Polygon’s ZK-rollup Ethereum scaler Miden hits testnet

May 7, 2024 Coin Telegraph

ZK systems will have their ChatGPT moment — Telos Foundation

April 30, 2024 Coin Telegraph

HashKey Group to launch Ethereum layer 2 network

April 9, 2024 The Crypto Briefing

Polygon Labs and Near announce ZK prover for WASM integration

November 8, 2023 Coin Telegraph

cdk

The Polygon CDK will soon include a “zkWASM” prover, allowing Web Assembly networks to integrate with the broader Polygon ecosystem.

The developers of the Near and Polygon networks are teaming up to create a zero-knowledge (ZK) prover for Web Assembly (WASM) blockchains, according to a joint announcement on Nov. 8. The new prover, called “zkWASM,” will for the first time allow WASM-based networks to join the Polygon ecosystem.

Zero-knowledge, meet Web Assembly.

The NEAR Foundation and @0xPolygonLabs are set to deliver the future of zero-knowledge for WASM based blockchains with zkWASM.

Empowering greater security, scalability, developer flexibility, and interoperability in the open web

zkWASM will… https://t.co/vNtYr42I9N pic.twitter.com/D1BIztjMI9
— NEAR Protocol | NEARCON | November 7-10 | Lisbon! (@NEARProtocol) November 8, 2023

WASM is a binary instruction format that was developed for use in web browsers. Some blockchain networks also use it as a computation engine instead of the Ethereum Virtual Machine (EVM). For example, Near, Stellar, Polkadot and Internet Computer all use WASM instead of EVM.

According to the announcement, the new zkWASM prover is “in active development and should be available next year.” Once completed, it will be integrated into Polygon’s chain development kit (CDK), which allows developers to spin up custom blockchain networks based on the initial parameters they set. This means that developers will have the option to use the CDK to create WASM networks and integrate them into the broader Polygon ecosystem, including the Ethereum mainnet itself.

According to Illia Polosukhin, co-founder of Near, the zkWASM prover will allow the network to integrate more with Ethereum, improving liquidity for users:

“NEAR is integrating more with Ethereum by innovating in new research frontiers, and the shared expertise of NEAR and Polygon will expand the ZK landscape and defragment liquidity across chains.”

The announcement also stated that zkWASM will be used to improve validator efficiency on the Near network itself, as the zero-knowledge proof process will cut down on computational overhead compared to the current work of validating a shard. This means that the Near network will obtain “better scalability and increased decentralization,” it stated.

Polygon is attempting to build a multichain ecosystem, which it calls “Polygon 2.0.” The new system will feature bridges that use zero-knowledge proofs to transfer assets from one chain to the other. In September, the developer unveiled plans to replace the Polygon network’s current native coin, MATIC (MATIC), with a new one called POL.

ZK-focused Manta Pacific opts out of OP Stack for Polygon CDK

October 16, 2023 Coin Telegraph

Coin Telegraph

Manta Pacific’s ZK-application-focused network will integrate with the Polygon ecosystem through the Chain Development Kit software.

Manta, a blockchain network focusing on zero-knowledge (ZK) applications, will migrate its software from OP Stack to Polygon CDK, according to an October 16 announcement. This means that Manta will not be integrated into the upcoming Optimism Superchain and will instead become part of the Polygon ecosystem.

*Manta Pacific block explorer. Source: Manta.*

Manta network is an Ethereum layer-2 focusing on zero-knowledge-based applications, including digital identity and privacy solutions. It launched a mainnet on September 12 and has processed more than 500,000 transactions.

Manta was originally developed as an optimistic rollup that uses the OP Stack software developed by Optimism Labs. This software is intended to help create a “Superchain” of interconnected networks that will share the same security model. However, it faces competition from the Polygon Chain Development Kit (CDK), which employs a different security model but is also used to create a web of interconnected blockchain networks.

In its announcement, Manta said it chose to migrate to Polygon CDK for three reasons. First, with Polygon CDK, deposits and withdrawals can be processed quickly, as they don’t require a period of time for fraud proofs to be submitted. “Finality can happen in minutes or seconds, rather than days,” the announcement stated. This is because “CDK leverages the security of math rather than the social-economic incentives of fraud proofs.”

Secondly, Manta claimed that Polygon CDK is more “modular” and “sovereign” than alternatives, giving the team more flexibility as it continues to build out features. Thirdly, using Polygon CDK will allow developers to create a “trustless ZK bridge to Ethereum.” Over the long run, this bridge will allow users of different Polygon CDK networks to access each other’s liquidity, making the network part of a larger ecosystem.

The Polygon ecosystem originally consisted of just the Polygon Proof of Stake network. On March 27, the Polygon team launched a second network, Polygon zkEVM. In June, they announced plans to integrate these two networks into a new ecosystem called “Polygon 2.0.”

The Optimism ecosystem added a second network on August 9, as Coinbase launched Base network. On October 3, the Optimism team launched a fraud-proof system that's intended to be used throughout its ecosystem.

Polygon (MATIC) rally comes to an end as competitors devour market share

October 10, 2023 Coin Telegraph

Arbitrum

MATIC price has retraced a majority of its recent gains. Cointelegraph explores why.

Polygon’s native token (MATIC) experienced a 16.4% rally that coincided with the launch of Polygon 2.0 Goreli testnet on Oct. 4. However, the resistance at $0.60 proved stronger than anticipated and was followed by a 10.6% decline over the six days leading into Oct. 10.

This decline was exacerbated by negative news regarding the departure of a key co-founder and weak activity in Polygon’s zero-knowledge rollup (ZK-rollup) subnet.

*Polygon (MATIC) 12-hour price in USD. Source: TradingView*

MATIC’s price has wiped out previous gains from the early October rally, erasing the bullish momentum driven by the expectations of the protocol’s upgrades.

Rallies tend to follow mainnet and protocol updates

Polygon 2.0 is a network of ZK-based layer-2 chains unified via a novel cross-chain coordination protocol. Polygon’s 2.0 scaling technology was unveiled in June 2023 as a plan for a scaling ecosystem consisting of four layers: staking, execution, interoperability and proving. Each of these layers contributes to creating an interconnected ecosystem of chains that facilitate secure, fast and highly cost-effective transfers.

Among the benefits of Polygon 2.0 are enhanced security and privacy through ZK-proofs, full compatibility with the Ethereum Virtual Machine (EVM) and instant cross-chain interactions without requiring additional security or trust assumptions. It’s worth noting that the project is continuing to develop its Zero-Knowledge Scalable Transparent Argument of Knowledge-based layer-2 solution, Miden.

One could argue that the recent 10.6% retracement merely reflects an adjustment to the overexcitement triggered by the testnet launch. However, other factors may have contributed to investors’ worsening sentiment toward Polygon. For instance, Polygon’s ZK subnet, zkEVM, has lagged behind competitors in activity and deposits.

Network data shows Polygon losing steam as new competition emerges

*ZK networks daily active and transactions. Source: artemis.xyz*

Metrics from Artemis, an on-chain data provider, reveal a significant disparity between Polygon zkEVM’s 6,210 active addresses compared to StarkNet’s 154,390 and zkSync ERA’s 239,810. A similar discrepancy exists when analyzing the number of daily transactions, with Polygon’s ZK-rollup also trailing competitors.

Taking a broader perspective on the total number of transactions and deposits in the Polygon network yields suboptimal results. For example, Polygon’s total value locked (TVL) stands at $756 million, according to DefiLlama, which is less than half of Arbitrum’s layer-2 scaling solution.

*Total value locked (TVL) in USD. Source: DefiLlama*

It’s noteworthy that despite being launched much earlier than most Ethereum layer-2 solutions in June 2020, Polygon is now facing direct competition from Optimism and Base.

The departure of Polygon’s co-founder, Jaynti Kanani, on Oct. 4 after six years with the project also triggered some degree of discomfort among investors, given the project’s proximity to the crucial completion of its improved multiple-layer scalability solution. Interestingly, this decision follows the departure of Polygon Lab’s CEO, Ryan Wyatt, in July 2023, not long after joining the company in February 2022.

Further impacting MATIC’s performance was a decline in the number of active addresses using the Polygon network’s decentralized applications (DApps).

*Polygon network DApps active addresses, 30-day change. Source: DappRadar*

On average, the top 12 DApps on the Polygon network experienced a 17% decline in the number of active addresses over the last 30 days. This issue was particularly concerning in the NFT and decentralized finance markets, notably affecting applications like Uniswap, OpenSea and Move Stake.

Regardless of the reasons behind MATIC’s token surge earlier in October, the recent 10.6% negative performance can be attributed to reduced network activity, the departure of a co-founder during a critical upgrade phase and stiff competition from other ZK scaling solutions.

Ultimately, there is enough bearish news flow to justify this correction, although the team has been consistently delivering the necessary updates and improvements to the Polygon network. Investors should closely monitor the project’s progress in addressing these challenges and capitalizing on the innovations of Polygon 2.0.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Global Crypto Users To Explode to 1,200,000,000, Predicts Former Goldman Sachs Executive – Here’s His Timeline

August 1, 2023 The Daily Hodl

Ethereum needs to defend $1,180 to sustain this 50-day ascending pattern

December 30, 2022 Coin Telegraph

Ethereum needs to defend ,180 to sustain this 50-day ascending pattern

Coin Telegraph

ETH price bulls struggle as futures remain trading below its fair value, signaling excessive demand for shorts.

Ether (ETH) has been ranging near $1,200 since Dec. 17, but an ascending trend has been quietly gaining strength after 50 consecutive days.

The pattern points to $1,330 or higher by March 2023, making it essential for bulls to defend the current $1,180 support.

*Ether/USD 1-day candle chart. Source: TradingView*

The anxiously awaited migration to a Proof of Stake in September 2022 paved the way for additional layer-2 integration and lower transaction costs overall. Layer-2 technologies such as Optimistic Rollups have the potential to improve Ethereum scalability by 100x and provide off-chain network storage.

Developers anticipate that the network upgrades scheduled for 2023 introducing large portable data bundles can boost the capacity of rollups by up to 100x. Moreover, in December 2021, Vitalik Buterin shared that the end game was for Ethereum to act as a base layer, with users "storing their assets in a ZK-rollup (zero knowledge) running a full Ethereum Virtual Machine."

An unexpected move negatively affecting the competing smart chain platform Solana (SOL) has likely helped to fuel Ethereum investors' expectations.

Two noticeable non-fungible token projects announced on Dec. 25 an opt-in migration to Ethereum and Polygon chains, namely eGods and y00ts. The transition will also bridge the DUST token — used to buy, sell and mint NFTs on the DeGods ecosystem — via Ethereum and Polygon.

Still, investors believe that Ether could revisit sub-$1,000 levels as the U.S. Federal Reserve continues to push interest rates higher and drain market liquidity. For example, trader and investor Crypto Tony expects the next couple of months to be extremely bearish to ETH:

$ETH / $USD - Update

I am 90% confident in another drop down to below $1,000 and remain in my short from the range high while below $1,280

Now the path we take to get to sub $1,000 can take a few approaches, including a pump first. So be prepared and use strict risk management pic.twitter.com/Rc1nVQG5Ql
— Crypto Tony (@CryptoTony__) December 29, 2022

Let's look at Ether derivatives data to understand if the bearish macroeconomic scenario has impacted investors' sentiment.

Excessive demand for bearish bets using ETH futures

Retail traders usually avoid quarterly futures due to their price difference from spot markets. Meanwhile, professional traders prefer these instruments because they prevent the fluctuation of funding rates in a perpetual futures contract.

The two-month futures annualized premium should trade between +4% to +8% in healthy markets to cover costs and associated risks. When the futures trade at a discount versus regular spot markets, it shows a lack of confidence from leverage buyers, which is a bearish indicator.

*Ether 2-month futures annualized premium. Source: Laevitas.ch*

The chart above shows that derivatives traders continue to demand more leverage for short (bear) positions as the Ether futures premium remains negative. Yet, the absence of leverage buyers' appetite does not necessarily mean that a price drop is guaranteed.

For this reason, traders should analyze Ether's options markets to understand whether investors are pricing higher odds of surprise adverse price movements.

Ethereum ptions traders remain risk-averse

The 25% delta skew is a telling sign when market makers and arbitrage desks are overcharging for upside or downside protection.

In bear markets, options investors give higher odds for a price dump, causing the skew indicator to rise above 10%. On the other hand, bullish markets tend to drive the skew indicator below -10%, meaning the bearish put options are discounted.

*Ether 60-day options 25% delta skew: Source: Laevitas.ch*

The delta skew peaked on Dec. 24, signaling moderate fear as the protective put options traded at a 22% premium. However, the movement gradually faded to the current 17% level, indicating options traders remain uncomfortable with downside risks.

The 60-day delta skew confirms that whales and market makers are not confident that the $1,180 support will hold.

In a nutshell, both options and futures markets suggest that investors are prepared for sub-$1,000 prices. As long as the U.S. Federal Reserve maintains its contractive economic policies, bears will likely successfully suppress future Ethereum price rallies.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Here’s why Binance Chain (BNB) will face an important price test on September 30

September 17, 2022 Coin Telegraph

Avalanche

BNB price has entered a symmetrical triangle formation, and the conflicting trends will decide the fate of the altcoin as it battles near $280.

BNB, the native token of Binance’s BNB Chain, entered a symmetrical triangle formation on Aug. 10, when it first faced the descending trendline at the $335 resistance. The following five weeks have been a struggle around $280, the exact intersection between the two conflicting ascending and descending patterns.

*BNB token/USD at FTX. Source: TradingView*

A decision on whether the symmetrical triangle will break to the upside or downside is expected by Sept. 30, when the trendlines cross. Currently holding a $45 billion total market capitalization, BNB Chain token has outperformed the broader altcoin market by 15% over the past three months.

The latest breakthrough in BNB Chain development was announced on Sept. 7, after the project introduced zero-knowledge (ZK) proof scaling privacy technology. The testnet is expected for November, aiming for faster finality and reduced transaction fees. Ethereum mastermind Vitalik Buterin also wants to implement a similar solution for the Ethereum network and he highlighted the importance of ZK in late 2021.

BNB Chain's Ethereum-compatible network is fully functional, hosting decentralized applications (DApps), including decentralized exchanges (DEXs), games, collateralized loan services, social networks, yield aggregators and NFT marketplaces.

A decline in price deposits could be a red flag

Despite currently being 60% below its -time high, BNB remains the third largest cryptocurrency by market capitalization ranking, excluding stablecoins. Moreover, the network holds $6.6 billion worth of deposits locked on smart contracts, a term known as total value locked, in the industry.

Despite BNB price rallying 26.5% in the past 3 months, the network's TVL measured in BNB tokens dropped by 12.5% in the same period. Usually, this data would be concerning, but it depends on how other competitors have fared.

*BNB Chain Total Value Locked, BNB. Source: DefiLlama*

In fact, lower smart contract deposits have been the norm across the industry. For example, Solana’s (SOL) TVL declined by 27.5% in 3 months, and Avalanche (AVAX) decreased by 36%. Even Ethereum saw a 29% cut in ETH deposits, down to 24.2 million from 34 million on July 17.

In dollar terms, BNB Chain's current TVL of $6.6 billion gained 12% in the three months leading to Sept. 16. This figure is vastly superior to other Ethereum competitors, such Avalanche's $2.2 billion or Solana's $1.3 billion, according to data from DeFi Llama.

DApp use is on the rise, led by Gameta

To confirm whether BNB Chain's TVL decline is accompanied by a reduction in users, investors should analyze decentralized application (DApp) usage metrics. Some DApps, such as games and collectibles, do not require large deposits, so the TVL metric is irrelevant in those cases.

*Top BNB Chain DApps by active addresses in 30-days. Source: DappRadar*

PancakeSwap, BNB Chain’s decentralized exchange, has 1.75 million active addresses, and is the absolute leader across all smart contract networks. Meanwhile, the Ethereum network only holds three DApps with more than 35,000 active addresses, namely Uniswap, OpeanSea and MetaMask Swap.

More importantly, three DApps using BNB Chain grew by 190% or higher, with Gameta being the most promising, with over 900,000 active addresses. BNB Chain critics will have a hard time if another application besides PancakeSwap consolidates its leadership across all smart contract networks.

Judging by the absolute numbers, meaning the 12.5% TVL decline in BNB tokens and the 14% reduction in active addresses on Binance Chain’s leading DApp, one could incorrectly conclude that BNB token is primed for a correction.

However, a more granular analysis, including a comparison with competitors, shows that the symmetrical triangle pattern crossing at $280 on Sept. 30 is likely a bullish trigger for BNB's price.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

StarkNet now open for DApp deployment on Ethereum mainnet

February 23, 2022 Coin Telegraph

Coin Telegraph

StarkNet hopes to inspire creativity among the developer community and lead the layer 2 building boom.

StarkNet, the layer-2 (L2) scaling solution established by Ethereum protocol StarkWare, announced that the first few decentralized apps, or DApps, built on the platform have been deployed since it launched on the Ethereum Mainnet in November.

Now that the StarkWare team has developed all of the infrastructure needed for DApps to deploy, the company shared the nine projects listed by zkRollups, a digital directory for the zero-knowledge ecosystem, in a Twitter thread. The list ranges from decentralized finance (DeFi) to nonfungible tokens (NFTs) and gaming applications.

Here are the latest projects we have listed - all building on StarkNet ✨ from @StarkWareLtd https://t.co/y55wb8p8nb ️

1/
— zkRollups.xyz (@zkRollupsXYZ) February 22, 2022

StarkNet is a permissionless validity rollup, or zero-knowledge Rollup, that uses basic compression technology to boost the production and security benefits of Ethereum layer 1. The company prides itself in its products' ability to provide "rock-bottom" gas fees, transactions costs and "limitless" scaling potential.

Cointelegraph spoke to StarkWare co-founders Uri Kolodny and Eli Ben-Sasson. Ben-Sasson talks about the crucial missing step to taking crypto mainstream:

"If you compare WeChat and WhatsApp and Facebook, they're used by hundreds of millions of billions of people. There is nothing in crypto today that serves billions of people. And part of the reason is the limited scale."

Kolodny then drew a comparison between the skyscrapers in Manhattan that allowed for greater population growth to StarkNet's potential to do the same for Ethereum's user base. He added that L2 technologies, like StarkNet, will be "crucial" in serving a "massive anticipated rise" in blockchain use.

Ben-Sasson added that the StarkNet platform is like "the missing link in tech evolution which makes blockchain usable for everything" and will ultimately "propel us to a Web3 reality."

The founders noted that they expect StarkNet to be fully decentralized within the next year. Recently, StarkWare raised $50 million in a Series C funding round that brought the firm’s valuation to $2 billion.

On Wednesday, Opera web browser announced its integration with Ethereum L exchange DeversiFi, which is powered by Starkware and aims to provide cost and time-efficient transactions within the mobile browser wallet.

ZK

Rallies tend to follow mainnet and protocol updates

Network data shows Polygon losing steam as new competition emerges

Excessive demand for bearish bets using ETH futures

Ethereum ptions traders remain risk-averse

A decline in price deposits could be a red flag

DApp use is on the rise, led by Gameta

Share this video