Article source: Yue Xiaoyu
Written by: Yue Xiaoyu
Gootor, the founder of Web3Caff, proposed a very important point, and here are some further thoughts shared:
Ethereum is becoming ZKified, and ZK provers need hardware acceleration; similar to Bitcoin mining, there is a hardware dependency, so ZK mining may become a new type of PoW.
The economic model of Ethereum may eventually evolve into a coexistence of PoS and PoW, forming a new 'hybrid consensus' model.
Next, let’s take a closer look at the underlying logic of the aforementioned ideas.
1. Ethereum is becoming ZKified.
The basic principle of ZK (zero-knowledge proof) is: one party can prove to another that a statement is true without providing any additional information.
This is a very promising technology.
ZK technology is currently mainly applied to scalability in the blockchain field.
Vitalik Buterin has been actively promoting ZK technology, and due to his willingness and inclination, the Ethereum Foundation has also invested in various ZK projects.
However, the infrastructure cycle for ZK projects is relatively long, so what ordinary users can currently perceive are various ZK Rollups, which are Layer 2 solutions of the ZK system on Ethereum.
Typical representatives include zkSync, Starknet, Polygon zkEVM, Scroll, Linea, etc.
These are all ZK technologies integrated into Ethereum's execution layer.
Ethereum itself is also gradually becoming ZKified.
ZKification of the consensus layer (like the Beam Chain proposal): By ZKifying the verification process of consensus operations, the consensus process can be simplified and accelerated.
Data layer ZKification: storing only proofs without storing all transaction data can significantly reduce on-chain storage requirements.
Through these methods, Ethereum can significantly enhance its network performance, including transaction processing speed, cost, and privacy protection, while maintaining its decentralization and security.
The introduction of ZK technology is seen as part of Ethereum's long-term expansion strategy to meet higher user demands and application complexities.
2. Why does ZK need to combine with hardware?
The advantages of ZK have been mentioned above, but the biggest obstacle currently faced by ZK is the performance issue of generating ZKPs (Zero-Knowledge Proofs).
The operational mechanism of ZK is to enable validators to merge multiple transactions into a single, concise proof, which is then submitted to the mainnet, ultimately achieving scalability for the mainnet.
However, ZK also has limitations, as the process of generating proofs is resource-intensive in terms of time and effort.
Due to the need for many complex mathematical calculations, such as exponentiation, inverse calculations, and bilinear pairing calculations, the creation of proofs typically slows down.
Relying solely on software optimization cannot further enhance performance; therefore, it is necessary to combine hardware, which can accelerate proof generation speed from hours to seconds using specialized hardware, representing a significant improvement.
Therefore, ZK has hardware dependencies and requires specialized chips.
As the application of ZKP technology in privacy computing, blockchain scalability, and other fields continues to grow, the speed and efficiency of ZKP generation have become bottlenecks, and the market's demand for hardware is also increasingly strong.
3. How do PoS and ZK mining combine?
If ZK hardware acceleration is adopted, it can lead to hardware mining, creating a new economic model.
What is ZK mining?
Traditional PoW (Proof of Work) mining relies on solving complex mathematical problems, while ZK hardware mining focuses on the ability to rapidly generate ZKPs.
Similar to PoW mining, participants can compete to generate ZKPs in terms of speed and efficiency, with the first participant to generate a valid proof receiving a reward.
How does PoS specifically combine with ZK?
In PoS systems, validators (i.e., stakers) are responsible for validating transactions and proposing new blocks. ZK proofs can be used to prove the correctness of a block or a series of transactions, enhancing security and reducing validation costs.
Validators generate ZKPs as additional proof of their work while performing their PoS duties. Successfully generating and submitting valid ZKPs allows validators to receive additional rewards on top of existing block rewards.
This can be ETH or some form of reward within the network (such as a specific token or part of the gas fees).
Mainnet block rewards can be divided into two parts, forming a layered reward system: one part of the rewards is used for traditional PoS validation, while the other part is distributed based on the contribution of nodes in generating ZK proofs.
From this, it can be seen that ZK can enhance PoS validation, while ZK mining can serve as an extension of PoS staking.
Stakers can earn additional rewards by participating in ZK-related work beyond staking ETH for PoS rewards. For example, stakers can run ZK proof generation nodes, providing computing resources to support the application of ZK technology.
However, this is just one possibility; if we want to integrate the current PoS mechanism of Ethereum with ZK technology, modifications or extensions to the existing PoS protocol will be necessary to accommodate the role of ZK proofs.
Moreover, a fair incentive model must be designed to ensure that it does not weaken the incentive effect of PoS while promoting the application of ZK technology.
4. Will ZK mining introduce new positive externalities?
After Ethereum transitioned from PoW to PoS, one of the most criticized points was the lack of externalities introduced into this 'closed' economic system.
PoW has externalities, requiring energy and hardware, thus extending the economic activities of the blockchain beyond the blockchain itself, affecting the real world.
In PoS systems, the eligibility to validate blocks is primarily based on the amount of tokens held (i.e., staked), and economic activities are more concentrated on staking and intra-network transactions, rather than involving extensive mining production and electricity markets like PoW.
ZK acceleration hardware, like PoW mining machines, requires specialized hardware; however, the issue of 'ineffective energy consumption' would be reduced, as PoW involves solving mathematical problems to compete for block rights, while ZK mining generates valid proofs to validate transactions without requiring different nodes to perform repetitive, ineffective labor.
5. AI and ZK computing power sharing
Furthermore, a ZK computing power market may emerge, even allowing for the sharing of AI computing power and ZK computing power.
The market may see integrated platforms providing comprehensive computing services that support the computational needs of AI and ZK tasks.
Users can handle AI tasks that require high-performance computing and tasks that require ZK proof generation on the same platform.
At the protocol level, integration can also be performed: create smart contracts or protocols that allow AI computing power providers to participate in ZK proof generation or use ZK technology to verify AI computation results.
Computing power can also be dynamically allocated: dynamically allocate computing resources according to task requirements. For example, when AI task demand is low, these resources can be used to generate ZK proofs, and vice versa.
6. Leading players in ZK hardware acceleration
Currently, the leading projects in the ZK hardware acceleration space are Cysic.
Cysic focuses on designing and producing Application-Specific Integrated Circuits (ASICs), Field-Programmable Gate Arrays (FPGAs), and GPU acceleration solutions to speed up the ZKP generation process.
Cysic has designed two hardware products:
ZK Air: A lightweight ZK device, roughly the size of a laptop power adapter, with computing power equivalent to 10 RTX 4090 GPUs, suitable for individual users.
ZK Pro: A more powerful device with performance equivalent to 50 RTX 4090 GPUs, designed for large ZK projects such as zkRollup and zkML.
In addition to hardware, Cysic also provides a set of CUDA libraries that support various ZKP systems such as Plonky2, Gnark, Halo2, RapidSnark, etc. These libraries can significantly enhance performance, improving at least 50% compared to open-source frameworks.
At the same time, Cysic has an ecosystem, Cysic Network, mainly designed to integrate and manage community computing resources, connecting ZK project parties, computing power providers, and community validators to form a reliable computing power network.
In simple terms, Cysic Network is a ZK mining pool and SaaS platform.
Currently, Cysic has already partnered with several zkRollup projects, demonstrating the practicality and market demand for its products.
In addition to Cysic, there is another very distinctive project to mention: Scroll.
Unexpectedly, Scroll, which has been 'ostracized' and 'notorious', is doing quite well in ZK hardware acceleration.
Compared to other ZK Rollup projects, Scroll can be said to take a unique approach, starting with hardware and developing dedicated ZK acceleration hardware GUP, forming its own competitive barrier, which is also Scroll's greatest differentiated competitive advantage.
On this point alone, Scroll is indeed quite a hardcore project.
However, Scroll and Cysic have different positions: for Scroll, hardware acceleration is part of its overall Layer 2 solution; while Cysic is dedicated to providing hardware acceleration services for the entire ZKP ecosystem.
7. Summary
Finally, let’s summarize the content of this article:
Ethereum is becoming ZKified: Ethereum is using zero-knowledge proof (ZK) technology to achieve scalability and enhance privacy, having applied ZK technology at the consensus layer and data layer to improve network performance.
ZK requires hardware acceleration: Since generating zero-knowledge proofs consumes a large amount of computational resources, hardware acceleration (like ASICs and FPGAs) is seen as a necessary means to improve efficiency.
The combination of PoS and ZK mining: proposes a new economic model, treating ZK mining as an extension of PoS, where stakers obtain additional rewards by providing ZK computing power, forming a coexistence of PoS and PoW model.
ZK mining introduces new positive externalities: Compared to PoW, ZK mining may reduce ineffective energy consumption, but still requires specialized hardware, providing incentives for hardware production and technological innovation.
AI and ZK computing power sharing: AI and ZK computational tasks may share hardware resources, forming a comprehensive computing service market.
Market-leading projects: Cysic and Scroll are leaders in the field of ZK hardware acceleration, with the former focusing on providing hardware for the ZK ecosystem, while the latter incorporates it as part of its Layer 2 solution.
Finally, the ZK hardware acceleration space has started to emerge; with Ethereum's further ZKification, ZK hardware acceleration will become increasingly important and may even change the economic model of Ethereum, warranting our continued attention to this space.
