Ethereum’s zkSync Puts a Hold on zkSync Era and zkSync Lite Deposit/Withdrawal Transactions

04/13/2023 02:20 • Metaverse Matters • 125 views

According to reports, in order to cooperate with the upgrade of Ethereum Shapella, the second tier network zkSync of Ethereum has previously stopped zkSync Era and zkSync Lite deposit/withdrawal transactions.

ZkSync: zkSync Era and zkSync Lite deposit and withdrawal funds have been restored

Introduction

Ethereum’s growth over the past couple of years has been nothing short of phenomenal. With the platform’s increasing popularity, it has also created room for other developments than Ethereum itself. One such development is Ethereum’s zkSync protocol – this is an off-chain scaling solution for Ethereum that enhances scalability, speed, and transaction costs. Unfortunately, the second-tier network zkSync has stopped zkSync Era and zkSync Lite deposit/withdrawal transactions as part of its upgrade process to further improve its technologies. In this article, we will explore the impact of this decision, and what it means for users who rely on decentralized finance (DeFi) to invest in cryptocurrencies.

Overview of zkSync

zkSync is a payment-layer architecture that assists in scaling up the Ethereum platform. It supports the execution of smart contracts and facilitates the transmission of ether and other Ethereum assets. Its primary selling point is its efficiency and flexibility. The protocol breaks a transaction into two parts – data and signature, which significantly reduces the data needed to be on-chain. This also means that its transactions cost a lot less than what it takes to process transactions on-chain, and it is much faster, too. With zkSync, users get to enjoy the benefits of a distributed exchange without the need for complex protocols.

Why Has Deposit/Withdrawal Transactions Been Stopped?

Reports have shown that zkSync has stopped deposit/withdrawal transactions due to a planned upgrade. Ethereum Shapella is said to be at the heart of this upgrade, and the zkSync team was pressured to cooperate with it. This move by Ethereum Shapella was necessary to enhance network security, stability, and speed so that it could support more applications. Hence, to accommodate this upgrade, zkSync had to stop all deposit/withdrawal transactions temporarily. This was done as a safety measure to ensure that no data was lost during the implementation phase of the upgrade.

What Are the Impacts of This Decision?

As a result of the temporary suspension, users will not be able to deposit or withdraw funds on zkSync. This will also have a significant impact on trading activities on decentralized exchanges (DEXs) that rely on the zkSync network to execute transactions. Most of these DEXs use the layer-2 solution to offer faster trades and reduced gas fees. As such, this suspension may force them to look for alternative ways to ensure that their trading activities remain uninterrupted. For traders who rely on arbitrage opportunities, this decision could lead to an increase in trading costs, which translates to a reduction in profits.

What Is Happening Now?

At the time of this writing, there has been no official announcement as to when the suspension will be lifted. However, there have been indications that the suspension will last for a few weeks. Users who initiated deposit/withdrawal transactions before the suspension can rest assured that their transactions will be processed after the upgrade process is complete.

Conclusion

In conclusion, the suspension of deposit/withdrawal for zkSync will no doubt have an impact on those that rely on the platform to transact. The temporary suspension is necessary to ensure that the upgrade process is successful and that the platform continues to offer users efficient and cost-effective transaction solutions. We anticipate that the upgrade will be completed soon, and normal deposit/withdrawal transactions will return to service.

FAQs

Q: What is Ethereum Shapella?

A: Ethereum Shapella is a protocol upgrade targeted at improving network security, stability, and speed to support more applications.

Q: Why is zkSync important?

A: zkSync is an off-chain scaling solution for Ethereum that enhances scalability, transaction speed, and reduces trading costs.

Q: How long will the suspension last?

A: There have been indications that the suspension will last for a few weeks, but there is no official statement backing this up.

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