What is ZK Coin? Here are ZKsync Price Claims

Projects developed with the aim of providing scalability and low-cost processes in the cryptocurrency world attract great attention. One of these projects, zkSync and its ecosystem’s local cryptocurrency unit, ZK Coin, are among the innovations that cryptocurrency investors have been waiting for a long time. As Kriptokoin.com, in this article, we examine what is ZK Coin and zkSync, the advantages offered by this technology and ZK Coin price predictions.

What is ZK Coin?

ZK Coin is the native cryptocurrency of the zkSync ecosystem and is used to perform transactions on this platform. zkSync is a Layer 2 Zero Knowledge (ZK) rollup protocol developed to provide scalability and low-cost processes on the Ethereum blockchain. This technology performs processes off-chain and then validates them on the Ethereum blockchain in clusters. In this way, high security and low cost processes are possible.

ZK Coin allows users to make transactions on zkSync using their Ethereum-based wallets. Process prices can be paid with ERC20 tokens, allowing users to make more flexible and cost-effective processes. At the same time, ZK Coin is also used to ensure the security of the zkSync network and make it easier for users to conduct transactions on the network.

Purpose and Technology of zkSync

The main purpose of the zkSync project is to solve the scalability and cost problems of the Ethereum blockchain. Using Zero Knowledge (ZK) rollup technology, zkSync delivers higher transaction throughput and lower transaction prices while maintaining the security and decentralization features of Ethereum. This technology enables more decentralized application (dApp) developers on Ethereum to migrate their projects to zkSync, thereby reducing gas prices and increasing process speeds.

zkSync Era offers a similar look and feel to Ethereum, but attracts users with higher transaction volume and lower transaction prices. Developers can simply port smart contracts written in Ethereum to zkSync and support existing Ethereum wallets. These features enhance zkSync’s user experience and enable it to be adopted by a wider user base.

zkSync Usage Areas

zkSync attracts attention with its various usage areas. Firstly, it offers an ideal platform for decentralized finance (DeFi) applications thanks to its high process volume and low process costs. dApps running on zkSync can offer faster and more cost-effective processes to their users, which encourages users to do more processes. In addition, the local account abstraction features offered by zkSync enable users to pay gas prices with a random token, thus further smoothing the user experience.

In addition, zkSync also offers valuable advantages in terms of security. The zkSync protocol adopts Ethereum’s security model and additionally implements its own security layers. The protocol has undergone extensive checks and stress testing throughout the one-year testnet period. In this way, zkSync offers its users a safe and reliable process environment.

Role and Importance of ZK Coin

ZK Coin is at the center of the zkSync ecosystem and fulfills multiple valuable roles. Primarily, ZK Coin is used to pay transaction prices on the zkSync network. This enables users to process at lower costs and increases adoption of zkSync. Additionally, ZK Coin has a critical role within zkSync’s governance model. Token holders can vote on important decisions affecting the future of the protocol and thus contribute to the development of the ecosystem.

In addition, ZK Coin is also used to ensure network security and liquidity incentives. Users can contribute to the security of the network by staking their ZK Coins and receive rewards for their contributions. Additionally, liquidity providers are also rewarded with ZK Coin, which helps grow liquidity pools on zkSync and increase transaction volume.

ZK Coin Price Prediction

ZK Coin’s price estimate may vary depending on many factors. First of all, the adoption rate of zkSync and the expansion of its usage areas may positively affect the price of ZK Coin. As more dApp developers choose zkSync and more users use zkSync for low-cost processes, it may increase the demand for ZK Coin. This situation may cause the price of ZK Coin to increase in line with supply-demand stability.

The price of ZK Coin currently continues to trade at $0.2281. Experts predict that the price may reach a value between $0.3 and $0.35 by the end of 2024. These assumptions may change depending on the adoption rate of zkSync and the state of the overall cryptocurrency market. In the medium term, it is assumed that ZK Coin will reach the level of 1 dollar by the end of 2025, with the adoption of zkSync by a wider audience and the growth of the ecosystem. In the long term, it is predicted that the value of ZK Coin may increase further as zkSync grows successfully and the technology becomes more widespread.