Deep Dive into Proof Marketplaces

Key Insights

• Ethereum’s rollup-centric roadmap has led to an ever-growing number of rollups, now with a combined $40B+ in TVL, according to L2Beat. However, the lack of interoperability between these rollups has led to state and liquidity fragmentation.
• Compared to the optimistic variety, Zero Knowledge (ZK) rollups naturally create a better substrate for interoperability protocols and solutions to build upon. Optimistic rollups are hindered by multi-day challenge periods, whereas ZK rollups rely purely on cryptographic primitives.
• The need for seamless cross-rollup interoperability, improvements in ZK technology, and Rollup-as-a-Service (RaaS) providers simplifying the process of creating rollups, will all serve as catalysts in accelerating ZK rollup deployments.
• ZK rollups, along with other demand drivers for ZK proofs (ZKPs), will likely opt into leveraging proof marketplaces, which generate proofs on behalf of ZKP consumers.
• Proof marketplaces can create a competitive environment for ZKP generation, benefiting ZKP consumers via lower costs. These marketplaces also present an economic opportunity for ZKP generators, such as specialized ZK hardware manufacturers, which would serve as the supply-side participants.

In October 2020, Vitalik outlined the vision for scaling Ethereum via a rollup-centric future. Nearly four and a half years later, the rollup-centric future is coming to fruition.