## ZK Technologies in Cryptocurrencies: Which Choice Is Right for Investors in 2024?

In the world of blockchain, there are no secrets — everything is transparent. But what if you could prove you know something without revealing the secret itself? This is the essence of zero-knowledge proofs (ZKP), which have become one of the most discussed crypto technologies. As of May 2024, CoinGecko registered 40 zk coins with a total market capitalization of over $21.27 billion. This segment is rapidly growing and attracting attention from both developers and investors.

## How Does Zero-Knowledge Magic Work?

A zero-knowledge proof — is a cryptographic scheme that allows verifying the correctness of a statement without gaining any additional information. It is based on three principles:

- **Completeness:** If the statement is true, the verifier will always confirm it
- **Soundness:** A false statement will not pass verification (except with minimal probability)
- **Privacy:** The verifier learns only whether the statement is correct, no other details

Imagine a cave with two exits. A person knows a secret word that opens the door. They prove this by choosing the correct door several times, but never reveal the word itself. That’s how ZKP works.

## Where Is ZK Technology Used?

**Financial privacy:** Cryptocurrencies like Zcash (ZEC) allow hiding transaction details — sender, receiver, amount — while maintaining transparency of the ledger.

**Network scaling:** zkSync and Polygon Hermez use ZK-rollups to process hundreds of transactions off the main blockchain. This reduces gas costs by over 90% compared to Ethereum mainnet.

**Voting and identification:** ZKP enables confirming voting rights without revealing voter identity. Worldcoin uses this technology to create World ID.

**Commercial contracts:** Companies can prove compliance with quality standards without disclosing manufacturing processes or suppliers.

**Off-chain computing:** Marlin (POND) allows performing complex calculations off the blockchain with guaranteed correctness of results.

## Leading zk Coins Projects of 2024

### Immutable X (IMX) — NFT Revolution Based on ZK

Immutable X uses StarkEx technology from StarkWare. The platform focuses on Web3 games and NFT trading, processing transactions with zero gas fees.

**Current stats (December 2025):**
- **Price:** $0.23
- **Market Cap:** $191.87M

The main advantage is that developers can scale games without losing Ethereum security.

### Mina Protocol (MINA) — The Lightest Blockchain in the World

MINA uses zk-SNARKs to compress the entire blockchain state to just 22KB. This allows any user to verify the network from a smartphone.

**Current stats (December 2025):**
- **Price:** $0.08
- **Market Cap:** $97.27M

The project uses Ouroboros Proof-of-Stake consensus, which is significantly less energy-intensive than traditional systems.

### Loopring (LRC) — Next-Generation Decentralized Exchange

Loopring processes over 2000 transactions per second via zkRollups. The protocol aggregates hundreds of orders into one proof, processed on Ethereum.

**Current stats (December 2025):**
- **Price:** $0.05
- **Market Cap:** $68.49M

The uniqueness of the project is the "ring miners" system, which earns rewards for correctly processing orders.

### dYdX (DYDX) — Decentralized Margin Trading

dYdX migrated to its own Layer 2 based on StarkWare, using zk-STARKs. Version 4.0 introduced dYdX Chain — a separate blockchain on Cosmos SDK.

The platform allows high-leverage trading with minimal fees.

### Zcash (ZEC) — The Father of Private Crypto Transactions

ZEC has used zk-SNARKs since 2016. The "Halo" (2019) update removed the need for trusted setup, increasing network security.

**Current stats (December 2025):**
- **Price:** $445.15
- **Market Cap:** $7.33B

The largest market capitalization among all zk coins, but facing regulatory scrutiny in several countries.

### Worldcoin (WLD) — Digital Identity via Iris Scan

WLD combines biometric verification (iris scan) with blockchain. It uses the Semaphore protocol for anonymous voting and recommendations.

**Current stats (December 2025):**
- **Price:** $0.49
- **Market Cap:** $1.26B

The project is controversial regarding biometric data processing but continues to expand.

### Marlin (POND) — Off-Chain Computation

POND is an off-chain computation protocol with ZKP verification. A distributed network of coprocessors processes data and then sends compact proofs to the blockchain.

**Current stats (December 2025):**
- **Price:** $0.00
- **Market Cap:** $32.83M

Supports programs in Solidity, C++, Rust, and Go.

### Aleph Zero (AZERO) — Privacy for Business

AZERO is a public blockchain with hybrid consensus AlephBFT. The private layer Liminal combines ZKP and secure multiparty computation (sMPC) for confidential contracts.

Ideal for enterprises needing private transactions on a public network.

### Polygon Hermez — Ethereum Scaling

Hermez was acquired by Polygon and renamed. It reduces costs by 90% via ZK-rollups and uses Proof of Efficiency (PoE) consensus.

### Horizen (ZEN) — Private Infrastructure

ZEN is a fork of Zcash that expanded functionality to decentralized applications. The super-node system supports sidechains, extending platform capabilities.

## Challenges Hindering Mass Adoption

1. **Technical Complexity:** Developers need deep cryptography knowledge to implement ZKP. Mistakes can lead to serious vulnerabilities.

2. **Computational Costs:** Generating proofs requires significant resources. It is slower than regular transactions, especially for complex proofs.

3. **Trusted Setup:** zk-SNARKs require a "trusted setup" phase. If compromised, an attacker could create fake proofs.

4. **Integration Difficulties:** Adding ZKP to existing infrastructure requires major changes to network protocols.

5. **Regulatory Uncertainty:** ZKP’s ability to anonymize transactions raises concerns among regulators. Many jurisdictions have yet to define the legal status of such systems.

## The Future of the ZK Ecosystem

Innovations like zk-STARKs (without trusted setup) are expected to significantly accelerate adoption. Cross-chain private layers will enable secure transactions between different blockchains.

The main trend is developing more user-friendly ZKP systems that do not require technical knowledge for basic use.

## Conclusion

ZK technologies represent the next evolution of blockchain. They address the industry’s two most pressing issues — privacy and scalability. Despite technical challenges, zk coins are a growing part of the crypto market with a capitalization exceeding $21 billion.

For investors, this means that the future — a language spoken by privacy and efficiency — is being built today. Monitoring ZK projects provides insight into where the entire cryptocurrency landscape is heading.