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How UAE is Harnessing the Power of Blockchain
The United Arab Emirates (UAE) is known for its rapid advancements in technology and innovation, and one area where it's making significant strides is in the adoption of blockchain technology. From government services to finance, healthcare, and beyond, the UAE is leveraging blockchain development services to enhance efficiency, transparency, and security across various sectors. In this comprehensive blog, we'll explore how the UAE is embracing blockchain and the impact it's having on the nation's development.
Understanding Blockchain Technology
Before delving into the UAE's use of blockchain, let's first grasp the fundamentals of this transformative technology. Blockchain is a decentralized and distributed ledger system that records transactions across multiple computers securely and transparently. Each block in the chain contains a cryptographic hash of the previous block, creating a tamper-resistant and immutable record of data. This technology eliminates the need for intermediaries, reduces the risk of fraud, and enhances trust among participants.
Blockchain Initiatives in the UAE Government
The UAE government has been proactive in embracing blockchain technology to streamline its services and improve governance. One notable initiative is the Emirates Blockchain Strategy 2021, launched in 2018 to transition 50% of government transactions to blockchain platforms by 2021. Under this strategy, various government entities have implemented blockchain solutions for processes such as document verification, land registry, business licensing, and digital identity management. These initiatives have led to cost savings, increased efficiency, and greater transparency in government operations.
Blockchain in the Financial Sector
In addition to government initiatives, the UAE's financial sector is also harnessing the potential of blockchain technology. The Dubai International Financial Centre (DIFC) has launched the "Blockchain Valley" initiative to create a blockchain ecosystem within its jurisdiction. This initiative aims to attract blockchain startups, foster innovation, and promote collaboration among stakeholders. Moreover, several banks in the UAE are exploring blockchain-based solutions for cross-border payments, trade finance, and digital asset management, leading to faster transactions, lower costs, and enhanced security.
Blockchain in Healthcare and Supply Chain Management
Blockchain is revolutionizing healthcare and supply chain management in the UAE, enabling greater transparency and traceability of products and services. Healthcare providers are exploring blockchain solutions for electronic health records (EHRs), medical data sharing, and drug traceability to improve patient care and safety. Similarly, companies in sectors such as logistics and retail are leveraging blockchain to track the movement of goods, verify product authenticity, and streamline supply chain operations. These initiatives enhance efficiency, reduce fraud, and ensure the integrity of data throughout the supply chain.
Challenges and Future Outlook
While the adoption of blockchain in the UAE presents numerous opportunities, it also comes with challenges such as regulatory compliance, interoperability, and cybersecurity risks. Addressing these challenges will require collaboration among government agencies, industry stakeholders, and technology providers to establish standards, frameworks, and best practices for blockchain implementation. Looking ahead, the future of blockchain in the UAE appears promising, with continued investment, innovation, and adoption expected to drive economic growth, enhance competitiveness, and position the nation as a global leader in blockchain technology.
Conclusion
The UAE's embrace of blockchain technology exemplifies its commitment to innovation and digital transformation. From government services to finance, healthcare, and supply chain management, blockchain is revolutionizing various sectors, leading to increased efficiency, transparency, and security. As the UAE continues to invest in blockchain initiatives and foster collaboration among stakeholders, it is poised to reap the benefits of this transformative technology and emerge as a global hub for blockchain innovation.
We are a blockchain development company based out of India, extending our services to blockchain enthusiasts in the UAE. Connect with our blockchain developers to explore more about blockchain development.
Mudit Kumar
22 Apr 2024
How to Develop a Decentralized Autonomous Organisation
DAOs resemble the rules of a company. DAOs are governed by smart contract development. Traditional companies are governed by corporate laws, regulations, and judiciary systems (courts). DAOs are regulated by code --Code is the law. DAO tokens are used for governance, voting, etc. They work like shares in a company each token is a vote. Token holders can make proposals and update the DAO.DAO Stands for:Decentralized autonomous organizationDecentralized democratic organizationDecentralized autonomous corporationBenefits of DAOTrustless (don't need to trust a CEO or management team)They can't be shut down (unless the majority of token holders agree)Open source and fully transparentFully democratizedToken holders can propose innovative ideas and they can be put forward by votingAny changes need to be approved by members votingServices offered are handled automatically in a decentralized manner (for example distribution of philanthropic funds)Also, Check | Code Analysis Tools for Solidity Smart ContractsDisadvantages:DAOs may also be vulnerable to bugsNo business secrets (see the number of Olympus DAO forks)Most Common Types of DAOs :Defi protocol DAO: Uniswap, Aave, MakerDAO, Olympus DAO, DigixDAO, etc.Investment DAO: MetaCartel, The LAO, The DAO, etc.Grants/Launchpad DAOs: Gitcoin, Moloch, Seedfy, etc.Collector DAO: PleaserDAO, Flamingo, Mutant Cats DAO, Constitution DAO, etc.Social DAO: Ape DAO, Decentraland DAO, etc.DAOs legal recognition :Most DAOs don't have a legal structure (i.e. they don't have legal personality)In most countries, DAO regulation is nonexistent or unclearIn July 2021, Wyoming became the first US state to recognize DAO as a legal entityDAO tokens may be considered regulated security or not, depending on the Howey Test and Securities Act of 1933 (for the US)DAO founders/teams need to be carefulDAOs security:Blockchains are very secureSmart contracts however may have security flaws or bugs3rd-party smart contract reviews, testing, and auditing are importantBeware of scammers and rug pullsDAOs future :Smart contracts could automate a business like a fleet of "Uber" cars.The smart contract can trigger invoices, handle payments, asset maintenance, etc.The DAO can pay for the cars, parts, mechanics, cleaning, energy/fuel, etc.DAO token holders are the shareholders of a business.NOTE :DAOs are still very new and investing in DAOs is very risky because of the unknown unknowns, known unknowns, and known knowns.Also, Explore | Best Practices for Smart Contract DevelopmentDAO Development StepsPrerequisite :1 - Nodejs and npminstalled2 - Truffle (to write, compile, anddeploy smart contracts and interact with smart contracts deployed on the development blockchain using scripts)3 - Javascript (to write scripts)4 - git and GitHub (plus to your tool pack)Truffle commands to be used for the development environment :truffle compile
truffle develop
truffle migrate
truffle exec scripts/<name of the script file>Breakdown of several smart contracts :1 - Token2 - Governance3 - Treasury4 - TimelockToken:This is going to govern the actual cryptocurrency token that the token holders are going to possess; because you need a token to vote. This is an ERC20 token. Some of the tokens are token holders, so they can actually vote. Now the voting is going to take place with a different smart contract( Governance contract).Treasury:The Treasury is where all the ether funds will go. It holds Ethereum cryptocurrency (ether). The voters are going to vote on how they want these funds to be spent. In our scripts we will propose some sort of recipient, we will say --"hey do you want this person to receive this amount of money?" eg. Fund a new project.Governance Contract:As token holders, you can talk to this Governance contract. You wanna create a proposal (eg. we want x amount of ether, go to the Recipient, for some reason). You will add this proposal to the government contract once that proposal is accepted. The token holders can then vote on this proposal. And if enough votes passed (you can specify - how many votes you want to pass). Then the Governance contract will actually take a special encoded function, and it will call that function on this Treasury contract to release funds. That's what the Governance contract does, when you create a proposal, you basically tell the function you want to call on a different contract( in this case, this can be 'release funds from the Treasury). And those ether funds are released to the recipient after the proposal is passed and executed.Timelock:There is a small time delay between, when the proposal passes and the stuff actually can happen( i.e. execution). They are common in DAOs, so it's now you make a decision. Everybody has time to prepare for it and adjust and get ready for it. We have a separate contract with Timelock. Essentially, there is a time delay between the time the vote passes and the action occurs (i.e. executed).You may also like | Transform Your Business with Smart Contracts - Oodles Blockchain Edition!Folder structure:1 - Contracts - Code that lives on a blockchain( in our case: development blockchain)2 - Migrations - Deploy contracts on a blockchain3 - Truffle config file - connects to the contracts on the blockchain4 - Script - Helps us to create a new proposaland interact with the deployed contracts on a blockchainToken contract:This is an ERC20 token. we import special ERC20Votes which is a voting token. It has a special function named _afterTokenTransfer(). It works like a regular ERC20 token, it must have some external little functionalities.Code :// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/token/ERC20/extensions/ERC20Votes.sol";
contract Token is ERC20Votes {
constructor(
string memory _name,
string memory _symbol,
uint256 _initialSupply
) ERC20(_name, _symbol) ERC20Permit(_name) {
_mint(msg.sender, _initialSupply);
}
// The functions below are overrides required by Solidity.
function _afterTokenTransfer(
address from,
address to,
uint256 amount
) internal override(ERC20Votes) {
super._afterTokenTransfer(from, to, amount);
}
function _mint(address to, uint256 amount) internal override(ERC20Votes) {
super._mint(to, amount);
}
function _burn(address account, uint256 amount)
internal
override(ERC20Votes)
{
super._burn(account, amount);
}
}Treasury contract:This is where the ether cryptocurrency will go, whenever we want to transfer. That's where it will live, until we transfer it.Code:// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/access/Ownable.sol";
contract Treasury is Ownable {
uint256 public totalFunds;
address public payee;
bool public isReleased;
constructor(address _payee) payable {
totalFunds = msg.value;
payee = _payee;
isReleased = false;
}
function releaseFunds() public onlyOwner {
isReleased = true;
payable(payee).transfer(totalFunds);
}
}
Timelock contract :This contract controls the delay. The delay in releasing the funds, after the proposal has passed.Also, Check | AI for DAO | Robots are Essential for a Better FutureCode:// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/governance/TimelockController.sol";
contract TimeLock is TimelockController {
constructor(
uint256 _minDelay,
address[] memory _proposers,
address[] memory _executors
) TimelockController(_minDelay, _proposers, _executors) {}
}
Governance contract :This is the main contract, that controls the project. It pulls all the openzeppenlin contracts, Governor, GovernorCountingSimple, GovernorVotes, GovernorQuorumFraction, and GovernorTimelockControl.Code :// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/governance/Governor.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorCountingSimple.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorVotes.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorVotesQuorumFraction.sol";
import "@openzeppelin/contracts/governance/extensions/GovernorTimelockControl.sol";
// NOTE: Contract created with the help of --> https://wizard.openzeppelin.com/#governor
contract Governance is
Governor,
GovernorCountingSimple,
GovernorVotes,
GovernorVotesQuorumFraction,
GovernorTimelockControl
{
uint256 public votingDelay_;
uint256 public votingPeriod_;
constructor(
ERC20Votes _token,
TimelockController _timelock,
uint256 _quorum,
uint256 _votingDelay,
uint256 _votingPeriod
)
Governor("Oodles DAO")
GovernorVotes(_token)
GovernorVotesQuorumFraction(_quorum)
GovernorTimelockControl(_timelock)
{
votingDelay_ = _votingDelay;
votingPeriod_ = _votingPeriod;
}
function votingDelay() public view override returns (uint256) {
return votingDelay_;
}
function votingPeriod() public view override returns (uint256) {
return votingPeriod_;
}
// The following functions are overrides required by Solidity.
function quorum(uint256 blockNumber)
public
view
override(IGovernor, GovernorVotesQuorumFraction)
returns (uint256)
{
return super.quorum(blockNumber);
}
function getVotes(address account, uint256 blockNumber)
public
view
override(IGovernor, GovernorVotes)
returns (uint256)
{
return super.getVotes(account, blockNumber);
}
function state(uint256 proposalId)
public
view
override(Governor, GovernorTimelockControl)
returns (ProposalState)
{
return super.state(proposalId);
}
function propose(
address[] memory targets,
uint256[] memory values,
bytes[] memory calldatas,
string memory description
) public override(Governor, IGovernor) returns (uint256) {
return super.propose(targets, values, calldatas, description);
}
function _execute(
uint256 proposalId,
address[] memory targets,
uint256[] memory values,
bytes[] memory calldatas,
bytes32 descriptionHash
) internal override(Governor, GovernorTimelockControl) {
super._execute(proposalId, targets, values, calldatas, descriptionHash);
}
function _cancel(
address[] memory targets,
uint256[] memory values,
bytes[] memory calldatas,
bytes32 descriptionHash
) internal override(Governor, GovernorTimelockControl) returns (uint256) {
return super._cancel(targets, values, calldatas, descriptionHash);
}
function _executor()
internal
view
override(Governor, GovernorTimelockControl)
returns (address)
{
return super._executor();
}
function supportsInterface(bytes4 interfaceId)
public
view
override(Governor, GovernorTimelockControl)
returns (bool)
{
return super.supportsInterface(interfaceId);
}
}
Also, Explore | Most Substantial DAO Use Cases for BusinessesDeploying script :It pulls the deployed contracts. It will pull some accounts from the local development blockchain. Inside the migration script, we will assign these different accounts to different roles.1 - Executor2 - Proposer3 - Voters (voter1, voter2, voter3, voter4, voter5)Token name: Oodles TechnologiesToken symbol: ODLThen, you deploy the token, and give 50 tokens to each voter. After we have deployed the contract here, the executor will own the token, they own it so they will send 50 tokens to each voter. We configure Timelock delay for the votes, so how long do we have to wait until we have to wait after a proposal has passed? Governance can take some settings like quorum, the percentage of total supply to the people(tokens). Threshold, voting period, voting delay for several blocks. Timelock will be the owner of the Treasury contract. Once the proposal is executed, TimelockControl is responsible for calling the function. We give Timelock some ether (say 25 ether) and we deploy it and we tell who the executor is and how much funds we want to send in that transaction. Finally, we want to transfer ownership of the Treasury to the Timelock address. We assignroles to different accounts using the _grantRole function of Timelock.Code :const Token = artifacts.require("Token")
const Timelock = artifacts.require("TimeLock")
const Governance = artifacts.require("Governance")
const Treasury = artifacts.require("Treasury")
module.exports = async function (callback) {
const [executor, proposer, voter1, voter2, voter3, voter4, voter5] = await web3.eth.getAccounts()
let isReleased, funds, blockNumber, proposalState, vote
const amount = web3.utils.toWei('5', 'ether')
const token = await Token.deployed()
await token.delegate(voter1, { from: voter1 })
await token.delegate(voter2, { from: voter2 })
await token.delegate(voter3, { from: voter3 })
await token.delegate(voter4, { from: voter4 })
await token.delegate(voter5, { from: voter5 })
const treasury = await Treasury.deployed()
isReleased = await treasury.isReleased()
console.log(`Funds released? ${isReleased}`)
funds = await web3.eth.getBalance(treasury.address)
console.log(`Funds inside of treasury: ${web3.utils.fromWei(funds.toString(), 'ether')} ETH\n`)
const governance = await Governance.deployed()
const encodedFunction = await treasury.contract.methods.releaseFunds().encodeABI()
const description = "Release Funds from Treasury"
const tx = await governance.propose([treasury.address], [0], [encodedFunction], description, { from: proposer })
const id = tx.logs[0].args.proposalId
console.log(`Created Proposal: ${id.toString()}\n`)
proposalState = await governance.state.call(id)
console.log(`Current state of proposal: ${proposalState.toString()} (Pending) \n`)
const snapshot = await governance.proposalSnapshot.call(id)
console.log(`Proposal created on block ${snapshot.toString()}`)
const deadline = await governance.proposalDeadline.call(id)
console.log(`Proposal deadline on block ${deadline.toString()}\n`)
blockNumber = await web3.eth.getBlockNumber()
console.log(`Current blocknumber: ${blockNumber}\n`)
const quorum = await governance.quorum(blockNumber - 1)
console.log(`Number of votes required to pass: ${web3.utils.fromWei(quorum.toString(), 'ether')}\n`)
// Vote
console.log(`Casting votes...\n`)
// 0 = Against, 1 = For, 2 = Abstain
vote = await governance.castVote(id, 1, { from: voter1 })
vote = await governance.castVote(id, 1, { from: voter2 })
vote = await governance.castVote(id, 1, { from: voter3 })
vote = await governance.castVote(id, 0, { from: voter4 })
vote = await governance.castVote(id, 2, { from: voter5 })
// States: Pending, Active, Canceled, Defeated, Succeeded, Queued, Expired, Executed
proposalState = await governance.state.call(id)
console.log(`Current state of proposal: ${proposalState.toString()} (Active) \n`)
// NOTE: Transfer serves no purposes, it's just used to fast foward one block after the voting period ends
await token.transfer(proposer, amount, { from: executor })
const { againstVotes, forVotes, abstainVotes } = await governance.proposalVotes.call(id)
console.log(`Votes For: ${web3.utils.fromWei(forVotes.toString(), 'ether')}`)
console.log(`Votes Against: ${web3.utils.fromWei(againstVotes.toString(), 'ether')}`)
console.log(`Votes Neutral: ${web3.utils.fromWei(abstainVotes.toString(), 'ether')}\n`)
blockNumber = await web3.eth.getBlockNumber()
console.log(`Current blocknumber: ${blockNumber}\n`)
proposalState = await governance.state.call(id)
console.log(`Current state of proposal: ${proposalState.toString()} (Succeeded) \n`)
// Queue
const hash = web3.utils.sha3("Release Funds from Treasury")
await governance.queue([treasury.address], [0], [encodedFunction], hash, { from: executor })
proposalState = await governance.state.call(id)
console.log(`Current state of proposal: ${proposalState.toString()} (Queued) \n`)
// Execute
await governance.execute([treasury.address], [0], [encodedFunction], hash, { from: executor })
proposalState = await governance.state.call(id)
console.log(`Current state of proposal: ${proposalState.toString()} (Executed) \n`)
isReleased = await treasury.isReleased()
console.log(`Funds released? ${isReleased}`)
funds = await web3.eth.getBalance(treasury.address)
console.log(`Funds inside of treasury: ${web3.utils.fromWei(funds.toString(), 'ether')} ETH\n`)
callback()
}
Also, Check | AI-Driven Smart Contracts: Merging Intelligence with AutomationConclusion:DAOs arean effective and safe way to work with like-minded folks around the globe. Think of them like an internet-native business that's collectively owned and managed by its members. They have built-in treasuries that no one has the authority to access without the approval of the group.Reference :For complete code and folder structure refer to this GitHub repo :https://github.com/deep-dev-engineer/GovernanceDAOFor a complete walkthrough of the governance contract and core, contracts refer to this link:https://docs.openzeppelin.com/contracts/4.x/api/governanceHow to set up an on-chain governance guide: https://docs.openzeppelin.com/contracts/4.x/governanceIf you want to build a DAO and looking for an experienced blockchain development company, connect with our skilled blockchain developers to get started.
Area Of Work:
Blockchain Development
,
Smart Contract
Pradeep Yadav
23 Jun 2022
Challenges Associated with Blockchain Application Testing
Blockchain, as its name suggests, is a chain of blocks containing transactional information within an ecosystem. It enables peer-to-peer transactions via an open-source technology. Each block contains various transactions, such as document hashes or cryptocurrency transfers, forming an immutable distributed ledger shared across multiple network nodes. This ledger ensures trust and prevents fraud by making all transactions traceable. For more about blockchain, visit our blockchain development services.Challenges in Blockchain TestingAs a blockchain tester, I've encountered several challenges while testing blockchain applications. One major challenge arises from the nature of the blockchain itself: once deployed, making database-level changes becomes highly difficult, if not entirely avoided, due to the immutable nature of the blockchain. Additionally, any updates to contracts may require manual data transfer to eliminate production bugs, adding to the testing overhead.Testing Scenarios and TypesAside from standard integration, security, and performance testing, blockchain applications require specialized testing types. Smart contract testing, node testing, and advanced non-functional testing are essential components. However, some specific challenges need attention:You may also like | A Guide to Understanding Backtesting and Its WorkingOpen System:Blockchain applications are open systems, necessitating customized testing strategies and plans due to the lack of standardized testing guidelines.Performance Testing:Performance and security are paramount in blockchain applications. However, replicating production environment issues in staging environments for testing can be challenging. Testing parameters such as minimizing block generation time and increasing transactions per block without compromising security are crucial.Integration Testing:Integrating blockchain apps with other systems and platforms is complex and requires ensuring consistent responses from all interfaces.Security:The distributed shared ledger and nodes are vulnerable to attacks, posing a risk to the application's host. Ensuring robust security measures is essential to safeguard against such threats.Explore more | Testing Blockchain-based Applications for 100% SuccessIn conclusion, while testing blockchain applications presents unique challenges, addressing these challenges through comprehensive testing strategies performed by skilled blockchain testers is essential to ensure the reliability, security, and performance of blockchain-based solutions.
Area Of Work:
Blockchain Development
Industry:
Software Development
Nitin Kumar
28 Sep 2018
How to Create Your Own Private Blockchain using Cosmos
Cosmos is an open-source blockchain app development project that aims to connect other blockchains to each other to establish an easily usable, fast scalable, interoperable, and low-fee hub for basically any use of a blockchain. Cosmos internet of blockchains would allow different blockchains to communicate with each other in a decentralized way a way where one person or one single organization is not able to completely control so how is Cosmos planning on actually making this dream a reality this is where the cosmos Hub and zone model come in hubs are often very important for systems to really take off with a high number of users and Cosmos is no different in Cosmos they took a look at the cryptocurrency landscape and saw a lot of spokes but no Hub in other words they saw a large number of blockchains with interesting use cases but the methods of communicating between these chains still left a lot to be desired in fact one of the largest vulnerabilities out there are blockchain bridges which is a tool used to move money from one chain to another Cosmos created what they call a hub and zones model they have a central Hub that facilitates the transfer of tokens across various chains the founder of the Tinder mint protocol which later became Cosmos. Cosmos provides an SDK that can be used to create your own custom blockchain solution. Please check the steps below to set up the local system.Check out | Understanding the Importance of Cross Chain dAppsPrerequisiteNode.jsStep 1 : Take clone of the project and change the directory to the main root folder folder of the projectgit clone https://github.com/cosmos/cosmos-sdk Step 2: Initialize application ./build/simd init demo \ --home ./private/.simapp \ --chain-id learning-chain-1 Step 3: Prepare sample account, a test account with alice name is created ./build/simd keys add alice \ --home ./private/.simapp \ --keyring-backend testStep 4: Become validator // Give initial balance to account
./build/simd add-genesis-account alice 100000000stake \ --home ./private/.simapp \ --keyring-backend test
// Now include bootstrap transaction in genesis
./build/simd add-genesis-account alice 100000000stake \ --home ./private/.simapp \ --keyring-backend test
// Now we need to collect all genesis transaction
./build/simd add-genesis-account alice 100000000stake \ --home ./private/.simapp \ --keyring-backend testStep 5: Create blocks ./build/simd start \ --home ./private/.simapp Read Also | Build a Blockchain or dApp on Cosmos NetworkConclusionNow, a simple Cosmos node is running. In the next blog, we will focus on how to interact with this blockchain node. Connect with our blockchain developers today.
Area Of Work:
Blockchain Development
Industry:
Software Development
Technology:
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,
Rust
,
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Vishal Yadav
31 May 2024
Exploring zkSync for Optimizing Blockchain Scalability
Layer 2 (L2) scaling solutions aim to address scalability issues in blockchain networks. These solutions operate on the existing blockchain (layer 1) and introduce a mechanism to increase the network's capacity. They enhance the user experience by processing more transactions more quickly and efficiently, benefiting blockchain app development. zkSync (zero-knowledge Sync) is one such L2 solution. In this article, we explore how it achieves faster transactions and lower fees, and its benefits, and compare it with other scaling solutions.
Understanding zkSync
ZKSync is a zk-rollup that serves as a layer-two blockchain for Ethereum. Similar to optimistic rollups, zk-rollups aggregate transactions away from the Ethereum mainnet and provide transaction proofs to Ethereum.
It involves a process of bundling hundreds of transactions into a single batch. Ethereum authenticates and safeguards this process.
Explore More |Zero-Knowledge Proof for Blockchain Transaction Privacy
How zkSync is Different from Other L2 Solutions
Other L2 scaling solutions include optimism and Polygon.
The primary distinction between zkSync and Optimism lies in their underlying technology. zkSync uses ZK rollup technology along with zero-knowledge proofs for robust security. In ZK rollups, the group of transactions undergoes a verification process for accuracy on the Ethereum network.
Upon successful verification, the batch of transactions attains finality, similar to any typical Ethereum transaction. Cryptographic validity proofs, often called zero-knowledge proofs, make this possible.
For each set of off-chain transactions, the ZK rollup operator creates proof of validity. Once this proof is generated, it is then submitted to the Ethereum network, effectively concluding the roll-up batch. In zkSync, this submission process is facilitated through a SNARK or succinct non-interactive argument of knowledge.
Polygon and zkSync differ in their scaling approaches. Polygon offers a flexible scaling framework with options like sidechains, Supernets, and zkEVM that allow developers to tailor solutions to their needs. In contrast, zkSync prioritizes secure and efficient scaling using Zk rollup technology. The choice between the two depends on a project's specific needs and preferences.
Also, Check | Comprehending ZK Rollups | Layer 2 Scaling Solutions
Benefits of zkSync
Here are the benefits of zero-knowledge Sync:
Transaction Fees and Speed
zkSync offers user-friendly token payment fees that allow users to pay fees in cryptocurrencies other than Ethereum. For example, when transferring stablecoins like Tether, you can choose to pay the fee in Tether.
The L2 solution reduces the transaction fees to a fraction of a penny. It does so by utilizing ZK tech stacks like GPU prover, LLVM-based Solidity compiler, and Redshift proof system.
zkSync's design allows for unlimited computation in each block. It enables new types of dApps (decentralized applications) that can process significantly more data on-chain than was previously possible.
Additionally, it provides shorter transaction times, designed to accelerate the withdrawal process. Users can expect their withdrawn currency to reach their accounts between 10 minutes to 7 hours.
Throughput
zkSync has introduced the concept of hyperchains. These are a group of independent ZK chains that operate on the Ethereum network and are connected by fully trustless Hyperbridges. Users can create their Hyperchains with custom consensus and security is inherited from the underlying layer 1.
Nodes limit the throughput of individual Hyperchains. But, together Hyperchains can achieve unlimited total throughput for the entire zkSync ecosystem.
Suggested Read |A Comprehensive Guide to Understanding zk-Snark
How can you utilize zkSync to Build Projects?
Here is how you can utilize the L2 scaling solution to develop new projects:
Smart Contract Development
You can create and deploy smart contracts optimized for zkSync. It ensures compatibility with the zero-knowledge rollup technology.
Additionally, you can migrate existing Solidity contracts from Ethereum to zero-knowledge Sync to ensure seamless functionality and compatibility.
DApp Development
You can develop dApps that leverage zkSync's capabilities such as DeFi protocols, NFT marketplaces, gaming platforms, and DAO structures. you can integrate zkSync wallets with dApps.
You May Also Like | zkEVM | Boosting Ethereum's Scalability
Conclusion
In this era of rapid technological advancement, zkSync tackles the scalability problem and paves for the future of decentralized finance and applications. If you are interested in leveraging its full potential, then Oodles Blockchain can assist you. Connect with our blockchain developers to get started.
Area Of Work:
Blockchain Development
Industry:
Software Development
Technology:
Redis
,
NestJS
,
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Dimple Dasila
30 Jan 2024
