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zkSync, an Ethereum scaling solution is aiming to position itself as a dominant player among its rivals, thanks to this partnership with Espresso Systems, a crypto infrastructure company.
The advantage in question is to incorporate a new privacy technology called Configurable Asset Privacy, or CAPE built by the partner firm.
The proposed integration is still in the planning and exploration phases and has not been deployed yet.
According to the blog, CAPE would facilitate individuals’ and regulated enterprises’ ability to transact privately without any risk while still receiving all the benefits of Ethereum security.
“This is an important step forward for privacy on zkSync and will continue to break down the barriers to realizing the mass adoption of Web3 by global enterprises”, the blog read.
Additionally, CAPE allows asset issuers to define other policies around their assets, including freezing policies, offering entities like stablecoin providers the ability to retain controls to address fraud, theft, and dispute resolution.
Since the new privacy feature went live on Ethereum testnets six months ago, more than 45k addresses have been established, supporting more than 300,000 actions and transactions.
Notably, CAPE is Espresso’s first product that leverages zero-knowledge technology to support custom privacy policies and more for Ethereum assets.
Beyond CAPE, Espresso Systems is also working on the Espresso Sequencer to support the decentralization of Layer-2 rollups. The first such testnet dubbed the Americano, was launched in December 2022.
That said, ZKSync is also working on a solution for users to quickly transfer Ethereum and ERC-20 tokens without paying the relatively high fees in the mainnet.
Ethereum Scalability Solution “Will Win Out In All Use Cases.”
Ethereum gas prices frequently fluctuate based on what happens on the blockchain. On top of that, DeFi and NFT operations surge leading to higher gas costs during peak ETH prices.
This, in turn, becomes expensive for users who must now shell out more to transfer funds or carry out smart contracts.
Here’s where the layer-2 platform intends to fill up the gap by positioning itself as a better alternative for users who value scalability, privacy, and security. After the ZKSync 2.0 mainnet went live, a scaling and privacy engine utilizing ZK proofs were created.
Earlier, Ethereum co-founder Vitalik Buterin doubled down on his belief in ZK Rollups, which dApps on ZKSync rely on. ZK Rollups, in the opinion of the co-founder, “will win out in all use cases.”