Zcash is one of the first cryptocurrencies to use zero-knowledge proofs, enabling the verification of transactions while hiding critical information such as sender, receiver, and amount. This approach allows users to benefit from a decentralized network while preserving their financial privacy.

Zcash (ZEC) Origin and Historical Background

The origins of Zcash trace back to the Zerocoin project, which aimed to overcome Bitcoin’s privacy limitations. The Zerocoin protocol was later developed into Zerocash, and based on this technical foundation, the Zcash network was officially launched on October 28, 2016.

The initial version was built on Bitcoin’s codebase, but over time Zcash differentiated itself by developing its own unique cryptographic structure. The founder of the project is Zooko Wilcox-O’Hearn, who has many years of experience in cryptography and computer security.

The project also received significant contributions from academia, particularly strengthened by the work of Johns Hopkins University cryptographer Matthew D. Green. Zcash (ZEC) is one of the pioneering projects that made the concept of privacy technically feasible and auditable in the cryptocurrency world.

Optional anonymity, strong cryptography, and decentralized structure make Zcash not just a payment tool, but also a privacy protocol. Despite challenges such as regulations and competition from rival privacy projects, Zcash continues to play an important role in the future of digital finance with the technological infrastructure it offers.

Zcash (ZEC) Core Difference: True Privacy

The main feature that distinguishes Zcash from other cryptocurrencies is its optional privacy. Users have the choice to conduct transactions either completely transparent or completely private.

Transparent Transactions

Transparent transactions work similarly to Bitcoin:

• Sender and receiver addresses are visible
• The transferred amount is visible to everyone
• Transactions are permanently recorded on the blockchain

This structure does not technically provide anonymity; it only offers address-based privacy.

Shielded Transactions

Zcash’s real innovation comes with shielded transactions. These transactions:

• Hide the sender address
• Hide the receiver address
• Hide the transferred amount

On the blockchain, only the fact that a transaction occurred is recorded; the details are not public. This privacy is achieved through zk-SNARK technology.

How Does zk-SNARK Technology Work?

The zk-SNARK (Zero-Knowledge Succinct Non-interactive Arguments of Knowledge) system used by Zcash allows verification of information without revealing the information itself. Simply put:

• The network knows that a transaction is valid
• It is ensured that no new ZEC was created out of thin air
• But who sent how much to whom remains unknown

This prevents counterfeiting while protecting user privacy. With this approach, Zcash became the first cryptocurrency to put the concept of “encrypted electronic cash” into practice.

Key Differences Between Zcash and Bitcoin

Bitcoin, by design, has a completely transparent blockchain structure. All transactions, along with sender and receiver addresses, are publicly viewable. This structure increases the auditability of the network while limiting user privacy.

Zcash differentiates itself at this point and gives users the option to choose between transparency and privacy. Users who want can perform open transactions similar to Bitcoin, while those who prefer can hide address and amount information.

• Both networks have a limited supply of 21 million and use a Proof-of-Work (PoW) consensus mechanism based on mining.
• Both protocols are also built on the SHA-256 algorithm. However, by adding advanced cryptography layers on top of this common technical foundation, Zcash creates a usage area that prioritizes financial privacy.

In this regard, Bitcoin stands out more as a transparent and traceable digital store of value, while Zcash offers an alternative structure for privacy-focused financial transactions.

How is the Zcash Network Secured?

The Zcash network operates with a Proof-of-Work (PoW) consensus mechanism and uses the same SHA-256 algorithm as Bitcoin. This structure:

• Protects the network from external attacks
• Ensures the immutability of transactions
• Supports a decentralized mining system

Initially aiming for ASIC resistance with the Equihash algorithm, Zcash has evolved over time into a mining ecosystem that also includes specialized hardware.

What is ZEC? What is the Difference from Zcash?

Although these two terms are often confused, they are technically different:

• Zcash: The name of the protocol and the network
• ZEC: The cryptocurrency used on this network

If a user holds 5 units of Zcash, technically they are holding 5 ZEC. The Zcash protocol limits the total supply to 21 million ZEC.

Zcash Ecosystem and Institutional Support

Zcash is among the projects supported by strong institutional stakeholders and industry leaders in the cryptocurrency ecosystem. ZEC is compatible with reliable digital wallets and is listed on leading cryptocurrency exchanges worldwide. This wide integration network makes Zcash a preferable option for both daily private payments and long-term value storage.

Key Features of Zcash (ZEC)

• Fair and Open: Zcash can be used by anyone with internet access. No special permission is required to participate.
• Privacy-Focused: Financial data is protected through end-to-end encryption.
• User Control: There is no central authority; funds belong entirely to the user.
• Private Messages: Messages that only the recipient can see can be sent along with transactions.
• Fast and Low-Cost: It is faster than Bitcoin and transaction fees are generally very low.
• Self-Funding Development: It continues to be developed with community-supported funding models.

Zcash (ZEC) Funding and Governance Model

With Network Upgrade 6 (NU6), Zcash entered a new funding period. With this update:

• The old 20% direct funding model was removed
• 12% share is directed to a Lockbox pool
• 8% share is transferred to the community through Zcash Community Grants

It is planned that how the funds accumulated in the Lockbox will be distributed will be decided by community consensus. Network governance is shaped through the Zcash Community Advisory Panel (ZCAP) and community polls. Additionally, brand rights are protected through a balanced structure between the Zcash Foundation and Electric Coin Company.

Zcash (ZEC) Tokenomics

Zcash’s economic model was largely designed in parallel with Bitcoin’s monetary policy. The ZEC supply is capped at 21 million units and this cap is gradually released into circulation over time. This approach aims to keep inflation under control in the long term. A new block is produced approximately every 75 seconds on the Zcash network, and 1.5625 ZEC is added to circulation with each block.

Just like Bitcoin, the block reward is halved approximately every four years. This process reduces the amount of new coins entering the network over time and leads to a significant drop in the inflation rate after each halving. In this respect, Zcash’s inflation dynamics almost exactly follow the Bitcoin model.

As of November 2024, the distribution of Zcash block rewards has also been clearly defined. 80% of the produced reward is allocated to miners, while 8% is used through the Zcash Community Grants Committee (ZCG) to finance independent teams and developers in the ecosystem.

The remaining 12% is transferred to a special protocol-monitored fund pool called the “lockbox.” No direct spending mechanism has yet been defined for the resources accumulated in the Lockbox. How and under what conditions these funds will be used in the future will be decided through a decentralized governance model determined by the community.

The goal is to evaluate these resources in a way that contributes to the sustainable growth of the Zcash ecosystem in the long term.

Why is Zcash (ZEC) Used?

Zcash is an attractive solution not only for individual users but also for institutional actors. Its privacy technology:

• Can facilitate regulatory compliance for financial institutions
• Can be audited by sharing view keys when transparency is required
• Offers flexible solutions in the face of legal demands

In this regard, Zcash adopts the concept of controlled privacy instead of completely closed systems.

Regulation and Zcash (ZEC)

Zcash’s privacy structure has raised question marks for some regulatory institutions. For this reason, some exchanges have delisted ZEC. However:

• View key mechanism
• Memo field
• Auditable privacy structure

make Zcash not a completely dark system and provide tools for legal compliance.

Zcash (ZEC) Investors

Zcash has attracted strong investors from the early period. These investors support the project’s long-term privacy vision.

Tier 1 Investors

• Pantera Capital

Tier 2 Investors

• Digital Currency Group (DCG)
• Fenbushi Capital
• Boost VC

Tier 3 Investors

• Placeholder Ventures
• Winklevoss Capital

Zcash (ZEC) Team

Zcash was developed by a team with deep experience in cryptography and information security. The founding team of the project views privacy as a fundamental digital right.

Team Members

• Zooko Wilcox – Founder
• Josh Swihart – CEO
• Michelle Lai – Board Member
• Alan Fairless – Board Member
• Eli Ben-Sasson – Chief Brain (Chief Cryptography Architect)

Zcash (ZEC) Frequently Asked Questions (FAQ)

What is Zcash (ZEC)?

Zcash is a privacy-focused cryptocurrency protocol that allows users to conduct transactions either privately or transparently. ZEC is the native cryptocurrency of this network.

Are Zcash Transactions Completely Anonymous?

No. Zcash offers optional privacy. Users can choose either transparent or shielded (private) transactions.

How Does Zcash Provide Privacy?

Zcash uses zero-knowledge proofs called zk-SNARK to enable transaction validation without revealing sender, receiver, and amount information.

Is Zcash Legal?

Despite offering privacy, Zcash provides a flexible structure that can comply with regulations through tools such as view keys for auditability.

Official Links

• Website
• X (Twitter)
• Whitepaper

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Owlto Finance combines AI-supported routing algorithms, smart contracts, and zero-knowledge proof (ZK) technologies to make cross-chain transactions faster, more secure, and lower-cost. The project does not merely offer a bridge solution; it also aims to lay the foundations for a liquidity infrastructure where borders disappear, in line with Web3’s long-term vision.

What Does Owlto Finance (OWL) Offer?

Owlto Finance’s core approach is built on enabling users to transfer assets between different blockchain networks without dealing with technical details. In this context, the platform offers a scalable and modular structure for both individual users and DeFi protocols.

Key Features

Omni-chain Coverage: Owlto has a broad infrastructure that supports major blockchain networks such as Ethereum, Bitcoin, Solana, and others. This allows users to perform transactions between different chains through a single platform.

Deep Liquidity Structure: Integrated with multiple DEXs and liquidity protocols, Owlto aims to provide the most efficient price and route during transactions. This structure minimizes slippage risk, especially in high-volume transfers.

Security-Focused Architecture: The platform focuses on protecting user assets with multi-layered security mechanisms, smart contract audits, and on-chain verification processes.

User-Friendly Experience: With a one-click transaction interface, the need for complex wallet settings or technical knowledge is largely eliminated.

Omni-chain Compatibility: Thanks to its modular architecture, Owlto can naturally integrate with different DeFi protocols and supports cross-chain interoperability.

What is Owlto Cross-Chain Bridge?

At the center of the Owlto ecosystem, Owlto Cross-Chain Bridge is positioned as the flagship product of the platform. This bridge solution aims to eliminate liquidity barriers between heterogeneous blockchain networks.

Thanks to advanced cross-chain routing algorithms and deep liquidity pool integration, Owlto offers multi-route usage and real-time price discovery. The system automatically determines the most optimal transfer path, completing transactions in approximately 30 seconds. This approach provides a more efficient user experience with near-zero slippage.

Owlto Bridge enables users to perform seamless transactions in scenarios such as ecosystem migrations, gas fee optimization, and multi-chain portfolio management.

How Does Owlto Finance Reward System Work?

Owlto Finance adopts a reward model that supports its growth not only through technology but also through community participation. The platform’s reward system aims to increase long-term ecosystem value rather than short-term speculative incentives.

Referral and Commission Program

Users can invite new participants to the platform through their unique referral links. When invited users perform eligible cross-chain transactions, both the referrer and the referred party earn proportional commission rewards. This structure aims to create a sustainable incentive loop.

Points System

The points system evaluates users’ on-platform behavior in multiple dimensions. Points accumulate based on metrics such as cross-chain transaction frequency, transaction volume, and interaction levels with different networks.

While the referral system focuses more on community growth, the points system aims to measure long-term user contributions. All reward data is recorded on-chain through smart contracts, ensuring a transparent distribution mechanism.

What is OWL Token?

$OWL is the native utility token of the Owlto Finance ecosystem. The token sits at the center of all interoperability processes within the protocol and creates a common value layer between users, developers, and liquidity providers.

The infrastructure that Owlto has developed for more than two years has been tested with millions of users and tens of millions of transactions. The $OWL token is positioned as a tool aimed at further opening the ownership and governance of this ecosystem to the community.

OWL Token Use Cases

• Governance: $OWL holders can participate in protocol governance by staking their tokens. Network expansion, technical updates, and core parameters are shaped by the community.
• Revenue Sharing: The Owlto protocol generates real on-chain revenue from cross-chain transactions. Users who stake $OWL can receive a share of this revenue.
• Transaction Fee Discounts: Users holding $OWL can benefit from fee discounts on transactions performed on Owlto.

OWL Tokenomics

The total supply of the $OWL token is capped at 2,000,000,000 tokens. The distribution model is designed to support long-term ecosystem sustainability.

Token Distribution:

• Community: 22.00%
• Investors: 15.67%
• Team: 15.00%
• Airdrop: 15.00%
• Ecosystem: 10.33%
• Liquidity: 7.50%
• CEX Airdrop: 7.00%
• Advisors: 5.00%
• Marketing: 2.50%

The token is launched simultaneously on Ethereum and BNB Chain, targeting accessibility and liquidity from day one.

Owlto Finance Investors

Owlto Finance has raised a total of $8 million across different stages and reached a $150 million valuation. The project has received support from both crypto-focused funds and institutional investors.

Investors:

• GSR
• Bixin Ventures
• SNZ Holding
• x21 Digital
• Skyland Ventures
• Matrixport
• Blocore
• CE Innovation Capital
• Presto Labs
• Stratified Capital
• Hailstone Ventures
• Alpha Capital
• Maxx Capital
• Incubate Fund
• OMG | Open Market Group

Owlto Finance (OWL) Team

The Owlto Finance team consists of experienced individuals in technical infrastructure development, business partnerships, and ecosystem growth.

Team Members:

• Krystal (Co-Founder)
• Yogesh Pulivarthi (Developer Relationships and Partnerships Lead)
• Leo Ced (Team Member)

Official Links

• Website
• X (Twitter)
• Whitepaper

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Abstract is a Layer-2 blockchain built on Ethereum, powered by zero-knowledge (ZK) cryptography, and specifically designed for consumer-focused applications. The project’s core goal is to make Web3 applications as intuitive, fast, and seamless as Web2 platforms while preserving Ethereum’s security and decentralization standards.

Abstract Philosophy

Abstract’s starting point is to eliminate the complexity that blockchain technology directly imposes on end users. The aim is for users to access decentralized applications without needing to know which network they are using, calculate gas, or store seed phrases. This approach is shaped around the concept of “chain abstraction.”

Chain abstraction means solving technical details at the infrastructure layer and presenting only the product experience to the user. Abstract aims to make this abstraction possible without compromising security and scalability. Thus, blockchain becomes not a technology for the user but an infrastructure running in the background.

How Does Abstract Infrastructure Work?

Abstract has a zk-rollup architecture operating on Ethereum. It uses the ZK Stack developed by zkSync and EigenDA for data availability in its infrastructure. With this structure, transactions are performed off the Ethereum mainnet, batched, and verified on Ethereum through zero-knowledge proofs.

This architecture offers three main advantages:

• Significant reduction in transaction fees
• High transaction capacity and fast confirmation times
• Preservation of Ethereum’s security and censorship resistance features

Additionally, Abstract is EVM compatible. This allows smart contracts developed for Ethereum to be ported to the Abstract network without major architectural changes. For developers, this means low migration costs and fast adaptation.

Native Account Abstraction: Redefining the Wallet Experience

One of the most important elements distinguishing Abstract from similar Layer-2 solutions is its native account abstraction approach. On the Abstract network, all user accounts operate as smart contract wallets by default. This structure elevates account abstraction from being an add-on or option to the protocol level.

Thanks to this architecture, users can:

• Use account recovery mechanisms
• Create multi-signature structures
• Set spending limits
• Pay gas fees with different tokens

All these features operate directly on-chain without needing external tools. The user experience gains a secure and flexible structure without creating a sense of technical complexity.

Abstract Global Wallet (AGW): Web3 Wallet with Web2 Comfort

Abstract Global Wallet (AGW) sits at the center of the user experience in the Abstract ecosystem. The primary goal of AGW is to eliminate the traditional wallet understanding based on browser extensions and seed phrases.

With AGW, users can:

• Email
• Social media accounts
• Passkey (keys supported by biometric authentication)

create wallets and log in through these methods. This approach offers a usage experience similar to Web2 applications.

AGW Security Structure

AGW uses Shamir’s Secret Sharing algorithm to ensure private key security. The user’s key is divided into three parts:

• One part is stored on the user’s device
• One part is held encrypted with the infrastructure provider
• The third part is stored in a backup area (such as iCloud or Google Drive)

Thanks to this design, secure recovery is possible in case of key loss. Any two parts are sufficient for regaining access to the wallet.

AGW creates an Externally Owned Account (EOA) in the background and deploys the smart contract wallet through this EOA. The user utilizes an advanced wallet infrastructure without being aware of this entire process.

Paymasters: Gas-Free Transaction Experience

Abstract enables users to perform transactions without paying gas fees through the Paymaster mechanism. In this model, decentralized applications can cover transaction fees on behalf of users.

This approach is particularly critical for games, social applications, and consumer-focused platforms. Users can use the application without dealing with steps like buying tokens, setting balances, or calculating gas. This is seen as an important threshold for the mass adoption of Web3.

Panoramic Governance: New Model in Revenue Sharing

Another notable innovation of Abstract is the Panoramic Governance mechanism. In traditional Layer-2 networks, chain revenues largely flow to the network operator, while applications and users cannot directly benefit from this value.

Panoramic Governance aims to eliminate this imbalance. Under the model:

• Applications receive a share of chain revenues proportional to the activity they provide to the ecosystem
• Users directly benefit from the network’s growth
• Governance participants are rewarded based on their contribution levels

Active Participation Threshold (APT)

APT is a filtering mechanism that ensures only users and protocols that truly contribute are rewarded. Metrics such as transaction count, gas usage, and on-chain interactions are evaluated. This structure does not encourage passive behavior and increases the system’s sustainability.

Abstract Bridge and Asset Transfer

Abstract offers asset transfer with the Ethereum mainnet through a native bridge. Through this bridge:

• ETH
• ERC-20 tokens

can be moved to the Abstract network. Approximate deposit time is 15 minutes, and withdrawal time is around 24 hours.

Abstract Badges: Activity-Based Digital Identity

Abstract Badges are digital badges that document users’ activities within the ecosystem. They are earned based on behaviors such as playing games, social interactions, or application usage.

These badges are expected to play an important role in reward mechanisms and potential airdrop processes in the future.

Abstract Ecosystem

Abstract is building an ecosystem that prioritizes entertainment and social use cases.

• Gaming: Pudgy World, Gigaverse, Onchain Heroes, Duper, RealGo
• Social and Entertainment: Gacha, Multiplier, Swipe, Zoo.fun
• DeFi and Trading: Magic Eden, Pandora Swap, Relay
• NFT and Cultural Projects: Canna Sapiens, Dented Feels, Holoworld AI

The Power Behind Abstract: Igloo Inc.

Abstract is developed by Igloo Inc., the company behind the Pudgy Penguins NFT project. In June 2024, the company integrated the Frame team into its structure, incorporating rollup development and creator economy expertise into the Abstract infrastructure.

Abstract Investors

Abstract has built a strong capital structure with support from investors of different profiles.

• Electric Capital (Venture)
• Igloo (Corporation)
• 0xMaki (Angel Investor)
• Luca Netz (Angel Investor)
• Ray Chan (Angel Investor)

Abstract Team

The Abstract team consists of experienced individuals in technical infrastructure, growth, and ecosystem development.

• Michael Lee – Co-Founder & CEO
• Hedge – Developer Relations
• Brian Hong – Growth Lead
• Phin – Marketing Lead
• Mason – Head of Ecosystem
• cygaar – Contributor
• Coffee – Contributor
• Logan – Contributor
• Jarrod Watts – Developer Relations
• Adrian – Business Operations Manager
• Abril Zucchi – Developer Relations

Official Links

• Website
• Whitepaper
• X (Twitter)

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From Governance to Real Utility: The Evolution of ZK Token

When ZK token was first launched, it served solely as a governance tool for the protocol. However, as the ecosystem has grown — particularly with the emergence of institutional solutions like Prividium — the vision for ZK has expanded beyond governance. The token is now positioned to become an economic driver of the entire network, capturing tangible value from both on-chain and off-chain activities.

Under the new model, revenue will be sourced from two main channels:

• On-chain revenues: Fees generated from transferring assets and messages between the ZKsync and Prividium networks (interoperability fees).

• Off-chain revenues: Licensing fees paid by financial institutions and enterprises for using advanced private modules and compliance systems.

All collected value will flow into a community-governed mechanism, which will allocate funds toward ZK token buybacks, token burns, staking rewards, and ecosystem development initiatives.

Goal: A Self-Sustaining and Economically Viable Ecosystem

According to Gluchowski, this new token model aims to make ZKsync economically self-sufficient. In this design, greater network usage directly translates into increased token demand, establishing a positive feedback loop that strengthens both token value and ecosystem sustainability.

Moreover, the proposal emphasizes the need for economic decentralization. By aligning developers, validators, and users around a single token-based economic model, ZKsync seeks to maintain credible neutrality and ensure that long-term growth remains community-driven rather than dependent on centralized actors.

Next Steps: Community Review and Implementation

The proposal is currently under discussion within the ZK Nation forum and across community channels. Once reviewed and approved through the governance process, the implementation phase will begin. Future updates are expected to provide more detailed frameworks regarding interoperability fee structures, enterprise revenue distribution, and token burn rates.

Initially launched as a simple governance token, ZK is now on the path to becoming the economic core of the ZKsync network — a system designed to align real-world usage with sustainable on-chain value creation.

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What is Zerobase (ZBT)?

Zerobase operates a scalable, multi-role architecture that routes and generates ZK proofs through a HUB-Prover coordination model. This ensures high availability, low-latency task execution, and cryptographic-level verifiability. The network supports a wide range of applications—including zkLogin, zkDarkPool, zkVote, and zkCEX—and offers fast onboarding for developers with both standardized and custom circuit support. It is fully compatible with Circom and Gnark and provides optional decryptable proof layers for advanced enterprise integrations.

To ensure privacy and compliance, all circuit inputs are processed within Trusted Execution Environments (TEE) and never exposed to Prover operators. Every Proving Node is required to stake stablecoins, ensuring performance accountability and network security.

Zerobase aims to tackle trust and transparency deficiencies in financial systems by creating a decentralized, verifiable, and privacy-focused computation infrastructure. It addresses long-standing issues such as users’ inability to verify complex strategies and the tension between privacy and transparency. Zerobase preserves strategy confidentiality while making risk metrics transparent, unlocks the liquidity potential of resources, and provides a low-integration-cost, composable ecosystem for developers. Its vision is a system that offers structural transparency through mathematical guarantees, architectural isolation, and standardized interfaces, relying on no trust assumptions.

How Does Zerobase Work?

Zerobase is built on a three-layer architecture: Trusted Execution Environment (TEE), Zero-Knowledge Proof (ZKP), and Proof Mesh layers.

TEE Layer:

• Sensitive operations (strategy execution, resource scheduling, data processing) are performed within TEEs.
• Technologies like AMD SEV-SNP, Intel TDX, or ARM CCA provide memory encryption and CPU-level access control for security.
• Remote attestation ensures only trusted TEEs participate in the network.
• Data is processed encrypted, protected from external audits or interference.

ZKP Layer:

• Results from TEE operations are converted into zk-SNARK or zk-STARK proofs for on-chain verifiability.
• Offers standardized circuit templates like range proofs, validity proofs, state transition proofs, and Merkle path proofs.
• Proof systems like PLONK, Groth16, and STARKs are optimized for low verification costs and compact proof sizes.

Proof Mesh Layer:

• Provides a standardized interface between TEE and on-chain integration.
• Aggregates, compresses, and enables proof reuse across different protocols.
• Version control and event subscription mechanisms support off-chain computation logs and on-chain triggers.

The network operates on a Kademlia-like topology with HUB and Proving Nodes. HUB Nodes route proof tasks and share bandwidth. Proving Nodes generate ZK proofs within TEEs and require a minimum $1 million stablecoin stake. A consistent hashing algorithm ensures efficient and scalable node distribution.

Zerobase Use Cases

Zerobase offers a broad range of applications:

• zkLogin: Secure, privacy-focused login with OpenID Connect credentials on StarkNet and TOMO Wallet.
• zkDarkPool: Provides private trading environments with Lynex and Unyfy, protecting against MEV bots and market manipulation.
• zkVote: Secure and verifiable voting systems.
• zkCEX: Privacy-focused transactions on centralized exchanges.
• Tiga Processor: BNB Chain block header verification with Polyhedra.

Usage Steps:

1. Access network services with ZBT tokens.
2. Perform computations or proof generation with custom circuits in TEE.
3. Route tasks through HUB Nodes.
4. Earn yields through zkStaking with stablecoin deposits.
5. Developers can integrate new applications via AAPIs.

Advantages of Zerobase

• Privacy and Security: TEE and ZKP ensure data privacy and verifiability.
• Scalability: Consistent hashing and HUB-Prover model deliver high performance.
• Composability: Standardized interfaces and Proof Mesh enable easy integration.
• Compliance: Optional decryptable proof layers suit enterprise needs.
• Community-Driven: Stablecoin staking ensures network security and accountability.

Zerobase (ZBT) Tokenomics

Total Supply: 1 billion ZBT (fixed).

Distribution:

• Team and Advisors: 20% (1-year lock, 48-month linear vesting).
• Investors: 11.25% (1-year lock, 24-month linear vesting).
• Liquidity: 2% (fully unlocked at TGE).
• Ecological Fund: 15% (6% unlocked at TGE, remaining 2% annually over 48 months).
• Airdrop and Early Mining: 8% (5% unlocked at TGE, remaining within 1 month).
• Node Staking: 43.75% (linear release starting one month post-TGE).

ZBT Usage:

• Network services and subscription payments.
• Gas fees for on-chain transactions.
• Earning yields through zkStaking.
• Protocol-level governance (proposing and voting on parameters).

Economic Management:

• Proving Nodes earn ZBT and stablecoin rewards for proof tasks.
• HUB Nodes earn ZBT for routing and bandwidth sharing.
• A DAO-governed buyback and burn mechanism regulates circulating supply.
• 20% of revenue is allocated to the ZEROBASE Foundation for research and infrastructure.

Zerobase Investors

Zerobase raised $5 million. Investors:

• Tier 1: YZi Labs (formerly Binance Labs).
• Tier 2: MH Ventures.
• Tier 3: dao5, PAKA, Symbolic Capital, Faction.
• Tier 4: IDG Capital, Web3Port, Oak Grove Ventures, 071labs, K24 Ventures, Lecca Ventures, 10K VC, Cherry VC.

Zerobase Team

Zerobase is led by CEO and Co-Founder Mirror Tang, with a team of experts in zero-knowledge proofs, trusted execution environments, and decentralized finance. The team has years of experience building a privacy-focused, high-performance computation network.

Official Links

• Website
• X (Twitter)
• Whitepaper

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Backpack Proof of Reserves Data Will Be Created by OtterSec

The published Proof of Reserves data will be created and verified by OtterSec. This ensures that users can independently confirm that the assets held by the exchange actually exist and are reported in the stated amounts.

Starting today, Backpack will begin publishing its Proof of Reserves once a day, every day.

Built and verified by @osec_io. pic.twitter.com/8rNqeqHsV8

— Backpack (@Backpack) August 18, 2025

What is Proof of Reserves and Why Does It Matter?

Proof of Reserves is a mechanism used to verify the quantity and ownership of assets held by a crypto exchange. It is typically supported by on-chain verification and zero-knowledge (ZK) proofs.

The main benefits of this system include:

• Transparency: Investors can see that the exchange’s assets are accurately recorded.

• Trust: Users know that their holdings are secure and can better assess exchange risks.

• Liquidity Verification: The exchange proves it has enough reserves to cover all user withdrawals.

By publishing daily Proof of Reserves, Backpack Exchange will not only boost investor confidence but also contribute to raising transparency standards in the industry. Additionally, all listed ZK global verifications and their statuses will allow users to track the data in real-time.

As trust and transparency become increasingly critical in the crypto world, such initiatives are expected to set a new standard across the sector.

Also click to read our article “What is BackPack? Airdrop Hunting in the BackPack Ecosystem!”

What is BackPack? Airdrop Hunting in the BackPack Ecosystem!

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What is Aspecta (ASP)?

Aspecta is an AI-powered Blockchain protocol that redefines Web3 identity and reputation systems. By integrating on-chain and off-chain contributions, it creates machine-readable reputation graphs, providing a robust identity infrastructure for developers, contributors, and users. Aspecta aggregates data from platforms like GitHub, wallet activities, and social signals to build behavior- and contribution-focused profiles. This unified framework supports Web3 hiring, governance weighting, and reputation-based access control, offering a solid foundation for various applications.

What sets Aspecta apart is its ability to consolidate diverse data sources into a single, verifiable profile. For instance, a developer’s code contributions, a DAO member’s voting consistency, or a user’s smart contract interactions are unified under one data schema. Unlike traditional social graphs centered on connections, Aspecta emphasizes production and engagement. The ASP token serves as the economic engine, powering governance, resource access, and incentive mechanisms within the ecosystem.

Challenges Aspecta Solves

Aspecta addresses critical pain points in the Web3 ecosystem related to identity and reputation:

1. Fragmented Identity Data
   Contributions across Web3 and Web2 platforms are often scattered and challenging to unify. Aspecta bridges this gap by aggregating data from GitHub, Twitter, wallet addresses, and more, creating cohesive and verifiable identity profiles.

2. Lack of Trustworthy Reputation
   Traditional reputation systems often rely on subjective or limited data. With AI and Blockchain, Aspecta ensures contributions are objectively evaluated, generating reliable reputation scores.

3. Access and Governance Limitations
   Many Web3 projects base access and governance solely on token ownership. Aspecta introduces a fairer model by incorporating metrics like contribution intensity, voting consistency, and technical skills.

4. Incentivizing Contributors
   Rewarding contributors in Web3 is often inadequate. Aspecta leverages the ASP token to incentivize actions like data contribution, spam filtering, and validation, strengthening the ecosystem.

Aspecta’s Core Products

Aspecta offers three key products to support its Web3 identity and reputation infrastructure:

1. BuildKey and BuildKey Pro – Price Discovery

BuildKey provides a universal framework to convert illiquid assets (pre-TGE shares, locked tokens, NFTs, private equities) into ERC-20 credentials. Users can access early-stage project assets, trade via bonding curves, and convert them during liquidity events like TGE or IPO. BuildKey Pro caters to institutional users with tailored solutions.

2. Build Attestation (Aspecta ID) and Build Matrix – Reputation and Ecosystem Growth

Aspecta ID uses AI (LLM and Graph Learning) to process billions of GitHub commits, Blockchain data, and multidimensional work histories, creating reputations for developers and early-stage projects. Build Matrix collaborates with ecosystems like Google Developer Group, BNB Chain, and Linea to support verified contributors and projects. This system is widely adopted by L1/L2 chains and dApps.

3. Programmable Asset Infrastructure

This infrastructure enables projects to customize asset launches with flexible pricing, gated distribution, and tailored utilities. By offering Build Attestation techniques via public APIs, Aspecta fosters trust-based applications and broader adoption.

Aspecta’s Technical Features

Aspecta combines AI and Blockchain to deliver a unique identity modeling system:

• Identity Modeling Engine: Pulls data from GitHub, Blockchain wallets, and social accounts to create normalized profiles. Attributes like contribution counts, language distribution, and governance activities support modular data integration.

• Graph Trust Network: Analyzes relationships based on code contributions, voting synchronicity, and other contextual weights, building dynamic trust networks. Stale interactions weaken, while consistent contributions strengthen.

• AI-Powered Tagging: The LLM-based layer generates classifiable tags like “Senior Solidity Developer” or “Active DeFi Participant.” User feedback continuously refines the model.

• ZK-Based Verification: Zero-knowledge proofs (ZK) validate identity attributes without exposing sensitive data, enabling secure scenarios like NFT access or voting eligibility.

Aspecta (ASP) Tokenomics

The ASP token is the economic foundation of the Aspecta network, with a total supply of 1 billion tokens. It supports three primary functions:

• Governance: Token holders vote on identity metric standards, AI model updates, and data quality parameters, ensuring transparent and community-driven management.

• Resource Access: Advanced graph queries, API usage, and analytics modules are paid with ASP, creating internal demand.

• Behavioral Incentives: Contributions like data provision, spam filtering, and mismatch corrections are rewarded with ASP, driving ecosystem growth.

ASP Token Distribution

• Community and Ecosystem: 45%

• Backers: 20%

• Foundation: 17%

• Early Contributors: 15%

• Liquidity: 3%

This structure ensures ASP maintains value while fostering sustainable ecosystem growth.

Aspecta Vesting Schedule

Aspecta’s Use Cases

Aspecta offers versatile applications in the Web3 ecosystem:

• Developer Recruitment: AI-driven recommendation engines streamline hiring by matching skills and contributions.

• DAO Governance: Voting weights are based on contribution intensity and community engagement, enhancing fairness.

• Reputation-Based Access: ZK-based validations enable secure access for scenarios like NFT early access or voting eligibility.

• Ecosystem Integrations: Partnerships with BNB Chain, Google Developer Group, Linea, and Scroll build a global developer community.

Aspecta’s Investors

Aspecta is supported by a robust lineup of investors and backers, including HashKey Capital, The Spartan Group, YZi Labs (formerly Binance Labs), Infinity Ventures Crypto, Mask Network, Galxe, SNZ Holding, Foresight Ventures, Gate Labs, Emurgo, UpHonest Capital, CyberConnect, P12 Project Twelve, Bing Ventures, DoraHacks, ZhenFund, Taihill Venture, TSVCap, MiraclePlus, and The Y Startup Index Fund. This extensive support highlights the project’s credibility and potential.

Aspecta’s Founding Team

Founded in 2022 at Yale University’s Tsai CITY (Tsai Center for Innovative Thinking), Aspecta boasts a team with deep expertise in AI and Blockchain. Led by Steve Liu (Chief Scientist, Canadian Academy of Engineering member, and former Tinder Chief Scientist), Jack He (Co-Founder), and senior engineers like Jane Yang, the team hails from top institutions like Yale, Tsinghua, Berkeley, and McGill, with numerous patents and research achievements in AI and graph learning.

Official Links

• Aspecta (ASP) Website
• Aspecta (ASP) X (Twitter)
• Aspecta (ASP) Whitepaper

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In a recent blog post, Buterin acknowledged the benefits of zero-knowledge proof (ZK) technologies used in digital ID frameworks. However, he warned that enforcing a “one-ID-per-person” rule could harm pseudonymity, a core principle in digital freedom.

Buterin: ZK Technology Is Expanding — But Single IDs Are Dangerous

ZK-based identity systems such as World ID, Taiwan’s digital ID, and various EU initiatives are gaining traction. While these systems allow ID verification without revealing personal details, Buterin emphasized that even ZK-wrapped identities carry significant risks if users are forced into a single, trackable identity.

Does digital ID have risks even if it's ZK-wrapped?https://t.co/rye1q5G90G

— vitalik.eth (@VitalikButerin) June 28, 2025

“Pseudonymity in real life often depends on having multiple personas,” Buterin noted. Without this flexibility, digital activity could become entirely observable under one identity, creating surveillance risks from governments or employers.

Wealth-Based Identity Isn’t the Answer

Buterin also criticized systems that rely solely on proof of wealth to prevent Sybil attacks, arguing they favor the wealthy and exclude lower-income users. Instead, he proposed a more balanced model, where obtaining multiple identities becomes gradually more expensive — for example, requiring N² cost for N identities.

What Is Pluralistic Identity?

To counteract centralization, Buterin suggests implementing pluralistic identity systems — where no single authority controls identity issuance. Such systems can be explicit (like social-graph models such as Circles) or implicit, relying on a combination of ID sources including government IDs, social networks, and communities.

This structure, Buterin argued, is “more tolerant of errors,” particularly for stateless individuals or people lacking access to traditional identification. It also ensures no single ID system gains overwhelming dominance.

The Risk of Identity Monopolies

Buterin warned that if any single ID framework captures nearly 100% of the market, it could shift the world into a rigid one-ID-per-person paradigm — a model that undermines privacy and inclusivity.

In conclusion, Buterin emphasized that pluralistic identity is the most practical way forward, offering a resilient, inclusive, and privacy-preserving solution for the future of digital identity.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

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What is Taiko ($TAIKO)?

Taiko ($TAIKO) is an open-source cryptocurrency and an Ethereum-equivalent Zero-Knowledge Rollup (ZK-Rollup) solution. In simple terms, think of Taiko as a high-speed highway that eases Ethereum’s congested traffic. It leverages Ethereum’s robust security and vast ecosystem to deliver faster and more cost-effective transactions.

Taiko operates as a Layer 2 scaling solution for Ethereum, enabling decentralized applications (dApps) to function seamlessly as they would on Ethereum’s mainnet while boosting transaction speed and reducing costs.

Key Features of Taiko

Ethereum Layer 2 Solution

Taiko is built on top of Ethereum as a Layer 2 solution. This allows developers to run existing Ethereum applications on Taiko without any modifications, preserving all of Ethereum’s benefits while offering faster and cheaper transactions.

Zero-Knowledge Proofs

Taiko utilizes advanced cryptography known as Zero-Knowledge Proofs (ZKP). This technology enables the validation of information without revealing its details. As a result, Taiko processes transactions securely and efficiently while maintaining decentralization and security.

Scalability and Efficiency

Through ZK-Rollup technology, Taiko batches multiple transactions, processes them off-chain, and submits only a summary to Ethereum’s mainnet. This approach reduces network congestion and significantly lowers transaction costs, providing a faster and more economical experience for users.

Versatile Use Cases

Taiko is not limited to a single domain. It supports a wide range of applications, including decentralized finance (DeFi), non-fungible tokens (NFTs), blockchain gaming, and more. Its Ethereum compatibility ensures seamless integration with existing wallets, tools, and smart contracts.

Cost-Effective Transactions

High gas fees on Ethereum are a common issue for users. Taiko reduces gas costs by approximately 30%, making transactions more affordable, even for smaller operations.

Impressive Performance

Since its launch, Taiko has achieved remarkable success, processing 110 million transactions and engaging with over 1.2 million unique wallet addresses within just 90 days. This demonstrates Taiko’s ability to meet the demand for scalable blockchain solutions.

Competitive Trading Platforms

Platforms like CoinUnited.io offer attractive perks for Taiko traders, including zero trading fees, high leverage options (up to 2000x), and advanced trading tools, making Taiko a compelling choice for investors.

How Does Taiko Work?

Taiko is an innovative Layer 2 scaling solution designed to enhance Ethereum’s performance while preserving security and decentralization. Here’s a simple breakdown of how Taiko operates:

Building on Ethereum’s Infrastructure

Taiko is built on Ethereum’s existing infrastructure and security. Using a “rollup” approach, it bundles multiple transactions and submits them to Ethereum’s mainnet collectively, enabling faster and cheaper transactions.

Security with Zero-Knowledge Proofs

Taiko employs zero-knowledge proofs to validate multiple transactions without revealing their details. This ensures secure, fast, and private transactions, with final verification performed on Ethereum’s mainnet, reducing the processing burden.

Ethereum Compatibility

A standout feature of Taiko is its Ethereum-equivalent ZK-EVM (Zero-Knowledge Ethereum Virtual Machine). This allows existing Ethereum applications to run on Taiko without any changes, providing a seamless experience for developers and users.

Fast and Efficient Transaction Processing

When you make a transaction on Taiko:

• The transaction is quickly processed on the Taiko network.
• Multiple transactions are bundled together.
• These transactions are compressed using zero-knowledge proofs.
• The compressed proof is sent to Ethereum for final verification.
  This process is significantly faster and more cost-effective than transacting directly on Ethereum.

Security and Decentralization

Taiko inherits Ethereum’s robust security model. Transactions are protected by Ethereum’s proven security, while Taiko’s permissionless structure allows anyone to participate in the network, upholding the decentralized ethos of blockchain.

Use Cases of Taiko

Taiko, as a Layer 2 solution built on Ethereum with ZK-Rollup technology, offers scalability and efficiency. Here are its diverse use cases:

Scalable Decentralized Applications (dApps)

Developers aim to create dApps that can handle high user traffic while remaining cost-effective and efficient. However, Ethereum’s mainnet often faces congestion and high gas fees. Taiko provides a low-cost, high-speed alternative, enabling developers to scale applications efficiently. Users enjoy faster transactions, lower fees, and a smoother experience.

DeFi Protocols and NFT Marketplaces

DeFi protocols and NFT marketplaces struggle with high gas fees and slow transaction speeds. Taiko supports these operations with full compatibility with Ethereum’s tools and smart contracts, reducing costs and speeding up transactions. This improves user access and increases market liquidity.

Cross-Chain Interoperability

Projects and users seeking to transfer assets or data between blockchain networks face interoperability challenges. Taiko enables seamless transfers between itself and Ethereum, fostering flexibility and enabling complex blockchain applications.

Blockchain Gaming

Blockchain games require speed and cost efficiency for in-game assets and currencies. Traditional networks may fall short, but Taiko’s scalability supports fast, low-cost transactions. This allows players to experience true ownership and developers to create more engaging, cost-effective games.

Ethereum Scaling Solutions

Ethereum-based projects need to increase transaction throughput while cutting costs. Taiko batches transactions off-chain using ZK-Rollup technology while maintaining Ethereum’s security, resulting in more efficient dApps and better user experiences.

Developer Innovation and Hackathons

Developers and entrepreneurs seek platforms to showcase innovative blockchain solutions. Taiko’s hackathons and support programs encourage groundbreaking projects, expanding its ecosystem and driving blockchain innovation.

Why Choose Taiko for These Use Cases

Taiko stands out for these applications due to the following features:

• Ethereum Compatibility: As an Ethereum-equivalent Layer 2 solution, Taiko integrates seamlessly with existing Ethereum tools, wallets, and smart contracts.
• Scalability: ZK-Rollup technology supports high transaction volumes, ideal for DeFi, gaming, and NFT markets.
• Cost-Effectiveness: Lower transaction fees make blockchain interactions accessible to a broader audience.
• Security: By leveraging Ethereum’s robust security model, Taiko ensures a safe environment for decentralized applications.

Taiko Tokenomics

Taiko’s token allocation is as follows:

• 22% DAO Treasury
• 2% Guardian Prover Bonds
• 5% Grants & RetroPGF
• 10% Trailblazer Airdrop
• 1% Protocol Guild Airdrop
• 5% Genesis Airdrop (up to)
• 5% Initial Liquidity & Market Making
• 11.62% Investors
• 20% Taiko Labs / Core Team
• 16.88% Taiko Foundation Reserve
• 1.5% Taiko Official Prover Bonds

Taiko Investors and Backers

Taiko is supported by a strong network of investors and backers. Key names include Hashed Fund, Lightspeed Venture Partners, HongShan (formerly Sequoia China), OKX Ventures, GSR, IOSG Ventures, Mirana Ventures, Amber Group, and Wintermute, participating in Series A and other stages. Additional supporters like Token Bay Capital, Generative Ventures, KuCoin Ventures, and individual angel investors also contribute to the project’s growth.

Taiko Development Roadmap

Taiko’s roadmap outlines the platform’s technical progress and key milestones. Below are the planned updates and events for 2024 and 2025:

Q2 2024

• Taiko Mainnet Launch: Taiko’s mainnet was officially launched.
• Token Generation Event (TGE): The $TAIKO token was created and released to the market.
• Airdrop and CEX Listing: A token airdrop was conducted, and $TAIKO was listed on centralized exchanges (CEXs).

Q3 2024

• Mainnet: Gas Optimization: Achieved a 30% reduction in Layer 1 gas costs, making transactions more cost-effective.
• Testnet: Hekla Upgrade: The Hekla update was implemented on the testnet.
• Testnet: Ontake Hardfork: The Ontake hardfork was executed on the testnet.
• Testnet: zkVM Proof Integration: Zero-Knowledge Virtual Machine (zkVM) proofs were integrated into the testnet.

Q4 2024

• Mainnet: Ontake Hardfork: The Ontake hardfork was applied to the mainnet.
• Mainnet: zkVM Proof Integration: zkVM proofs were integrated into the mainnet.
• Devnet: Preconfirmation Demo: A preconfirmation mechanism demo was initiated on the development network.
• Testnet: Decentralized Security Council for Hekla: A decentralized security council for Hekla was established on the testnet.
• Devnet: Gwyneth Launch: The Gwyneth update was launched on the development network.

Q1 2025

• Testnet: Gwyneth Launch: The Gwyneth update was rolled out on the testnet.

Q2 2025

• Mainnet: Decentralized Security Council: A decentralized security council was activated on the mainnet.
• Mainnet: Gwyneth Launch: The Gwyneth update was implemented on the mainnet.

H2 2025

• Q3 2025 – Testnet: Hekla Preconfirmation: The preconfirmation mechanism for Hekla was tested on the testnet.
• Q4 2025 – Mainnet: Preconfirmation: The preconfirmation mechanism was deployed on the mainnet.

Taiko Team

• Daniel Wang: Co-Founder, CEO
• Brecht Devos: Co-Founder, CTO
• Terence Lam: Co-Founder, CSO
• Matthew Finestone: Co-Founder

Official Links

• Taiko Website
• Taiko X (Twitter)
• Taiko Whitepaper

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“Built on a distributed approach that lets the community help to make collective decisions for the future of the protocol, the newly active governance system lets Aiming for a balanced distribution of governance power, this architecture is set around three major bodies: the Token Assembly, Security Council, and Guardians.” ZKsync stated in a blog post.

The design of the governing structure holds that no one party has total influence. Token Assembly lets token holders and their delegates suggest and cast votes on improvements straight forward. Security professionals on the Security Council can check and approve code revisions. The Guardians have veto authority to guarantee that all decisions complement the central ideals of the ZKsync ecosystem.

In March 2023, Matter Labs debuted their Era mainnet. The project unveiled comprehensive designs for its governance system in June 2024, and the ZK token was issued along with an airdrop. Daily transactions in the network have clearly dropped since then. From over 1.3 million to about 195,000 now, the seven-day moving average of the daily transaction count on the ZK Rollup has dropped by almost 85%.

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