ZKsync (ZK) API and Price Oracle

zkSync is a Layer 2 scaling solution for the Ethereum blockchain, leveraging zero-knowledge rollups to improve scalability and efficiency. It processes multiple transactions off-chain and batches them into a single cryptographic proof, which is then submitted to the Ethereum mainnet. This approach significantly enhances transaction throughput, reduces gas fees, and maintains Ethereum's security standards.
The core technology behind zkSync is zero-knowledge proofs (ZKPs), which validate transactions without revealing their details. This ensures privacy and security while allowing for high transaction speeds. zkSync uses zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge), a specific type of ZKP that enables succinct and fast verification.
zkSync operates on the Ethereum blockchain and is developed by Matter Labs, founded by Alex Gluchowski and Alexandr Vlasov in 2020. The system handles computations off-chain but stores transaction data on-chain, ensuring decentralization and security. zkSync's architecture allows it to support EVM-compatible smart contracts, making it easy for Ethereum applications to migrate with minimal modifications.
With zkSync, users benefit from lower costs and faster transactions while maintaining the high security and decentralization of the Ethereum network, making it a robust solution for scaling Ethereum-based applications.

zkSync offers several advantages compared to its direct competitors, including Optimism, Arbitrum, and StarkNet. These benefits stem from its underlying technology, which uses zero-knowledge rollups (zk-rollups) to enhance the Ethereum blockchain.
Lower Transaction Fees: zkSync significantly reduces gas fees, making transactions up to 100 times cheaper than on the Ethereum mainnet. This cost efficiency is crucial for decentralized applications (dApps) and users conducting numerous transactions.
High Throughput: zkSync can handle thousands of transactions per second (TPS), ensuring scalability and reducing congestion. This is higher compared to Optimistic Rollups used by Arbitrum and Optimism, which rely on a challenge period for transaction validation, slowing down throughput.
Immediate Finality: zkSync provides instant transaction finality due to its use of zk-rollups, which validate transactions without waiting periods. In contrast, Optimistic Rollups assume transactions are valid and only verify upon dispute, causing delays.
Security: zkSync inherits Ethereum's security model by publishing proofs to the Ethereum mainnet. This ensures robust security comparable to Ethereum itself, similar to StarkNet, another zk-rollup-based solution, but with a different cryptographic approach.
Overall, zkSync's combination of low fees, high throughput, immediate finality, and strong security positions it as a competitive layer-2 solution for scaling Ethereum, alongside notable competitors like Arbitrum, Optimism, and StarkNet.

zkSync is utilized for a variety of applications that require high transaction throughput and lower fees. Its primary use cases include:
Decentralized Exchanges (DEXs): zkSync enables DEXs to handle a large volume of trades with minimal fees and fast confirmation times.
Gaming Platforms: High-frequency microtransactions in gaming are made feasible by zkSync's low fees and quick transaction times.
DeFi Applications: zkSync supports decentralized finance (DeFi) applications, allowing for efficient and cost-effective operations of complex financial products.
Microtransactions: zkSync is ideal for scenarios like pay-per-use services where traditional high Ethereum fees would be prohibitive.
A specific example is decentralized exchanges (DEXs). On platforms like ZigZag, zkSync's technology allows for seamless, high-speed trading with significantly lower transaction fees. This is achieved by batching multiple transactions off-chain and posting a single proof on-chain, maintaining security while enhancing efficiency. This makes DEXs more accessible and user-friendly, contributing to broader adoption of decentralized trading.

DIA’s zkSync API provides real-time price feeds of crypto assets. These feeds are constructed by sourcing raw data from billions of trades across over 85 on-chain and off-chain cryptocurrency exchanges. This extensive data collection allows DIA to deliver highly reliable price information, surpassing other web3 data providers.
Custom API Feeds: DIA’s primary offering is its custom API data feeds. These feeds can be tailored according to specific user requirements, including data sources, methodologies, and update mechanisms. This customization ensures that users receive data that meets their exact needs. To request a custom feed, users can contact DIA via Discord or Telegram.
Free API Feeds: DIA also offers free API endpoints for developers to test. These endpoints are available on the asset's detail page in the DIA App and come in a standardized format. While useful for initial testing, the custom feeds provide greater flexibility and utility.
Use Cases: DIA's API can be utilized in various DeFi applications, including derivatives, options and futures, lending and borrowing markets, collateralized stablecoins, synthetic asset issuance, and money markets. These use cases highlight the versatility and importance of DIA's data in the blockchain ecosystem.
API Explanation: An API (Application Programming Interface) allows different software applications to communicate with each other. In this context, DIA’s API provides a way for developers to access and integrate real-time price data into their blockchain applications.

DIA’s price oracle is a smart contract that provides real-time price feeds of crypto assets on zkSync and other networks. These feeds are created by sourcing raw data from billions of trades across over 85 on-chain and off-chain exchanges. Integrated with more than 35 layer 1 and layer 2 networks, DIA can deploy price oracles on over 50 blockchains, offering unparalleled data accuracy and reliability.
Custom Price Oracles: DIA specializes in building custom price oracle data feeds. These can be tailored in terms of sources, methodologies, update mechanisms, and more, providing users with highly specific and reliable data. To request a custom feed, users can contact DIA via Discord or Telegram. This customization ensures that the oracle meets the exact needs of the application, offering more utility than standard feeds.
Free Demo Oracles: For testing purposes, DIA provides free demo oracles available in their documentation. These demo oracles are standardized and purely for informational purposes, not suitable for production applications.
Use Cases: DIA’s price oracles can be utilized in various DeFi applications, including derivatives, options and futures, lending and borrowing markets, collateralized stablecoins, synthetic asset issuance, and money markets.
Blockchain Oracle Explanation: A blockchain oracle is an external information provider that supplies verified data from outside the blockchain to smart contracts. This enables smart contracts to interact with real-world data, expanding their functionality and application scope.

Both DIA's API and Price Oracle for zkSync offer significant benefits for users in the blockchain ecosystem by providing accurate and reliable price data for cryptocurrencies. The key advantages include:
High Customization: DIA’s API and Price Oracle can be tailored to meet the specific needs of decentralized applications. This includes configuring data sources, applying data cleaning filters, selecting pricing methodologies, and setting update mechanisms. This customization ensures that the data remains robust and resilient to market conditions, providing precise global and cross-chain market prices.
Transparency: DIA’s solutions offer full and granular transparency across the entire data journey. Users can track and monitor the data feeds closely, ensuring trust and reliability in the information provided.
By leveraging DIA’s technology, users benefit from a highly customized, transparent, and reliable data service that enhances the functionality and accuracy of their blockchain applications.