Ethereum scaling protocols continue to be the primary driver behind the adoption of zero-knowledge proofs, as revealed in a recent report by ZKValidator. The “State of ZK Q2” report examines key developments in the zero-knowledge (ZK) ecosystem, highlighting major launches, new research, and healthy competition.
Zero-knowledge proofs utilize cryptography to enable one party to prove certain information’s accuracy to another party without exposing any data, making them vital for trust and privacy in digital environments. These proofs have played a crucial role in scaling layer-1 blockchain protocols, with Ethereum being a prominent example.
Poll Results Reflect Real-World Applications
A poll conducted by the Zero Knowledge Podcast, involving approximately 18,000 followers, shed light on the most significant applications of ZK-proofs. Among the respondents, 42% identified scaling as the segment expected to experience the highest growth in the next 12 months. Privacy and identity accounted for 23.8% and 22.2% respectively, while zero-knowledge machine learning received the least amount of support.
The survey findings align with real-world applications, as several major Ethereum scaling protocols were launched on the mainnet in the first half of 2023. For instance, Polygon announced its upcoming “2.0” multichain system, which utilizes zk proofs to transfer assets across networks. Additionally, zkSync Era introduced ZK Stack, enabling developers to construct zk rollups and proprietary layer-3 “hyperchains”.
ConsenSys also commenced onboarding partners to its mainnet Linea network, a prominent layer-2 solution that facilitates decentralized application development and migration for Ethereum.
Investments Drive Advancements
Investments have flowed into various segments related to zero-knowledge proofs. This includes funding for zk-based layer 2 solutions, zkEVMs (Ethereum Virtual Machines), and zk-proofs for off-chain computation. A notable investment involves Ethereum scaling firm Starkware, co-founded by Vitalik Buterin, which invested in Kakarot—an application running on Starkware’s zkEVM technology aimed at building layer-3 applications.
The report emphasizes the $115 million raised by Worldcoin to further develop its zk-powered digital identity application and ecosystem. Additionally, the Anoma Foundation, a Swiss nonprofit, secured $25 million in funding to advance its third-generation blockchain architecture for decentralized applications.
The dominance of Ethereum scaling protocols in driving zero-knowledge proof adoption showcases their importance in addressing scalability challenges. As the Ethereum ecosystem continues to evolve, these advancements contribute to a more efficient and secure blockchain network.