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zkEVM: Unlocking Ethereum's Scalability with Zero-Knowledge Proofs

Published on: July 26, 202414 Mins Read

Author: QuillAudits Team

zkEVM is Like The Superhero Ethereum Deserves

Amidst the scalability woes, a beacon of hope has emerged: zkEVM (Zero-Knowledge Ethereum Virtual Machine). This cutting-edge technology marries the power of zero-knowledge proofs with Ethereum's ecosystem, promising a brighter, more scalable future for blockchain applications.

In this article, we're going to delve deep into everything zkEVM. We'll explore what zkEVM is, how it works, the benefits and challenges it presents, and the trailblazing projects leading the charge in this revolutionary space.


What is zkEVM?

A zkEVM is an Ethereum Virtual Machine (EVM) that’s compatible with zero-knowledge proof computations. It processes smart contract transactions in a way that fits like a glove with zero-knowledge rollups.

These rollups are layer-2 scaling solutions designed to boost transaction throughput while slashing costs. By leveraging zero-knowledge proofs, zkEVMs can supercharge the scalability and security of Ethereum-based applications, propelling the Ethereum ecosystem to new heights.


User Transaction


How does zkEVM work?

So, how does zkEVM work its magic? It starts by taking an initial blockchain state, processing transactions, and outputting an updated state along with a zero-knowledge proof. This proof cryptographically validates that the transactions were processed correctly without revealing the actual data.

The zkEVM replicates the Ethereum environment as a zero-knowledge rollup, making it a seamless extension of Ethereum (the L1). Developers can port their existing dApps and smart contracts to this more scalable and secure Layer 2 (L2) without a hitch.


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The EVM Proving Circuit is The Heartbeat of zkEVM

At the core of zkEVM lies the EVM proving circuit, a critical component ensuring transaction security and privacy. This cryptographic marvel allows one party (the prover) to convince another (the verifier) that they possess certain information without revealing it.

Proving circuits employ advanced mathematical techniques like Elliptic Curve Cryptography (ECC), Polynomial Commitments, Merkle Trees, SNARKs (Succinct Non-Interactive Arguments of Knowledge), and Homomorphic Encryption to validate transactions. When a transaction is processed, the proving circuit generates a proof confirming its validity, updating the blockchain without exposing sensitive data.


Circuit structure

Circuit Structure


Let’s Take a Deep Dive into Proving Circuit Technologies

Elliptic Curve Cryptography (ECC)

ECC is a form of public key cryptography based on the algebraic structure of elliptic curves over finite fields.


Elliptic Curve Cryptography (ECC)

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ECC allows for smaller keys compared to non-elliptic curve cryptography, providing the same level of security. This efficiency is crucial for zkEVMs, which need to perform complex cryptographic operations rapidly and securely.



Polynomial Commitments

These are cryptographic primitives that allow one to commit to a polynomial and later reveal evaluations of the polynomial at certain points.


polynomial-commitments

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Polynomial commitments are essential for ensuring data integrity and efficiency in zero-knowledge proofs, enabling the zkEVM to verify transactions without exposing the underlying data.



Merkle Trees

A Merkle tree is a hash-based data structure used to verify data integrity and consistency. In zkEVMs, Merkle trees allow efficient and secure verification of large data sets, such as transaction records.


Merkle Trees

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Each leaf node in the tree represents a hash of a block of data, and every non-leaf node is a hash of its children. This hierarchical hashing structure ensures that any alteration in the data will change the root hash, thereby invalidating the proof.



SNARKs (Succinct Non-Interactive Arguments of Knowledge)

SNARKs are a type of zero-knowledge proof that allows one party to prove to another that a statement is true without revealing any information beyond the validity of the statement itself.


SNARKs

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SNARKs are particularly valuable in zkEVMs for their ability to provide succinct proofs that are quick to verify, ensuring that the blockchain can remain scalable and efficient.



Homomorphic Encryption

This form of encryption allows computations to be performed on ciphertexts, generating an encrypted result that, when decrypted, matches the result of operations performed on the plaintext.


Homomorphic Encryption

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Homomorphic encryption in zkEVMs ensures that data privacy is maintained throughout the transaction processing, even as computations are performed on encrypted data.



The Proving Circuit in Action

Imagine a scenario where Alice wants to prove to Bob that she knows a secret number that equals another specific public number when added to a public number. Instead of revealing her secret number, Alice uses a zkEVM's proving circuit.


zk VM.webp

The circuit processes the transaction, generates a proof, and updates the blockchain state. Bob, acting as the verifier, can then use the proof to confirm that Alice’s transaction is valid without knowing her secret number. This process not only preserves Alice’s privacy but also ensures the transaction’s integrity.



zkEVM vs. Traditional ZK Rollups: The Showdown

While traditional zero-knowledge (ZK) rollups offer scalability as L2 solutions, they aren't exactly best buddies with the EVM. The EVM’s complex architecture makes it tough to translate into a zero-knowledge-friendly format, limiting support for all existing Ethereum dApps and smart contracts.

zkEVMs, however, are designed to be EVM-equivalent from the get-go, executing any Ethereum smart contract without modifications. This compatibility bridges the gap, merging the scalability and privacy perks of ZK rollups with full EVM equivalence.


The Four Faces of zkEVM

Ethereum co-founder Vitalik Buterin has categorized zkEVMs into four distinct types. Each type presents its unique trade-offs between compatibility with the Ethereum protocol and performance. Let’s explore these types in detail to understand the nuances and implications of each approach.


Types of evm.webp

Type 1: Fully Ethereum-equivalent

Type 1 zkEVMs aim for complete compatibility with the Ethereum protocol. This means they replicate every aspect of Ethereum, including all features, functionalities, and opcodes. The goal is to make these zkEVMs indistinguishable from Ethereum, ensuring that any application running on Ethereum can seamlessly transition to a Type 1 zkEVM without modification.

Advantages:

  • Full Compatibility: Developers can migrate existing dApps and smart contracts without any changes, leveraging the extensive Ethereum ecosystem directly.
  • Trust and Adoption: Complete adherence to Ethereum standards fosters trust and encourages adoption among developers and users accustomed to Ethereum’s environment.

Disadvantages:

  • Longer Proving Times: The complexity of replicating the entire Ethereum protocol means that generating zero-knowledge proofs can be computationally intensive and time-consuming.
  • Resource-Intensive: High computational requirements may necessitate more powerful hardware, potentially increasing operational costs.

 

Type 2: Fully EVM-equivalent

Type 2 zkEVMs focus on maintaining compatibility with the Ethereum Virtual Machine (EVM) while introducing minor modifications to enhance performance. These modifications aim to streamline proof generation and improve efficiency, even if it means sacrificing some level of application compatibility.

Advantages:

  • Improved Performance: By tweaking certain aspects of the EVM, Type 2 zkEVMs can generate proofs faster, making transactions quicker and more efficient.
  • Developer Flexibility: Developers can still use most of their existing tools and frameworks with minimal adjustments.

Disadvantages:

  • Partial Compatibility: Some Ethereum applications may require modifications to function correctly within a Type 2 zkEVM, posing potential challenges for seamless migration.
  • Balancing Act: Striking the right balance between performance improvements and maintaining compatibility can be complex and may involve trade-offs that affect usability.

 

Type 3: Almost EVM-equivalent

Type 3 zkEVMs take a more flexible approach by relaxing strict EVM compatibility. This type prioritizes ease of application development and proof generation, even if it means that not all Ethereum applications will work out of the box. Type 3 zkEVMs focus on simplifying the development process and improving efficiency.

Advantages:

  • Easier Development: The relaxed compatibility allows for simpler and more efficient development processes, making it easier for developers to build and deploy applications.
  • Enhanced Efficiency: By not adhering strictly to EVM standards, Type 3 zkEVMs can optimize proof generation, leading to faster and more efficient transaction processing.

Disadvantages:

  • Application Modifications: Some Ethereum dApps and smart contracts may need to be rewritten or adjusted to work within a Type 3 zkEVM environment.
  • Limited Compatibility: The departure from strict EVM standards means that not all existing Ethereum applications will be compatible, potentially limiting the scope of adoption.

 

Type 4: High-Level-Language Equivalent

Type 4 zkEVMs focus on compatibility with high-level programming languages like Solidity or Vyper rather than the EVM itself. These zkEVMs compile high-level language code directly into a zero-knowledge-friendly format, optimizing for faster proving times while sacrificing some application compatibility.

Advantages:

  • Fast Proving Times: By directly compiling high-level languages into zero-knowledge-friendly formats, Type 4 zkEVMs can significantly reduce proving times, making transactions quicker and more efficient.
  • Developer-Friendly: Developers can continue using familiar high-level languages, streamlining the development process and making it more accessible.

Disadvantages:

  • Compatibility Trade-offs: Focusing on high-level language compatibility means that some applications might not be directly portable from Ethereum without modifications.
  • Potential Learning Curve: Developers may need to adapt to new development workflows and tools tailored to the Type 4 zkEVM environment.

 

Real-World Implementations

Several pioneering projects are already implementing zkEVM technology, showcasing its potential and setting the stage for broader adoption. Let’s take a closer look at some trailblazing zkEVM projects that are leading the charge:


zkEVM is coming.webp
  • zkSync Era: Developed by Matter Labs, zkSync Era focuses on compatibility with Solidity and Vyper, offering faster proving times at the cost of some application compatibility. This Type 4 zkEVM aims to bring zero-knowledge-friendly format compilation to the forefront of Ethereum scaling solutions.

 

  • Polygon zkEVM: Previously known as Polygon Hermez, this Type 2 zkEVM from Polygon seeks EVM equivalence while making minor modifications to enhance proof generation times and reduce transaction costs. Polygon zkEVM promises to cut transaction costs by up to 90% while maintaining security and efficiency.

 

  • Scroll: A collaborative project involving the Ethereum Foundation’s Privacy and Scaling Explorations group and various developers, Scroll aims to build a Type 2 zkEVM with a focus on security, transparency, and high composability. Currently in its pre-alpha stage, Scroll invites developers and testers to participate and contribute to its development.

 

The Challenges: It’s Not All Sunshine and Rainbows

Building and implementing zkEVMs isn’t a walk in the park:


  • Computational Complexity: Generating zero-knowledge proofs is computationally demanding, requiring specialized hardware and significant resources.

 

  • Compatibility Trade-offs: Balancing full Ethereum protocol compatibility with efficient proof generation is tricky, often necessitating trade-offs.

 

  • Integration Hurdles: Integrating zero-knowledge proofs with the EVM involves technical challenges like handling opcodes and storage overhead.

 

  • Decentralization Considerations: Ensuring decentralization in proof generation, which relies on specialized hardware, is crucial for maintaining system security and integrity.

 

The Road Ahead: zkEVM’s Bright Future

The future of zkEVMs is not just promising; it’s revolutionary. By addressing Ethereum’s scalability and security challenges head-on, zkEVMs pave the way for broader blockchain adoption and innovation. Here’s a glimpse into what the future holds for zkEVM technology and its potential impact on the blockchain ecosystem:


Increased Adoption Across Industries

As zkEVMs mature, their enhanced scalability and security features will likely attract various industries beyond traditional finance and DeFi. Sectors such as supply chain management, healthcare, gaming, and real estate can leverage zkEVMs to build robust, efficient, and secure applications. The ability to handle a higher volume of transactions at lower costs will make blockchain technology more accessible and practical for large-scale enterprise applications.

 

Enhanced User Experience

With zkEVMs, users can expect faster transaction times and reduced fees, improving the overall user experience on Ethereum. The instant finality provided by zkEVMs eliminates the waiting periods associated with optimistic rollups, making interactions smoother and more reliable. This improvement is crucial for applications that require quick transaction confirmations, such as online gaming and real-time bidding systems.

 

Bridging the Gap with EVM Equivalence

The focus on EVM equivalence in zkEVM development means that developers can continue to use familiar tools and programming languages without learning new systems. This seamless transition encourages more developers to adopt zkEVMs, accelerating the growth of the zkEVM ecosystem. Additionally, the compatibility with existing Ethereum dApps and smart contracts ensures that the wealth of innovation on Ethereum is not lost but rather enhanced by zkEVM technology.

 

Ongoing Research and Development

The development of zkEVMs is an evolving field, with ongoing research aimed at overcoming current challenges such as computational complexity and decentralization. Innovations in cryptographic techniques, hardware advancements, and optimization algorithms will continue to improve the efficiency and performance of zkEVMs. As these advancements unfold, we can expect even greater scalability and security enhancements, making zkEVMs an indispensable part of the blockchain landscape.

 

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Ending Thoughts

zkEVMs represent a groundbreaking solution to Ethereum's scalability challenges. By integrating zero-knowledge proofs with Ethereum's ecosystem, zkEVMs offer enhanced scalability, robust security, and seamless compatibility with existing dApps.

Despite challenges like computational complexity and integration hurdles, the potential benefits are immense. Projects like zkSync Era, Polygon zkEVM, and Scroll are already showcasing the transformative power of zkEVMs, paving the way for wider adoption and innovation.

As zkEVM technology evolves, it promises to revolutionize blockchain by making it more scalable, secure, and accessible. As this technology advances, we can expect an increase in the number of dApps built on zkEVM, leading to a greater need for smart contract audits. The future of Ethereum with zkEVMs is bright, heralding a new era of blockchain innovation. If you found zkEVM interesting, you might wanna go through zkML, which opens a completely different domain that you can delve deep into.

That’s all. Embrace ZK & Get to Buidl!

 

Frequently Asked Questions

What does zkEVM stand for?
zkEVM stands for Zero-knowledge Ethereum Virtual Machine. It processes smart contract transactions to be compatible with Zero Knowledge Proof Computations and the EVM.
What is the difference between Polygon PoS and zkEVM?
What are the advantages of zkEVM?
What are the three main components of a zkEVM?
What does zk stand for in zkEVM rollups?
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