▫️Abstract

Pioneering the Future of Finance with DeFi Innovation

In this document, we will describe the relevant description of the overall design framework of zkZone, a Layer 2 network protocol based on binance smart chain including function introduction, technical operation principle, operation mechanism, usage protocol, incentive mechanism, application and development plan, etc. We expect that zkZone will play a role of strong practicability and applicability in Layer 2, supplementing and strengthening the actual application functions of the existing public chain and the entire blockchain by providing fast, safe, reliable and high-performance services.

Because of the limitation of this document, please visit zkzone.io for more information. This document focuses on zkZone's innovative technical architecture and some of its unique features, which are important to achieving zkZone's goals.

zkZone is an efficient Layer 2 blockchain operating network that can meet commercial standards and adopt cutting-edge design and advanced technology. It will focus on defining and providing the most basic, core, and services providers and make great improvements and innovations to the existing blockchain technology.

What is a Layer 2 Blockchain?

A layer 2 network is a secondary protocol that operates on top of an underlying blockchain as a scaling solution. The underlying protocol is a layer 1 blockchain, which constitutes the infrastructure and consensus mechanism on which these secondary networks and other applications operate.

But what’s the need for a secondary layer?

So layer 1 protocols are required to process more transaction data as the number of users in the network increases. However, most layer 1 networks, such as Ethereum and Bitcoin, have a limited capacity to process transactions per second (TPS). For instance, Ethereum processes up to 29 TPS. This leads to network congestion and increased transaction fees as their user base grows. In return, it hinders their long-term growth and widespread adoption.

Typically, layer 2 solutions solve the limitations of layer 1 by enhancing its overall performance or operational capabilities. This includes improving the underlying network’s transaction throughput, scalability capacity, and transaction costs. Since they are built on top of another blockchain, they inherit the security of the protocol they operate on.

KEY TAKEAWAYS:

— Scalability is a defining issue for the future of cryptocurrencies. — Many early blockchains like the Ethereum and Bitcoin networks were not designed to handle the volume of traffic they now support. — Layer 2 blockchains are subsidiary blockchains built on top of those underlying networks that enable faster, cheaper transactions. — This opens the door for new blockchain applications, and increase the efficiency of the system as a whole.