- Justin Drake, a researcher at the Ethereum Foundation, has announced that the entity is investing tens of millions in zero-knowledge virtual machines (zkVMs).
- The investment plan identifies three key entities poised to capitalize on this opportunity: the zkevm project, Poseidon cryptanalysis, and ethproofs.org.
On November 29, the Ethereum Foundation sparked excitement across the Ethereum community with an announcement from Justin Drake, a researcher at the organization. According to the announcement on X, the foundation is set to invest tens of millions of dollars into zkVMs (zero-knowledge virtual machines).
The Ethereum Foundation’s decision to invest heavily in zkVM technology reflects an awareness of the pressing need for privacy and scalability within the Ethereum ecosystem. This investment will not only empower developers to create sophisticated decentralized applications (dApps) but also ensure that user data remains protected, a critical consideration in today’s data-sensitive environment.
Key Entities Benefiting from the Investment
Drake’s post on X outlined the foundation’s strategic approach, emphasizing the potential of zkVMs to transform the Ethereum network. Additionally, Drake revealed that the investment would focus on three key entities well-positioned to leverage this opportunity: the zkevm project, ETH Proofs, and Poseidon cryptanalysis.
The zkEVM platform specializes in zkRISC-V formal verification, which is crucial for ensuring the correctness and security of zero-knowledge proofs. The zkevm project will roll out grants and bounties over the next 18 to 24 months. Its goals include raising awareness of formal verification methods for zkEVMs, enhancing collaboration among teams in the ecosystem, and developing tools and standards for maintenance.
Similarly, Poseidon and Poseidon2 are hash functions designed for verifiable computation, emphasizing efficiency in prime fields. Poseidon, in particular, has proven effective within the Ethereum ecosystem and has excelled in STARK benchmarks. The project seeks to strengthen the security assessments of Poseidon implementations for high-value Ethereum applications, with Phase 1 set to conclude in December 2025 and Phase 2 in December 2026.
In addition, Ethereum proofs focus on proving statements about Ethereum state transitions while maintaining the confidentiality of sensitive information. Funding from the Ethereum Foundation is anticipated to enhance its infrastructure, facilitating the development and deployment of zkVM solutions that prioritize privacy.
Could this Result in a Price Surge for Ethereum?
The initiatives of the kevm.org project, combined with substantial investments from the Ethereum Foundation into zkEVMs, may further bolster Ethereum’s price. Currently, ETH experienced a rise of 5.75%, trading at around $3,640, outpacing the broader cryptocurrency market, which saw a 2.82% increase during the same period.
Recent token transfers by Ethereum co-founder Jeffrey Wilcke and the Ethereum Foundation (EF) have sparked concerns in the community, dampening the generally optimistic sentiment. Wilcke moved 20,000 ETH (valued at $72 million) to Kraken, marking his fourth significant transaction to the exchange this year. These transactions come on the heels of the Ethereum Foundation’s similar action, where it transferred 35,000 ETH (approximately $94 million) in August.