Validators generate ZKP as additional proof of their work while performing their PoS duties. Validators who successfully generate and submit valid ZKP can receive additional rewards on top of the existing block rewards.
This can be in the form of ETH or some form of in-network reward (such as a specific token or a portion of the Gas fee).
The mainnet block rewards can be divided into two parts, forming a layered reward system: one part rewards the traditional PoS validation, and the other part is distributed based on the node's contribution in ZK proof generation.
This shows that ZK can be an enhancement to PoS validation, and ZK mining can be an extension of PoS staking.
In addition to staking ETH to receive PoS rewards, stakers can also earn additional rewards by participating in ZK-related work. For example, stakers can run ZK proof generation nodes and provide computing resources to support the application of ZK technology.
However, this is just a possibility. If the existing Ethereum PoS mechanism is to be integrated with ZK technology, modifications or extensions to the current PoS protocol are needed to accommodate the role of ZK proof.
Moreover, a fair incentive model must be designed to ensure that the incentive effect of PoS is not weakened, while promoting the application of ZK technology.
4. Will ZK mining introduce new positive externalities?
After Ethereum's transition from PoW to PoS, the most criticized aspect is the lack of externalities introduced into this "closed" economic system.
PoW has externalities, requiring energy and hardware, thereby expanding the economic activity of the blockchain to the outside world, affecting the real world.
In the PoS system, the qualification to validate blocks is mainly based on the amount of tokens held (i.e., staked), and economic activity is more concentrated on staking and in-network transactions, rather than involving a wide range of external industries such as mining rig production and the electricity market, as in PoW.
ZK acceleration hardware is similar to PoW mining rigs, requiring specialized hardware, but the "inefficient power consumption" problem may be reduced, as PoW is about solving mathematical problems to compete for block rights, while ZK mining is about generating valid proofs to validate transactions, without different nodes doing repetitive and ineffective labor.
5. Sharing AI and ZK computing power
Furthermore, a ZK computing power market may emerge, and even the sharing of AI and ZK computing power may be realized.
There may be integrated computing service platforms on the market that support the computing needs of both AI and ZK tasks.
Users can process high-performance computing AI tasks and ZK proof generation tasks on the same platform.
Integration can also be done at the protocol level: establishing smart contracts or protocols that allow AI computing power providers to participate in ZK proof generation, or use ZK technology to verify the results of AI computations.
Computing power can also be dynamically allocated: allocating computing resources based on 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 project in the ZK hardware acceleration track is Cysic.
Cysic focuses on designing and producing application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), and GPU acceleration solutions to accelerate the ZKP generation process.
Cysic has designed two hardware products:
ZK Air: a compact ZK device, about the size of a laptop power interface card, 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-scale ZK projects such as zkRollup and zkML.
In addition to hardware, Cysic also provides a CUDA library that supports various ZKP systems such as Plonky2, Gnark, Halo2, and RapidSnark. These libraries can significantly improve performance, at least 50% better than open-source frameworks.
Meanwhile, Cysic has an ecosystem, the Cysic Network, primarily for integrating and managing community computing resources, connecting ZK project parties, computing power providers, and community validators to form a reliable computing power network.
In simple terms, the Cysic Network is a ZK mining pool and SaaS platform.
Currently, Cysic has collaborated with multiple zkRollup projects, demonstrating the practicality and market demand for its products.
In addition to Cysic, another very distinctive project worth mentioning is Scroll.
Surprisingly, the "betrayed and infamous" Scroll is doing very well in the field of ZK hardware acceleration.
Compared to other ZK Rollup projects, Scroll can be said to have taken a different path, starting from the hardware, by developing a dedicated ZK acceleration hardware GUP, forming its own competitive moat, which is also Scroll's biggest differentiated competitive advantage.
Looking at this alone, Scroll is indeed a very hardcore project.
However, Scroll and Cysic have different positioning: for Scroll, hardware acceleration is part of its overall Layer2 solution, while Cysic is dedicated to providing hardware acceleration services for the entire ZKP ecosystem.
7. Conclusion
In summary, the key points of this article are:
Ethereum is becoming ZK-enabled: Ethereum is using zero-knowledge (ZK) technology to achieve scalability and improve privacy, applying ZK technology at the consensus and data layers to enhance network performance.
ZK requires hardware acceleration: Due to the high computational resources required to generate zero-knowledge proofs, hardware acceleration (such as ASICs and FPGAs) is seen as a necessary means to improve efficiency.
Combining PoS and ZK mining: A new economic model is proposed, where ZK mining is an extension of PoS, and stakers can earn additional rewards by providing ZK computing power, forming a coexistence of PoS and PoW.
ZK mining introduces new positive externalities: Compared to PoW, ZK mining may reduce inefficient energy consumption, but still requires specialized hardware, providing incentives for hardware production and technological innovation.
Sharing of AI and ZK computing power: AI and ZK computing tasks may share hardware resources, forming an integrated computing service market.
Leading market projects: Cysic and Scroll are the leaders in the ZK hardware acceleration field, with the former focusing on providing hardware for the ZK ecosystem, and the latter incorporating it as part of its Layer2 solution.
Finally, the ZK hardware acceleration track has already shown signs of emerging. As Ethereum further embraces ZK technology, ZK hardware acceleration will become increasingly important and may even reverse-engineer Ethereum's economic model, making it worth our continued attention.
