TheDinarian
News • Business • Investing & Finance
Decoding Polygon zkEVM: A Comprehensive Exploration
February 24, 2023
February 24, 2023
post photo preview

Summary:

  • Polygon will be launching its zkEVM Mainnet Beta on March 27th, 2023.
  • A zk-Rollup is a layer 2 construction on top of Ethereum that solves its scalability problem through mass transfer processing rolled into a single transaction.
  • Developers can copy-pasta their code onto Polygon’s zkEVM.
  • Secure scalability, cheaper transaction costs, faster finality and capital efficiency.
  • zkEVM uses Proof-of-Efficiency, not Proof-of-Stake
  • The MATIC staking balance has grown 36.6% YoY, staking wallets are up ~ 420% YoY.
  • How to connect to the Polygon zkEVM

What is happening?

Polygon will be launching its zkEVM Mainnet Beta on March 27th, 2023. This is a significant milestone in the roadmap to scale Ethereum and unlock the full potential of Web3, paving the way for mass adoption.

Why is this significant?

If you’ve ever used Ethereum Mainnet during periods of heavy network activity, you’re probably familiar with the not-so-smooth (and sometimes costly) experience it can provide for everyday users. Fortunately, Layer 2 networks like Polygon have emerged with solutions to help mitigate some of these issues. Among the most promising scaling solutions are ‘Zero-Knowledge Rollups’ (zk-Rollups). These offer a viable path to scale Ethereum in a cost-effective and efficient manner. 

A zk-Rollup is a layer 2 construction on top of Ethereum that solves its scalability through mass transfer processing rolled into a single transaction. The technology is used to present and publicly record the validity and correctness of the rolled transfers processed on the Ethereum blockchain. Storing only the proof and compressed data of a batch of transfers results in a significant increase in the network’s efficiency and throughput.

3cusXNI7bsaYKoLPbVemu6HSd2TAK6J_IS2Ll4tmbhsbX9tUBMqkl2yv-s04U60fdWM4W6dSQWcHH3hBkf3ymkLU7xn5bNeotLeoBzZi1YNn9i-WbSmGlhYUTn-I2KmDTgC8BZR5TtAlM8jUNCEBBlo

Now that may seem like a mouthful, but all you need to know is that ZK proofs reduce transaction costs and massively increase throughput, all while inheriting near proximal security to Ethereum’s L1. Sounds great doesn’t it, let’s dive into the details!

What are the main features of the Polygon zkEVM?

Polygon zkEVM is a Layer Two (L2) scaling solution for Ethereum that leverages the scaling power of zero-knowledge (ZK) proofs while maintaining Ethereum-compatibility. Developers and users can use the same code, tooling, apps, etc that they use on Ethereum, but with much higher throughput and lower fees. Enabling them to copy and post their code, and enjoy the benefits of ZK technology. We can describe the core features of the upgrade as follows:

4mDp6fmXjDb1aeX2x8Ea-bDYvkWsp6-6sY8wyS00aAbrNeFdXc1SIRwUL2D6WRnoofW9VpfGdE64-FKALbKqu_rnXxt8wRamQyrsSWojCYTa7KRbqgDo6YOxRuwNc0n2BXw_m2hbFzOEhGWHHOvRPcI

What are the benefits of Polygon zkEVM?

True EVM-equivalence allows scaling Ethereum without relying on half-measures. To scale Ethereum effectively, it is necessary to preserve the existing Ethereum ecosystem, including its code, tooling, and infrastructure. This approach ensures that everything functions properly, which is precisely what Polygon zkEVM aims to achieve. In addition, much-anticipated transaction cost reductions are included in the upgrade:

  • Cost for generating a proof for a large batch of transactions down to about $0.06
  • Less than $0.001 for a simple transfer

The Polygon foundation has highlighted  four key benefits of the upgrade for Ethereum ecosystem developers and users:

Secure scalability

zk-Rollups offer stronger security assurances when compared to alternative scaling solutions, as they employ validity proofs to verify the accuracy of off-chain computations. This approach enables smart contract transactions on Layer 2 to be verified on L1 (Ethereum) without the need for nodes to re-execute operations, resulting in significant time and resource savings. As a result, Ethereum’s processing speed can be significantly increased without compromising security.

Cheaper costs

zk-Rollups can afford to post minimal data to Ethereum because validity proofs already guarantee the trustworthiness of state transitions.

Faster finality and capital efficiency

The zkEVM typically confirms transactions immediately after they are posted to Ethereum. Since each transaction batch comes with a verifiable proof of validity, state updates can be rapidly applied to the main Ethereum chain.

Network effects

The primary rationale for developing EVM-compatible zkVMs is to capitalize on the network effects of Ethereum. As the largest smart contract platform in the world, Ethereum has a vast ecosystem that offers significant value to both developers and projects.

Polygon zkEVM uses Proof-of-Efficiency, not Proof-of-Stake

David Schwartz and Jordi Baylina from Polygon Hermez (Scaling Solution) outlined a new consensus model to overcome unique challenges that Layer 2 PoS protocols face. 

Maintaining network service levels requires the efficient production of zk validity proofs. However, proofs are highly computationally intensive for the prover, which means that not every validator can be tasked with the computation. Randomly assigning the responsibility of producing a batch (L2 block) to a validator does not ensure optimal performance, which creates decentralization issues, as only pre-determined validators can be chosen.

Proof of Efficiency (PoE) is a decentralised auction that is conducted automatically and the participants (coordinators) bid a number of tokens so that they have the chance to create the next batch. The strategic implementation of PoE promises to ensure that the network:

  • Maintains its “permissionless” feature to produce L2 batches
  • Is efficient, a criterion which is key for the overall network performance
  • Attains an acceptable degree (Not maximum) of decentralization 
  • Is protected from malicious attacks, especially by validators
  • Keeps a proportionate balance between the overall validation effort and the value in the network.

How does Polygon zkEVM reach consensus?

Consensus Contract (deployed on L1) utilizes a dedicated mechanism to verify that a set of predetermined rules have been followed for allowing state transitions. A smart contract verifies the validity proofs to ensure that each transition is completed correctly. For this to happen, there are two key participants in the network:

Sequencers

  • Roll-up the transaction requests in batches and add them to the PoE Smart Contract. 
  • A Sequencer that proposes valid batches (which consist of valid transactions), is incentivised with the fee paid by transaction-requesters or the users of the network.
  • Anyone with the software necessary for running a zkEVM node can be a Sequencer.

Aggregators

  • Check the validity of the transaction batches and provide validity proofs.
  • In addition to running zkEVM’s zkNode software, Aggregators need to have specialised hardware for creating the zero-knowledge validity proofs utilizing zkProver.
  • An Aggregator that submits a validity proof earns the MATIC fee (which is being paid by the Sequencer of the batch).

The Smart Contract, therefore, makes two calls:

  • One to receive batches from Sequencers
  • Another to aggregators, requesting that batches be validated.

This sounds great, but how can I connect to the Polygon zkEVM?

Mainnet Beta is only going live on the 27th of March, 2023. In the meantime you can become familiar with the Public Testnet and play around with other dApps that are also currently running on testnet. To connect to the network, follow the steps below:

  • Open up your Metamask wallet
  • Click the network name dropdown box at the top of your wallet
  • Click ‘Show/Hide’ test networks and enable it
  • Go back to the network selection dropdown and click ‘Add network’
  • Enter in the RPC details 

Public Testnet Details

Once you have connected to the network, you can deploy smart contracts to the testnet using your preferred scripting tool. Your basic RPC set-up will be the same. (Only cheaper and faster.)

Conclusion

Polygon zkEVM Mainnet is set to be the first fully EVM equivalent ZK rollup to reach mainnet. In the event of a successful launch, the network is poised to attract significant traction and acquire a first-mover advantage. Polygon has set the stage for other scaling solutions to rise to the occasion.

Link

community logo
Join the TheDinarian Community
To read more articles like this, sign up and join my community today
0
What else you may like…
Videos
Podcasts
Posts
Articles
Enhancing Security for the XDC Ecosystem with SecureDApp 🔐

We’re thrilled to announce our collaboration with SecureDApp, empowering projects on the XDC Network with enterprise-grade security solutions and exclusive benefits:

  • Solidity Shield Audit – Get 24% off (use code: OMRXCWRBA7Q9 – limited-time offer)

  • SecureWatch – 60-day FREE trial for runtime protection of dApps

  • SecureX-ID – 15% off decentralized KYC/AML solutions to ensure compliant DeFi operations

This partnership reinforces our commitment to providing secure, scalable, and regulatory-compliant infrastructure for builders in the XDC ecosystem.

🔗 For more details visit: www.securedapp.io

00:00:19
LIVE – Season 1 Airdrop Claim! 🪂

25% of your allocation is claimable today. The remaining 75% vested NFT and @Paint_swap order book will soon follow.

🪂 airdrop.paintswap.io

00:00:23
PNCBank clients will soon be able to buy, sell and hold crypto 🚀

Customers of one of the largest banks in the US wanted easier access to crypto.

So we've partnered with them to make it happen. @PNCBank clients will soon be able to buy, sell and hold crypto.

00:00:15
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading

Who said banks aren’t using Ripple’s products?

To my knowledge, many are and will be deploying once full regulatory clarity is offered.

OP: mrmanxrp

post photo preview

Why did SWIFT select these eight digital assets for ISO 20022 integration?

These eight tokens each solve important problems with the old SWIFT payment system.💯

All eight tokens combine faster payment speeds, lower transaction costs, greater transparency, and improved liquidity management. ✅

Each also brings unique features that make it essential to addressing SWIFT’s slow, costly, and opaque payment process.

As the financial world adopts ISO 20022, these 8 platforms will be consistently chosen as the technology that new systems are deployed on.🔑

“Therefore, more will be heard about these initiatives and projects as the migration process to the ISO 20022 standard progresses.”😏💨

Get ready for a wave of ISO 20022–compliant crypto announcements as more systems upgrade to this standard.💎

OP: Smqkedqg

post photo preview

For the first time, AWS has approved a decentralized platform to integrate its cutting-edge AI silicon: EdgeCloud is now running AWS’s purpose-built AI instances, powered by AWS Trainium and Inferentia!

https://medium.com/theta-network/theta-network-and-aws-join-forces-to-launch-custom-amazon-ai-chips-trainium-inferentia-on-0f07a4a8635c

post photo preview
post photo preview
Musk Turns On Starlink to Save Iranians from Regime’s Internet Crackdown

Elon Musk, the world’s richest man and a visionary behind SpaceX, has flipped the switch on Starlink, delivering internet to Iranians amid a brutal regime crackdown.

This move comes on the heels of Israeli strikes targeting Iran’s nuclear facilities, as the Islamic Republic cuts off online access.

The former Department of Government Efficiency chief activated Starlink satellite internet service for Iranians on Saturday following the Islamic Republic's decision to impose nationwide internet restrictions.

As the Jerusalem Post reports, that the Islamic Republic’s Communications Ministry announced the move, stating, "In view of the special conditions of the country, temporary restrictions have been imposed on the country’s internet."

This action followed a series of Israeli attacks on Iranian targets.

Starlink, a SpaceX-developed satellite constellation, provides high-speed internet to regions with limited connectivity, such as remote areas or conflict zones.

Elizabeth MacDonald, a Fox News contributor, highlighted its impact, noting, "Elon Musk turning on Starlink for Iran in 2022 was a game changer. Starlink connects directly to SpaceX satellites, bypassing Iran’s ground infrastructure. That means even during government-imposed shutdowns or censorship, users can still get online, and reportedly more than 100,000 inside Iran are doing that."

During the 2022 "Woman, Life, Freedom" protests, Starlink enabled Iranians to communicate and share footage globally despite network blackouts," she added.

MacDonald also mentioned ongoing tests of "direct-to-cell" capabilities, which could allow smartphone connections without a dish, potentially expanding access and supporting free expression and protest coordination.

Musk confirmed the activation, noting on Saturday, "The beams are on."

This follows the regime’s internet shutdowns, which were triggered by Israeli military actions.

Adding to the tension, Israeli Prime Minister Benjamin Netanyahu addressed the Iranian people on Friday, urging resistance against the regime.

"Israel's fight is not against the Iranian people. Our fight is against the murderous Islamic regime that oppresses and impoverishes you,” he said.

Meanwhile, Reza Pahlavi, the exiled son of Iran’s last monarch, called on military and security forces to abandon the regime, accusing Supreme Leader Ayatollah Ali Khamenei in a Persian-language social media post of forcing Iranians into an unwanted war.

Starlink has been a beacon in other crises. Beyond Iran, Musk has leveraged Starlink to assist people during natural disasters and conflicts.

In the wake of hurricanes and earthquakes, Starlink has provided critical internet access to affected communities, enabling emergency communications and coordination.

Similarly, during the Ukraine-Russia conflict, Musk activated Starlink to support Ukrainian forces and civilians, ensuring they could maintain contact and access vital information under dire circumstances.

The genius entrepreneur, is throwing a lifeline to the oppressed in Iran, and the libs can’t stand it.

Conservative talk show host Mark Levin praised Musk’s action, reposting a message stating that Starlink would "reconnect the Iranian people with the internet and put the final nail in the coffin of the Iranian regime."

"God bless you, Elon. The Starlink beams are on in Iran!" Levin wrote.

Musk, who recently stepped down from leading the DOGE in the Trump administration, has apologized to President Trump for past criticisms, including his stance on the One Big Beautiful Bill.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

Read full Article
post photo preview
GENIUS Act lets State banks conduct some business nationwide. Regulators object

The Senate passed the GENIUS Act for stablecoins last week, but significant work remains before it becomes law. The House has a different bill, the STABLE Act, with notable differences that must be reconciled. State banking regulators have raised strong objections to a provision in the GENIUS Act that would allow state banks to operate nationwide without authorization from host states or a federal regulator.

The controversial clause permits a state bank with a regulated stablecoin subsidiary to provide money transmitter and custodial services in any other state. While host states can impose consumer protection laws, they cannot require the usual authorization and oversight typically needed for out-of-state banking operations.

The Conference of State Bank Supervisors welcomed some changes in the GENIUS Act but remains adamantly opposed to this particular provision. In a statement, CSBS said:

“Critical changes must be made during House consideration of the legislation to prevent unintended consequences and further mitigate financial stability risks. CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors (Sec. 16(d)).”

The National Conference of State Legislatures expressed similar concerns in early June, stating:

“We urge you to oppose Section 16(d) and support state authority to regulate financial services in a manner that reflects local conditions, priorities and risk tolerances. Preserving the dual banking system and respecting state autonomy is essential to the safety, soundness and diversity of our nation’s financial sector.”

Evolution of nationwide authorization

Section 16 addresses several issues beyond stablecoins, including preventing a recurrence of the SEC’s SAB 121, which forced crypto assets held in custody onto balance sheets. However, the nationwide authorization subsection was added after the legislation cleared the Senate Banking Committee, with two significant modifications since then.

Originally, the provision applied only to special bank charters like Wyoming’s Special Purpose Depository Institutions or Connecticut’s Innovation Banks. Examples include crypto-focused Custodia Bank and crypto exchange Kraken in Wyoming, plus traditional finance player Fnality US in Connecticut. Recently the scope was expanded to cover most state chartered banks with stablecoin subsidiaries, possibly due to concerns about competitive advantages.

Simultaneously, the clause was substantially tightened. The initial version allowed state chartered banks to provide money transmission and custody services nationwide for any type of asset, which would include cryptocurrencies. Now these activities can only be conducted by the stablecoin subsidiary, and while Section 16(d) doesn’t explicitly limit services to stablecoins, the GENIUS Act currently restricts issuers to stablecoin related activities.

However, the House STABLE Act takes a more permissive approach, allowing regulators to decide which non-stablecoin activities are permitted. If the House version prevails in reconciliation, it could result in a significant expansion of allowed nationwide banking activities beyond stablecoins.

Is it that bad?

As originally drafted, the clause seemed overly permissive.

The amended clause makes sense for stablecoin issuers. They want to have a single regulator and be able to provide the stablecoin services throughout the United States. But it also leans into the perception outside of crypto that this is just another form of regulatory arbitrage.

The controversy over Section 16(d) reflects concerns about creating a regulatory gap that allows banks to operate interstate without the oversight typically required from either federal or state authorities. As the two Congressional chambers work toward reconciliation, lawmakers must decide whether stablecoin legislation should include provisions that effectively reduce traditional banking oversight requirements.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

Read full Article
post photo preview
Dubai regulator VARA classifies RWA issuance as licensed activity
Virtual Asset Regulatory Authority (VARA) leads global regulatory framework - makes RWA issuance licensed activity in Dubai.

Real-world assets (RWAs) issuance is now licensed activity in Dubai.

~ Actual law.
~ Not a legal gray zone.
~ Not a whitepaper fantasy.

RWA issuance and listing on secondary markets is defined under binding crypto regulation.

It’s execution by Dubai.

Irina Heaver explained:

“RWA issuance is no longer theoretical. It’s now a regulatory reality.”

VARA defined:

- RWAs are classified as Asset-Referenced Virtual Assets (ARVAs)

- Secondary market trading is permitted under VARA license

- Issuers need capital, audits, and legal disclosures

- Regulated broker-dealers and exchanges can now onboard and trade them

This closes the gap that killed STOs in 2018.

No more tokenization without venues.
No more assets without liquidity.

UAE is doing what Switzerland, Singapore, and Europe still haven’t:

Creating enforceable frameworks for RWA tokenization that actually work.

Matthew White, CEO of VARA, said it perfectly:

“Tokenization will redefine global finance in 2025.”

He’s not exaggerating.

$500B+ market predicted next year.

And the UAE just gave it legal rails.

~Real estate.
~Private credit.
~Shariah-compliant products.

Everything is in play.

This is how you turn hype into infrastructure.

What Dubai is doing now is 3 years ahead of everyone else.

Founders, investors, ecosystem builders:

You want to build real-world assets onchain.

Don’t waste another year waiting for clarity.

Come to Dubai.

It’s already here.

 

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

 

Read full Article
See More
Available on mobile and TV devices
google store google store app store app store
google store google store app tv store app tv store amazon store amazon store roku store roku store
Powered by Locals