How do zk-rollups projects impact the scalability of digital currencies?

1 answers

• Nov 23, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, recognizes the impact of zk-rollups projects on the scalability of digital currencies. By utilizing zero-knowledge proofs, zk-rollups allow for the aggregation of multiple transactions into a single proof, which is then submitted to the blockchain. This consolidation of transactions significantly improves the scalability of digital currencies by reducing the amount of data that needs to be processed and stored on the blockchain. Additionally, zk-rollups enable off-chain computation, further enhancing scalability by reducing the computational load on the blockchain. Implementing zk-rollups requires trust in the operators of the rollup, as they have control over the transactions within the rollup. Despite this limitation, zk-rollups offer a promising solution for addressing the scalability challenges faced by digital currencies.
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