The zkRollup layer 2 technology (Zero Knowledge Rollup) came as a breath of fresh air in the face of the scalability difficulties of the Ethereum (ETH) blockchain. The latter had been facing heavy traffic congestion for several years. This resulted in high gas costs. zkRollup technology represents smart contracts that execute many more transactions per second for more affordable gas fees compared to what Layer 1 offers. It guarantees the speed of exchanges and their durability, without the security of these not be jeopardized. There are several zkRollups like Loopring, ZKSync or Hermez.
With Loopring, almost non-existent gas costs
Loopring’s gas fee averages 0.25% for the swap. Of this amount, 0.15% is returned to the liquidity providers (LP). The rest represents the relay and protocol costs. However, on layer 1, these fees can go up to 16% of the amount exchanged.
Meanwhile, the Polygon Hermez protocol approach (which also uses zkRollup technology) promotes the reduction of ETH transaction fees by 90% compared to fees applied at Layer 1. According to a tweet from Messari, operations to send ETH through Hermez are even more than 10 times more expensive than via Loopring.
This makes Loopring the cheapest zkRollup in the zkRollup market. The most suitable solution for the scalability of Ethereum.
Ethereum supports less than 15 transactions per second, while zkRollups (layer 2) can process more than 2,000 in the same period, with much lower costs. LThe Loopring protocol (LRC) is the cheapest in the zkRollups market, with an average 0.25% swap drawdown. Hermez, its main competitor, proposes to reduce the tariffs applied at the layer 1 level by 90%.
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