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Blockchain

zkSync Launches Dynamic Fees

August 18, 2022 - Around 2 mins mins to read
zkSync, a Layer-2 solution in testnet, has officially announced the launch of Dynamic Fees, a key product in its development.
zkSync Launches Dynamic Fees

Like other Layer-2, zkSync will also require users to pay a certain fee, independent of Layer-1 Ethereum. The operating model of zkSync is almost similar to Ethereum, each transaction will have to pay a fee equivalent to the blockchain resources it consumes.

To optimize the number of fees that users pay, zkSync will build a mechanism that automatically adjusts fees (dynamic fees) based on the workload the blockchain is processing.

The working mechanism of Dynamic Fees is as follows:

  • If the blockchain is processing many transactions at the same time, the fee will be automatically increased to ensure the processing speed for users, and also to ensure the interests of the parties involved in the processing and validating transactions.
  • If the blockchain is processing a few transactions, the fee is automatically reduced to incentivize users to participate in making transactions.

On zkSync, Dynamic Fees will be used in:

  • Make transactions and generate proof of authenticity;
  • Use storage on Ethereum (Layer-1);
  • Verify proof on Ethereum;
  • Additional interaction on Ethereum.

In addition to auto-adjustment, Dynamic Fees also allows users to pay transaction fees with a variety of tokens, which will automatically transfer ETH for compatibility.

It can be said that this is one of the big technological challenges of smart-contract. If this can be done, zkSynch will help Ethereum take a big step forward in building Account Abstraction.

zkSync Launches Dynamic Fees

Account Abstraction is one of the long-term goals being built and developed on Ethereum. It is an account that allows users to combine a regular personal wallet and a smart contract account, thereby performing smarter and automated tasks. In particular, one of the important features of Account Abstraction is to allow users to pay with a variety of tokens other than ETH.

The launch of Dynamic Fees during the test-net phase could well be a move ahead of zkSync’s token release. Therefore, it is very likely that the testnet will airdrop in the future.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.