Key Highlights
- ZKsync is scheduled to implement a major protocol upgrade across its network in early Q1 2026.
- Elastic Network chains will temporarily settle directly on Ethereum L1 to facilitate the Atlas infrastructure rollout.
- The update introduces enhanced interoperability features, including native asset transfers and interop bundles across the ecosystem.
ZKsync developers announced that a major protocol upgrade is set to occur in early Q1 2026. This upgrade, announced on Wednesday, will require ZKsync Era and other chains on the Elastic Network to briefly pave the way for their settlement mechanism to go from being processed on the ZKsync Gateway to being processed on the Ethereum Layer 1 mainnet.
This is a technology integration that is being implemented to enable the overall upgrade to the Atlas on their gateway. Currently, the Elastic Network relies on the ZKsync Gateway as the middleman in the process of settlement.
Temporary Ethereum settlement
The existing infrastructure was designed to ensure the simplicity of interactions among various chains with the Ethereum base layer. However, the upcoming upgrade named “Atlas” brings new infrastructure in the form of the ZKsync OS as well as the Airbender. To implement this change, the network has to go back to the direct Ethereum settlement model before transitioning back to the improved ZKsync Gateway.
ZKSync introduced the Atlas Upgrade in early October and went live soon after in November. It helped support over 15,000 transactions per second, confirming them in one second, and operated on low fees.
Advancing cross-chain interoperability
The technical aspect associated with this upgrade has many implications for the overall interoperability of the network. Currently, the level of functionality associated with cross-chain interaction is mainly limited to messaging. The Q1 2026 upgrade expected to take place in the network will see these functions extended to accommodate native asset transfers, as well as interop calls and bundles.
With respect to developers who make use of these systems, there could be minute changes needed for monitoring systems or indexing systems that rely on certain gateway contracts. However, there has been an indication that deposit and withdrawal functions will continue happening as before.
Looking forward, the completion of this upgrade will ensure that the ZKsync Gateway is in line with the updated version of the ZK Stack. Once the changes are completed, the chains existing within the Elastic Network are set to move away from Ethereum settlement in favor of the updated Gateway. This move is expected to offer a solid base for the scalability of the Elastic Network.
Also Read: Ethereum Developers Unveil Post-Glamsterdam 2026 Upgrade “Hegota”