Building the Increment Protocol on zkSync 2.0
An EVM compatible ZK Rollup being built by Matter Labs
As protocol development approaches testnet release and audit-readiness, we hoped to determine a suitable infrastructure layer for the Increment protocol and its future users. After several weeks of discussion and connecting with the zkSync team, we are excited to announce that we will be building on zkSync 2.0 – one of the first of its kind, an EVM compatible ZK Rollup being built by Matter Labs.
zkEVM is a virtual machine that executes smart contracts through the use of zero knowledge proofs. Although not fully launched yet, we expect the release of zkEVM to represent an essential turning point for crypto, as it will empower solidity programmers with first-class access to the unmatched scaling, security, and UX benefits of zero knowledge proofs. For further reading on ZK proofs, please read some materials provided by the zkSync team here.
In relation to the Increment protocol and our community, we believe that zkSync 2.0 will be the most fitting infrastructure for our premier launch, due to a few reasons:
1) Best In-Class Security. Out of all the Ethereum scaling solutions, ZK Rollups are deemed to be the most secure. Compared to other scaling solutions, which may rely on economic guarantees or third parties, ZK Rollups rely purely on mathematical proofs to fully inherit the security of Ethereum. This is critical for functioning in highly adversarial environments. These characteristics are aligned with our objective in providing a high level of security and network stability for our users.
2) Cost Effective and Scalable. For users to trade perpetual swaps on Increment efficiently, transaction costs on the network should be kept low and TPS (Transactions Per Second) should be high. ZK Rollups have some of the lowest transaction costs in all L2s, depicted by the data gathered from the currently running zkSync 1.0, shown here.
In terms of throughput and scalability, it is expected that ZK Rollups can offer up to 2000 TPS at peak load, but once data availability is moved off-chain, ZK Porter can offer up to 20,000 TPS.
3) First Mover Advantage and Strong Future Outlook. The development of zkSync 2.0 is still ongoing and should match up well with Increment’s development roadmap - follow them on Twitter to stay up-to-date on their latest developments. We expect that many leading DeFi protocols are already building on zkSync 2.0 and we hope to join them as one of the first batches of protocols on the network. There is no doubt that zero knowledge technology is an important breakthrough that will change the future of crypto, and zkSync is a leader in this space with the upcoming zkEVM release.
All in all, we are very excited to begin our journey on Ethereum and zkSync, stay tuned for more details - be sure to stay in the loop by following us on Twitter and joining our Discord server. We would also like to note that it is unlikely for Increment to solely exist on zkSync in the future. After we transition into a DAO governed protocol structure, token holders can propose and vote on a multi-chain deployment, whether it’s on other L2s or L1s, in conjunction with opinions from the core engineers of the protocol to ensure readiness.
Increment is a distributed, algorithmic exchange rate protocol building zkSync 2.0, empowering open finance for non-USD participants in DeFi.