There has been a noteworthy uptick in the use of zero-knowledge proofs in the realm of Ethereum scaling protocols in recent times, insights from Finance Redefined suggest. These solutions, labelled ‘Zero-knowledge rollups’ or ZK-rollups, have seen their popularity skyrocket thanks to their increased usage in the Ethereum ecosystem. On the other hand, the DeFi domain leaves much to be desired in terms of optimised security, with bug bounty programs offering varied success rates, a recent analysis suggests.
White hat hackers are often incentivised by bug bounties to unearth bugs in the DeFi platforms, which are frequently susceptible to breaches. However, despite such measures, major exploits on the Multichain protocol came to light over the past few weeks. In an apparent bid to curb future security concerns, the founder of Connext advanced the concept of a “Sovereign Bridged Token” standard.
On another front, news has surfaced about the Algorand decentralized lending protocol, with plans to wrap up its operations by year-end. The decision stemmed from the view of developers that launching a borrowing and lending protocol was “no longer a viable path” for them. Even so, the platform asserted that its “belief in the strength of Algorand’s technology and novel consensus algorithm has not wavered.”
Another wind of change came in the form of a partial victory for Ripple in its longstanding tussle against the United States Securities and Exchange Commission (SEC). This led to a staggering 84% surge in the XRP XRP $0.70 price.
The use of ZK-rollups in Ethereum scaling protocols provides evidence of the leading role Ethereum plays in employing these solutions. The key highlights from ZKValidator’s ‘State of ZK Q2’ report emphasized major launches, competition amongst diverse platforms, and new research in the ZK ecosystem.
Stepping into the sphere of finance, the overall DeFi market experienced a bullish wave after three consecutive bearish weeks. The top 100 DeFi tokens had a rather positive week with most tokens trading in green. However, it’s important to note that the total value locked in DeFi protocols still remained below $50 billion.
These developments paint a vibrant picture of the cryptocurrency domain and its dynamic character. It is not just about Bitcoin or Ethereum anymore. The crypto space is more nuanced and complex, with ongoing shifts and trends setting new standards and creating untapped potentialities and risks alike.
Source: Cointelegraph
