Vitalik Buterin's Latest Advocacy for ZK Technology in Ethereum: Evaluating the Impact of ZK on Ethereum's Future Scalability and Investment Potential

As one of Ethereum’s co-founders, Vitalik Buterin has consistently cast himself as a forward-thinking leader in blockchain innovation. In 2024–2025, his attention has increasingly centered on zero-knowledge (ZK) proofs, viewing them as essential for Ethereum’s future scalability and security. This focus is not just about technology—it’s a calculated move to reshape Ethereum’s significance amid rising institutional interest, looming quantum computing risks, and the demand for privacy-first systems. For investors, the ramifications are significant: technology now forms the backbone of Ethereum’s development plans, and its advancement could generate immense value for related projects and infrastructure.

ZK’s Technical Role in Ethereum

Buterin’s support for ZK technology is embodied in Ethereum’s “Lean Ethereum” initiative, which emphasizes both efficiency and resistance to quantum threats. A major update is the elimination of the modexp precompile—a component that, according to a

, previously caused ZK-EVM proof generation to be 50 times slower. By moving to standard EVM bytecode, streamlines the proof process, though this comes with a temporary increase in gas costs for certain specialized uses. Over time, however, this adjustment is projected to boost network capacity and give developers greater flexibility, as noted in the same report.

Additionally, Ethereum is adopting the GKR (Goldreich-Krawczyk-Rabin) protocol, which, as detailed in the Bitget report, allows for 2 million Poseidon2 hash computations per second on standard consumer hardware. This leap not only speeds up transaction validation but also strengthens Ethereum’s defenses against quantum computing attacks—a growing issue in the era after AGI, according to the same source. Buterin has highlighted that such breakthroughs are vital for Ethereum’s continued relevance as cybersecurity and biosecurity concerns increasingly overlap, per the Bitget report.

ZK Layer 2: Performance and Enterprise Uptake

The effects of these technical changes are already evident in Ethereum’s layer 2 landscape. Lighter, a layer 2 protocol powered by ZK, reached 24,192 transactions per second (TPS) by late 2025, surpassing rivals like

and , as reported by . Likewise, ZKsync’s Atlas upgrade enabled 15,000 TPS and nearly eliminated gas fees, resulting in a 150% jump in its native token (ZKS), according to the Bitget report. These achievements highlight ZK’s capacity to address the scaling needs of both everyday and institutional users.

Adoption by major institutions is accelerating. Deutsche Bank, Sony, and Citibank have all implemented Ethereum-based ZK-rollups to satisfy regulatory standards while maintaining high transaction throughput, as cited in the Bitget report. Mastercard has also teamed up with ZK-focused platforms to test cross-border payment solutions, per the Bitget report. By the end of 2025, ZK-rollups such as

and are handling 83% of enterprise smart contracts, with total value locked (TVL) and transaction fees expanding at a 200% annual compound rate, according to the Bitget report.

Investment Outlook: ZK as a Key Asset Class

For those investing, Ethereum’s ZK transformation offers twofold potential: infrastructure investments and token utility. Projects such as ZKsync, StarkNet, and Brevis—each showing technical progress and ecosystem integration—stand out as strong contenders for long-term appreciation. Brevis, for example, uses ZK proofs to provide privacy-focused data feeds, a capability increasingly valued by DeFi platforms, as outlined in the Bitget report.

The wider Ethereum ecosystem is also reaping rewards. Analysts forecast that Ethereum ETFs, including BlackRock’s ETHA, will outperform

ETFs in 2025, thanks to ZK-powered improvements and rising institutional participation, according to a . This momentum is fueled by Ethereum’s increasing TVL and the evolution of its layer 2 solutions, which now represent 60% of all on-chain transactions, as noted in the Bitget report.

Nevertheless, challenges remain. Removing modexp precompiles could temporarily raise gas costs for some specialized applications, and quantum resistance is still more theoretical than proven, according to the Bitget report. Investors must also contend with regulatory ambiguity, as ZK’s privacy attributes may conflict with shifting compliance standards, as highlighted in the Bitget report.

Conclusion: The Path Forward with ZK

Vitalik Buterin’s embrace of ZK technology represents more than a technical adjustment—it’s a redefinition of Ethereum’s place in a decentralized, post-quantum era. By focusing on scalability, privacy, and institutional compatibility, Ethereum is establishing itself as the foundation of Web3. For investors, the opportunity lies in backing projects that share this vision while managing short-term risks. As ZK-based advancements continue to expand Ethereum’s potential, early investment in layer 2 infrastructure and utility tokens could deliver significant returns, especially for those with a medium- to long-term outlook.