Cronos will launch the Layer2 network Cronos zkEVM based on ZK Stack to seize market opportunities.

The blockchain Cronos, supported by the centralized exchange Crypto.com, announced the launch of Cronos zkEVM, a Layer2 network built on Ethereum, which will construct ZK Rollups based on the ZK Stack development framework by the Matter Labs team.

Introduction to Cronos Ecosystem

Behind the Cronos ecosystem is maintained by Cronos Labs, which is supported by the centralized exchange Crypto.com.

The Cronos ecosystem currently consists of two main networks:

• Cronos POS: Formerly known as Crypto.org Chain, it is the native network of the CRO token, ensuring the security of the Cronos ecosystem through staking consensus with over 100 nodes.
• Cronos: An EVM-compatible blockchain built on the Cosmos SDK, launched in 2021, currently ranking 11th in TVL among all public chains.

Cronos Launches Layer2: Cronos zkEVM

Cronos Labs announced the upcoming launch of a Layer2 network based on zero-knowledge proofs (ZKP) — the Cronos zkEVM Chain. By leveraging the ZK Stack created by the zkSync team, Cronos Labs will introduce new Rollups to enhance the ecosystem's scalability as the third network.

A testnet has already been launched, built on the Ethereum Sepolia testnet.

Introduction to Cronos zkEVM

The team stated that Cronos zkEVM utilizes a zero-knowledge proof system based on Boojum STARK, capable of running on 16GB of RAM with the lowest fees among all Layer2 competitors. Additionally, due to the native account abstraction design of the zkSync protocol layer, it can support any cryptocurrency as gas fees, not limited to CRO, making it a unique advantage of Cronos zkEVM.

The launch of Cronos zkEVM is in preparation for ecosystem growth in 2024. With the market gradually recovering next year and the flourishing development of the Ethereum Layer2 ecosystem, the team will introduce general Rollups based on Ethereum, aiming to attract and divert market liquidity to the Cronos ecosystem.

Existing ecosystem protocols, including VVS, Fulcrom, and Veno, have been invited to join the testnet.

Introduction to ZK Stack

ZK Stack is a tool for constructing zero-knowledge proofs (ZKP) that allows protocol developers to build ZK Rollups more quickly and conveniently. The Layer2 network built using its toolkit can have unique features of the zkSync network, such as native account abstraction or communication between hyperchains within the ecosystem.

Furthermore, Crypto.com is one of the investors behind zkSync, making it understandable why Cronos chose this tool to construct Cronos zkEVM — the two projects mutually reinforce each other.

Beyond Marketing, Unique Positioning Still Needs to be Considered

As Layer2 technologies and tools mature and with the recent trend of token issuance, the market is gradually shifting its focus to ecosystems like Rollups. This has led to many exchanges, institutions, and decentralized protocols launching their own Layer2 projects, including prominent industry players like OKX, Kraken, Coinbase, Blur, and Celo, intensifying competition.

However, amidst the market hype, there remains a significant amount of uncertainty about whether these Layer2 networks can truly generate value, establish a stable ecosystem, and maintain sustainability.