The team behind Ethereum Layer 2 (L2) network ZKsync on December 4th announced ZK Interop, a complementary update to Atlas, a technology package launched in October by the same L2.
ZK interoperability Enabling native interoperability Between “ZK Chain”, the sovereign chain of the ZKsync ecosystem built on Atlas, and decentralized finance (DeFi) applications on the Ethereum mainnet.
This new release promises that protocols such as Aave can be used from one of these ZK chains. No bridge dependencies and no account fragmentation According to the announcement, there will be no long wait times.
What problem does ZK Interop want to solve?
The objectives of interoperability announced at ZK Interop are: Fragmentation of liquidity Ethereum, A phenomenon in which funds are distributed across multiple networks that do not communicate directly.
Previously, each L2 and each private chain operated as an island. Users can change networks, transfer funds, open separate accounts To use DeFi protocols.
ZK Interop eliminates the need for complex bridges for interaction. Users operate from the same wallet on the ZK chain, but Transactions are executed on Ethereum Under a unified authority and digital identity scheme.
How does ZK Interop work on Ethereum?
Specific examples are included in the official announcement. ZK Chain users deposit into Aave (a platform that allows lending and borrowing of cryptocurrencies) and request credit in Aave’s stablecoin, GHO token.
The entire process is completed without the user leaving their account on the secondary chain.
This flow is possible thanks to a mechanism that consists of three steps:
- Fast withdrawal to Ethereum “Alias” account.
An alias account is a cryptographically controlled representation that allows actions to be performed on the main layer. without the user having to generate a new ID..
These alias accounts will still be controlled by the user’s keys on the ZK Chain, so there is no need to create additional identities on Ethereum.
- Preparing and running an interoperability “transaction package”.
This package bundles the necessary steps to deposit funds into Aave and pull credits into GHO within Ethereum.
- Possibility to return borrowed tokens to L2.
Users decide whether to put GHO back on the ZK chain. Using a bridge is no longer a prerequisite to completing an operation, but is now an option.
Institutional implications: Privacy through access to open markets
The new Atlas update also integrates Prividiums, a set of tools available to businesses and financial institutions. Trade on a private system without disconnecting from the open Ethereum market.
Prividiums act as an isolated environment that protects sensitive data, like a private space where sensitive information is not exposed to the public network. Related to this is Companies subject to regulatory requirements.
However, thanks to ZK Interop, these institutions Gain direct access to liquidity And also about the availability of capital on Ethereum.
This ad sums up this idea in one sentence. “Companies no longer have to choose between the private system and public liquidity.”
This architecture allows you to integrate financial operations, risk models, funding, and advanced trading strategies within a private framework while performing DeFi transactions without moving critical data.
ZKsync describes this scenario as “the end of fragmented liquidity.” That vision is be Ethereum As the center of all ZK chainsregardless of the degree of privacy, enterprise use, or scale each requires.