It is difficult to create accessible Web3 products. These apps are clunky and have complicated features. Apps in the Web3 space tend to have poor mobile experiences, even though they are mobile-first. Apps in the Web3 space have struggled to gain popularity, especially in emerging markets.
ZKX, a startup founded by Eduard Jubany Tur and Naman Sehgal in 2021, is looking to address this problem. We will be covering ZK more later.
Layer 3 protocols, which are a new breed of technology to enable blockchain networks to perform transactions across multiple blockchains, are a great option for those new to blockchains.
They allow interoperability between Web3 and the internet as it exists today. This vision drove ZKX to raise $4.5 million from a number of investors including StarkWare and Alameda Research as well as Amber Group, Huobi and Crypto.com.
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Although layer 2 protocols are cheaper than those of layer 1, the transaction fee and gas fee for layer 2 protocols can still be expensive for users in emerging countries. Eduard Jubany Tor, one co-founder, tells The Decrypting Story that layer 3 solutions are available.
ZKX is currently building its first product, a decentralised derivatives market for institutional traders. claims that there is a waiting list of more than two lakh customers. It will continue to develop other products such as tools for developers to create a Layer 3 ecosystem once the exchange is launched.
What are ZK tech and Layer 3 exactly?
Blockchain transactions can be very data-intensive. ZK attempts to address this problem. ZK rollups are the most popular version. They combine several data-heavy transactions into one transaction, which allows for fast, private validation of blocks.
This tech allows smart contracts, in essence, to verify that the bundled transactions are valid on Ethereum’s main blockchain. This technology does not reveal any user data and allows developers to make use of the blockchain on a large scale.
ZKX is working on this tech using StarkWare – a platform that uses its native technology StarkNet ZKrollup in order to enable decentralised apps to scale. StarkNet transactions are backed by Ethereum.
This is how it works. Starknet transactions will be redirected to the main Ethereum blockchain if they are successful. ZKX is building a protocol on top Starknet. This is layer-3.
ZKX hopes that it can tap into this structure to create an ecosystem of its own, complete with its own infrastructure for computing transactions. This will allow the whole process to be decentralised.
It is important that ZKX’s tech is still being tested on a larger scale. There have been promising attempts, such as investments by Polygon to bring ZK-rollup technology front and center.
If it succeeds, ZKX might have an ecosystem that allows users to access and use Web3 applications using existing Meta accounts (Facebook, Google, or Microsoft) without ever sharing or disclosing user data.
Decentralised derivatives exchange
ZKX wants to make Web3 products accessible in emerging markets like India and South East Asia. ZKX will create an exchange that allows traders to access Web3 the same way as they would without it. It will convert complicated trade strategies into simple to trade crypto instruments such as perpetual swaps.
It makes the exchange anonymous. This allows it to achieve greater decentralization. ZKX will have gamified leaderboards where the greater your stake, the higher you will receive. ZKX will offer a gamified leaderboard system that allows users to have more control over what assets are listed on the exchange. This is also known as governance enabled asset listing.
Naman says that India has strong trader communities for derivatives. Naman says that the incoming wave Web3 in India’s developing countries is a sign of emerging markets being ready for disruptions. They share similar demographic and economic patterns.
This is an opportunity for emerging markets to have access to Web3-based financial tools, according to the founders. ZKX’s vision is to bring more traditional traders onto Web3.
The Zerodha and Robinhood playbook
The founders plan to make it easy for users to trade via the exchange by looking at companies such as Robinhood and Zerodha. These companies currently have millions of users who use their services daily.
The Zerodha and Robinhood playbooks make difficult options and features easy to find and use via a simple mobile interface. This allows traders to become a new breed. ZKX has the opportunity to be mobile-first and create a global brand. Additionally, developers will be more likely to adopt the simpler solutions we offer. Eduard cites Polygon as an example.
The team of 30 members is now focusing its efforts on ground activations, such as presence at Indian trader conferences and events to help build momentum for the decentralised derivatives market. Layer 3 technologies in blockchain is not a new concept. Projects such as Interledger Protocol and IBC Protocol have been working to address the interoperability- and scalability problems that have plagued blockchain for years.
Projects are testing different approaches to achieve this goal. dYdX, the largest decentralised StarkWare project, has recently abandoned the platform to build a Cosmos-based, standalone blockchain that promises more decentralization.
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“20 years ago, it would have been difficult to explain AWS or GoDaddy to someone. Although not everyone is familiar with how they work today, they are synonymous for the hosting infrastructure they provide. Naman states that Web3, ZK tech, and Layer 3 solutions will experience the same fate