Ethereum Scaling Protocols Lead the Way in Zero-Knowledge Rollup Adoption, Reveals ZKValidator Report
ZKValidator’s latest report, “State of ZK Q2,” sheds light on the dominant role of Ethereum scaling protocols in driving the widespread use of zero-knowledge rollups (ZK-rollups) in 2023. The report highlights major launches, new research, and healthy competition within the sector, emphasizing the technology’s efficacy in scaling compared to other market segments.
Zero-knowledge proofs (ZK-proofs) leverage cryptography to enable one party to prove the correctness of certain information to another party without divulging any data. These proofs have emerged as a crucial solution for trust and privacy in digital environments, playing a pivotal role in scaling layer-1 blockchain protocols.
A community poll conducted by the Zero Knowledge Podcast, which surveyed 18,000 followers, provided insights into the most significant applications of ZK-proofs. Out of the respondents, 42% identified “ZK for Scaling” as the segment expected to witness the highest growth in the next 12 months. ZK for privacy and identity followed at 23.8% and 22.2%, respectively, while zero-knowledge machine learning received the least votes.
The poll findings align with real-world developments, as several major Ethereum scaling protocols have been launched on the mainnet in the first half of 2023. Notably, Polygon announced its upcoming “2.0” multichain system, utilizing ZK-proofs for asset transfers between networks. Additionally, zkSync Era’s ZK Stack empowers developers to construct ZK-rollups and proprietary layer-3 “hyperchains.”
ConsenSys also commenced partner onboarding for its mainnet Linea network on July 11. Linea, a prominent layer 2 solution, enables developers to build or migrate decentralized applications for Ethereum. The sector has attracted investments across various segments, including zk-based layer 2 platforms, zkEthereum Virtual Machines (zkEVMs), and ZK-proofs for off-chain computation.
StarkWare, an Ethereum scaling firm that played a pioneering role in zk technology, along with Ethereum co-founder Vitalik Buterin, invested in Kakarot. Kakarot is a zkEVM built on StarkWare’s technology, aiming to develop layer-3 applications.
The report also highlights Worldcoin’s successful $115 million funding round, dedicated to advancing its zk-powered digital identity application and ecosystem. Furthermore, the Anoma Foundation, a Swiss nonprofit, secured $25 million in its recent funding round, supporting the continued development of its third-generation blockchain architecture for decentralized applications.