What is ZK Industry doing? Rollup, Multichain Bridge and VC

Zero-knowledge proofs (ZK-proofs) are a key technique explored by many in the crypto industry. A zero-knowledge protocol is a cryptographic method that allows one party to prove that something is true without revealing any information to the other party.

The technology is critical to the Ethereum Layer-2 solution for achieving blockchain scalability and the privacy and security of the ZK transaction network. Top ZK tokens such as Polygon (MATIC) and Zcash (ZEC) have surpassed $9 billion in market cap since their inception.

Given the growing focus on ZK technology and the benefits it can bring to crypto, it is no surprise that it will be one of the hot topics of discussion during the upcoming Annual Ethereum Community Conference (EthCC) in Paris from July 17-20. there will be a.

Some conference attendees, as well as those who attended the ZKDay sideline event on July 19, shared that they believe the technology is promising in the coming years.

Venture capital is watching closely

According to Cointelegraph Research, venture capital (VC) activity in the cryptocurrency sector is coming back to life after a year-long decline. In May 2022, the total amount invested in the industry reached $4.4 billion, declining to less than $500 million in January 2023 and back to over $1.1 billion in May.

Forrest Bai, co-founder and general partner at Foresight Ventures – a Singapore-based VC firm with more than $400 million in assets under management – ​​believes the bear market presents an opportunity for growth, saying: “Some The collapse of crypto institutions presents an opportunity for the rise of new ones.”

EthCC(6) is now completely sold out.

All EthCC talks and workshops will be livestreamed

See you in Paris ❤️

– EthCC – Ethereum Community Conference (@EthCC) 4 July 2023

For Foresight Ventures, which counts companies such as Sei Networks, Space ID, Shardem, Catalyst and Space Nation in its portfolio, emerging tech is a main area of ​​investment interest for the firm. Bai said:

“The combination of new technologies such as AI, ZK and blockchain is currently the most attractive direction we are interested in.”

Although factors such as the collapse of FTX, enforcement actions by the United States Securities and Exchange Commission, and the explosion of Terra have cast a shadow over the sector, Bai remains optimistic about the industry’s recovery, saying, “We can see crypto Hong Kong remains dynamic in regions such as Montenegro, Southeast Asia and South America.

What are ZK protocols?

The motto of the current bear market is to “build”. As general interest in the cryptocurrency sector wanes during tough economic times, tech companies may see this as an opportunity to take their time to build a sustainable product and unveil it as the market enters a recovery phase. This approach is even more pronounced when discussing emerging fields and technologies such as ZK-Proof.

Connected: ZkDay Coming to Paris on July 19th: A Major ZK Conference Among EthCC

A zero-knowledge, layer-1 blockchain, Manta Network launched its ZK nonfungible token platform, NPO, a month ago, and has since recorded over 200,000 wallet installs and 300,000 ZK soulbound token mints. Kenny Lee, co-founder and chief operating officer of Manta, said the technology has great potential when it comes to scalability and enhancing user privacy:

“ZK-Rollup is used specifically for scalability. ZK also has other applications geared towards protecting users and their privacy/identity. Manta Networks uses this as a core use case to provide personalized Know Your Customer/Identity tailored solutions. I think, right now, ZK is being implemented in both rollup and on-chain activity, so it would be suitable for both.

According to Lee, the primary focus has been on creating real use cases for ZK technology. “We are focused on on-chain identity with the security and privacy of each user’s wallet and transactions,” he added. The next step is to implement such solutions across multiple use cases in over 80 ecosystem projects and allow them to adopt the technology.

ZK adoption

For zero-knowledge technology to spread its wings and increase adoption, some believe that cross-chain solutions are needed to rectify the issue of blockchain interoperability.

Polyhedra Network, which focuses on Web3 interoperability and boasts 800,000 monthly active users, aims to bring layer-1 and layer-2 blockchains closer through its zkBridge technology. As Abner Zia, CEO of Polyhedra, says:

“ZkBridge uses zero-knowledge proof construction to efficiently convince the receiver chain that a certain state change has occurred on the sender chain. With zero-knowledge proofs, zkBridge provides both strong security and a significant reduction in on-chain verification costs without relying on external assumptions.

Given how much skepticism there is about bridges and their vulnerabilities to hacks, it’s no surprise that many are searching for new technologies to help improve protocol security.

The ultimate goal of using the proprietary ZK-Proof system is to “foster an open, interconnected and scalable blockchain ecosystem that paves the way for the future of blockchain technology,” Jia said.

The Magazine: Here’s How Ethereum’s ZK-Rollup Could Become Interoperable