Cronos to Introduce Layer2 Network Cronos zkEVM Based on ZK Stack, Targeting Market Opportunities
Decentralized exchange Crypto.com-backed blockchain Cronos announced the launch of Cronos zkEVM, a Layer2 network built on Ethereum and based on the ZK Rollups development framework by Matter Labs.
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Introduction to Cronos ecosystem
Cronos launches Layer2: Cronos zkEVM
Introduction to Cronos zkEVM
Introduction to ZK Stack
Unique positioning beyond marketing considerations
The Cronos ecosystem is maintained by Cronos Labs, which is supported by centralized exchange Crypto.com.
The Cronos ecosystem currently consists of two main networks:
Cronos POS:
Formerly known as Crypto.org Chain, it is the native network of the CRO token and ensures the security of the Cronos ecosystem through a proof-of-stake consensus mechanism consisting of over 100 nodes.
Cronos:
An EVM-compatible blockchain, built on the Cosmos SDK, a Layer1 blockchain compatible with EVM. It was launched in 2021 and currently ranks 11th in TVL among all public chains.
Further reading:
Competing for Ethereum overflow value! Crypto.com’s compatible public chain “Cronos” to launch in October
Cronos currently ranks 11th in TVL among public chains
(Source: data source)
Cronos Labs announced the launch of Cronos zkEVM Chain, a Layer2 network based on zero-knowledge proofs (ZKP). Cronos Labs created new Rollups using the ZK Stack developed by the zkSync team to enhance the ecosystem’s scalability as the third network.
A testnet has already been launched, built on the Ethereum Sepolia testnet.
The team stated that Cronos zkEVM uses a zero-knowledge proof system based on Boojum STARK, which can run on 16GB of RAM and has the lowest fees among all Layer2 competitors. Additionally, due to the native account abstraction design of the zkSync protocol, it can support any cryptocurrency as gas fees, not limited to CRO. These features will be the unique advantages of Cronos zkEVM.
The launch of Cronos zkEVM is intended to prepare for the ecosystem’s growth in 2024. Considering the gradual market recovery next year and the flourishing development of Ethereum Layer2 ecosystem, the team will launch general Rollups based on Ethereum, aiming to attract and divert market liquidity to the Cronos ecosystem.
Existing protocols in the ecosystem, including VVS, Fulcrom, and Veno, have been invited to join the testnet.
ZK Stack is a construction tool for zero-knowledge proofs (ZKP) that allows protocol developers to build ZK Rollups more quickly and conveniently. Layer2 networks built using its toolkit can have unique features of the zkSync network, including native account abstraction and communication between hyperchains within the ecosystem.
Further reading:
Exploring Layer 2: In-depth study of zkEVM and zkSync
On the other hand, Crypto.com is one of the investors behind zkSync, so it is not surprising that Cronos chose this tool to build Cronos zkEVM, as both projects mutually benefit each other.
As Layer2 technologies and tools mature and the token issuance trend continues for the past year, the market’s attention is gradually shifting towards ecosystems like Rollups. This has led to many exchanges, institutions, and decentralized protocols launching their own Layer2 projects, including OKX, Kraken, Coinbase, Blur, Celo, and other industry leaders, resulting in intensified competition.
Further reading:
In-depth analysis of Blur’s income-generating L2 network, Blast: On-chain native interest rates, sustainable NFT contracts, etc.
However, amidst the market hype, there is still a lot of uncertainty about whether these Layer2 networks can truly generate value, establish a stable ecosystem, and maintain sustainability.
Further reading:
2023 L2 Development Overview | Layer2 narratives are strong but lack innovation, Layer1 competition chains make a strong comeback
The positioning differences of Cronos zkEVM within its ecosystem need to be clearer to avoid low-level replication rather than innovation. Apart from marketing effects, the impact on the product could even be negative, so it is necessary to carefully consider its future development.
Cronos
Cronos zkEVM
Crypto.com
Layer2
ZK Stack
zkEVM
Further reading:
Crypto.com’s new options product “Strike Options” regulated by CFTC, targeting US users
Canadian regulation: Kraken to delist currencies such as USDT, DAI, WBTC
