Vitalik Buterin's Perspective on ZK Technology: Driving Crypto Infrastructure Forward and Enabling Sustainable Value Creation

By 2025, Vitalik Buterin has become a central advocate for zero-knowledge (ZK) technology, presenting it as fundamental to blockchain scalability, privacy, and broader institutional use. His recent efforts, focused on Ethereum’s technical progress and the integration of advanced cryptographic methods, highlight the transformative role ZK could play in the evolution of crypto infrastructure. This article examines Buterin’s recommendations, the present landscape of implementation, and the potential long-term economic effects for stakeholders.

Buterin’s Push: Breaking Down ZK Scalability Obstacles

This year, Buterin’s standout initiative is his campaign to remove Ethereum’s modexp precompile, an outdated feature that significantly hampers ZK-EVM performance.

, the modexp precompile can increase the computational load for ZK proofs by as much as 50 times compared to typical blocks, limiting scalability. To solve this, Buterin suggests substituting the precompile with standard EVM code, even if this means higher gas fees for certain specialized uses . This proposal fits within his broader goal of refining Ethereum’s design to better support ZK-based efficiency.

In addition to technical changes, Buterin advocates for combining ZK proofs with other advanced technologies such as multi-party computation (MPC), fully homomorphic encryption (FHE), and trusted execution environments (TEE).

will establish a “hybrid cryptographic stack” that boosts both privacy and system performance. Through this lens, ZK is positioned not as an isolated solution, but as a foundational element for the next wave of blockchain infrastructure.

ZK’s Expanding Influence in Crypto Infrastructure

Ethereum’s modular strategy for ZK integration—through upgrades like EIP-4844 and zk-rollups—has already yielded concrete benefits. Yet, initiatives such as Polygon’s Katana and Zero Knowledge Proof (ZKP) show that ZK technology is spreading beyond Ethereum’s boundaries.

Katana, Polygon’s DeFi-oriented ZK rollup, has amassed $512 million in total value locked (TVL), leveraging Polygon’s Agglayer framework to connect various ZK rollups

. Meanwhile, ZKP is working to introduce a fully ZK-native blockchain, skipping traditional testnet stages to provide immediate economic benefits with features like on-chain Initial Coin Auctions (ICA) and Proof Pods . These efforts illustrate a split in approach: Ethereum’s gradual adoption versus ZKP’s comprehensive strategy.

The move from theoretical frameworks (such as SNARKs and STARKs) to real-world applications has quickened ZK’s uptake.

, ZK rollups now process 30% of all on-chain stablecoin activity, slashing gas costs by up to 90%. This marks ZK’s evolution from a specialized tool to a fundamental part of blockchain infrastructure.

Economic Impact: From Transaction Speed to Market Forecasts

The economic promise of ZK technology is evident in its capacity to solve scalability issues and meet institutional requirements.

with minimal fees, drawing interest from enterprise-level users. Major institutions are also joining in: JPMorgan and Deutsche Bank are utilizing ZK-powered Layer 2 platforms for compliance, while partnerships like Mantle-Anchorage Digital are providing custody solutions for ZK-native assets .

Market forecasts further reinforce ZK’s economic outlook.

at a compound annual growth rate of 60.7%, potentially reaching $90 billion by 2031. At the same time, the ZK technology sector, valued at $75 million in 2024, could surpass $10 billion by 2030, . These numbers indicate a transition from speculative hype to practical, institutional-grade adoption.

Nonetheless, obstacles remain.

, has drawn attention because 70.66% of its supply is concentrated in the top five wallets, raising concerns about market volatility. Such issues underscore the importance of fair governance and token allocation in ZK ecosystems.

Looking Ahead: Navigating Challenges and Regulatory Developments

Despite its advantages, ZK technology still faces hurdles such as high proof generation costs, hardware demands, and decentralization concerns

. Buterin’s support for modular improvements, like Ethereum’s PeerDAS (EIP-7594), is intended to lower bandwidth and storage needs, . Regulatory clarity will also play a vital role, as for digital identity solutions demonstrates the technology’s practical scalability.

For those investing, opportunities exist in governance tokens, infrastructure services, and cross-chain liquidity platforms

. However, broader economic trends and token concentration continue to pose significant risks.

Summary

Vitalik Buterin’s promotion of ZK technology goes beyond technical innovation; it’s a strategic effort to reshape blockchain’s foundation. By tackling scalability challenges and encouraging hybrid cryptographic solutions, he has made ZK a key component of Ethereum’s roadmap. At the same time, projects like Katana and ZKP showcase ZK’s shift from experimental to indispensable. As institutional adoption and market expectations converge, ZK’s potential for long-term value capture looks strong—provided that issues around decentralization and governance are properly managed. For investors, the ZK sector presents a promising mix of innovation and infrastructure, though careful navigation of its evolving risks is essential.