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Bankless: Explore 5 different approaches to zkSync, the Ethereum Layer 2 scaling solution

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ZkSync is one of ethereum's most promising extension solutions that utilizes zkRollup technology. With the crypto economy moving towards rollups and zkSync moving towards decentralized governance, the time is ripe.

How to Use zkSync

William M. Peaster, Bankless

East search, the way of the meta-universe

We are bullish on modular blockchain.

This is how Ethereum can scale to millions of users while keeping transaction costs cheap. Importantly, we believe this argument will be a big narrative this year.

Layer 2 (L2) is the backbone of a modular blockchain. Polygon, Immutable, Starkware, Optimism, Arbitrum, Aztec and so on will play a key role in the development of this topic.

It's also one of Ryan's big predictions for this year, called L2'22.

If 2022 is indeed tier 2's year, that's a huge opportunity.

One of the most promising L2 solutions is zkRollups. Some industry leaders are calling them the Holy Grail of Ethereum expansion. Why is that?

They have an interesting design feature that the more transactions they process, the cheaper they are. It upends the trilemma of blockchain.

One of the leaders of zkRollups is zkSync. They are in the early stages, but it is highly likely that full production will soon be available on the main network.

There's a key phrase in the tweet above: zkSync will be owned by the community. Wondering what this means......

Now is the time to stay one step ahead. This article shows you five opportunities you can take advantage of.

5 opportunities to use zkSync

ZkSync is one of ethereum's most promising extension solutions that utilizes zkRollup technology. With the crypto economy trending toward Rollups and zkSync's shift toward decentralized governance, the time is ripe to take advantage of this rising L2.

This Bankless strategy will show you some of the projects you can now try on zkSync.

· Goal: Learn 5 different ways to use zkSync

· ROI: Build your cryptocurrency skill tree + future Token airdrops

Using zkSync

ZkSync is a Layer 2 (L2) extension solution designed to make Ethereum transactions cheap and nearly instant.

ZkSync is built by Matter Labs and belongs to a class of L2 called zkRollups. This means that zkSync effectively batches and validates Ethereum transactions by publishing data batches "on-chain" to Ethereum through zkSync using "zero-knowledge" cryptotic proofs, while executing transactions outside of the ethereum base layer. (Modular design at work)

The design of zkRollup leads to something quite magical, which is that through network effects, zkSync becomes cheaper for users as activity increases on its network. This reality is in stark contrast to traditional blockchains, which become more expensive as demand for their block space grows. So you can see why resources like zkSync are very promising as a way to expand Ethereum.

Today, zkSync is the 10th largest L2 with a total value lock, according to analysis site L2BEAT, with a TVL of $71 million. This number is expected to grow as zkSync continues to advance in features and functionality, and as more users migrate to zkRollups for a better user experience and cheaper deals.

The upcoming zkSync Token will also undoubtedly attract more liquidity and availability to zkSync. However, Matter Labs has stated that they will release tokens in a deliberate and steady manner, so its arrival may still be a few months away.

In the meantime, by using zkSync, we can begin to gain L2 experience and prepare for the future. There's no guarantee you'll make money. But being on the cutting edge is always rewarding.

There are five possible opportunities to consider

1. Use an Argent wallet

Argent is the leading social recovery wallet. It lets you pick out "guardians" who can help you update to a new key and maintain your wallet indefinitely if you ever lose access to the wallet signing key.

This system is ideal for both cryptocurrency novices and veterans, as it offers users strong security and more flexibility than traditional cryptocurrency wallet products.

That said, Argent offers a glimpse into the future of crypto wallets. More importantly, it combines its social recovery system with the fast and low-cost L2 execution capability using zkSync.

So if you want to try zkSync, I think Argent is a good user friendly gateway.

How do I create a zkSync wallet with Argent

Whenever you create an Argent wallet or open an existing wallet, you will now see a L1 Ethereum account (i.e. "Argent Vault") and a zkSync account, so the first step is to fund your zkSync account.

At this point, you can go straight into L2. There is no need to send assets to L1 or pay an expensive L1 activation fee, just a $2.50 zkSync account setup fee. Sure, you can create and prepare your L1 Argent Vault first, but you can save + $100 by depositing it directly into zkSync.

You can do this by pressing the "Receive" button in your zkSync account, at which point you can purchase cryptocurrencies through Ramp or receive funds from other Ethereum wallets or zkSync wallets. Execute your favorite program and your zkSync account on Argent will receive funds.

Now you're ready to explore early in-app L2 investment and pledge opportunities such as Yearn Vault or ETH via Lido. Click "Invest" to see the available options and you're ready to go.

2. Trade on ZigZag

ZigZag Trading platform is a decentralized order book trading platform that has quickly made a name for itself as the first DEX to run on zkSync. So if you want to trade on zkSync at an early stage, ZigZag is the center of action for now.

Warning that the trading platform is currently unaudited and needs to be exercised with caution.

It's still early days, but the upstart plans to do a lot of things, like a native bridge UI, fast withdrawals to Ethereum, limit orders, and fiat entry through Banxa. In addition, the project is developing permissionless matchmaking lists, NFT marketplaces, and more.

If you're interested in trying ZigZag, but feel overwhelmed by the user interface for order books, consider trying out the trading platform's new Argent integration.

If you set up a zkSync account with Argent, you can press the "trade" button and have a simplified UI for ZigZag transactions. The supported assets include ETH, DAI, FRAX, USDC, USDT, and WBTC.

3. Donate on Gitcoin

Every quarter, Gitcoin hosts Gitcoin Grants, a donation-oriented event where ethereum community members can donate to fund open source Web 3 projects. Gitcoin is unique in that all donations are matched through a secondary financing (QF).

Over the past few years, Gitcoin Grants have proven to be a tremendous collective force. The project is also noteworthy because it has been supporting donations through zkSync since 2020. This is support for earlier zkRollups.

If you want to donate to a program through Gitcoin, you can do so at any time without waiting for the next round of Gitcoin Grants (although there is no secondary funding).

Simply go to Gitcoin, press "Add to Cart" on the item you want, and when you're ready to check out, select the "Check out with zkSync" option and follow the on-screen instructions.

Please note that now if you want to make L2 Gitcoin donations, you must first set up a wallet through the zkSync main website.

4. Create NFT using zkNFT

If you create a wallet through the main zkSync site, another app you can try is the NFT platform zkNFT.

ZkNFT was created by Sudoswap creator 0xMons and is an alpha version of proof-of-concept, so think of the platform as an experiment. But at the same time, kNFT does a good job of highlighting how zkSync's early NFT API worked, so it gives us a taste of zkSync's early NFT scenarios.

The platform allows you to cast, manage and exchange the zkSync NFT affordably. The Mint dashboard is where you finalize Token metadata, which is then pinned to IPFS via the NFT. Storage project.

Before delving further, keep in mind that zkSync NFTs have unique nuances, such as becoming "final" within a few hours of minting. 0xMons gives a good overview of some of the major nuances in this zkNFT introduction, so make sure you understand the important concepts here to avoid confusion.

5. Bridge cryptocurrencies using LayerSwap

LayerSwap is a platform that makes it easy and affordable to bridge cryptocurrencies from a centralized trading platform (CEX) to zkSync.

At the bottom, LayerSwap takes advantage of the fact that transactions between CEX accounts are free and instant for many venues. Once LayerSwap receives your transaction, they use the L2 liquidity pool to deposit your funds in zkSync quickly and cheaply.

Currently, supported assets include ETH and USDT, and supported CEX include Binance, Coinbase, FTX, Huobi, KuCoin, and OKEx.

Please note that LayerSwap's liquidity currently only facilitates transfers of up to 0.15 ETH, although over time this restriction should be removed, especially if the project follows its liquidity mining plan.

conclusion

The cryptocurrency economy is moving in the direction of zkRollups. They hold great promise and will help bring Ethereum-based transactions to millions or even billions of users in the years to come.

While it's clear that the zkRollup ecosystem is still in its early days, zkSync can be seen as a bright early star in the scene, showing the beginning of what zkRollups can do.

I want to emphasize that at this time, zkSync is an experimental work in progress. Dapps like ZigZag and zkNFT are experimental, it's very early days. There's a lot of risk and friction involved, so you shouldn't risk a lot of money just yet.

However, I suggest you patch some of these items in a controlled way at the right time and place. First, the technology offered by zkSync is aligned with the best value of cryptocurrencies. Second, with the trend toward Rollups, it's important to keep building your personal encryption skill tree. Getting an experience with zkSync now may give you something to rely on for years to come.

And, of course, there's the upcoming zkSync Token, whose arrival L2 creators have made no secret of. And finally welcome to L2'22.