Ethereum Foundation revealed its plans to invest $10 million into zero-knowledge Virtual Machine protocols
On Friday, November 29, the Ethereum Foundation (EF) is set to invest heavily in zero-knowledge virtual machines (zkVMs). This investment is worth a whopping $10 million. This significant investment is part of the foundation’s ongoing efforts to expand Ethereum, with a focus on boosting scalability, security, and blockchain.
The Ethereum Foundation aims to drive innovation and strengthen Ethereum’s infrastructure by supporting key zkVM projects. This strategic move could position Ethereum for greater performance and scalability in the evolving blockchain landscape.
A Strategic Investment in zkVMs to Enhance Ethereum’s Future
In a recent X post, Ethereum researcher Justin Drake revealed the foundation’s strategic move. Notably, zkVMs enhance Ethereum’s capability to process transactions securely and efficiently.
These machines use zero-knowledge proofs to validate transactions without revealing sensitive information. This functionality makes it essential for privacy and scalability in blockchain systems.
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
Ethereum Foundation’s $10 million bet will be used to support several promising projects zkVMs. These include zkevm.org, a platform for formal verification, Poseidon cryptanalysis, and ethproofs.org, all poised to benefit from the foundation’s financial backing.
The Ethereum Foundation ensures the protocol’s growth by supporting projects focused on formal verification and cryptographic analysis. This investment aims to improve Ethereum’s security, scalability, and overall performance.
The foundation’s strategic backing positions Ethereum for long-term success in the Decentralized Finance (DeFi) ecosystem.
Market Reactions: Ethereum Price and Co-founder Activity
While the Ethereum Foundation’s move is viewed as a long-term strategy, it comes during fluctuations in Ether’s price. Ethereum co-founder Jeffrey Wilcke recently sparked market speculation after transferring 20,000 ETH ETH $2 539 24h volatility: 0.2% Market cap: $306.17 B Vol. 24h: $8.79 B to the Kraken exchange.
The move raised eyebrows across the crypto space, with many questioning whether it might signal a potential selloff. Adding fuel to the fire, Wilcke’s recently offloaded 44,300 Ethereum at an average price of $3,342. This massive offload has added a layer of uncertainty to Ethereum’s market outlook.
As of today, the asset has experienced a slight decline, dropping over 1% intraday to $3,567 as per market data. This dip followed broader market trends featuring selling pressure, particularly from whale holders.
Regardless, Ethereum has managed to maintain a strong performance in recent weeks. It recently recorded a 15% increase in a week, crossing the $3,600 mark, its highest level in five months.
Despite these short-term fluctuations, there remains a strong bullish sentiment surrounding Ethereum’s future. Analysts believe the coin might hit the $4,000 mark during its ongoing bull rally. These projections are fueled by optimism over upcoming upgrades, which aim to scale the protocol and reduce gas fees.
Additionally, the Ethereum Foundation has continued liquidating some of its holdings, most recently transferring 1,250 Ether to Bitstamp. This is part of a strategy to manage its assets, with the foundation’s financial report offering insights into its plans.
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