Coinbase’s chosen blockchain brand is unaffected by zero knowledge threats.

Coinbase's chosen blockchain brand is unaffected by zero knowledge threats.

The Current Trend in the Blockchain Industry: OP Stack vs Zero-Knowledge Technology

In recent months, there has been a notable pattern among leading crypto companies, such as Coinbase, Binance, and a16z. They have all been seeking to create their own “layer-2” blockchain solutions on top of the Ethereum network. What is interesting is that these companies have chosen the OP Stack, created by Optimism, as the open-source software foundation for their new networks. This choice may seem surprising at first, as many Ethereum experts have predicted that layer-2 blockchains based on “ZK rollups” (powered by zero-knowledge cryptography) would be the most promising solution for scalability. However, the adoption of OP Stack indicates a different direction for these companies.

Layer 2 blockchains are built on top of a base blockchain, such as Ethereum, and enable faster and cheaper transactions. Optimistic rollups, which the OP Stack is based on, provide scalability by finalizing transactions in minutes or even days. In contrast, ZK rollups offer almost instantaneous finalization. Despite this difference, ZK rollups are widely considered the long-term solution for Ethereum scalability.

According to Mikhail Komarov, CEO of Nil Foundation, the reason for these crypto companies choosing OP Stack may be the ease of implementation without requiring a specialized ZK team. However, once there is an accessible way to set up a ZK rollup stack, it is expected that companies will migrate towards that technology. This perspective suggests that OP Stack may be an interim solution until ZK technology becomes more readily available.

However, the Optimism team argues that the OP Stack will eventually allow builders the flexibility to choose different attributes, including the option to adopt ZK rollup proofs instead of optimistic fraud proofs. Optimism’s flagship network, OP Mainnet, is currently the second-largest layer 2 blockchain, offering builders the opportunity to explore various directions utilizing the OP Stack.

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Although the choice of OP Stack may seem contrary to the prevailing theories favoring ZK technology, it is essential to understand that the field of layer-2 blockchains is still evolving rapidly. Vitalik Buterin, co-founder of Ethereum, has previously mentioned that while optimistic rollups have been around longer, ZK technology will likely surpass them in the future.

ZK rollup-based networks, such as Polygon’s zkEVM and Matter Labs’ zkSync, have been hailed as potential game-changers due to their innovative scaling techniques using zero-knowledge proofs. However, ZK rollups have certain trade-offs, such as higher technical complexity and increased computational intensity compared to optimistic rollups. These factors make optimistic rollups more attractive in terms of development progress and energy consumption.

One significant development in this space is Coinbase’s ‘Base’ layer 2, which is built using Optimism’s OP Stack. According to Jesse Pollak, the head of protocols at Coinbase, the choice of OP Stack was well-considered. While Base currently utilizes fault proofs, its end goal is to be secured by ZK validity proofs, which the OP Stack will eventually enable. The flexibility offered by the OP Stack to support multiple proofs means developers can implement either fraud proofs, suitable for optimistic rollups, or validity proofs suitable for ZK rollups.

OP Labs, the company behind Optimism, has faced criticism for not having fraud proofs securing its mainnet, with some arguing that Ethereum lacks security without them. However, Karl Floersch, CEO of OP Labs, emphasized their support for multiple proof systems, including both fraud and validity proofs. He believes that the ease of building with Optimism and the compatibility of OP Stack with different proofs will make OP Stack the preferred choice for developers.

In conclusion, the current trend in the blockchain industry is the adoption of OP Stack by major crypto companies for their layer-2 blockchain solutions. While ZK rollups are widely seen as the long-term solution for scalability, OP Stack offers a more accessible and convenient option for companies to begin building their layer-2 blockchains. The evolving nature of the industry means that as ZK-based blockchain frameworks mature, it will be interesting to observe how they fare against the OP Stack in terms of adoption and functionality.

References: – The increasing adoption of OP Stack – Comparing Optimistic rollups and ZK rollups – Coinbase’s Base layer 2

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