BNB Chain has announced the launch of zkBNB, a zero-knowledge proof-based scaling solution. The zkBNB testnet went live on September 2, 2022, and the code has been made open-source. The mainnet is expected to be launched at the end of the year. zkBNB aims to offer guaranteed security and transaction speed, faster finality, and significantly reduced transaction fees.
zkBNB Will Improve Scalability
The primary functions of zkBNB are to maintain security from its base layer, at the same time using an array of algorithms known as ZK SNARKS for faster transactions per second (TPS), finality, cheaper transaction fees, and unprecedented scalability, “the likes of which has not been seen before in the industry,” according to the BNB Chain release article.
“Integrating payments and atomic swaps will now be possible in just a few lines of code. Digital assets will be automatically traded without permission by utilizing the innovative built-in AMM swap and liquidity pools for DeFi use cases.” Per the press release.
Long waits and bottlenecks in transactions are some of the biggest challenges the BNB Chain faces and in the statement, it was confirmed that zkBNB will drastically reduce waiting times, therefore providing users with more efficient applications.
Another application of zkBNB apart from its ability to enhance user experience is the introduction of an inbuilt naming service. What this function does is offer legible names in transactions when storing all user addresses and receiving crypto, tokens, or NFTs, this will go a long way in helping new users navigate the platform properly.
The launch of zkBNB follows the March 2022 launch of the BNB Application Sidechain (BAS), a framework for creating sidechains within the BNB Chain ecosystem.
Since launching in the latter stages of 2020 as a major upgrade to Binance Chain, BNB Chain (formerly Binance Smart Chain) has quickly grown into one of the most widely used smart contract platforms, holding more than $5.4 billion in total value locked (TVL).
Zero-knowledge proofs are not a new technology. It has been around for more than 30 years, since 1985. However, the use of ZK Proofs in cryptocurrencies is relatively new.
A zero-knowledge proof, or a ZK protocol, is a verification method that takes place between a prover and a verifier. In a zero-knowledge proof system, the prover can prove to the verifier that they know a particular piece of information (such as the solution to a mathematical equation) without revealing the information itself.
ZK SNARKs were first used by a fork of bitcoin (BTC), Zcash. The use of ZK SNARKs has increased in global adoption due to its usage of elliptic curves for proofs, as they have high-security guarantees and viability for scalability. According to Ethereum co-founder Vitalik Buterin, the zero-knowledge proof is an option for long-term solutions for decentralized blockchain scalability.
The cryptocurrency and blockchain technology sector is increasingly adopting zero-knowledge proofs, In July this year, Polygon launched Polygon zkEVM which will use ZK Rollups to offer users lesser transaction fees. At press time, BNB, the native crypto of the Binance ecosystem is trading at around $278.95.