🤝Settlement on Ethereum

How Transactions Settle on Ethereum

Zayn Network operates as an L2 solution, meaning that while it processes transactions independently to provide faster and more cost-effective service, it ultimately relies on the Ethereum mainnet for final transaction settlement. Here’s a step-by-step overview of how this settlement process works:

1. Transaction Execution on Zayn Network: Users conduct transactions on Zayn Network, which are processed and verified within the L2 environment using Zayn’s optimized protocols and the zkSync stack.

2. Aggregation of Transactions: Instead of settling each transaction individually, Zayn Network aggregates multiple transactions into a single batch. This batching process significantly reduces the load on the Ethereum network and lowers transaction costs.

3. Generating ZK Proofs: For each batch, a zero-knowledge (ZK) proof is generated. This proof verifies that all transactions in the batch are valid without revealing their individual details or requiring the Ethereum network to reprocess them.

4. Submitting ZK Proofs to Ethereum: The ZK proof, along with the batched transaction data, is submitted to the Ethereum network. This submission is what is referred to as 'settling' the transactions on Ethereum.

5. Verification on Ethereum: The Ethereum network verifies the ZK proof. Upon successful verification, the transaction batch is considered settled, and the final state is recorded on the Ethereum blockchain.

Inheriting Ethereum's Security

By settling transactions on Ethereum, Zayn Network inherits the robust security features of the Ethereum blockchain:

• Decentralization and Security: Ethereum is known for its high degree of decentralization and security. By anchoring transactions to Ethereum, Zayn Network benefits from these aspects, significantly enhancing the security posture of its operations.

• Finality and Immutability: Once a transaction batch is verified and settled on Ethereum, it benefits from Ethereum’s finality and immutability. This means that the transaction history cannot be altered, providing users with trust and confidence in the integrity of their transactions.

• zkSync Stack Utilization: The use of the zkSync stack in Zayn Network for generating and verifying ZK proofs before settlement on Ethereum ensures that even though transactions are processed at a higher speed and lower cost on Zayn L2, they do not compromise on security. The zkSync technology provides an additional layer of cryptographic security, making Zayn's transactions both scalable and secure.

Conclusion

Settlement on Ethereum is a critical component of Zayn Network’s operation, allowing it to combine the speed and efficiency of a Layer 2 solution with the security and reliability of Ethereum. This dual advantage ensures that Zayn Network is not only fast and cost-effective but also secure and reliable, making it a preferred platform for users and developers seeking robust blockchain solutions.

Explore further to understand how this settlement process can be integrated into your applications on the Zayn Network.