Analyzing Performance Bottlenecks in Zero-Knowledge Proof Based Rollups on Ethereum

Abstract: Blockchain technology is rapidly evolving, with scalability remaining one of its most significant challenges. While various solutions have been proposed and continue to be developed, it is essential to consider the blockchain trilemma -- balancing scalability, security, and decentralization -- when designing new approaches. One promising solution is the zero-knowledge proof (ZKP)-based rollup, implemented on top of Ethereum. However, the performance of these systems is often limited by the efficiency of the ZKP mechanism. This paper explores the performance of ZKP-based rollups, focusing on a solution built using the Hardhat Ethereum development environment. Through detailed analysis, the paper identifies and examines key bottlenecks within the ZKP system, providing insight into potential areas for optimization to enhance scalability and overall system performance.