Ethereum, the world’s second-largest cryptocurrency, is poised to outpace Visa, the world’s largest payment processor, in terms of transaction throughput, according to Polygon co-founder Mihailo Bjelic interview.
Bjelic made the bold prediction in a recent interview with Cointelegraph, citing the development of zkEVM Rollups as a key driver. zkEVM Rollups are a new type of scaling solution that allows Ethereum to process thousands of transactions per second (TPS) without sacrificing security or decentralization.
“When you launch a scaling solution, you ideally want to preserve that developer experience. Otherwise, there will be a lot of friction,” Bjelic explained. “zkEVM Rollups allow developers to build on Ethereum without having to worry about scalability. They can use the same tools and frameworks that they already know and love.”
Polygon is the first platform to implement zkEVM Rollups, and Bjelic claims that the technology can already scale Ethereum to 40-50 TPS. However, he believes that the real potential of zkEVM Rollups lies in their ability to scale Ethereum to thousands of TPS, which would put it on par with Visa.
“We’re still in the early stages of zkEVM Rollups development, but we’re already seeing some amazing results,” Bjelic said. “I’m confident that zkEVM Rollups will eventually allow Ethereum to outpace Visa in terms of transaction throughput.”
What are zkEVM Rollups?
zkEVM Rollups are a type of scaling solution that bundles together hundreds or even thousands of Ethereum transactions and then processes them off-chain. The results of the off-chain processing are then compressed into a single zk-proof, which is then submitted to the Ethereum mainnet for verification.
zk-proofs are cryptographic proofs that allow one party to prove to another party that they know something without revealing what they know. In the case of zkEVM Rollups, the zk-proof proves that the off-chain processing was performed correctly and that the results are valid.
Benefits of zkEVM Rollups
zkEVM Rollups offer a number of benefits over other scaling solutions, including:
- High scalability: zkEVM Rollups can theoretically scale Ethereum to thousands of TPS.
- Security: zkEVM Rollups are as secure as Ethereum itself.
- Decentralization: zkEVM Rollups are decentralized, meaning that they are not controlled by any single entity.
- Developer experience: zkEVM Rollups are compatible with existing Ethereum development tools and frameworks.
Challenges of zkEVM Rollups
zkEVM Rollups are still under development, and there are a few challenges that need to be addressed before they can be widely adopted.
- Cost: zkEVM Rollups can be expensive to operate.
- Complexity: zkEVM Rollups are complex to develop and deploy.
- Adoption: zkEVM Rollups are still a relatively new technology, and it may take some time for developers and users to adopt them.
zkEVM Rollups have the potential to revolutionize Ethereum by making it scalable, secure, decentralized, and developer-friendly. If Bjelic’s prediction is correct, zkEVM Rollups could help Ethereum to outpace Visa in terms of transaction throughput and become the world’s leading payment network.
Implications for the cryptocurrency industry
The adoption of zkEVM Rollups could have a significant impact on the cryptocurrency industry. First, it would make Ethereum more accessible to a wider range of users, including those who are sensitive to transaction fees. Second, it would enable Ethereum to support new and innovative applications, such as decentralized finance (DeFi) and gaming. Third, it would boost the adoption of other cryptocurrencies that are built on Ethereum.
Implications for the traditional financial system
The adoption of zkEVM Rollups could also have a significant impact on the traditional financial system. Ethereum is already being used to develop new financial products and services, such as decentralized exchanges and lending platforms. With zkEVM Rollups, Ethereum could become a viable alternative to traditional financial institutions for many people.
Overall, the development of zkEVM Rollups is a positive development for the cryptocurrency industry and the world as a whole. By making Ethereum more scalable, secure, and decentralized, zkEVM Rollups could help to usher in a new era of financial inclusion and innovation.