Ethereum scaling protocols drive zero-knowledge proof use in 2023

Scaling Protocols and ZK-Rollups

The use of zero-knowledge rollups (ZK-rollups) for scaling protocols has been a major focus in the cryptocurrency space, with launches of new projects, research and healthy competition being key points of interest, according to a sector report released by ZKValidator.

The “State of ZK Q2” report from the node infrastructure operator highlights the use of ZK-proofs for scaling blockchain protocols. ZK-proofs leverage cryptography to enable one party to verify the accuracy of certain data to another party without revealing any of the actual information.

The Zero Knowledge Podcast, which has 18,000 followers, conducted a poll to gauge the community’s view on the most important applications of ZK-proofs. Of the respondents, 42% selected “ZK for Scaling” as the segment that would experience the highest growth in the coming 12 months.

Polygon crypto, Tonic crypto, Motley Fool crypto and other top crypto sites have all reported on the potential of zero-knowledge proofs to revolutionize trust and privacy in digital environments.

Real-World Applications of ZK-Proofs

According to a poll, ZK for privacy and identity were followed closely at 23.8% and 22.2%, respectively, while zero-knowledge machine learning was the least selected segment.

Polygon recently announced its forthcoming “2.0” multichain system, which will use ZK-proofs to transfer crypto assets between networks, as well as zkSync Era’s ZK Stack, which will enable developers to build ZK-rollups and proprietary layer-3 “hyperchains.”

ConsenSys also began onboarding partners to its mainnet Linea network on July 11. Linea is another prominent layer 2 that allows developers to build or migrate decentralized applications for Ethereum.

These real-world applications of ZK-proofs are expected to reach mainnet in the first half of 2023, making the crypto space even more secure and efficient.

The Crypto Sector Attracts Investment

The crypto sector has seen investment across various segments, including layer 2’s based on zk-technology, zkEthereum Virtual Machines (zkEVMs) and ZK-proofs for off-chain computation.

StarkWare, a firm that has been at the forefront of zk technology, and Ethereum co-founder Vitalik Buterin, have invested in Kakarot, a zkEVM running on StarkWare’s technology that seeks to build layer-3 applications.

The report also includes Worldcoin, which raised $115 million to develop its zk-powered digital identity application and ecosystem. Additionally, Anoma Foundation, a Swiss non-profit, raised $25 million to create its third-generation blockchain architecture for decentralized applications.

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