ZK Rollups Landscape Overview

Transcript

amazing so let's get this first speaker on the stage uh Vadim kodin will be talking about ZK rollups landscape overview so give Vadim a round of applause everyone Hi everyone thank you so much for uh having me today uh first of all want to uh say thanks for organizers for D Barcelona uh to to invite me and have a great presentation for you today guys uh what we're going to talk today uh it's a ZK rollups uh lenscap overview right so um ZK it's um what is it and what's the uh you know main companies who are working on it and what we should uh you

know follow as a trend um let me try which one is working can you please double check okay so uh first of all I want to say that uh this uh presentation is actually a summary of the um ZK rollup landscape overview uh report which we created in our company uh which we created in the Crypt Mar Capital let me say a couple words about myself first I'm in a crypto space in the blockchain since 2017 um from that time till now my main focus is actually Investments so uh I'm

a founding partner of Crypt Mar Capital together with uh my partners uh we have invested more than 200 companies in the blockchain space we're also backed by the largest uh European and one of the largest European and the largest Spanish VC traditional VC and uh actually funds of funds uh named Aon Partners so for Barcelona for Spain here is also very relevant maybe some of you guys know and and heard about them um also my bio um includes the two years of being the CEO of coin Telegraph Chinese so I'm sort of like you know from the media side as well to operate in the media company to understand how this part works and I've

been living in China that back to that time and operating Chinese company um after I left from coin Telegraph we uh started uh another media with my uh Partners named merse past and for now we have more than 3 million monthly active users main focus is broader picture is not only uh let's say coin something like uh uh let's say trading or uh listings the listings is more about technology so uh we really love to share a lot of information about AI AR VR and the web stre as the whole let's say is the let's say like asset is the niche right so um we also do have some accelerators but let's focus on the main topic today so again uh report that we

have created we have a lot of very good partners which are really um you know proud to announce that we have cooperated with hhk with polygon the GM with the scroll and with all these companies to create this uh report okay and um actually uh we just released it uh this week uh on Monday we released it on Twitter LinkedIn and a couple more social networks and it brought a lot of attention to this report uh for now at the moment I've check it in the morning it has more than 600,000 views uh so I think um many people found it very useful uh so what is Zer knowledge technology okay so I have a question to the audience please raise a hand who

have heard about ZK and know what is it all right perfect so majority of the audience know what it uh what it is so I don't need to explain I don't need to go to the very Basics let's go to the uh really like you know interesting information and the comparison with other networks okay but of course the uh the basics you guys know and um we're still like going to going to talk a little bit about like a story so where it starts uh the first uh let's say mention about zero knowledge was in 1989 and uh it's interesting like 3 34 years uh from now uh that's the first mention about ZK and that's exactly like

my age right so uh uh quite the same like you know story quite the same timelines um but from from that time uh it hasn't found any sort of like use cases and um it was a bench of Publications in 1999 uh it was very interesting publication by uh Ellie bin sasong uh who is actually the founder of the Stark net starkware and the Stark net and uh he also brought a lot of interesting like Solutions and uh from his publication a lot of people maybe someone here in the audience also use uh solutions that that he put in his publication back to 1999 but the main use case for the ZK started in 2008 with

the publication of the Bitcoin white paper so um many people understand that ZK proofs can be used as ZK rollups uh with the first let's say like um use case in the zero cach uh it was interesting use case but of course after the bar Barry White Hat published uh uh his uh Solution on the uh giz Hub a lot of people start to understand okay that's exactly probably how we can use how to scale ethereum Etc so now we have much more interesting uh you know solution and many companies are working on a on a Solutions so um it definitely brought a lot of attention to uh Community to developer community so

companies like a ZK syn starkware Etc started uh they um Journey from there okay so uh I want to compare optim optimistic rollups uh and zero knowledge uh rollups um basically optimistic rollups relies heavily on trust and Game Theory uh so we have fraud proof optimistic cups user may result in a waiting period for almost like uh one week for 7 days which definitely I mean brought a lot of inconvenience to the place at the same time zero knowledge rollups require a confidential approve uh and some of them require um trusted setup which is also like you

know uh some additional costs uh and zops user don't not face such delays uh like 7 Days uh it can I mean the verification can be done immediately um what we see here that actually for the optimistic rollups um is very native to the evm and um that's not not exactly the case for the zero knowledge rollups right so for zero knowledge rollups you need to have a separate sdks you need to develop maximum evm uh uh comp compatibility and uh that's not exactly like you know what you know easy to set up uh proof of validity so for the proof of validity uh

it require and um um significant it do not require significant calculations for the optimistic rollups but for zero knowledge proofs is generating using the complex script of graphic calculations and requires significant uh calculations uh for transaction fees it's much cheaper for the optimistic rollups but it's more expensive for the zero knowledge at the moment right so many many uh good teams are working on how to reduce the um you know gas fees and Etc but still I mean you can see it much more expansive um yeah so 10 minutes for zero knowledge uh rollups and uh up to one week for optimistic rollups uh speed of

the uh optimistic rollups is much lower than the speed for the zero knowledge rollup um and I also want to rely on uh you know quotes from the uh vitalic Barian that he's basically saying that for the short term at the moment for the whole let's say industry that we have at the moment uh optimistic rups is a better solution it's easy let's say like to use it's easy to implement doesn't require this trusted setup um uh transaction cost is cheaper but the same time uh ZK snarks technology in improves and uh ZK accumulation packages will win for all use cases in the medium and the

long term I agree with vitalic uh I personally see a lot of use cases in the conventional world as well uh so uh ZK as a technology can go um you know much broader and other Industries not only in let's say crypto in the blockchain space um so what is ZK snarks and ZK Starks Also let's see briefly uh in our presentation here um I want to speed up I see that the time is um ticking so zik snarks Starks basically you can see that Starks is much bigger in approve in approv size uh quick and approver time uh but the verification time is quite

like the same okay so uh here you can see some of the notes as well um but one thing is important to understand that security assumptions for Starks is much much better because uh that's the only solution at the moment which is above a Quantum secure Quantum secure line so um a lot of people saying about what's going to be uh what's going to be happening with the blockchain space with the crypto when the quantum computer appears when it's become affordable um then we already have some sort of like a Solutions which is happening which is appearing and probably it can solve this okay so um basically at the moment we have ZK sync polygon and scroll who

is uh already using ZK snarks for Starks the main uh let's say uh ambassador of it and actually founder uh is a stark Weare and the Stark net as the as the as the protocol right and the polygon in the recent uh Publications also they they they they uh said that they will use the Starks as well okay so um some of the companies who are working on the uh snarks and Starks here so you can see the difference you know and U uh who has better uh I would say uh achievements right so for Starks and uh be just below

the Starks all the companies like a gross 16 Sonic plun Marlene fractal uh all of them they are uh basically working on snarks rather than Starks how to improve them and how to make um you know uh the technology better also very important to mention that evm compatibility is uh crucial for the uh ZK rollups at the moments and better uh compatibility you have then faster you uh communicate with ethereum so scroll uh the closest one for polyon uh ZK uh they are also much closer to the um ethereum like even ZK think they saying they have 99% of compatibility

for Stark net it's much more complicated actually but the same like you know company um they they saying they working on it and at the moment they do have some solutions so let's uh dive a bit deeper so how different ecosystems work with a ZK rollups uh ZK sync so we have ZK AVM ZK Porter ZK main contract verifier upgrade gradekeeper governance full noes prover and interactor so that's the how architecture of the ZK syn looks like uh at these slides you can see the workflow of the ZK syn uh I'm not going to go deep to the explanation of each single uh you know item here otherwise it's

going to take like a couple hours for me to you know to explain all the things at these slides and um uh the main uh thing that which actually I look at as the uh let's say investor so that's my my my core business right to invest of course we look at the ecosystem we look at the okay so we have ZK sync we have a lot of projects who are already building on a ZK sync of course we want to support them we have invested to several of them already and always like looking to invest to some good project so because of um ziki sync um currents like let's say stage and they started quite early um they are very compatible with the ethereum so the ecosystem of the ZK

quite quite big at the moment have almost 250 maybe even more like projects which are uh let's say can be compatible can be like used can can use the casing um also here we can can see that actually uh TPS and uh usage uh of the network network activity of the ZK syn quite active um the same we have here for the uh total value locked uh is growing rapidly so it's growing super fast and actually ZK sync is the leader at that space at the moment with more than 700 million uh dollar which is locked on the on the

network um here you can see the breakdown of which ass ass locked ethereum is do have dominance here uh the rest is just uh let's say like a few percentages uh fundraising investors for the Z syn is quite quite interesting as well so in total they have fundraised almost half of billion US dollar right so the network they have money to deploy they have money to support their ecosystem they have money to build a very good and uh sufficient technology and you can see you know some of the found some of the founders some of the projects uh the VCS here they are uh famous and probably you also have heard

about them um the most funded ecosystem for the ZK at the moment so the next one is the Stark Nets again so the architecture here um you can take a look at our report in the end I will provide a QR code you can scan it you can go and download it and you can um I'd say like uh research it by yourself and find uh you know all the information that you need uh workflow uh interesting what what I like they they use a um uh recursive uh prevent flow which is like you know different with other ecosystems uh they are going to have a

hypers scale mode that's why they want to provide with l3s l4s uh and so on so solution is interesting and um actually the transaction price are cheaper going to be cheaper with the L3 and l4s uh ecosystem is smaller than ZK ZK sync but at the same time uh it's expanding from my personal I would say like a feedback I've been in a conference of the Stark pair in February in Tel Aviv and uh it was a very good combination of the you know young startupers and people who already like let's say long uh time in the industry which is is really working on the very goods and quality project so I was so impressed and uh personally I

also see a lot of potential for the Stark net e system uh but still almost 200 projects here already exist and building something on a stark net um activity is lower than ZK sync tvl also sort of like a lower with a ZK sync but uh it's also like a different right so technology it takes a bit longer to understand especially for developers how networks how to code on it how to uh let's say release the product on it so uh it's a bit different and take a bit longer for people to understand fundraising for uh this part um is uh has less let's say money collected from the investors but the key difference uh

from my perspective for the Stark net for the starkware that they have a lot of infrastructure Partners they're already working on so um consensus nether Minds um Ledger a lot of good companies also support Stark Nets and Visa recently said they want to use a stark net as for for their transactions which exactly shows that Stark net I would say goes a little bit more like a um corporates and let's say traditional conventional world uh sort of like a direction the next one is scroll for the architecture I'll skib it I just a couple minutes left so here we have the workflow if you're interesting you can

uh go to the um uh you can go to the um our report and download it okay so ecosystem map is uh still comparatively small but is also growing and um um with a main focus on the D5 projects the same actually is a zync and Stark net majority of the projects is D5 projects or infrastructure here we have more D5 projects which are bu building on the scroll uh for the fundraising uh it collected around $80 million us um poly chain a lot of people from ethereum core developers core people from ethereum Foundation invested to to to scroll sequa Capital also invested to

startet so um all the good companies they know the potential of of scroll and it's and it's um raising at the moment okay so polygon Z km uh architecture is different with others okay so for that part uh it also worse to uh understand to explore um here's the workflow uh they have the Kover which is can be actually use both snarks and Starks so this is sort of like you know um difference with other ecosystems uh ecosystem map is small for the polygon the KVM but we don't understand all of us know that polygon is one of

the largest uh protocols one of the largest layers as soon as they will combine and let you know other projects to migrate to Z KVM and uh I do believe they have enough power uh to promote in a proper way to do a lot of Partnerships so that's one of the largest let's say competitor for ZK sync and Stark net um activity is quite small yet tvl is growing but the same guys we are here today and we're early in the space of ZK right so these sort of like Graphics in two years will be like you know tremendously big and all these like you know things will be even like a small small small like you know dots on the

huge uh map of like how many uh value will be locked how many assets how many projects will be will be combined there so that's the whole comparison of these like four ecosystems of course there are much more we have loopring we have adack we have Mina which is are switching to fully ZK uh protocol at the moment uh and many many more uh interesting uh teams and projects who are building something on ZK and also providing a lot of good knowledge and the solutions to the market um so still um uh let's say concluding to this comparison I would say ziki sing is dominating at the moment uh today but we have Stark net which is growing super fast and also

quite like a competitive to it and polygon who is also like have a lot of potential uh so for use cases uh I would say that uh in the blockchain in a crypto space uh ZK rollups can be used in the defi can be used in the decentralized identity in uh data PR privacy and so on and so on so it's a lot of use cases which actually uh can be used uh especially I think majority of the uh people who are let's say like a professional investors to the industry especially uh what we are discussing inside of our team that um we're looking for of course transactional business right let's say uh exchanges or uh

Payment Solutions or swaps that's of course like interesting right now because ecosystem is quite early they are uh like building and these sort of solutions can bring a lot of attention a lot of users for uh web stre world if we're talking about conventional business um now it's happening like previous bull run all the big companies they already invested to the Bitcoin now recently we have black rock uh they they applied for the ETF and uh you know SE also like quite like a bullish on the Bitcoin and the whole industry but ZK as a technology really can go beyond the uh let's say crypto space and bring us to the you know let's say conventional

world when the use cases are real when we are uh you know implementing this technology to the very like let's say like a normal and a daily uh world right so uh Finance health care supply chain management insurance it's all can be uh I mean in every of these uh Industries can be thek can be implemented uh just for instance uh now I'm live I live in Dubai and uh recently I met the guys they are one of the largest uh real estate developer and um uh the guy who's working in the company he told me we have a lot lot of data they leing this like a companies they leing their space to a lot of merchants they selling a lot

of uh you know uh property which they develop and they said but we cannot sell it because the leaders of the company they afraid of like uh you know competition and things and things like that but I I told him okay take a look at the ZK proofs and these technology really can help you to monetize this data without revealing what's exactly like you you know this data is so your leaders can be you know let's say calm they don't need to be worri about like a competition with other real estate developers but at the same time they can monetize this data so it's it's this is just a small and one use case but uh a lot of them which is existent just waiting for the time so thank you so

much guys actually my time already like you know finished couple minutes ago um I think I have uh a time for one question if you allow one question okay one one question and uh someone who gave me a very good question I give my uh report which is physical one uh okay I see all okay thanks for the great overview um what is your take on the sequencers um how can we decentralize them and make them trustless wow that's a very good question it's a very technical question right so uh thank you for so much for asking me this uh regarding to the technical part of

the story uh I won't go deep because um my part in the company as the founder to uh build the whole strategy for the company to invest to the best deals when I invest to the projects I mostly focus on Founders a team you know to see who is that person what's the motivation behind the person why he built this team do he has enough uh let's say knowledge and uh um I would say like uh motivation to to build what he wants to build right so for the technical part of the story um I would suggest you find a someone who really can explain you

unfortunately just just like uh one sort of example um one of the good sequencers that we are uh that we were on our radar radios uh from from Stark net I think ecosystem so we missed uh that part and then I was like okay so we definitely should invest to a couple sequencers so probably I will take uh uh more time to understand what is that and uh who is building something for the sequencer okay guys so uh unfortunately we don't have time thank you so much for having me today Oliver this is yours and uh goodbye thank you so much