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EY Releases Nightfall 3 To Improve Transaction Efficiency On Ethereum

Ernest & Young (EY) has released Nightfall 3 to improve transaction efficiency on Ethereum.

It has been reported that Nightfall 3 combines zero-knowledge proofs with optimistic rollups — zk-Optimistic Rollups. Indeed, zk-Rollups are one of the layer-two scaling solutions being developed to achieve scalability for networks like Ethereum, using a process of batched transfers “rolled” into one transaction.

However, EY’s first contribution to ZK proofs was in April 2019. The EY team said that Nightfall 3 is a collection of tools for privately managing Ethereum transactions.

The report said that Nightfall 3 reportedly ZK proofs transactions into Optimistic Rollups, removing the need for all authentication nodes to verify the validity of the transactions. Nodes that challenge invalid blocks will receive rewards, thus ensuring that only valid transactions are added to the blockchain.

According to the EY team, Nightfall 3 constitutes a significant improvement in transaction efficiency and gas fee reduction. Detailing the improvements in the zk-Rollups solution, global blockchain leader at EY Paul Brody remarked that the protocol offered the best balance of mathematical efficiency and security for private transactions on the Ethereum network.

Likewise, Nightfall 3’s zk-Optimistic Rollups solution can deliver almost 90% in gas fee reduction compared with public ERC-20 token transfers. By publishing Nightfall 3 to the public domain, Brody stated in the announcement that EY was doing its part to hasten enterprise adoption of the technology. With Ethereum 2.0 is still in the works, layer-two solutions like ZK proofs and Optimistic Rollups continue to be touted as short-term solutions to increase Ethereum’s network throughput.

Thus, ZK proofs are not EY’s only exploratory work on blockchain technology. Indeed, the firm has previously published a blockchain analyzer tool. The auditing giant released a beta version of the smart contract analyzer back in April 2019.

Source: Cointelegraph | Image: FT


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