Xsolla ZK Uses Zero-Knowledge Technology to Create ‘Digital Backpack’ for Game Devs

Video game commerce company Xsolla has launched its Xsolla ZK chain on Ethereum’s Sepolia testnet, introducing a “digital backpack” for on-chain virtual items.

Using Xsolla ZK’s “digital backpack,” developers, item creators and gaming infrastructure providers will be able to store and manage in-game items on-chain. “Xsolla ZK is not just about innovation; it's about creating real value for the gaming community,” said Lee Jacobson, Senior Vice President of Business Development Web3 at Xsolla, in a press release shared with Decrypt.

Xsolla ZK will form part of the Elastic Chain constellation of interconnected chains leveraging Ethereum layer-2 Zksync and its zero-knowledge rollup technology. zk-rollups are a type of scaling solution that leverage zero-knowledge proofs, a form of cryptography that enables someone to mathematically prove that a statement is true without disclosing additional information about that statement.

Jacobson said that the use of zk-rollups offers game developers a “scalable and pioneering solution aligning with the economic models with which they are familiar,” building on the Xsolla ecosystem that has seen over 1,000 developers and publishers using its technology across more than 2,500 games across the past two decades.

“For gaming ecosystems to thrive, it’s critical to close the gap for both users and builders,” said Rich Kim, Head of Gaming at Matter Labs, the main developer behind Elastic Chain. Kim added that builders need, “proven, plug-and-play infrastructure to launch rich features while handling the performance required by mass usage games.”

Having previously supported gaming firms including Valve, Take-Two, KRAFTON and Nexters with its tools and services, Xsolla has ample experience of helping game developers and publishers of all sizes to fund, market, launch, and monetize their games globally and across multiple platforms.

Kim added that users need “easy-to-use and convenient in-game features and payment options that can be leveraged across a broad ecosystem of games,” with Xzolla ZK’s digital backpack, “carving a path for gaming to transition and thrive in Web3.”