Zero-Knowledge Virtual Machines Key to Ethereum Growth, Says Hashkey Capital

CN
6 hours ago

In the report, Hashkey Capital’s researchers highlight the growing adoption of zero-knowledge virtual machines (zkVM) within the Ethereum ecosystem. Teams such as Ethereum’s PSE and projects like Taiko and Scroll are making strides in zkVM development, pushing the space forward with innovations like Plonky3, which offers improved performance over older systems like Halo2.

According to Hashkey Capital, the cost of proving and efficiency will be critical for broader adoption, while hybrid verification models are gaining attention to enhance security. The research report states:

The catalyst for greater adoption will rely on several factors such as cost of proving, proving efficiency and development time. Currently, there is a consensus that using zkVM is apt for building and deploying verifiable applications so developments in this area is something that we continue to focus on.

The analysis also delves into the challenges and opportunities surrounding the increasing centralization of block builders in the Ethereum ecosystem. Major players like Beaverbuild, Titan Builder, and Rsync Builder have come to dominate the market, raising concerns about censorship resistance. Hashkey Capital’s report stresses the need for new block auction designs to preserve Ethereum’s decentralization.

The crypto firm also notes the emergence of solutions like Flashbots and Titan Relay aimed at enhancing block supply while addressing these challenges. “Relays continue to play a quintessential role in block supply as more than 90% of blocks pass through them,” Hashkey’s report states. “Titan Builder also launched their Titan Relay this year which has seen increasing growth since inception.”

Hashkey Capital’s review of the decentralized finance (defi) landscape further points to significant interest in account abstraction and modular services. The report highlights Ethereum’s upcoming Pectra upgrade and its anticipated impact on smart contract wallets and developer experience.

Hashkey believes projects like Polygon and Base continue to lead in the adoption of account abstraction technologies, with smart wallet use on the rise. Hashkey’s researchers anticipate that further protocol-level enhancements will drive the creation of higher-quality applications within the space.

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