EY (Ernst & Young), an auditing company, has launched a layer two protocol named zero-knowledge proof to help minimize the increasing fees on transactions through Ethereum. The ZKP (zero-knowledge proof) protocol has been developed to operate ERC-20’s private transfers along with enhancing the overall efficiency.
Zero-knowledge proof has been incorporated into the project named Nightfall 3, including a new model to handle transaction verification. This combined protocol, which is called ZK-Optimistic Rollup, divides the ZKP transactions among several groups known as rollups.
The reports reveal that ZKP protocols have recently been incorporated in the domain of common masses by EY teams.
Optimistic Rollups: a layer two technology
Optimistic Rollups are among a lot of Layer 2 that several firms have integrated during this year. Rather than examining each transfer, the network supposes them all to be correct, and the users are only allowed to interfere if they provide proof of fraud after noticing the incorrect transaction.
It was noted in the blog post that the approximate expense of 8,200 on every transaction would be achieved along with the maintenance of privacy by the utilization of ZK-Optimistic Rollups. The post further mentioned that the targeted cost is near one-eighth as compared to the required expenditure for making a transaction through the public token of ERC20.
The report also disclosed that the developers’ learning curve (needed for implementing the privacy) would also be reduced by Nightfall 3. An exemplary API (application programming interface) that resembles the transfer tools of the other tokens would be provided by the project.
Paul Brody, the leader of EY Global Blockchain, stated that the ZK-Optimistic Rollups prove to be considered the most competent security incentive among the others as they provide mathematical proficiency to make private transfers through the public network of Ethereum.
Ethereum’s update regarding gas fee
The normally charged fees on the Ethereum transactions have again minimized after being at unsustainable levels for a few months. The current average fee, as BitinfoCharts states, is $2.65, and it has been maintained around it during the last month.
The costs of gas vary according to the operation. A normal transfer of ERC-20 will charge a low fee, whereas a complex interaction of smart contracts will be costly. Etherscan reports that the present average cost of a token swap of Uniswap is approximately $4.50
Ethereum has executed excellently during the weekend by excelling over the $2,400 as reported by CoinGecko.