The market is warming up, and these ZK concept projects are worth paying attention to

Written by: Miles Deutscher, cryptocurrency analyst

Compiled by: Babywhale, Foresight News

A few days ago, a small-scale debate erupted on Twitter about whether ZKR or OR is the better Ethereum scaling solution (recommended reading). Although neither side has emerged victorious yet, it must be acknowledged that ZK remains a narrative worth focusing on in the coming years. Foreign cryptocurrency analyst Miles Deutscher compiled a list of noteworthy ZK concepts and ecosystem projects on Twitter, which I now share, with a basic introduction to ZK Rollup not elaborated upon:

This year, several catalyst events have sparked a surge of interest in the industry: the upcoming token launches of zkSync and StarkNet, as well as the imminent launch of Polygon zkEVM. This has led to outstanding performances from protocol tokens related to ZK, such as MINA, LRC, IMX, and DUCK.

However, the recent rise may be driven by speculation, as key on-chain metrics (active users, transactions, cross-chain bridge liquidity) have not increased alongside prices. This rebound may be unsustainable in the short term.

Nevertheless, a sustained rebound could occur before (and after) the releases of zkSync, Polygon zkEVM, and StarkNet, due to the influx of new users and new liquidity entering the ecosystem.

Therefore, to prepare, I have listed ZK-related projects with and without tokens:

Projects with Tokens

Mina

Mina is a lightweight blockchain that uses zk-SNARKs and a PoS consensus mechanism. Mina significantly reduces the amount of data that nodes need to download, and ZK-Rollups allow nodes to store smaller proofs instead of the entire chain's data.

Immutable X

Immutable X is a Layer 2 scaling solution designed to provide near-instant confirmations and close to zero gas fees for NFT trading and minting. Immutable X is based on StarkWare's ZK Rollups for scalability and plans to support multiple L2/L3 ZK-rollups for different use cases.

Immutable X describes itself as a "Web3 game developer platform," hosting games including Illuvium, Gods Unchained, and Kongregate.

Loopring

Loopring is a Layer 2 network designed for building and scaling DEXs, supporting the creation of high-throughput, non-custodial DEXs through ZK Proofs. Combining two mainstream narratives: ZK and DEX, makes Loopring an interesting project to watch in the future.

Syscoin

Syscoin combines Bitcoin's PoW architecture with Ethereum's EVM into a single network, allowing for the creation of scalable smart contracts while maintaining network security through its dual-layer architecture. Syscoin uses a modified version of EVM called NEVM, which employs ZK Proofs to support higher TPS.

Dusk Network

Dusk Network is a privacy-centric Layer 1 blockchain focused on programmable, private, and compliant securities. It can be seen as a privacy blockchain for building financial applications.

Dusk Network uses a ZKP system called "PlonKup" to protect data at a lower cost.

Mute.io

Mute.io is a DEX, yield, and bond platform based on ZK Rollup built on Ethereum and zkSync, which can be viewed as a comprehensive DeFi platform based on ZK.

A cryptocurrency trader on Twitter named meta_quant summarized the status of various projects in a table:

It is important to note that this rebound is likely driven by speculation, and merely using ZK-related technology does not guarantee a project's success. We need to look for projects that are innovating with the technology or learn to trade using the hype sentiment.

For these projects, like most altcoins, price movements largely depend on Bitcoin. However, if you are bullish on the market outlook, then the strongest narratives will undoubtedly outperform the market (ZK could be one of them).

How to trade depends on individual strategies; you might consider a dollar-cost averaging approach and strictly define your time frame and financial goals before investing. Of course, there’s also DYOR.

Projects without Tokens

Previously, we introduced some projects with tokens. However, I am more interested in protocols that have not yet launched tokens or are about to launch, as these are among the most supported projects in the cryptocurrency space (also with airdrop potential).

zkSync

zkSync is a Layer 2 network based on ZK Rollup, representing the "final form" of Ethereum scaling networks. zkSync is one of the most supported projects in the cryptocurrency space, having raised over $450 million from investors such as a16z, Dragonfly, and Lightspeed.

The complete mainnet of zkSync has not yet launched, but the ecosystem is already quite large, and it will become a "behemoth" in the ZK ecosystem.

The next phase of zkSync is the "Fair Onboarding Alpha" phase, where the protocol can begin deploying on zkSync 2.0 in a closed environment.

StarkWare

StarkWare is a Layer 2 scaling solution that utilizes STARK proofs to reduce the amount of information sent to the Ethereum blockchain and alleviate blockchain congestion. Like zkSync, StarkNet leverages ZK Rollup technology to achieve this.

StarkWare has also received strong support, raising over $285 million from institutions such as Paradigm, Pantera, Sequoia, and the Ethereum Foundation, and its ecosystem is impressive.

Scroll

Scroll is a ZK Rollup based on zkEVM, which can achieve native compatibility with existing Ethereum applications and tools. In the upcoming Layer 2 networks, Scroll ranks fourth in valuation.

Scroll has stated that it is creating an "incentive mechanism to encourage participation," which may lead to an airdrop.

Aztec

Aztec is a privacy-focused ZK Rollup on Ethereum, bringing privacy and cost savings to the Ethereum ecosystem. Aztec recently completed a $100 million funding round led by a16z crypto, and there may also be an airdrop in the future.

Polygon (zkEVM)

Polygon is developing its own zkEVM product through the acquisition of Hermez Network (a ZK Rollup). zkEVM is a virtual machine that executes Ethereum transactions transparently, including smart contracts with ZK proofs.

Hermez joins an already extensive ecosystem, and with the merger of Hermez and Polygon, MATIC will power the network.

Axiom

Axiom is an Ethereum ZK co-processor; although Axiom is not strictly a ZK Rollup, I want to include Axiom in this series because it provides a great example of how to use the technology in a practical sense.

Axiom allows developers to query on-chain data and receive trustless responses through ZK, enabling developers to enhance their applications efficiently using ZK.