Many hear about Zero Knowledge (ZK) tech and assume all ZK projects are equally secure. However, there is a critical classification based on Data Availability. This divides them into two camps ZKRollup and Validium.
๐ธ 1. ZKRollup ๐ High Security, Higher Cost
Mechanism:
Computation Done Offchain (on L2).
Proof Sent to Ethereum (L1).
Transaction Data ALSO sent to Ethereum (L1).
Every detail of your transaction is permanently recorded on Ethereum ledger.
Absolute security. Even if the Layer 2 crashes or the team runs away, you can use the data on Ethereum to reconstruct the state and withdraw funds.
Cons is Transaction fees are still relatively high though cheaper than L1 because you pay rent for storage on Ethereum.
๐ธ 2. Validium ๐ Ultra Low Cost, Trust Assumption
Mechanism:
Computation Done Offchain.
Proof Sent to Ethereum (L1).
Transaction Data NOT sent to Ethereum. It is stored by a private group of servers called a DAC (Data Availability Committee).
Ethereum only knows how the final balances changed via Proof but does not know the details of who sent what to whom.
Fees are near zero and speed is blazing fast not limited by Ethereum block space. Perfect for GameFi, high frequency NFTs.
Cons is If the DAC colludes or shuts down servers, they can withhold data. In that case, you cannot prove you own the assets to withdraw to L1. Your funds get frozen forever.
๐น Not all assets require the same security level.
If storing $1 Million (DeFi), choose Rollup.
If storing an ingame armor worth $5, choose Validium.
Do you check where the L2 you use stores its data? Is it on Ethereum or on a private server?
News is for reference, not investment advice. Please read carefully before making a decision
