ZkSync Raises $1.7 Million, But Funds Stuck In Smart Contracts

On April 7th, according to Eden Au, the research director of TheBlock, a project on zkSync raised 921 ETH ($1.7 million) through token sales, but the funds will be permanently stuck in smart contracts. The transfer() function is applicable to Ethereum and other EVM chains, but not to zkSync. In response, zkSync stated that it will not get stuck in the smart contract and is working with the team to help them solve the problem. A detailed update will be released later.

ZkSync’s previous project included the 921ETH token sales financing card in the contract, and zkSync is helping to resolve the issue

Introduction

On April 7th, TheBlock reported that project zkSync had raised 921 ETH ($1.7 million) through token sales, but the funds were unable to be transferred due to them being stuck in smart contracts. This incident has raised concerns about the efficiency and reliability of smart contracts in the Blockchain industry. In this article, we will delve deeper into the issue and explore the possible solutions.

What is zkSync?

zkSync is a Layer 2 scaling solution that aims to improve the transaction speed and scalability of the Ethereum network. It is a trustless, low-cost, and fast solution that uses zero-knowledge proofs to retain the security of the Ethereum network while increasing its efficiency.

The Problem

The issue with the funds being stuck in smart contracts arose due to the transfer() function not being applicable to zkSync, despite it being applicable to Ethereum and other EVM chains. As a result, the funds raised by zkSync could not be transferred out of the smart contract, causing inconvenience and worry among investors.

Possible Solutions

The zkSync team has claimed that they are working with the team to resolve the issue, and a detailed update will be released soon. Nevertheless, various Blockchain experts have proposed several solutions to prevent such occurrences in the future.

1. Testing Before Deployment

One of the most effective ways to prevent such issues is to test smart contracts before deploying them on the Blockchain. This is critical as it ensures that all the contract functions are tested, and any errors are addressed before deployment.

2. Review Contracts by Third-party Auditors

Third-party audits are necessary as they help to identify any vulnerabilities in smart contracts that could be exploited by hackers. By having independent audits, smart contract creators can improve their contracts’ quality and reduce the chances of bugs.

3. Introduce Emergency Contract Upgrades

With smart contracts being immutable, a possible solution is to introduce emergency contract upgrades that can be executed when issues arise. This would allow a quick fix without the need for a hard fork.

Conclusion

The zkSync team has acknowledged the issue and is working to resolve it. Nevertheless, incidents like this represent a significant concern for the Blockchain industry, as smart contracts are a critical component of its infrastructure. These occurrences emphasize the need for better testing, auditing, and upgrading mechanisms for smart contracts.

FAQs

1. What does zkSync aim to address?

zkSync aims to improve the scalability and transaction speed of the Ethereum network.

2. How does zkSync work?

zkSync uses zero-knowledge proofs to increase the efficiency of the Ethereum network while retaining its security.

3. How do we prevent smart contract issues like the one with zkSync?

By testing smart contracts before deployment, having third-party audits, and introducing emergency contract upgrades.