1inch Network Adds Support for zkSync

04/20/2023 14:02 • Crypto & Markets • 88 views

According to reports, the decentralized exchange liquidity aggregator 1inch Network has added support for zkSync, a Layer2 solution for expanding Ethereum networks.

1 inch Network deployed to zkSync Era

As the popularity of decentralized finance (DeFi) continually rises, scalability issues on the Ethereum network have become more and more apparent. Fortunately, solutions like zkSync have emerged to address these problems. In this article, we take a closer look at the recent addition of zkSync to the 1inch Network decentralized exchange liquidity aggregator.

What is 1inch Network?

The 1inch Network, created in 2019, is a decentralized exchange aggregator that scans multiple liquidity protocols to find the best exchange rate for a particular trading pair. It connects to various decentralized exchanges (DEXs) such as Uniswap, Kyber Network, and Bancor to provide the best rates for traders.

The Need for Scalability Solutions in DeFi

One of the major issues that the DeFi space has been facing is scalability. The Ethereum network, on which most DeFi applications are built, can only handle a limited number of transactions per second. This has led to congestion on the network, resulting in high transaction fees and slow processing times.
To address these challenges, various layer 2 solutions have been developed, with zkSync being one of them.

Introducing zkSync

zkSync is a Layer 2 scaling solution for Ethereum. It utilizes zero-knowledge proofs to increase throughput and reduce gas costs. This allows for more transactions to be processed at a lower cost, drastically improving the user experience.

Integration of zkSync into 1inch Network

In a recent announcement, the 1inch Network revealed that it had added support for zkSync. This means that traders will now have access to even better rates and faster transaction times.
The integration of zkSync into 1inch Network increases the overall efficiency of the platform. Traders will be able to execute transactions quickly and at a lower cost than before.

Benefits of Using zkSync on 1inch Network

There are several benefits to using zkSync on the 1inch Network. These include:
– Reduced transaction fees: Users will pay lower gas fees when executing transactions on the 1inch Network.
– Faster transaction times: The integration of zkSync allows for faster transaction processing times, giving traders an overall better experience.
– Increased trading volume: With the integration of zkSync, the 1inch Network can handle a higher trading volume, leading to improved liquidity and better exchange rates for traders.

Conclusion

The integration of zkSync into the 1inch Network is a significant step towards improving the scalability and efficiency of DeFi applications. Traders can now enjoy faster transaction processing times and lower fees, making the overall trading experience better.

FAQs

1. What is a Layer 2 solution?

A Layer 2 solution is a second layer that sits on top of an existing blockchain network, helping to alleviate scalability issues and increase overall efficiency.

2. Can zkSync be integrated with other DeFi applications?

Yes, zkSync can be integrated into various DeFi applications, providing users with faster and more efficient transactions.

3. How does zero-knowledge proof technology work?

Zero-knowledge proof technology allows a prover to prove to a verifier that they have knowledge of a particular piece of information without revealing any further details about that information.

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