ZK State Channels
ZKSC Explained
State channels, like the Lightning Network, have long been seen as an alternative scaling solution to layer 2s, but have never seen large-scale adoption. They were costly, required predefined user flows, and offered low utility. Powered by ZK Accumulators, the Virtual Rollup is a ZK state channel enabling unlimited participants to complete unlimited transactions on any chain, with new state channel use cases like capital-efficient, ZeroGas DEX day-trading, federated social networks and fully onchain gaming.

Why You Should Care about Zero Knowledge State Channels
ZKSCs achieve a ZeroGas, Zero-Latency, and Zero-Friction Web3 experience.
A prime use case is perpetual exchanges. Using Virtual Rollups, day traders can now open sessions where they exchange ETH for BTC, BTC for USDC, USDC for SOL, etc. with no fees and no latency, matching the experience offered by a centralized exchanges, but with full self-custody. Virtual Rollup allow trader to take advantage of opportunities faster and better.
The experience is indistinguishable from CEXes: sub-millisecond finality, orderbook capital efficiency, and even the ability to deposit and withdraw from any chain.

Another use cases is fully onchain gaming via Autonomous Worlds. Some argue that only assets need to be onchain and it is unnecessary for the game to be run onchain. However if onchain assets, tournament pots, and game wagers, are allocated to whoever wins, then the winner must be determined in a trustless manner, or it is pointless for assets to be onchain at all.
This is not the case, as the winner is now currently determined offchain and prize are distributed by the centralized backend, as it would obviously be too expensive and latent for direct gameplay no occur on the the blockchain.
The Virtual Rollup allows the users themselves to determine the eventual winner, through self-verified state updates. Cheap and fast, and simultaneously decentralized.

Another use case is decentralizing federated social platforms like Mastodon and Bluesky, and Web3 platform FriendTech. Currently Frames cost gas and posts, likes and comments are processed centrally. ZK state channel enbale censorship resistence without compromising seamless UX.
It is important to note that ZKSCs will never replace L2s. Nor is that their intention. In fact, ZKSCs work with and on L2s. As we will explore, ZKSCs require a P2P network and an onchain escrow agent. The Virtual Rollup is built on top of blockchains to allow them to do what they do best: global settlement. State transitions for trades, game moves, and posts are taken away from the blockchain and replaced with P2P local consensus.

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