- Ethereum Foundation invests millions in zkVMs for scalability and security.
- Projects include zkRISC-V, Poseidon cryptanalysis, and L2beat zkVMs.
The Ethereum Foundation is making headlines with a substantial investment in zkVM (Zero-Knowledge Virtual Machines) technology. Researcher Justin Drake revealed on November 29 that the foundation is committing tens of millions of dollars to zkVM.
The EF is investing tens of millions into zkVMs:https://t.co/XDaHyurNK9—zkRISC-V formal verificationhttps://t.co/ML0PUqliRb—Poseidon cryptanalysishttps://t.co/0Qns6MCIuu—L2beat for zkVMs, soon
DM me about contributing to zkVM public goods
— Justin Ðrake
(@drakefjustin) November 28, 2024
The Ethereum Foundation’s funding targets three major initiatives. First, zkRISC-V formal verification, which ensures reliability and correctness in zkVM execution. Second, Poseidon cryptanalysis, focusing on advancing cryptographic hash functions essential for zkVMs. Lastly, L2beat’s zkVMs, which aim to enhance Ethereum’s scalability through layer 2 solutions. These projects aim to optimize Ethereum’s transaction efficiency and privacy.
By backing these innovations, the Ethereum Foundation underscores its commitment to addressing scalability challenges. These advancements could make Ethereum more accessible and cost-effective for users worldwide.
ETH Price Faces Market Pressure
Despite these significant ecosystem upgrades, Ethereum’s price experienced a slight decline. ETH dropped over 1% intraday, trading at $3,552, with a 24-hour range between $3,531.87 and $3,642.19. This decline aligns with concerns sparked by co-founder Jeffrey Wilcke’s recent activity.
Wilcke transferred 20,000 ETH to Kraken on November 28, heightening market apprehension. In 2024 alone, he offloaded 44,300 ETH at an average price of $3,342, contributing to bearish sentiments.
Ethereum’s current market cap stands at $430.17 billion, with a 24-hour trading volume of $28.48 billion. The crypto saw a weekly rise of 5% and a monthly increase of 33%, reflecting its resilience in the ongoing bull cycle. However, whale sell-offs remain a factor in ETH’s fluctuating price.
Despite recent dips, analysts remain optimistic. ETH eyes a $4,000 target, supported by strong ecosystem upgrades and market potential. The foundation’s investment in zkVMs could play a pivotal role in driving this momentum.
As Ethereum advances zkVM technology, its long-term scalability and security prospects look promising. These developments could solidify Ethereum’s position as a leader in the blockchain space.
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