Etherlink

What is Etherlink?

Etherlink is an EVM-compatible, non-custodial Layer 2 blockchain built on Tezos Smart Rollup technology. It offers a fast, fair, and nearly free environment for decentralized applications (dApps), enabling seamless integration with Ethereum tools and facilitating asset transfers across EVM-compatible chains.

Architecture and Features

 
• Tezos Smart Rollups: Etherlink leverages Tezos' Smart Rollup technology to provide scalability and efficiency, ensuring low latency with sub-second confirmation times and robust security.
 
• Decentralized Sequencer: The network employs a decentralized sequencer to reduce the risk of centralized control and manipulation, enhancing fairness and transparency.
 
• MEV Protection: Built-in Miner Extractable Value (MEV) protection safeguards users against exploitation, maintaining the integrity of transactions.
 
• Interoperability: Etherlink supports bridging assets between Ethereum and other EVM-compatible networks, including Avalanche, Arbitrum, Optimism, Base, and BNB Chain.

Native Token

Etherlink utilizes Tezos' native token, XTZ, for transaction fees and other network operations. Additionally, it offers a wrapped version, WXTZ, which is ERC-20 compliant, facilitating seamless interaction with decentralized applications within the Etherlink ecosystem.

Integration with Cryptoworth

Etherlink integrates with Cryptoworth to provide users with enhanced financial clarity in accounting workflows. This integration enables efficient tracking, categorization, and reporting of transactions within the Etherlink network, ensuring accurate financial reporting and compliance with accounting standards.

Developer and User Experience

 
• EVM Compatibility: Developers can deploy and manage smart contracts using familiar Ethereum tools, such as Hardhat and Remix, streamlining the development process.
 
• Low Transaction Fees: Etherlink offers minimal transaction costs, making it economically viable for both developers and users.
 
• Ecosystem Support: The platform supports a wide range of applications and integrations, including decentralized exchanges, NFT marketplaces, and DeFi protocols.

Getting Started

 
1. Set up an Etherlink-compatible wallet, such as MetaMask, and configure it to connect to the Etherlink network.
 
2. Bridge assets to Etherlink using the official bridge to interact with dApps and services within the ecosystem.
 
3. Explore the Etherlink ecosystem to discover and engage with various applications and services.

For more information, visit the Etherlink website.

FAQs on Accounting for Etherlink and XTZ with Cryptoworth

Does Cryptoworth support tracking activity on Etherlink and Tezos?

Yes. Cryptoworth ingests transaction data from Etherlink and the underlying Tezos chain, including transfers, bridging events, and WXTZ usage. All activity is categorized for proper subledger reporting. See how it supports your digital asset workflows.

How does Cryptoworth handle wrapped tokens like WXTZ?

Cryptoworth tracks the conversion between native and wrapped assets, like XTZ and WXTZ, ensuring cost basis continuity and correct valuation across wallets and bridges.

Can I generate reports from Etherlink data for financial audits?

Absolutely. With structured journal entries and audit-ready transaction logs, Cryptoworth helps accounting teams meet internal and external reporting requirements. Explore our audit capabilities.