Harnessing Zero-Knowledge Proofs: NEAR Protocol's Approach to Boosting Blockchain Efficiency

In anticipation of the upcoming Hack Seasons Brussels During the event, we had the chance to conduct an interview. Altan Tutar , a Co-Founder and CEO of Nuffle Labs and contributor to NEAR In this conversation, he provides valuable insights on the evolving Web3 landscape, the practical application of ZK technology, and NEAR's pioneering solutions aimed at improving the developer experience and expanding blockchain utilization.

Many entrepreneurs are inspired to enter their field due to a significant moment or event. What ignited your interest in this sector, and how has your enthusiasm transformed over the years?

My journey into crypto began in 2021. I dove deep into the mechanics of cryptocurrency and found it fascinating, especially as I hail from Turkey, a country grappling with high inflation. The concept of digital currency resonated with me immensely.

I soon found myself participating in hackathons, creating innovative projects. My initial hackathon experience was in Warsaw, where we developed a zkKYC solution. The following event took place in New York, where we crafted a straightforward tool for DAOs. Winning that hackathon motivated me to lay the groundwork for a new foundation. My early projects were quite experimental, focused on ZK technology and smart contracts, which helped launch my career in this domain.

You mentioned your Turkish background. Could you elaborate on the Web3 scene in Turkey?

A thought-provoking article noted that approximately 4% of Turkey's GDP is held in USDT, a reflection of the economic climate. Many citizens rely on USD or use USDT for arbitrage opportunities due to the Turkish lira's volatility. This trend highlights a collective search for stability and potential profits in challenging economic conditions. Currently, Turkey stands out as a significant player in the crypto space, particularly within centralized exchanges.

DePIN and RWAs are currently trending in the crypto community, overshadowing zero-knowledge proofs. Yet, this technology remains crucial for Web3 development. How is NEAR utilizing ZK technology?

We approach ZK technology from a unique angle. Back in 2020, ZK was sidelined due to the high computational costs. However, last year, we began to take ZK more seriously. Although current efforts are paused, we recognize that ZK holds potential for optimizing blockchain efficiency by shifting certain computations off-chain, thus enabling faster and cheaper proofs. We're actively developing ZK-WASM as part of our sharding design, improving efficiency at the foundational level, along with applications like ZK ID solutions.

In addition to ZK technology, do you employ other strategies to mitigate costs considering its high expenses?

Absolutely, we are exploring various technologies. ZK is fundamentally about trust in computation. I've been leaning towards cryptoeconomic security through EigenLayer. There exists a spectrum from the trust element of ZK to the cryptoeconomic security of EigenLayer. Consequently, we are creating services that utilize EigenLayer to balance the dynamics of trust and cost.

NEAR prides itself on being a \"developer-friendly\" platform. What specific measures does NEAR take to simplify dApp development compared to rivals?

One compelling reason I joined NEAR in 2022 was its commitment to fostering a developer-friendly environment. A standout feature is the JavaScript SDK for smart contracts, which opens doors for nearly all programmers. This accessibility is a stark contrast to more complex languages like Solidity and Rust.

Moreover, NEAR operates within a WASM environment, offering a universal framework that's widely recognized across the internet, as opposed to the EVM, which is crypto-centric. This design allows for seamless transitions of developers from Web2 to Web3 without the need for extensive retraining. Additionally, we provide a command-line interface that simplifies contract deployment and interaction.

Given that NEAR Protocol is open source, how does the team encourage and reward outside contributions to the codebase?

We have an initiative called DevHub, a collaborative effort contributing to the NEAR protocol. Initially established as a DAO, it has transformed into a thriving community. All tooling is open-sourced, and we incentivize contributions, especially regarding Developer Relations. We've even brought on board contributors who demonstrate exceptional work. Quality contributions often receive retroactive rewards.

NEAR adopts what it's termed a \"blockchain OS\" model. What advantages does this bring that a traditional standalone blockchain lacks?

We pivoted to a blockchain OS model during the preceding bear market, ultimately refining it into a concept of chain abstraction. This approach offers a cohesive entry point for users to engage with various blockchains without the complications of bridging. Utilizing technologies like chain signatures, a single NEAR account can control multiple blockchain identities (such as Ethereum and Bitcoin). This streamlines interactions for both users and developers.

What attracts users to the NEAR protocol, especially when there’s a perception that the industry's focus is more on technology than user experience?

We have a substantial user base, and our growth strategy resembles a B2B2C model. We collaborate with businesses that already possess a significant clientele, facilitating their transition into blockchain users. Our developer tools enable straightforward integration into pre-existing applications, thus appealing to both businesses and consumers. For instance, partnerships with platforms like Sweatcoin, KaiKai, and HotWallet have bolstered our user engagement.

The conversation around bridging Web2 and Web3 is gaining momentum. What cross-chain solutions or tools does NEAR offer to facilitate this transition?

Indeed, one of NEAR's standout features is FastAuth, which facilitates user login through Google accounts, mirroring the convenience of Web2 credentials. This approach negates the hassles of managing keys. Unlike Metamask, NEAR's account model simplifies user interactions without cumbersome sign-ups, making transitions far more fluid.

How does NEAR Protocol's collaborative method with other blockchain projects, such as Polygon, enhance its functionality?

During 2021 and 2022, the narrative of being an \"Ethereum killer\" prevailed, but we've shifted our focus towards exploring Ethereum Layer 2s and data availability. We leverage NEAR’s data availability by collaborating with other roll-ups, fostering partnerships with L1 and L2 projects like Polygon and Optimism. This flexibility keeps us pertinent and enables us to educate the market while strategically positioning our offerings.

As a variety of events are on the horizon, what are your objectives for Hack Season Brussels? Can you share any exciting details?

From our standpoint, we plan to showcase our initiatives, such as NEAR DA, which aims to lower rollup costs significantly. We already have a top-17 rollup being developed on NEAR DA. Once our product is finalized, we’ll introduce fragmentation with the Fast Finality Layer, enabling rapid transactions and messaging across rollups using EigenLayer’s security. I’m enthusiastic about revealing more regarding NEAR and examining potential AI applications.

At major events like the Ethereum CC, what topic do you believe should receive greater emphasis from the crypto community?

While zero-knowledge proofs and similar topics gain substantial attention, real-world assets (RWA) often go underrepresented. For instance, USDC is categorized as a real-world asset. The integration of RWAs into the crypto universe could usher in substantial capital. Projects like EigenLayer are pioneering new frameworks by securing assets like USDC. The potential to leverage RWAs to amplify on-chain assets is intriguing and merits more focus instead of the constant spotlight on Layer 2 developments.