Layer 2 on Solana? Meet ZX, the First Project Building a Solana Rollup

• Zeta Markets announces ZX, a potential Layer 2 solution for Solana, aiming to enhance speed and scalability for decentralized trading.

• ZX is expected to launch on mainnet in Q1 2025, potentially becoming Solana's first Layer 2 scaling solution.

Decentralized perpetual exchange Zeta Markets has revealed plans for ZX, an innovative scaling solution that could mark a significant milestone as the first Layer 2 solution on the Solana blockchain. This development holds the promise of enhancing speed, throughput, and user experience for decentralized trading on Solana.

The announcement of ZX comes amid growing chatter within the Solana ecosystem about the potential for Layer 2 solutions to further enhance the network's scalability. While other projects may be exploring similar avenues, Zeta Markets appears to be the first to release a detailed technical framework for their Layer 2 solution.

ZX is designed to overcome the limitations of trading directly on Solana's Layer 1 while preserving the benefits of decentralization. It aims to leverage zero-knowledge proofs (zk-proofs) for trustless on-chain settlement, ensuring the security and transparency valued by DeFi users.

Zeta Markets intends for ZX to execute trades on an off-chain matching engine, potentially achieving the performance of centralized exchanges while settlement and consensus are secured on Solana's Layer 1. This approach could guarantee data availability and the finality of transactions.

The platform is expected to utilize a trustless bridge for deposits, allowing users to seamlessly transfer funds to the ZX platform. For withdrawals, the process is intended to be equally straightforward, with external parties potentially offering instant liquidity for a fee.

According to the litepaper published by Zeta Markets, the team selected Solana for several reasons. Solana's low transaction fees make it economically attractive to operate a high-throughput DEX like ZX. Additionally, Solana's fast block times could enable quicker finalization of rollup blocks, enhancing the user experience. Finally, Solana's thriving DeFi ecosystem provides ZX with access to ample liquidity.

Zeta's native token, $Z, is expected to play a crucial role in the ZX ecosystem. It may serve as the gas token for transactions on the rollup and incentivize stakeholders who perform critical operations. Additionally, $Z holders may enjoy benefits such as exclusive fee tiers.

The ZX project is currently in development, with a mainnet launch expected in Q1 2025. As ZX progresses, it will be interesting to observe how this potential Layer 2 solution shapes the future of decentralized finance on Solana.