Everyone is talking about Zero Knowledge Protocols but what are they? Let me explain before we dive deeper into the TOP 5 Zero Knowledge (ZK) coins and tokens by the current market capitalization.
What is Zero Knowledge (ZK)?
Sometimes when I read a post here on this platform, I think, " This guy has Zero Knowledge about what he is writing about." Well, this is not the kind of Zero Knowledge that I want to address in this post. Zero Knowledge can also be a technical term when it comes to blockchain technology.
In a zero-knowledge protocol, one party (the prover) can prove to another party (the prover) that a given statement is true. The prover thereby avoids conveying any more information than the fact that the given statement is actually true. This makes Zero Knowledge a principle that not only guarantees anonymity but also the security of this data.
The TOP 5 Zero Knowledge (ZK) coins and tokens by market capitalization according to data from CoinGecko are Polygon $MATIC, ImmutableX $IMX, Mina Protocol $MINA, Loopring $LRC, and Zcash $ZEC.
5. Zcash $ZEC
Zcash, one of the oldest privacy coins with its own blockchain, made it under the TOP 5 ZK coins with a current market capitalization of around $346,500,000.
Zcash was the first crypto project that implemented so-called zk-SNARKs, a novel form of zero-knowledge cryptography. This gave its users of the blockchain the strongest privacy available in any cryptocurrency.
Project Website: https://z.cash
4. Loopring $LRC
If you are a long-time user of Publish0x like me then you surely will remember Loopring with the native token $LRC because it was used for tipping on the platform.
Loopring is much more than just a ZK blockchain protocol. Loopring is a zkRollup protocol that sits as a Layer 2 on top of the Ethereum blockchain. It tries to fix the current issues like high transaction fees and long transaction times. The optimization is not taking place on the base layer of Ethereum but on a second layer on top that works like an accelerator. This enables you to enjoy scalable and secure exchanges and payments at low costs and fast speed.
The Loopring team has already built several non-custodial, high-performance products on its Layer 2, including the Loopring Wallet and the Loopring Exchange.
Project Website: https://loopring.io
3. Mina Protocol $MINA
The next popular ZK blockchain protocol is called Mina Protocol. Mina Protocol uses zero-knowledge proofs (ZKPs) to reduce the size of its own blockchain to just a few kilobytes. This is in contrast to traditional blockchains, which become larger over time as more and more transactions are added to the blockchain protocol.
Because of its small blockchain size, Mina Protocol is able to achieve an extremely high degree of scalability and decentralization.
The native coin of the Mina Protocol has the ticker $MINA. It is an inflationary token with no supply cap. $MINA is mainly used for staking and producing blocks.
Project Website: https://minaprotocol.com
2. ImmutableX $IMX
The second largest ZK protocol by market cap is ImmutableX. Its main focus is on Web3 gaming and NFTs. The priority of the project is high performance and low cost while still maintaining the security of the Ethereum blockchain.
ImmutableX has recently partnered with Polygon. At the core of the partnership lies a new technology called Immutable zkEVM, a new EVM-compatible ZK-rollup. This should make developing web3-enabled games faster, easier, and less risky.
Project Website: https://www.immutable.com
1. Polygon $MATIC
The ZK token with the highest market capitalization currently is Polygon $MATIC. Its current market capitalization is two times higher than the market cap of the second largest token ImmutableX $IMX. It is currently located on the market cap rank #10.
Polygon is currently a Proof-of-Stake (PoS) Layer2 solution built on top of Ethereum. Its current Layer2 structure uses a sidechain model, which has some trade-offs in terms of security and decentralization.
The native token of the Polygon network is $MATIC which is mainly used to pay transaction fees and for governance purposes.
Project Website: https://polygon.technology
My Final Words
These were the TOP 5 ZK coins and tokens by the current market capitalization according to data from CoinGecko and I hope that reading my article was helpful to you.
If you want to buy, sell, or trade any of the TOP 5 ZK coins and tokens then Binance is the best place to go. If you don't have a Binance account yet, please consider using my invitation link with the code E3PGAJCE for signing up. This will save you trading fees each time you perform a trade on Binance.
Finally, I also like to remind you that my intention in this post is to raise your awareness of ZK protocols. My intention is not to replace your own research. Remember that I may look smart in my profile pic but I am not your financial sensei.
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