ZK Rollup Technology

AX uses zkRollup infrastructure to improve throughput, reduce settlement costs, and strengthen privacy guarantees where applicable. Instead of posting every transaction on-chain, the rollup batches many updates off-chain and submits compact cryptographic commitments on-chain, ensuring the system remains verifiable and tamper-resistant.

How It Works

Batching & State Commitment Trades and account updates are aggregated into batches. Each batch updates the rollup’s state (e.g., balances, positions), and the resulting state is committed using a Merkle tree structure. Only the minimal data required for verification—such as the updated state root—is published on-chain.

Data Compression By committing a batch as a single state update, zkRollups significantly reduce on-chain storage and execution overhead compared to recording each transaction individually. This improves efficiency while keeping settlement anchored to L1 security guarantees.

Zero-Knowledge Proofs

For each batch, the system generates a validity proof (e.g., zk-SNARK) that demonstrates the batch was processed according to protocol rules—without requiring the full batch details to be re-executed on-chain. This enables high confidence in correctness while preserving privacy properties where applicable.

Verification Flow

1. Batch is processed off-chain and the rollup state is updated.

2. A new Merkle root (state root) is produced to represent the updated system state.

3. A validity proof is generated to attest that the state transition is correct.

4. The proof and state root are submitted on-chain for verification.

5. On-chain verification finalizes the update, leveraging the integrity guarantees of cryptographic hashing and zero-knowledge proofs.

Why This Matters

• Higher throughput: supports more trades per unit time.

• Lower cost: reduces on-chain overhead by batching and compressing updates.

• Verifiable integrity: rule-enforced state transitions with cryptographic proofs.

• Privacy-aware design: enables privacy-preserving settlement components where applicable.