Quick Take:

• Matter Labs has dropped its trademark applications for the term “ZK.”
• The decision follows backlash from leading figures and projects in the zero-knowledge proof (ZK) space.
• The controversy emerged as ZkSync prepared for an airdrop in mid-June.

Matter Labs Drops ‘ZK’ Trademark Applications Amid Industry Backlash

In a significant move, Matter Labs, the company behind the ZkSync Ethereum Layer 2 network, has decided to withdraw its applications to trademark the term “ZK.” The announcement was made on the platform X, formerly known as Twitter, following considerable backlash from key figures and projects in the zero-knowledge proof (ZK) community.

The debate around the trademark application centered on one core issue, as Matter Labs stated: “It would be impossible to agree on a group of people perceived as credibly neutral by nearly everyone.” This acknowledgment came in response to criticism from some of the foremost pioneers in ZK technology.

Prominent voices opposing the trademark included Shafi Goldwasser and Silvio Micali, co-inventors of ZK proofs, along with Sandeep Nailwal and Brendan Farmer, co-founders of Polygon, and Eli Ben-Sasson, CEO of StarkWare. These leaders released a unified statement condemning Matter Labs’ attempt to trademark “ZK.” They argued, “ZK should remain a public good. It shouldn’t be a trademark of a corporation: it should rather be accessible to all.” They warned that if Matter Labs persisted, it would alienate itself from the ZK community it aims to serve.

The dispute arose as ZkSync was gearing up for an anticipated airdrop in mid-June, according to previous reports by The Block. The intended use of the ticker ZK by ZkSync led to a conflict with Polyhedra, which planned to use the ZKJ ticker for its token listing. This situation highlighted the complexities and sensitivities surrounding the use of common industry terms.

ZkSync is recognized as one of the leading Ethereum Layer 2 blockchains that leverages ZK-proof technology. This approach contrasts with the optimistic rollup strategy employed by other Layer 2 solutions such as Optimism, Arbitrum, and Blast. The Layer 2 solutions are vital for scaling Ethereum by handling transactions off the main Ethereum blockchain, thereby increasing throughput and reducing fees.

The technology behind ZK proofs allows for secure and private transactions by enabling one party to prove to another that a statement is true without revealing any specific information about the transaction itself. This innovation has broad applications in privacy-focused financial systems and beyond.

The controversy over the trademark attempt reflects broader tensions within the crypto community about the balance between innovation, commercialization, and the open-source ethos that underpins much of the industry’s development. By attempting to trademark a term that has become foundational to a key area of blockchain technology, Matter Labs inadvertently sparked a debate about ownership and access to technological advancements.

In its statement retracting the trademark applications, Matter Labs emphasized its commitment to the ZK community and its principles. The company expressed hope that the decision would reinforce trust and collaboration within the industry.

Moving forward, the resolution of this dispute may serve as a cautionary tale for other projects considering similar moves. It underscores the importance of maintaining open communication and consensus within the decentralized tech community, particularly when it comes to shared resources and common terms that are integral to technological progress.

As ZkSync proceeds with its airdrop and continues to develop its platform, the industry will be watching closely to see how Matter Labs navigates these challenges and opportunities. The company’s actions and the community’s response will likely influence future interactions between corporate entities and the broader blockchain ecosystem.

In conclusion, Matter Labs’ withdrawal of its ‘ZK’ trademark applications marks a pivotal moment in the ongoing dialogue about the future of blockchain technology, community governance, and the preservation of public goods within the digital economy.