Discussion Details
zkFold ZK Rollup
zkfold
Description
ZK rollups address the scalability problem. Hundreds of transactions can be submitted as a single batch, reducing the load on the L1. Cardano can achieve higher throughput and lower transaction costs.
zkFold offers to build a general-purpose zero knowledge rollup solution for Cardano. A zero knowledge rollup is a technological layer (Layer 2) on top of a blockchain that increases the blockchain’s scalability potential by compressing many transactions into transaction batches. As batches offer a greater degree of information compression, it is reasonable to expect that hundreds of rollup smart contract transactions might fit into a single Cardano mainnet transaction. Zero knowledge proofs technology places a limit on the cost of on-chain verification of the validity of transaction batches. Specifically, the batch verification fits well within the Execution Unit limits set at the protocol level, as demonstrated by the prototype created by the zkFold team
Problem Statement
Scalability is a challenge for Cardano. As it grows, more dApps and users join, the demand for processing capacity increases, leading to congestion, slower transaction times, and higher fees.
Proposal Benefit
zkFold will develop and implement ZK rollups on Cardano to scale it efficiently, promoting broader adoption and supporting an ecosystem of decentralized applications and services. Overall, our proposal will have the following positive impact on the Cardano ecosystem:
- Improved Scalability: ZK rollups enable Cardano to process significantly more transactions per second (TPS) by bundling and verifying transactions off-chain. This reduces congestion, benefiting users by ensuring faster and more efficient dApp interactions.
- Lower Transaction Costs: By reducing the number of transactions directly processed on-chain, ZK rollups lower the transaction fees, making Cardano more accessible and affordable, especially for smaller transactions or micro-payments.
- Enhanced User Experience: Lower fees create a smoother experience for users interacting with dApps, decentralized finance (DeFi) platforms, and NFT marketplaces.
- Increased Adoption: ZK rollups can make the Cardano ecosystem more attractive for developers and users, promoting the growth of dApps, DeFi, and other blockchain applications by offering higher performance and scalability.
- Maintained Security: ZK rollups allow for scalability improvements without compromising the security and decentralization of the Cardano base layer, as Cardano still plays the role of the settlement layer for the rollup transactions.
Key Proposal Deliverables
Milestones:
- Rollup documentation
- Transaction aggregation server
- Wallet API
- Indexer API
- Rollup validation logic implementation
- Toolkit for DApp integration
Cost Breakdown
Complete MVP: 180k $ Integration with wallets: 100k $ Integration with Cardano indexers: 100k $ Aggregation server optimization: 120k $ Client-side proving optimization: 120k $ Tools for DApp integration: 240k $
Resourcing & Duration
Budget for 12 months:
- Complete MVP: 180k $
- Integration with wallets: 100k $
- Integration with Cardano indexers: 100k $
- Aggregation server optimization: 120k $
Extras:
- Client-side proving optimization: 120k $
- Tools for DApp integration: 240k $
Experience
zkFold team has successfully moving towards the TestNet of our ZK Rollup. The zkFold team consists of expert Haskell, Rust, and ZKP developers and Cryptographers.
Maintenance & Support
We have included maintenance costs into the projects´s budget
Supplementary Endorsement
We are already developing the ZK Rollup on Cardano with our own funding and our goal is to release a testnet asap.
Roadmap Alignment
Does your proposal align with any of the Intersect Committees?
Technical Steering Committee
Does this proposal align to the Product Roadmap and Roadmap Goals?
L2 Expansion
Administration and Auditing
Would you like Intersect to be your named Administrator, including acting as the auditor, as per the Cardano Constitution?
Yes
Ownership Information
Submitted On Behalf Of
CompanySocial Handles
https://x.com/zkFoldKey Dependencies
None
Supporting Links
Cast Your Vote
Comments (5)
I support this proposal and intend to vote in favor of the zkFold ZK Rollup as I consider it an essential complementary element to Cardano's technology stack.
The innovative combination of the EUTxO model and ZK technology comes with unique technical challenges specific to Cardano, but I assess its strategic value to be extremely high. In particular, adding zkFold (general-purpose rollup) alongside Hydra (immediacy) and Mithril (synchronization) is crucial as it brings Cardano's L2 solution stack closer to completion.
Given that other blockchains are rapidly adopting ZK technology, it is essential for Cardano to establish its presence in this field to maintain competitiveness. Additionally, establishing a ZK technology foundation serves as groundwork for future applications in privacy and security-focused domains such as CBDC integration and SSI (Self-Sovereign Identity).
However, the following points require clarification:
- Budget discrepancy (500,000 USD requested vs 860,000 USD itemized)
- Relationship with and outcomes from previous Catalyst funding (approximately 3.1 million ADA)
- Governance design for rollup operators (Sequencers, etc.)
Despite these issues, considering the strategic importance of Cardano's transition to the "ZK era," I believe this project should be supported, provided there is appropriate monitoring and milestone management.
You have been funded throug catalyst several times in regards to ZK. 3.1 million ada for diffrent things with a convertion rate of 0,3 per ada. That is 1 mill dollar + https://www.lidonation.com/en/project-catalyst/users/570/ Can you show me the github rep that gives Cardano community value for this money? Dont get me wrong. I strongly beleve we need Zk ecosystem on Cardano. It's just that we spendt 1 mill dollar so far and i cant recall see this in production.
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Is the scope achievable within the proposed budget clearly defined (e.g., up to testnet launch)? Since mainnet deployment, audits, and post-launch maintenance are not included, is there a plan to secure further funding for those phases?
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Is the $500,000 budget aligned with the deliverables, such as the MVP, APIs, and DApp integration tools?
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Is there a clear roadmap or vision for post-testnet activities, including user adoption, dApp integration, and transaction scaling?
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Are there any overlaps in TSC budgets etc.?
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Is it possible to get endorsements from multiple members of the Cardano community who are knowledgeable about ZK (e.g. Midnight team, Sebastian, ENCOIN team, etc.)?
All in
As Sebastian mentioned, ZK rollup should have been included in the roadmap, so I would like to support it as much as possible, but I have some questions.
- Can you add any additional explanation about dependencies and differences between this and previous Catalyst proposals, Midnight, Starstream, etc.? In particular, can you explain the dependencies to previous Catalyst proposals?
https://projectcatalyst.io/proposers/vlasin?status=Completed&status=Active&status=Onboarding&status=Cancelled#proposals
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How far can the community expect ZK Rollup to be developed with this proposal? Were there any design choices that involved trade-offs?
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Does it describe the chosen frameworks, languages, modules, or relevant Cardano tech ?
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Are the major risks (smart contract exploits, compliance issues, etc.) identified along with mitigation actions?
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Does it describe how the project will adapt to future Cardano network changes (like upcoming hard forks or CIP updates)?
Costing is innacurate, if ADA to USD rate is 0.74 then USD amount is $498,758
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