ZKsync has announced a strategic transition set for 2026, which includes the planned sunsetting of ZKsync Lite, the first zero-knowledge rollup on Ethereum. This shift marks a move to focus entirely on the advanced ZKsync network and ZK Stack-powered chains, aimed at significantly improving scalability and efficiency within the Ethereum ecosystem.
Launched in December 2020, ZKsync Lite served as a critical proof-of-concept addressing Ethereum’s longstanding challenges of high fees and slow transactions. It achieved this by executing transactions off-chain and using cryptographic proofs on Layer 1, laying the foundation for later developments such as ZKsync Era and the Elastic Network. These innovations continue to be driven by deep technical insights and practical applications.
Throughout the transition period, ZKsync Lite will remain fully operational, ensuring user funds are secure and withdrawals to Ethereum Layer 1 remain uninterrupted. The ZKsync Association will provide comprehensive migration support and detailed timelines well in advance to ensure a smooth transition for users.
The importance of ZKsync technology has been reinforced by significant institutional endorsements and adoption. Ethereum co-founder Vitalik Buterin praised ZKsync after its Atlas upgrade, describing it as “underrated and valuable” and recognizing its role in shaping Ethereum’s future as a ‘Lean Ethereum.’ This endorsement has fueled increased institutional interest, contributing to a 50% surge in ZK token prices and strong integration efforts by major entities.
Deutsche Bank, through Project Dama 2, is developing an Ethereum Layer 2 blockchain based on ZKsync technology, involving 24 financial institutions exploring asset tokenization within Singapore’s regulatory framework. UBS has implemented a proof-of-concept with Key4 Gold that uses ZKsync Validium to enable scalable, private tokenized gold investments. Tradable, another participant, leverages ZKsync to tokenize $2.1 billion in institutional private credit, commanding nearly 90% of the market share for real-world asset protocols.
ZKsync’s transition from the original Lite version to a more powerful Elastic Network demonstrates its commitment to integrating advanced zero-knowledge proofs with scalable solutions. This progression improves transaction throughput and reduces costs while bridging the gap between innovative technology and large-scale institutional applications, establishing ZKsync as a key component in Ethereum’s scalable future.
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