Exploring the Innovations in Zero-Knowledge-Proof Technology and the Future of Privacy and Gas Fees at Manta Network

In anticipation of the upcoming Hack Seasons Conference , we had the pleasure of talking with Shubham Bhandari , the Ecosystem Head at Manta Network During our conversation, Shubham shed light on Manta Pacific's compatibility with EVM and the network's commitment to zero-knowledge proof technology. He emphasized the critical aspects of maintaining privacy, achieving low transaction costs, and fostering support for decentralized applications.

Many entrepreneurs are inspired to enter this field due to pivotal moments or significant events. Can you share your journey into the world of Web3?

My journey began in 2019 with a focus on trading. Gradually, I shifted my attention to the DeFi landscape, conducting research on various DeFi protocols emerging from Asia and India. My path then led me to Polygon, where I took on roles as both a business analyst and a business developer for leading projects, particularly in the gaming sector.

Throughout the gaming cycle of 2022, I was immersed in this industry. This experience opened the door for me to join Manta Network, which serves as the official chain for Bybit. I initially held the position of head of gaming there, and as of October 2023, I have transitioned to the role of head of the ecosystem.

What benefits does the EVM compatibility of Manta Pacific provide for developers working on decentralized applications?

Since 2022, we have been diligently developing Manta Pacific, aiming at creating a layer 2 solution that promotes widespread adoption while keeping gas fees low. Notably, Manta is uniquely backed by Binance Labs and stands as the first chain leveraging Celestia for decentralized authentication on layer 2. This innovative approach has led to significant savings, amounting to approximately 4 million in transaction fees over a span of seven months, making it economically viable in markets like India.

Moreover, Manta Pacific has prioritized innovation, particularly in terms of privacy. We launched the Manta New Paradigm initiative to enhance total value locked (TVL) prior to the token launch, which successfully debuted on major exchanges, including Binance. Recently, we introduced Manta AI, and our flagship product, CeDeFi, has reached a TVL of around 130 million. CeDeFi mirrors Binance's offerings but empowers users with direct custody management via MetaMask.

Currently, our goal is to achieve a TVL of approximately 125 million within the next month, making it a prosperous venture during bear markets, as users tend to deposit and hold more assets during these times.

Manta Network places a strong emphasis on zero-knowledge-proof technology. What prompted this focus on ZK?

When Manta was established, it was initially conceived as a privacy-centric layer 1 network that enabled users to send tokens discreetly, akin to the goals currently pursued by ZK technology. Back then, it was referred to as a private network.

That was our initial mission. However, we encountered challenges related to asset location management and regulatory compliance since it was a private network, despite the fact that we do not hold user data, and no external review of the data occurs. Consequently, if cryptocurrency is prohibited in certain regions, Manta could face restrictions.

As we transitioned to a layer 2 model, our early focus was on the Optimistic (OP) stack due to its widespread adoption. Nonetheless, we had always envisioned a shift to zero-knowledge technology using compatible development kits (CDKs). Although we currently utilize the OP stack, we are on the cusp of moving to ZK, as it represents the ultimate goal for Manta Network.

With the roll-out of universal ZK circuits on Manta Pacific, what steps are being taken to facilitate the development and implementation of ZK-enabled contracts for Solidity smart contracts and dApps?

Our journey began with a privacy network before diving deep into zero-knowledge research. We identified promising applications for various technologies like VRF and zkShuffle, which guided our introduction of ZK circuits. These circuits are made available as open-source technology, allowing any project looking to build on the Manta Network to seamlessly use them for deploying ZK applications.

Additionally, as you've likely noticed, the rise of gaming applications, particularly card games leveraging VRF and zkShuffle, indicates that there is a growing interest in these technologies. Currently on Manta Network, we feature zkHoldem, a fully on-chain game employing ZK circuits.

Our commitment to ZK circuits is driven by the intention to simplify deployment for users and developers joining Manta Network. We aim to ensure that they encounter minimal obstacles while deploying contracts, and we are dedicated to providing comprehensive documentation to facilitate the seamless adoption of ZK technology throughout the ecosystem.

Manta Network's framework includes Manta Atlantic, which is associated with Polkadot. How does this relate to Manta Pacific?

Manta Atlantic and Manta Pacific serve as distinct chains. Following the recent token launch, we have observed a predominantly engaged audience that had previously interacted with Manta Network back in 2021, primarily focusing on the Atlantic side. However, the current utilization of Manta and the decentralized applications in operation are predominantly centered on the Pacific side. Thus, we are developing an official bridge to facilitate effortless transitions between the Pacific and Atlantic.

Moreover, at this stage, Manta Atlantic serves a crucial role in administering liquid staking tasks. All aspects related to liquid staking are managed on the Manta Atlantic side. Users holding tokens on the Pacific side must stake them via the Atlantic.

In the beginning, we encountered various difficulties, particularly relating to bridging and gas fees on the Polkadot side. To overcome these challenges, we devised a unique infrastructure. This allows users to possess tokens on Manta Pacific and easily deposit them, resulting in a natively minted LST token on Manta Pacific. Atlantic's primary focus will remain on liquid staking and governance functionalities.

The Manta Network's transition of data availability to Celestia has led to savings of around $1 million in user transaction fees. How does this initiative affect the user experience?

Up until now, ZK chains have typically struggled with either sluggish performance or high gas fees compared to the Optimistic stack. This is part of the reason we started with the OP stack, collaborated with Celestia, and are transitioning to ZK for greater efficiency.

With Celestia, users now experience a decrease in gas fees on the front end, which is essential for our backend operations as well. Historically, we directed 80% of the fees collected to Ethereum for data push, but now we only pay a fraction to Celestia for data storage and retrieval, which simplifies interactions for users.

To illustrate, in a fully on-chain game with a multitude of transactions, it becomes straightforward and cost-effective for players, even when compared to other blockchain networks. Thank you for your understanding.

The token launch of Manta Network has been described as a tumultuous experience. Can you elaborate on the hurdles encountered during the launch?

Our team was relatively small, predominantly comprised of engineers. The first notable challenge was shifting our focus towards marketing efforts to ensure all users were synchronized with the launch timeline.

Securing listings on major exchanges significantly benefited Manta by boosting our visibility. However, with such exposure comes heightened anticipation from the community, and even minor missteps—like a delay of a minute or two during the token launch—can have consequences.

On launch day, we faced challenges with the RPC connections, yet the community rallied behind us, demonstrating patience while utilizing alternative wallets to claim their airdrop. Their support was invaluable as many had eagerly awaited the Manta token's arrival.

The rush to facilitate a timely launch was quite overwhelming; managing every aspect—from exchanges to market making—can be extremely challenging, especially for anyone orchestrating their initial token introduction.

How has the integration of yield-bearing assets natively into the Layer 2 network influenced user engagement and interest?

I mentioned the New Paradigm initiative, which emphasizes native yield offerings. Our STONE and wUSDM tokens are minted directly on Manta and currently hold the highest liquidity. Recently, wUSDM received notable investment and is actively collaborating with regulatory bodies as part of a real-world assets (RWA) initiative, boasting a native yield of approximately 5%.

The plan for the New Paradigm campaign involves incentivizing users to bring their USDT, USDC, or ETH to Manta, deposit and log that ETH, and in turn receive STONE and wUSDM, which are yield-generating stablecoins.

As users earn yield—at around 5%—they also receive MANTA tokens. In addition, these tokens can be utilized throughout the ecosystem, providing a liquid position, while liquidity incentives allow them to earn additional benefits. This cross-ecosystem approach enhances usability not only through native yields but also through various other mechanisms.

In addition to that, I brought up the CDFI earlier. It's an innovative yield option we've just rolled out. This product seamlessly merges CDFI with DeFi, allowing users who are engaged with CDFI to transition smoothly to the DeFi landscape and access the same functionalities. On the flip side, those heavily involved in DeFi can effortlessly tap into the benefits offered by Binance through a DeFi application akin to MetaMask. This means you won't need to surrender custody of your assets; it's entirely self-custodial.

How does the Manta DAO influence the governance of the Manta Network, and in what ways can members of the community get involved?

This inquiry touches on our future plans rather than immediate developments. The Manta Foundation is still in the pipeline, with a projected launch set for this June 2024. It will encompass three, or rather four, key components. The first is the Manta Eco Fund, which aims to support a variety of projects through its financial backing.

The second component revolves around Manta Grants, designed to offer funding to diverse groups eager to establish and operate on the Manta platform. The third will enhance the ecosystem via educational initiatives and events like hackathons. We aim to cultivate innovative use cases and advance public goods within the Manta Network.

The fourth aspect will center on governance and establish the foundation's essential role. For instance, if Manta is poised to make a significant grant or investment, it will be presented to the community via a forum. Members will have the opportunity to approve or disapprove with a week dedicated to reviewing contributions. Following this period, a vote will take place on Snapshot, allowing Manta token holders to participate easily.