P0x Labs, the company behind Manta Network, has launched a new Layer 2 testnet after successfully completing a $25 million Series A investment round. The funding round, spearheaded by Polychain Capital and Qiming Venture Partners, came from a $500 million valuation. Alliance, CoinFund, and SevenX Ventures are some of the company’s other backers. Zero-knowledge proof-of-work protocols are becoming increasingly popular in the decentralised finance (DeFi) industry, which has boosted the worth of P0x Labs.
Why the fuss about Zero-knowledge proof?
Zero-knowledge proof is a cryptographic technology that protects user anonymity while preserving the integrity of the blockchain. It allows one party to convince another of the truth of a statement without disclosing any other information. Manta Network says that it has minted over 300,000 zero-knowledge “soulbound” tokens. These tokens are supposed are permanently bound to a specific address on a blockchain and so provide a high degree of security.
Due to their immutability, Manta’s soulbound tokens are gaining traction as a means of controlling one-of-a-kind digital assets like credentials for proving ownership of a piece of property or a person’s identity.
The fresh capital will be used to develop ZK Layer 1 blockchain projects Manta Pacific and Manta Atlantic, which provide on-chain privacy that complies with regulations. In order to provide programmable anonymity, the business has previously released the layer 1 blockchain Manta Atlantic, which focuses on ZK. Manta Pacific is a new testnet ecosystem that promises to make it simpler for developers to launch ZK applications that are native to the Ethereum Virtual Machine.
Web3 relies heavily on trust and anonymity, and ZKP is rapidly becoming a necessary tool for incorporating these features into blockchain protocols. Layer 2 includes strategies for offloading part of the computing burden associated with processing transactions off the main blockchain network.