by • Zero-knowledge proofs (ZK-proofs) are a key technology being explored by many in the crypto industry.
• The top ZK tokens, such as Polygon MATIC and Zcash, have surpassed $9 billion in market cap since their inception.
• Venture capital is watching closely as EthCC takes place July 17–20 and the ZKDay sideline event on July 19.
Zero-Knowledge Proofs
Zero-knowledge proofs (ZK-proofs) are a cryptographic method that allows one party to prove to another party that something is true without revealing any information. This emerging technology is vital for Ethereum layer-2 solutions to achieve blockchain scalability, and to the privacy and security of ZK transaction networks.
Market Cap of Top ZK Tokens
The top ZK tokens, such as Polygon MATIC $0.6651 and Zcash ZEC $31 , have surpassed $9 billion in market cap since their inception, making them highly sought after investments in the crypto space.
Venture Capital Activity
Venture capital activity has been steadily increasing over the past year with total investments reaching up to $4.4 billion in May 2022 before dropping to just under $500 million in January 2023 and climbing back to over $1.1 billion in May 2023 according to Cointelegraph Research data. Forest Bai, co-founder and general partner at Foresight Ventures — a Singapore-based VC firm with over $400 million in assets under management — believes the bear market presented a chance for growth stating: “The collapse of certain crypto institutions presents opportunities for the emergence of new ones” which his firm has taken advantage of investing heavily into companies like Sei Network, Space ID, Shardeum, Catalyst and Space Nation among others combining new technologies such as AI, ZK and blockchain which he finds “most fascinating” currently.
Upcoming Events
The upcoming annual Ethereum Community Conference (EthCC), taking place from July 17–20 will be discussing the promise that zero knowledge proofs bring to crypto while a sideline event on July 19 called ‘ZKDay’ will also be addressing this topic further with various speakers presenting their views on this technology . All EthCC talks and workshops will be livestreamed so more people can stay up to date with what’s happening in this space.
Conclusion
Zero knowledge proofs are becoming increasingly important for blockchain scalability while also bringing added security and privacy features when conducting transactions online via cryptocurrency networks or other digital platforms making it an exciting area for venture capitalists who see potential opportunities arising from these technological advancements going forward into the future
