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Onchain Economics
Infrastructure

Zero-Knowledge Proof(ZKP)

A cryptographic method that proves a statement is true without revealing any information beyond the validity of the statement itself.

In-Depth Explanation

ZKPs enable privacy (prove you're over 18 without revealing your age) and scalability (prove 1000 transactions are valid with a tiny proof). ZK-rollups use ZKPs for Ethereum scaling. ZK-SNARKs and ZK-STARKs are different ZKP constructions with various tradeoffs around proof size, generation time, and trust assumptions.

Related Terms

ZK Rollup

A Layer 2 scaling solution that uses zero-knowledge proofs to verify transaction validity without re-execution.

Rollup

An L2 scaling solution that executes transactions off-chain but posts transaction data or proofs to L1 for security.

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Gas Fees

Transaction fees paid to validators/miners for executing operations on a blockchain.

Gwei

A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.

Layer 2

L2

Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.

Layer 1

L1

The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.

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