Matter Labs, a blockchain startup developing a sophisticated roll-up product, Announced on Friday, the launch of ZkSync 2.0, an Ethereum scaling solution, which is set to allow developers to host smart contracts, deploy DeFi protocols, NFTs, and other types of applications on the Ethereum network.

According to the report, the release is highly anticipated as the Layer 2 scaling solution uses zero-knowledge technology and remains natively compatible with Ethereum applications. Such compatibility is what makes ZkSync 2.0 easy and fast for developers to port existing Layer 1 smart contracts and applications (applications) from the Ethereum mainnet to Layer 2.0 ZkSync.

Despite the launch, dapps (decentralized applications) will still not be able to be developed on the zkSync 2.0 platform, according to the report.

Matter Labs calls the release an “alpha baby” phase, meaning access will initially be very restricted. During the first month, the ZkSync 2.0 network will work without any external applications open for use and no external participants will be able to use it. The Matter Labs team explained that the initial phase is only intended for stress testing and security efforts.

After a month, Matter Labs describes the next phase as “fair alpha” as the stage where developers will be able to port their applications to zkSync 2.0 and start building on the network. According to the report, many cryptocurrency projects, including DeFi protocols like Uniswap, among others, have expressed interest in deploying their applications on the zkSync 2.0 network.

Matter Labs said the final phase is expected by the end of the year, when the network will be fully open to everyone.

According to the report, ZkSync 2.0 is a Layer 2 scaling solution that offers fast, low-power transactions on the main Ethereum (Layer 1) blockchain, without compromising security. ZkSync 2.0 significantly reduces gas costs without sacrificing user security or control, while allowing users to effortlessly move assets (cryptocurrencies, DeFi, NFT and others) between L1 and Layer 2 at any time, without delay.

Matter Labs, the company behind zkSync, has been working on its version 2.0 since 2020. The company received funding from both the Ethereum Foundation and top-tier investors like Union Square Ventures to get the job done.

Matter Labs released a version 1.0 in June 2020 and has now released the zkSync 2.0 network for implementation.

In the recent past, the Ethereum Foundation clarified that while the Ethereum Merge upgrade might improve transaction speeds, it will not reduce gas fees. This is because gas rates are a product of network demand relative to network capacity. In other words, the Merge upgrade does not reduce gas fees, since gas costs are based on how much the blockchain is used. This is where the use of Layer 2 such as zkSync or StarkNet comes in to introduce cheap and fast transactions on the Ethereum network.

Image source: Shutterstock