The blockchain sector is experiencing a significant transformation, largely propelled by Vitalik Buterin’s persistent promotion of zero-knowledge (ZK) technology. As a co-founder of Ethereum, Buterin has established
ZK
proofs as the cornerstone for building blockchain networks that are scalable, private, and secure. Breakthroughs in 2024–2025, such as
Ethereum
protocol enhancements, ZK-centric initiatives, and growing institutional participation, highlight a sector that is maturing and primed for strategic investments.
Ethereum’s ZK Transformation: From Modular Enhancements to Streamlined Design
Ethereum’s development plan has consistently prioritized scalability, with Buterin advocating for ZK-rollups to address the network’s throughput bottlenecks. The Dencun upgrade, launched in early 2025, brings this vision to life by
slashing Layer 2 (L2) data posting expenses by 90–98%
using “blob” data storage. This advancement has fueled a dramatic rise in L2 adoption, with platforms such as
ZKsync
and
StarkNet
handling more than 15,000 transactions per second (TPS) with almost no fees
.
Buterin’s attention has now turned to
refining ZK-EVM proof creation
, which is central to Ethereum’s “Lean Ethereum” approach. By optimizing the modexp precompile—a resource-heavy aspect of ZK-proof computation—
Buterin’s studies indicate proof generation times could be cut by up to 50%
. These improvements are vital for business adoption, as they make it easier for high-traffic applications like DeFi and gaming to participate.
ZK-Native Initiatives: Constructing the Next Generation from Scratch
While Ethereum’s upgrades are modular, projects such as Zero Knowledge Proof (ZKP) are reshaping blockchain design by embedding ZK mechanisms at the core. In contrast to Ethereum’s layered model,
ZKP’s system merges validation, computation, staking, and rewards into one verifiable structure
. This setup reflects Buterin’s focus on “fast provers” and “predictable proof markets,”
providing a template for a blockchain entirely rooted in ZK concepts
.
The Atlas upgrade on ZKsync further demonstrates the promise of ZK-native platforms. By transforming liquidity flow between Layer 1 and Layer 2, Atlas
allowed the network to achieve 43,000 TPS with extremely low fees
. The ZKS token’s
150% surge in value following the upgrade shows the market’s appreciation for ZK’s scalability benefits
.
Multi-Layered Security: ZK Proofs and Their Extensions
Buterin’s ambitions go beyond just scalability, encompassing privacy and security as well. In 2025,
he suggested integrating ZK proofs with multi-party computation (MPC), fully homomorphic encryption (FHE), and trusted execution environments (TEE)
to build systems resistant to coercion. This multi-layered security is especially important for use cases like blockchain-based voting,
where safeguarding privacy and ensuring integrity are essential
.
For example, ZK proofs alone cannot fully prevent coercion in voting, but when combined with MPC and TEE, they form a strong basis for secure and verifiable results
as highlighted in research
. These developments are drawing the attention of major institutions, with collaborations such as Deutsche Bank and Sony
investigating ZK-powered solutions for meeting regulatory requirements
.
Institutional Momentum and Market Outlook
The ZK Layer 2 sector is expected to expand at a 60.7% compound annual growth rate (CAGR),
projected to hit $90 billion by 2031
. This rapid growth is being propelled by institutional involvement, motivated by cost efficiency and compliance with regulations.
Vitalik’s GKR protocol, which slashes ZK verification expenses by 10–15 times, has played a crucial role in this trend
. Platforms that utilize GKR, like ZKsync, now
support 43,000 TPS, making them suitable for enterprise-level deployment
.
Nonetheless, obstacles remain.
Regulatory concerns over privacy-oriented assets such as Zcash and technical challenges in GKR implementation continue to pose issues
. Still, the increase in institutional collaborations—such as Sony’s adoption of ZK for gaming—indicates that these problems are being tackled
as per market reports
.
Investment Landscape: Leading Projects and Potential Pitfalls
For those looking to invest, the ZK ecosystem presents both significant growth prospects and inherent risks. ZKsync (ZKS) and StarkNet (STRK) are at the forefront in DeFi and gaming, with
ZKS’s token price climbing after the Atlas upgrade
. At the same time,
ZKP stands as a speculative play on a future built on ZK-native foundations,
with its integrated design potentially surpassing Ethereum’s modular system
.
However, investors should remain cautious. The ecosystem’s dependence on Buterin’s research and Ethereum’s direction means that any changes in technical focus could impact valuations. Furthermore,
regulatory ambiguity—especially for privacy-first projects—remains an unpredictable factor
.
Conclusion: The Road Ahead for ZK Technology
Vitalik Buterin’s pioneering work has established ZK technology as the foundation for the next era of blockchain. From Ethereum’s Dencun and Lean upgrades to ZK-native ventures like ZKP, the industry is achieving new heights in scalability and security. With institutional adoption accelerating, the ZK Layer 2 space is set for remarkable expansion, presenting investors with a rare chance to benefit from a fundamental transformation in decentralized infrastructure.
Success in this evolving landscape will require a balance of enthusiasm and caution. While the promise of ZK is clear, its future sustainability will hinge on overcoming both technical and regulatory hurdles—a challenge that Buterin and his collaborators are uniquely equipped to meet.
