zkSync is trying to solve Ethereum's scaling problem using zero-knowledge proofs — cryptographic math so complex that it took five years to get right while competitors launched on simpler technology. They eventually launched, processed millions of transactions, dropped a token in 2024, and got criticized for the airdrop distribution. Standard crypto startup path.
Founded
2020
HQ
Berlin, Germany
Total Raised
$458M raised
Founder
Alex Gluchowski
Status
Live — zkSync Era mainnet processing millions of transactions
Website
zksync.ioTHE ORIGIN STORY
Ethereum works. It is secure, decentralized, and trusted.
It also gets congested and expensive during peak usage — gas fees can reach $50–$200 per transaction. The solution is a "layer 2" network that batches thousands of transactions off-chain and submits cryptographic proof to Ethereum once, sharing the cost.
ZK-rollups (zero-knowledge rollups) are the most cryptographically sophisticated version of this idea. Alex Gluchowski founded Matter Labs in 2018 to build zkSync — a ZK-rollup that keeps Ethereum's security guarantees while making transactions fast and cheap.
zkSync Era (mainnet) launched in March 2023 and processes millions of transactions at a fraction of Ethereum mainnet costs.
WHAT THEY ACTUALLY DO
Matter Labs (the company behind zkSync) generates revenue through transaction fees paid by users and applications using the zkSync network. Applications pay gas fees to submit transactions.
Matter Labs also raised capital through token sales and investor rounds. The zkSync token (ZK) was launched in June 2024, airdropped to ecosystem participants.
THE PRODUCTS
zkSync Era (ZK-rollup L2 for Ethereum), ZK token, zkEVM (Ethereum-compatible execution layer), Bridge from Ethereum mainnet
HOW THEY GREW
Matter Labs built an ecosystem of developer tools, DeFi applications, and gaming projects on zkSync. The ZK token launch in June 2024 distributed tokens to early users.
Partnerships with major DeFi protocols (Uniswap, Curve, Aave) brought liquidity. The "Elastic Chain" vision positions zkSync as the foundation for a network of interconnected ZK-chains rather than a single L2.
THE HARD PART
ZK-rollup technology was scientifically harder than optimistic rollups (the competing approach used by Arbitrum and Optimism) and took longer to launch. By the time zkSync Era went live in 2023, Arbitrum already had significant market share and developer adoption.
zkSync then faced scrutiny over its June 2024 ZK token airdrop — community members felt the distribution was unfair, with insufficient allocation to long-term ecosystem participants. The backlash was fierce in crypto social media.
MONEY TRAIL
Series A
2021 · Led by a16z crypto, Blockchain Capital
$50M raised
Series B
2022 · Led by a16z crypto, Dragonfly Capital
$200M raised
Series C
2023 · Led by Blockchain Capital, OKX Ventures
$200M raised
WHO BACKED THEM
a16z crypto, Blockchain Capital, Dragonfly Capital, Variant, OKX Ventures, Union Square Ventures
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