERO Supply

The AZERO’s total supply is 308,542,235 and the circulating supply is 209,574,155.

8. ZCash

ZCash, like MINA, uses SNARK proofs that help users reveal only that they have certain information about their data and need not reveal the data itself, thus enhancing the privacy of the blockchain. The transactions being anonymous are more secure. ZCash provides a Software Development Kit and a set of APIs for developers to build their apps on the ZCash network.

ZEC is another zero knowledge based coin that made it to this list and is different from other tokens in that provides completely anonymous transactions: the public addresses of the sender or the receiver are not shared on the network (unlike other tokens like BTC and ETH). This way of hiding ideadntity is completely optional.

One can choose to transact in the normal way ( by sharing addresses publically on blockchain explorers) or choose to be completely hidden (no sharing of public addresses on-chain). Such completely private transactions are possible due to the use of zero-knowledge technology that only records that the transaction did happen and nothing more than that.

New ZECs are mined based on “subsidies” where on the addition of a new block to the blockchain, several coins are split in the 80:20 ratio as miner subsidy and founders’ rewards respectively.

ZEC Supply

ZEC, the zero knowledge coin of ZCash, has a maximum supply of 21 million tokens, total supply of 16,328,269 and circulating supply of 16,328,269.

9. Syscoin

Syscoin, yet another zk rollup coin, is an open-source public network that partnered with ZKCross to provide cross-chain rollups. Syscoin uses multichain roll up methods to leverage Bitcoin’s security and Ethereum’s composability. This way, it can take security and scalability to a whole new level. It provides both optimistic and zk rollups, a thing mentioned in its roadmap.

These would be combined with zkEVM technology to unburden the load of handling too many transactions on layer 1. It provides a layer 2 suite called Rollux that is based on EVM-based smart contracts. It uses merge mining where both BTC and SYS coins can be mined together. Users can stake their SYS tokens and earn rewards.

SYS Supply

Total Supply of SYS is 751,415,607 all of which are in circulation.

ZK Rollup Coins FAQs

Who first conceived zero-knowledge proofs

Zero-knowledge proofs were created by Silvio Micali, Shafi Goldwasser, and Charles Rackoff.

What is zk rollup?

A layer 2 solution that adds scalability to Ethereum. A number of users’ transactions are rolled up in a batch in layer 2. This improves loads on layer 1 and results in fast finality of transactions.

Which blockchains use zk rollups?

These rollups use Ethereum blockchain but the execution of the transaction data take place on a separate execution layer using a virtual machine called zero- knowledge EVM.

What is zk?

ZK stands for Zero Knowledge. It is a concept where one party proves to the other party that it knows a fact without revealing the fact itself.

Disclaimer

This article is for informational purposes only and is NOT a financial advice. We do not promote, in any form, any cryptocurrencies or tokens mentioned herein. The content of this article is based on the information available up to the knowledge. You should be aware that investing in any cryptocurrency is subject to market risk and you MUST do your own due diligence (DYOR) before you put any money in any of these coins.