Zero-knowledge proofs (ZK) are a cryptographic technique in which a prover can verify possession of information, but without revealing the content of that information. This technique is critical for privacy and scalability in the cryptocurrency space. As the transaction volume of the Ethereum blockchain increases, transaction fees increase and transaction speeds slow down. Solutions like zkSync aim to move transactions from the mainnet of the Ethereum blockchain to its sidechains using ZK proofs. In this way, transaction speeds can be increased while transaction fees are reduced.

At the end of May 2024, Matter Labs unexpectedly filed to register the term “ZK” as a trademark in several countries. This move sparked consternation and outrage in the cryptocurrency community. Many academics and entrepreneurs, including Shafi Goldwasser and Silvio Micali, two of the creators of ToM evidence, as well as leading figures in the field such as StarkWare CEO Eli Ben-Sasson and Polygon Labs co-founder Sandeep Nailwal, have criticized Matter Labs’ initiative harshly. criticized it in some way.

The focus of the backlash has been a public open letter that would disrupt the development of ZK technology and go against the collaborative spirit of the cryptocurrency industry. As stated in the letter, trademarking the term “ZK” could create significant obstacles for academics researching ZK technology and other blockchain projects using this technology. This could negatively impact innovation and competition in the cryptocurrency space.

Matter Labs’ trademark application has brought the balance between intellectual property rights and open source innovation in the cryptocurrency space back into focus. Cryptocurrency technology is based on open source software development principles and community collaboration. These principles have allowed the cryptocurrency ecosystem to grow rapidly and the emergence of innovative solutions.

However, as commercial applications of technology increase, intellectual property rights become increasingly important. Companies want to protect their technological innovations with intellectual property rights such as patents or trademarks to protect their investments and gain a competitive advantage. But this could undermine the spirit of collaboration that underpins the cryptocurrency ecosystem.

In response to community backlash, Matter Labs announced in a blog post on June 2 that it was withdrawing its “ZK” trademark applications. Referring to the difficulties of finding an institution that can make an impartial decision, the company said, “As a result of these discussions, we decided to withdraw all our trademark applications.”