Introducing the ZK Market Map

The ZK Market Map zooms in on the 250+ crypto projects utilizing and advancing the zero knowledge sector.

To highlight the unique developments in the zero knowledge (ZK) sector, we've created the ZK Market Map as an extension of the Crypto Market Map that we published last month.

Why focus on ZK?

ZK, and broadly verifiable compute, boost the scalability of blockchains, increase trustlessness on the internet, and unlock new use cases for blockchains.

Every improvement and optimization to performance, cost, and developer experience for ZK systems has laid the groundwork for a world where utilizing ZK tech will be as ubiquitous as using a database. We can see the results of decades of research and building playing out in 3 ways today:

1. Scalability: ZK rollups are utilizing validity proofs to increase throughput and reduce time to finality while maintaining decentralization. Provable execution allows for complex onchain programs to run more efficiently offchain.

2. Trustlessness: Verifiable compute is removing the need for trusted intermediaries. Imagine a world where cross chain bridges are not secured by multisigs but by hard cryptographic proofs of execution. We're nearly there thanks to an explosion of zkVMs and the build out of the proof supply chain.

3. New Use Cases: Innovations like TLSNotary have provided powerful tools for startups to bridge web2 data over to web3 and create new applications. Coprocessors enable DeFi projects to manage their protocol parameters algorithmically and trustlessly.

The ZK Market Map adds additional color to the nuances between ZK projects.

Technological Layers

The ZK Market Map is categorized into five main layers. One way to view these layers is proximity to an end consumer. Within the layers, projects have been categorized by the differences in their functionality and architecture. For example, coprocessors utilize different technologies (ZK, MPC, TEE) and provide different outputs (arbitrary compute, price data, etc).

The five layers are:

1. Core Infrastructure

This foundational layer includes projects focused on blockchains, scaling layers, hardware, and virtual machines. These components are essential for building scalable and efficient ZK solutions.

2. Interoperability & Middleware

Projects in this layer utilize ZK to provide cross-chain communication, offchain compute, and core services in ways that are more efficient and trustless.

3. Developer Tools & Services

This layer includes tools, frameworks, providers, and services designed to help developers and users. Some examples are tools for building on ZK-powered infrastructure, SDKs for utilizing hidden state, and services that leverage ZK to preserve privacy.

4. Protocols

Protocols are typically open source projects that allow anyone to build front end applications on top of or utilize their data and logic. This layer spans various use cases, including DeFi, identity management, and privacy solutions. Notably, we included some games like Dark Forest here because they are fully onchain and extensible.

5. Applications

Applications have well maintained front ends, primarily serve end consumers, and/or have some centralized data or execution. These projects leverage underlying protocols and infra to deliver user-facing solutions in areas like finance, gaming, and social platforms.

We aimed to include projects that utilize ZK in a deliberate way. So this means that there are a host of ZK affiliated projects not on here, such as your favorite DEX on your favorite ZK rollup.

These layers and their categories are not rigid definitions. A project could exist within multiple categories; most notably, the line between Application and Protocol is not very distinct.

The ZK sector has seen heavy investment in infrastructure and services compared to applications and protocols.

The visual design of the ZK Market Map shows that investment and effort has largely been directed towards infrastructure, scaling, and tooling. By the numbers, we have 59 Apps and Protocols versus 207 in Developer Tools & Services, Interoperability & Middleware, and Core Infrastructure. This makes sense given that ZK is still a relatively nascent field in terms of commercial usage.

An analysis of fundraising data from DefiLlama suggests that since 2021 $1.5B has been invested into the ZK space. Of the top 25 fundraises for ZK projects, 22 out of 25 were Core Infrastructure or Interoperability & Middleware investments. The three that were not were dYdX in 2021, Brine in 2023, and Proven in 2023.

Community Contribution and Map Evolution

The ZK Market Map is a tool intended to evolve as the sector grows. While we have made efforts to include as many relevant projects as possible, the map is certainly not exhaustive. New projects are being launched regularly, and existing ones continue to evolve. If your favorite project should be on the map, something is miscategorized, or you have any other feedback, please let us know via this feedback form.

Acknowledgements

Thank you to krane and Heslin for their valuable feedback on the map.

Disclosures
This Content is for Informational Purposes Only. We may have previously held, currently hold, or will in the future hold tokens or equity in some of the projects mentioned in this report. Nothing in this report should be construed as financial advice.