Unraveling ZK Technology: How zkLink Tackles Blockchain Scalability and Interoperability Issues

In anticipation of the upcoming Hack Seasons Conference , we had a chance to talk with Vince Yang , the CEO of zkLink , offering a comprehensive look into the blockchain sector. Vince provided critical insights into ZK technology, the current landscape of crypto mining, and zkLink's groundbreaking solutions for scalability and interoperability. 

What initial event or moment drew you towards this field? How has your enthusiasm for this industry evolved since then?

I embarked on my journey in the crypto space in 2019. Prior to that, I worked as an engineer focused on designing powertrain systems for the automotive sector. My introduction to crypto occurred in 2016 when I attended a meetup in Shanghai. 

An Ethereum co-founder was present to introduce the platform. The panel discussed the differences between Ethereum and Bitcoin and their future potential. I became captivated by the Bitcoin whitepaper, which I delved into meticulously after the meetup.

In 2019, a good friend of mine, who returned from the U.S. and entered the crypto world, shared his experiences. We engaged in extensive discussions about blockchain's future possibilities. After weeks of thoughtful conversation, I became convinced and decided to pivot away from automotive engineering to immerse myself in blockchain.

I began my career as a Bitcoin miner at a company specializing in Bitcoin miner manufacturing. My learning journey involved everything from power sources and mining rigs to ASIC chips, mining software, and the deployment of miners within mining farms. I also explored how to link with mining pools, trade Bitcoin, and utilize various wallet types.

About a year later, amid the DeFi hype of 2020, I started exploring DeFi platforms such as Uniswap, AAVE, Compound, Curve, and Sushi. It was exciting to witness the development of applications built on blockchain technology that went beyond mere mining and trading.

Given the existing restrictions, what is your perspective on the state of mining in China? Are miners relocating operations to countries like Kazakhstan?

In 2021, Bitcoin mining experienced a major crackdown in China. Before this, the country accounted for roughly 70% of the global hash rate for both Bitcoin and Ethereum. Now, mining operations have nearly vanished from China. Most miners I know have moved to other countries.

They’ve set up mining farms in places like Kazakhstan, the Middle East, Africa, Russia, the CIS nations, Europe, the U.S., Canada, and Australia. Essentially, they’re establishing mining operations wherever they can find cost-effective, reliable, and sustainable power.

It’s remarkable to see the tenacity of Chinese miners. Many key players remain active, just under different flags. Leading Bitcoin mining hardware manufacturers like BITMAIN and WhatsMiner are still based in China.

It’s a pity that mining has exited China, particularly since the country had the potential for thriving with its abundant cheap energy, which could have significantly boosted its economy. Now, miners have simply relocated abroad.

Your company employs ZK technology. Can you clarify how you leverage it and what advantages it presents to the overall ecosystem?

In 2020, during the DeFi explosion, it became apparent that using Ethereum was prohibitively expensive and slow. Transactions could stretch for hours, if not days, leading to network congestion. This urgency underscored the necessity for scaling solutions.

Within the scaling solution space, particularly concerning rollups, two main types have emerged: ZK rollups and optimistic rollups. ZK rollups offer a more scalable alternative, capable of compressing vast quantities of transactions into a single batch while allowing for a lone on-chain verification.

A significant benefit of ZK proofs is their trustless and mathematically secure nature. They provide a verifiable method to efficiently scale the blockchain whilst guaranteeing safety through mathematical assurances.

At zkLink, we have been developing ZK solutions since 2021, during a time when only about a handful of teams ventured into this space. We are convinced that this technology can revolutionize not just scalability but also bolster privacy and facilitate interoperability across various networks.

In light of the recent emphasis on AI and tangible assets, do you think ZK is receiving sufficient attention within the crypto community?

You’re correct; ZK isn’t enjoying the same level of buzz as it did back in 2021 and 2022. Right now, the spotlight is more on topics like AI and the revival of DeFi. However, it's crucial to bear in mind that ZK technology serves as a foundational infrastructure rather than an application technology. It’s more complex and arguably less glamorous than other trending subjects.

During its peak, ZK was a hot topic, with many discussing it without grasping the underlying complexities. Now that some initial products like ZK Layer 2s are operational, the results have not met the high expectations set by many, especially when compared to optimistic Layer 2s, which currently provide a superior developer and user experience.

Nonetheless, this doesn’t indicate that ZK lacks a viable future. I firmly believe there will be a resurgence for ZK technology. Its applications extend well beyond scalability and privacy and into realms like AI and machine learning. The core qualities of this technology haven't changed; it's merely a matter of time before developers and infrastructure creators provide more user-friendly and scalable options.

This quieter phase might actually serve as an advantage, allowing serious creators to concentrate on development away from the hype. Patience is key here.

Could you explain the distinctions between zkLink Nova and zkLink X and how these two solutions work in tandem?

zkLink Nova stands as the first aggregated Layer 3 solution that integrates Ethereum with its Layer 2 rollups. It’s designed as an EVM-compatible execution environment, enabling developers to create a wide range of applications on it. They can tap into the native assets and liquidity spanning Ethereum and different Layer 2s such as zkSync, Starknet, Arbitrum, Optimism, and BASE.

zkLink X, however, is tailor-made as a scaling engine for high-performance applications, particularly for order book systems that aim to replicate the user experience found in centralized exchanges. It offers access to tokens from any blockchain and showcases remarkable scalability, potentially handling hundreds of thousands of transactions per second. Its primary focus is on applications that rely on order books, and it may also cater to blockchain gaming.

In simple terms, zkLink Nova serves as a versatile Layer 3 blockchain for any application, while zkLink X is a specialized high-performance scaling engine intended chiefly for order book-based frameworks. Both solutions strive to pool liquidity and grant access to diverse assets across multiple chains and rollups.

Regarding security, do zkLink Nova and zkLink X provide comparable levels of security to that of Ethereum?

There are some variations here. zkLink Nova functions as a multi-layer suite within the Ethereum framework, connecting to both Ethereum Layer 2 solutions and Layer 1. It aggregates and aligns the states across different Ethereum Layer 2s and the main Ethereum Layer 1, inheriting its security, economic fundamentals, and consensus. Consequently, we view it as equivalent to Ethereum in terms of the security standards of the Layer 3 chain.

On the contrary, zkLink X allows for more customization regarding the scaling engine. We have decoupled the individual components of the rollup architecture, permitting application developers to select their preferred data availability solutions, runtime execution layers, and various types of virtual machines. zkLink X can take on a ZK EVM paradigm or operate in parallel. Additionally, developers may opt for different settlement destinations, potentially linking to alternative Layer 1 solutions like Solana or Avalanche.

The security implications rely on the settlement source and the foundational chains that developers choose to integrate. In terms of synchronizing multi-chain states, zkLink X provides added flexibility for connecting to more chains, albeit with some trade-offs on security. Therefore, it doesn’t strictly equal Ethereum’s standards; rather, it reflects the combined security of the chains involved or aligns with the least secure chain's characteristics. 

For instance, if a project involves both Solana and Ethereum, the general consensus might be that Ethereum currently offers more decentralization and security than Solana. Thus, if an application using zkLink X chooses to incorporate both Solana and Ethereum simultaneously, one could argue that the overall security level is akin to that of Solana.

How does zkLink Nova facilitate the aggregation of assets from various Layer 1 and Layer 2 blockchains?

To clarify, zkLink Nova’s strategy is primarily focused on the Ethereum ecosystem. It currently connects solely to Ethereum and its Layer 2 solutions, lacking connections with Solana or other Layer 1 platforms at this point.

Unraveling ZK Technology: How zkLink Addresses the Challenges of Blockchain Scalability and Interoperability - Metaverse Post

Vince Yang, the CEO of zkLink, shared his thoughts on blockchain innovations, the state of cryptocurrency mining, and unique approaches to scalability and interoperability just prior to the Hack Seasons Conference.

Unraveling ZK Technology: zkLink's Strategy for Tackling Blockchain Scalability and Interoperability Issues

Unraveling ZK Technology: zkLink’s Strategy for Tackling Blockchain Scalability and Interoperability Issues

FTC's Appeal to Halt the Microsoft-Activision Merger Fails

Originally Published on July 03, 2024, at 8:19 AM and Updated on December 17, 2024, at 8:48 AM

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In a comprehensive conversation about the blockchain landscape, Vince provided insightful perspectives on ZK technology, the current landscape of crypto mining, and the pioneering solutions zkLink offers for overcoming scalability and interoperability challenges. 

Many individuals find their way into the industry due to a specific moment or event. What initially intrigued you about this sector, and how has your enthusiasm developed over time?

I entered the cryptocurrency world in 2019. Before making that leap, I worked as an engineer focusing on powertrain systems in the automotive field. My first real introduction to cryptocurrency came in 2016 when I participated in a local meeting in Shanghai. 

One of the co-founders of Ethereum spoke at that event, outlining the platform and its potential. There was a panel that discussed how Ethereum differs from Bitcoin and what the future might hold for both. That evening left me intrigued, prompting me to dig into the Bitcoin whitepaper extensively after the event.

In 2019, a close friend who returned to China from the US and became involved in the crypto scene introduced me to what he was working on. We engaged in several in-depth conversations about the long-term prospects of blockchain technology. After weeks of discussions, I was persuaded to leave the automotive industry for the blockchain sector.

I began my journey as a Bitcoin miner and joined a company manufacturing mining equipment. I delved deeply into the world of Bitcoin mining, learning about everything from power sources and mining rigs to ASIC chips, software, and the deployment of miners in farms. I also picked up skills on connecting to mining pools, trading Bitcoin, and utilizing various wallet types.

About a year later, during the surge of DeFi in the summer of 2020, I started diving into decentralized finance applications like Uniswap, AAVE, Compound, Curve, and Sushi. It was incredibly eye-opening to observe the various applications being built on blockchain technology that extended beyond mere mining and crypto trading.

Considering the current restrictions on crypto, how do you view the status of mining operations in China? Are many shifting their operations to countries like Kazakhstan?

In 2021, Bitcoin mining faced a significant ban in China. Previously, the country contributed approximately 70% of the total hash rate for both Bitcoin and Ethereum. Now, that presence has almost entirely vanished. Most miners I know have relocated their operations abroad.

They are establishing mining farms in locations like Kazakhstan, the Middle East, Africa, Russia, various CIS countries, Europe, the United States, Canada, and Australia. Essentially, they're setting up in any area with sustainable, reliable, and cost-effective electricity.