Circle integrates Ethereum’s zero-knowledge Layer 2 zkSync solution into its native stablecoin, USD Coin, improving transaction processing speed and preserving Ethereum’s founding values, thus expanding its availability in the Ethereum Layer 2 ecosystem.
Circle, one of the largest stablecoin producers, has expanded its support for the Ethereum zkSync Level 2 solution to include its own stablecoin, USD Coin (USDC). This integration empowers Ethereum developers and users by allowing them to take advantage of zkSync’s zero-knowledge proof and aggregate technology.
Increasing the reach of USD Coin
With the inclusion of zkSync, USDC is now available on 16 blockchains, including Ethereum, Solana, Base, Arbitrum, and more. This extension allows developers to build on a stable foundation provided by Circle, ensuring the reliability and resilience of their applications and services.
Using zkSync technology
zkSync uses zero-knowledge proofs and aggregations to execute layer 2 transactions on the Ethereum network at record speed and low cost. Zero-Knowledge Proofs allow the assessment of transaction integrity without revealing the underlying data, ensuring privacy and security. Aggregate transactions combine many Ethereum core layer transactions into a single transaction, which increases scalability and reduces costs.
Integrating zkSync with USDC offers a number of benefits for organizations and developers:
1. Fast and cheap transactions
Using zkSync’s unique data compression mechanism, developers can enjoy low-cost transactions on the Ethereum network. This scaling solution significantly reduces fuel costs and increases transaction throughput, making it more affordable for both individuals and companies.
2. Improved security and privacy.
zkSync’s zero-knowledge proofs provide cryptographic guarantees of transaction validity, guaranteeing transaction integrity. This enhanced security feature is critical for banking applications and DeFi protocols where trust and privacy are essential.
3. Native Account Abstraction
Developers can use zkSync’s built-in account abstraction to perform social wallet refunds, subscription payments, and network fee payments in USDC. This functionality improves the user experience and expands the use cases of USDC in the Ethereum ecosystem.
Growing the zkSync ecosystem
As of April 9, 2024, the zkSync ecosystem has over 180 decentralized applications and 5.7 million unique active wallet addresses in the previous 30 days. This growing development and user community illustrates that Tier 2 solutions like zkSync are becoming more popular and in demand.
Circle’s commitment to the future of Ethereum
Circle’s integration of zkSync with USDC is in line with its goal of increasing Ethereum’s throughput while maintaining its core ideals of freedom, self-sovereignty, and decentralization at scale. Circle aims to foster innovation and development within the Ethereum ecosystem by offering access to a reliable and scalable infrastructure for developers and companies alike.
Conclusion
Circle’s adoption of zkSync to its native stablecoin, USD Coin, is another key step towards establishing Ethereum’s Tier 2 ecosystem. zkSync’s zero-knowledge proofs and aggregation technologies provide developers with a strong platform for fast transactions with low cost and better security. This integration underscores Circle’s commitment to the future of Ethereum and its goal of increasing scalability while maintaining the core principles of the network.
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