59 posts tagged with "Blockchain"

Plume Network: Overview and Value Proposition​

Plume Network is a blockchain platform purpose-built for Real-World Assets (RWA). It is a public, Ethereum-compatible chain designed to tokenize a wide range of real-world financial assets – from private credit and real estate to carbon credits and even collectibles – and make them as usable as native crypto assets. In other words, Plume doesn’t just put assets on-chain; it allows users to hold and utilize tokenized real assets in decentralized finance (DeFi) – enabling familiar crypto activities like staking, lending, borrowing, swapping, and speculative trading on assets that originate in traditional finance.

The core value proposition of Plume is to bridge TradFi and DeFi by turning traditionally illiquid or inaccessible assets into programmable, liquid tokens. By integrating institutional-grade assets (e.g. private credit funds, ETFs, commodities) with DeFi infrastructure, Plume aims to make high-quality investments – which were once limited to large institutions or specific markets – permissionless, composable, and a click away for crypto users. This opens the door for crypto participants to earn “real yield” backed by stable real-world cash flows (such as loan interest, rental income, bond yields, etc.) rather than relying on inflationary token rewards. Plume’s mission is to drive “RWA Finance (RWAfi)”, creating a transparent and open financial system where anyone can access assets like private credit, real estate debt, or commodities on-chain, and use them freely in novel ways.

In summary, Plume Network serves as an “on-chain home for real-world assets”, offering a full-stack ecosystem that transforms off-chain assets into globally accessible financial tools with true crypto-native utility. Users can stake stablecoins to earn yields from top fund managers (Apollo, BlackRock, Blackstone, etc.), loop and leverage RWA-backed tokens as collateral, and trade RWAs as easily as ERC-20 tokens. By doing so, Plume stands out as a platform striving to make alternative assets more liquid and programmable, bringing fresh capital and investment opportunities into Web3 without sacrificing transparency or user experience.

Technology and Architecture​

Plume Network is implemented as an EVM-compatible blockchain with a modular Layer-2 architecture. Under the hood, Plume operates similarly to an Ethereum rollup (comparable to Arbitrum’s technology), utilizing Ethereum for data availability and security. Every transaction on Plume is eventually batch-posted to Ethereum, which means users pay a small extra fee to cover the cost of publishing calldata on Ethereum. This design leverages Ethereum’s robust security while allowing Plume to have its own high-throughput execution environment. Plume runs a sequencer that aggregates transactions and commits them to Ethereum periodically, giving the chain faster execution and lower fees for RWA use-cases, but anchored to Ethereum for trust and finality.

Because Plume is EVM-compatible, developers can deploy Solidity smart contracts on Plume just as they would on Ethereum, with almost no changes. The chain supports the standard Ethereum RPC methods and Solidity operations, with only minor differences (e.g. Plume’s block number and timestamp semantics mirror Arbitrum’s conventions due to the Layer-2 design). In practice, this means Plume can easily integrate existing DeFi protocols and developer tooling. The Plume docs note that cross-chain messaging is supported between Ethereum (the “parent” chain) and Plume (the L2), enabling assets and data to move between the chains as needed.

Notably, Plume describes itself as a “modular blockchain” optimized for RWA finance. The modular approach is evident in its architecture: it has dedicated components for bridging assets (called Arc for bringing anything on-chain), for omnichain yield routing (SkyLink) across multiple blockchains, and for on-chain data feeds (Nexus, an “onchain data highway”). This suggests Plume is building an interconnected system where real-world asset tokens on Plume can interact with liquidity on other chains and where off-chain data (like asset valuations, interest rates, etc.) is reliably fed on-chain. Plume’s infrastructure also includes a custom wallet called Plume Passport (the “RWAfi Wallet”) which likely handles identity/AML checks necessary for RWA compliance, and a native stablecoin (pUSD) for transacting in the ecosystem.

Importantly, Plume’s current iteration is often called a Layer-2 or rollup chain – it is built atop Ethereum for security. However, the team has hinted at ambitious plans to evolve the tech further. Plume’s CTO noted that they started as a modular L2 rollup but are now pushing “down the stack” toward a fully sovereign Layer-1 architecture, optimizing a new chain from scratch with high performance, privacy features “comparable to Swiss banks,” and a novel crypto-economic security model to secure the next trillion dollars on-chain. While specifics are scant, this suggests that over time Plume may transition to a more independent chain or incorporate advanced features like FHE (Fully Homomorphic Encryption) or zk-proofs (the mention of zkTLS and privacy) to meet institutional requirements. For now, though, Plume’s mainnet leverages Ethereum’s security and EVM environment to rapidly onboard assets and users, providing a familiar but enhanced DeFi experience for RWAs.

Tokenomics and Incentives​

PLUME ($PLUME) is the native utility token of the Plume Network. The $PLUME token is used to power transactions, governance, and network security on Plume. As the gas token, $PLUME is required to pay transaction fees on the Plume chain (similar to how ETH is gas on Ethereum). This means all operations – trading, staking, deploying contracts – consume $PLUME for fees. Beyond gas, $PLUME has several utility and incentive roles:

• Governance: $PLUME holders can participate in governance decisions, presumably voting on protocol parameters, upgrades, or asset onboarding decisions.
• Staking/Security: The token can be staked, which likely supports the network’s validator or sequencer operations. Stakers help secure the chain and in return earn staking rewards in $PLUME. (Even as a rollup, Plume may use a proof-of-stake mechanism for its sequencer or for eventual decentralization of block production).
• Real Yield and DeFi utility: Plume’s docs mention that users can use $PLUME across dApps to “unlock real yield”. This suggests that holding or staking $PLUME might confer higher yields in certain RWA yield farms or access to exclusive opportunities in the ecosystem.
• Ecosystem Incentives: $PLUME is also used to reward community engagement – for example, users might earn tokens via community quests, referral programs, testnet participation (such as the “Take Flight” developer program or the testnet “Goons” NFTs). This incentive design is meant to bootstrap network effects by distributing tokens to those who actively use and grow the platform.

Token Supply & Distribution: Plume has a fixed total supply of 10 billion $PLUME tokens. At the Token Generation Event (mainnet launch), the initial circulating supply is 20% of the total (i.e. 2 billion tokens). The allocation is heavily weighted toward community and ecosystem development:

• 59% to Community, Ecosystem & Foundation – this large share is reserved for grants, liquidity incentives, community rewards, and a foundation pool to support the ecosystem’s long-term growth. This ensures a majority of tokens are available to bootstrap usage (and potentially signals commitment to decentralization over time).
• 21% to Early Backers – these tokens are allocated to strategic investors and partners who funded Plume’s development. (As we’ll see, Plume raised capital from prominent crypto funds; this allocation likely vests over time as per investor agreements.)
• 20% to Core Contributors (Team) – allocated to the founding team and core developers driving Plume. This portion incentivizes the team and aligns them with the network’s success, typically vesting over a multi-year period.

Besides $PLUME, Plume’s ecosystem includes a stablecoin called Plume USD (pUSD). pUSD is designed as the RWAfi ecosystem stablecoin for Plume. It serves as the unit of account and primary trading/collateral currency within Plume’s DeFi apps. Uniquely, pUSD is fully backed 1:1 by USDC – effectively a wrapped USDC for the Plume network. This design choice (wrapping USDC) was made to reduce friction for traditional institutions: if an organization is already comfortable holding and minting USDC, they can seamlessly mint and use pUSD on Plume under the same frameworks. pUSD is minted and redeemed natively on both Ethereum and Plume, meaning users or institutions can deposit USDC on Ethereum and receive pUSD on Plume, or vice versa. By tying pUSD 1:1 to USDC (and ultimately to USD reserves), Plume ensures its stablecoin remains fully collateralized and liquid, which is critical for RWA transactions (where predictability and stability of the medium of exchange are required). In practice, pUSD provides a common stable liquidity layer for all RWA apps on Plume – whether it’s buying tokenized bonds, investing in RWA yield vaults, or trading assets on a DEX, pUSD is the stablecoin that underpins value exchange.

Overall, Plume’s tokenomics aim to balance network utility with growth incentives. $PLUME ensures the network is self-sustaining (through fees and staking security) and community-governed, while large allocations to ecosystem funds and airdrops help drive early adoption. Meanwhile, pUSD anchors the financial ecosystem in a trustworthy stable asset, making it easier for traditional capital to enter Plume and for DeFi users to measure returns on real-world investments.

Founding Team and Backers​

Plume Network was founded in 2022 by a trio of entrepreneurs with backgrounds in crypto and finance: Chris Yin (CEO), Eugene Shen (CTO), and Teddy Pornprinya (CBO). Chris Yin is described as the visionary product leader of the team, driving the platform’s strategy and thought leadership in the RWA space. Eugene Shen leads the technical development as CTO (previously having worked on modular blockchain architectures, given his note about “customizing geth” and building from the ground up). Teddy Pornprinya, as Chief Business Officer, spearheads partnerships, business development, and marketing – he was instrumental in onboarding dozens of projects into the Plume ecosystem early on. Together, the founders identified the gap in the market for an RWA-optimized chain and quit their prior roles to build Plume, officially launching the project roughly a year after conception.

Plume has attracted significant backing from both crypto-native VCs and traditional finance giants, signaling strong confidence in its vision:

• In May 2023, Plume raised a $10 million seed round led by Haun Ventures (the fund of former a16z partner Katie Haun). Other participants in the seed included Galaxy Digital, Superscrypt (Temasek’s crypto arm), A Capital, SV Angel, Portal Ventures, and Reciprocal Ventures. This diverse investor base gave Plume a strong start, combining crypto expertise and institutional connections.

• By late 2024, Plume secured a $20 million Series A funding to accelerate its development. This round was backed by top-tier investors such as Brevan Howard Digital, Haun Ventures (returning), Galaxy, and Faction VC. The inclusion of Brevan Howard, one of the world’s largest hedge funds with a dedicated crypto arm, is especially notable and underscored the growing Wall Street interest in RWAs on blockchain.

• In April 2025, Apollo Global Management – one of the world’s largest alternative asset managers – made a strategic investment in Plume. Apollo’s investment was a seven-figure (USD) amount intended to help Plume scale its infrastructure and bring more traditional financial products on-chain. Apollo’s involvement is a strong validation of Plume’s approach: Christine Moy, Apollo’s Head of Digital Assets, said their investment “underscores Apollo’s focus on technologies that broaden access to institutional-quality products… Plume represents a new kind of infrastructure focused on digital asset utility, investor engagement, and next-generation financial solutions”. In other words, Apollo sees Plume as key infrastructure to make private markets more liquid and accessible via blockchain.

• Another strategic backer is YZi Labs, formerly Binance Labs. In early 2025, YZi (Binance’s venture arm rebranded) announced a strategic investment in Plume Network as well. YZi Labs highlighted Plume as a “cutting-edge Layer-2 blockchain designed for scaling real world assets”, and their support signals confidence that Plume can bridge TradFi and DeFi at a large scale. (It’s worth noting Binance Labs’ rebranding to YZi Labs indicates continuity of their investments in core infrastructure projects like Plume.)

• Plume’s backers also include traditional fintech and crypto institutions through partnerships (detailed below) – for example, Mercado Bitcoin (Latin America’s largest digital asset platform) and Anchorage Digital (a regulated crypto custodian) are ecosystem partners, effectively aligning themselves with Plume’s success. Additionally, Grayscale Investments – the world’s largest digital asset manager – has taken notice: in April 2025, Grayscale officially added $PLUME to its list of assets “Under Consideration” for future investment products. Being on Grayscale’s radar means Plume could potentially be included in institutional crypto trusts or ETFs, a major nod of legitimacy for a relatively new project.

In summary, Plume’s funding and support comes from a who’s-who of top investors: premier crypto VCs (Haun, Galaxy, a16z via GFI’s backing of Goldfinch, etc.), hedge funds and TradFi players (Brevan Howard, Apollo), and corporate venture arms (Binance/YZi). This mix of backers brings not just capital but also strategic guidance, regulatory expertise, and connections to real-world asset originators. It has also provided Plume with war-chest funding (at least $30M+ over seed and Series A) to build out its specialized blockchain and onboard assets. The strong backing serves as a vote of confidence that Plume is positioned as a leading platform in the fast-growing RWA sector.

Ecosystem Partners and Integrations​

Plume has been very active in forging ecosystem partnerships across both crypto and traditional finance, assembling a broad network of integrations even before (and immediately upon) mainnet launch. These partners provide the assets, infrastructure, and distribution that make Plume’s RWA ecosystem functional:

• Nest Protocol (Nest Credit): An RWA yield platform that operates on Plume, allowing users to deposit stablecoins into vaults and receive yield-bearing tokens backed by real-world assets. Nest is essentially a DeFi frontend for RWA yields, offering products like tokenized U.S. Treasury Bills, private credit, mineral rights, etc., but abstracting away the complexity so they “feel like crypto.” Users swap USDC (or pUSD) for Nest-issued tokens that are fully backed by regulated, audited assets held by custodians. Nest works closely with Plume – a testimonial from Anil Sood of Anemoy (a partner) highlights that “partnering with Plume accelerates our mission to bring institutional-grade RWAs to every investor… This collaboration is a blueprint for the future of RWA innovation.”. In practice, Nest is Plume’s native yield marketplace (sometimes called “Nest Yield” or RWA staking platform), and many of Plume’s big partnerships funnel into Nest vaults.

• Mercado Bitcoin (MB): The largest digital asset exchange in Latin America (based in Brazil) has partnered with Plume to tokenize ~$40 million of Brazilian real-world assets. This initiative, announced in Feb 2025, involves MB using Plume’s blockchain to issue tokens representing Brazilian asset-backed securities, consumer credit portfolios, corporate debt, and accounts receivable. The goal is to connect global investors with yield-bearing opportunities in Brazil’s economy – effectively opening up Brazilian credit markets to on-chain investors worldwide through Plume. These Brazilian RWA tokens will be available from day one of Plume’s mainnet on the Nest platform, providing stable on-chain returns backed by Brazilian small-business loans and credit receivables. This partnership is notable because it gives Plume a geographic reach (LATAM) and a pipeline of emerging-market assets, showcasing how Plume can serve as a hub connecting regional asset originators to global liquidity.

• Superstate: Superstate is a fintech startup founded by Robert Leshner (former founder of Compound), focused on bringing regulated U.S. Treasury fund products on-chain. In 2024, Superstate launched a tokenized U.S. Treasury fund (approved as a 1940 Act mutual fund) targeted at crypto users. Plume was chosen by Superstate to power its multi-chain expansion. In practice, this means Superstate’s tokenized T-bill fund (which offers stable yield from U.S. government bonds) is being made available on Plume, where it can be integrated into Plume’s DeFi ecosystem. Leshner himself said: “by expanding to Plume – the unique RWAfi chain – we can demonstrate how purpose-built infrastructure can enable great new use-cases for tokenized assets. We’re excited to build on Plume.”. This indicates Superstate will deploy its fund tokens (e.g., maybe an on-chain share of a Treasuries fund) on Plume, allowing Plume users to hold or use them in DeFi (perhaps as collateral for borrowing, or in Nest vaults for auto-yield). It is a strong validation that Plume’s chain is seen as a preferred home for regulated asset tokens like Treasuries.

• Ondo Finance: Ondo is a well-known DeFi project that pivoted into the RWA space by offering tokenized bonds and yield products (notably, Ondo’s OUSG token, which represents shares in a short-term U.S. Treasury fund, and USDY, representing an interest-bearing USD deposit product). Ondo is listed among Plume’s ecosystem partners, implying a collaboration where Ondo’s yield-bearing tokens (like OUSG, USDY) can be used on Plume. In fact, Ondo’s products align closely with Plume’s goals: Ondo established legal vehicles (SPVs) to ensure compliance, and its OUSG token is backed by BlackRock’s tokenized money market fund (BUIDL), providing ~4.5% APY from Treasuries. By integrating Ondo, Plume gains blue-chip RWA assets like U.S. Treasuries on-chain. Indeed, as of late 2024, Ondo’s RWA products had a market value around $600+ million, so bridging them to Plume adds significant TVL. This synergy likely allows Plume users to swap into Ondo’s tokens or include them in Nest vaults for composite strategies.

• Centrifuge: Centrifuge is a pioneer in RWA tokenization (operating its own Polkadot parachain for RWA pools). Plume’s site lists Centrifuge as a partner, suggesting collaboration or integration. This could mean that Centrifuge’s pools of assets (trade finance, real estate bridge loans, etc.) might be accessible from Plume, or that Centrifuge will use Plume’s infrastructure for distribution. For example, Plume’s SkyLink omnichain yield might route liquidity from Plume into Centrifuge pools on Polkadot, or Centrifuge could tokenize certain assets directly onto Plume for deeper DeFi composability. Given Centrifuge leads the private credit RWA category with ~$409M TVL in its pools, its participation in Plume’s ecosystem is significant. It indicates an industry-wide move toward interoperability among RWA platforms, with Plume acting as a unifying layer for RWA liquidity across chains.

• Credbull: Credbull is a private credit fund platform that partnered with Plume to launch a large tokenized credit fund. According to CoinDesk, Credbull is rolling out up to a $500M private credit fund on Plume, offering a fixed high yield to on-chain investors. This likely involves packaging private credit (loans to mid-sized companies or other credit assets) into a vehicle where on-chain stablecoin holders can invest for a fixed return. The significance is twofold: (1) It adds a huge pipeline of yield assets (~half a billion dollars) to Plume’s network, and (2) it exemplifies how Plume is attracting real asset managers to originate products on its chain. Combined with other pipeline assets, Plume said it planned to tokenize about $1.25 billion worth of RWAs by late 2024, including Credbull’s fund, plus $300M of renewable energy assets (solar farms via Plural Energy), ~$120M of healthcare receivables (Medicaid-backed invoices), and even oil & gas mineral rights. This large pipeline shows that at launch, Plume isn’t empty – it comes with tangible assets ready to go.

• Goldfinch: Goldfinch is a decentralized credit protocol that provided undercollateralized loans to fintech lenders globally. In 2023, Goldfinch pivoted to “Goldfinch Prime”, targeting accredited and institutional investors by offering on-chain access to top private credit funds. Plume and Goldfinch announced a strategic partnership to bring Goldfinch Prime’s offerings to Plume’s Nest platform, effectively marrying Goldfinch’s institutional credit deals with Plume’s user base. Through this partnership, institutional investors on Plume can stake stablecoins into funds managed by Apollo, Golub Capital, Aries, Stellus, and other leading private credit managers via Goldfinch’s integration. The ambition is massive: collectively these managers represent over $1 trillion in assets, and the partnership aims to eventually make portions of that available on-chain. In practical terms, a user on Plume could invest in a diversified pool that earns yield from hundreds of real-world loans made by these credit funds, all tokenized through Goldfinch Prime. This not only enhances Plume’s asset diversity but also underscores Plume’s credibility to partner with top-tier RWA platforms.

• Infrastructure Partners (Custody and Connectivity): Plume has also integrated key infrastructure players. Anchorage Digital, a regulated crypto custodian bank, is a partner – Anchorage’s involvement likely means institutional users can custody their tokenized assets or $PLUME securely in a bank-level custody solution (a must for big money). Paxos is another listed partner, which could relate to stablecoin infrastructure (Paxos issues USDP stablecoin and also provides custody and brokerage services – possibly Paxos could be safeguarding the reserves for pUSD or facilitating asset tokenization pipelines). LayerZero is mentioned as well, indicating Plume uses LayerZero’s interoperability protocol for cross-chain messaging. This would allow assets on Plume to move to other chains (and vice versa) in a trust-minimized way, complementing Plume’s rollup bridge.

• Other DeFi Integrations: Plume’s ecosystem page cites 180+ protocols, including RWA specialists and mainstream DeFi projects. For instance, names like Nucleus Yield (a platform for tokenized yields), and possibly on-chain KYC providers or identity solutions, are part of the mix. By the time of mainnet, Plume had over 200 integrated protocols in its testnet environment – meaning many existing dApps (DEXs, money markets, etc.) have deployed or are ready to deploy on Plume. This ensures that once real-world assets are tokenized, they have immediate utility: e.g., a tokenized solar farm revenue stream could be traded on an order-book exchange, or used as collateral for a loan, or included in an index – because the DeFi “money lego” pieces (DEXs, lending platforms, asset management protocols) are available on the chain from the start.

In summary, Plume’s ecosystem strategy has been aggressive and comprehensive: secure anchor partnerships for assets (e.g. funds from Apollo, BlackRock via Superstate/Ondo, private credit via Goldfinch and Credbull, emerging market assets via Mercado Bitcoin), ensure infrastructure and compliance in place (Anchorage custody, Paxos, identity/AML tooling), and port over the DeFi primitives to allow a flourishing of secondary markets and leverage. The result is that Plume enters 2025 as potentially the most interconnected RWA network in Web3 – a hub where various RWA protocols and real-world institutions plug in. This “network-of-networks” effect could drive significant total value locked and user activity, as indicated by early metrics (Plume’s testnet saw 18+ million unique wallets and 280+ million transactions in a short span, largely due to incentive campaigns and the breadth of projects testing the waters).

Roadmap and Development Milestones​

Plume’s development has moved at a rapid clip, with a phased approach to scaling up real-world assets on-chain:

• Testnet and Community Growth (2023): Plume launched its incentivized testnet (code-named “Miles”) in mid-late 2023. The testnet campaign was extremely successful in attracting users – over 18 million testnet wallet addresses were created, executing 280 million+ transactions. This was likely driven by testnet “missions” and an airdrop campaign (Season 1 of Plume’s airdrop was claimed by early users). The testnet also onboarded over 200 protocols and saw 1 million NFTs (“Goons”) minted, indicating a vibrant trial ecosystem. This massive testnet was a milestone proving out Plume’s tech scalability and generating buzz (and a large community: Plume now counts ~1M Twitter followers and hundreds of thousands in Discord/Telegram).

• Mainnet Launch (Q1 2025): Plume targeted the end of 2024 or early 2025 for mainnet launch. Indeed, by February 2025, partners like Mercado Bitcoin announced their tokenized assets would go live “from the first day of Plume’s mainnet launch.”. This implies Plume mainnet went live or was scheduled to go live around Feb 2025. Mainnet launch is a crucial milestone, bringing the testnet’s lessons to production along with the initial slate of real assets (~$1B+ worth) ready to be tokenized. The launch likely included the release of Plume’s core products: the Plume Chain (mainnet), Arc for asset onboarding, pUSD stablecoin, and Plume Passport wallet, as well as initial DeFi dApps (DEXs, money markets) deployed by partners.

• Phased Asset Onboarding: Plume has indicated a “phased onboarding” strategy for assets to ensure a secure, liquid environment. In early phases, simpler or lower-risk assets (like fully backed stablecoins, tokenized bonds) come first, alongside controlled participation (perhaps whitelisted institutions) to build trust and liquidity. Each phase then unlocks more use cases and asset classes as the ecosystem proves itself. For example, Phase 1 might focus on on-chain Treasuries and private credit fund tokens (relatively stable, yield-generating assets). Subsequent phases could bring more esoteric or higher-yield assets like renewable energy revenue streams, real estate equity tokens, or even exotic assets (the docs amusingly mention “GPUs, uranium, mineral rights, durian farms” as eventual on-chain asset possibilities). Plume’s roadmap thus expands the asset menu over time, parallel with developing the needed market depth and risk management on-chain.

• Scaling and Decentralization: Following mainnet, a key development goal is to decentralize the Plume chain’s operations. Currently, Plume has a sequencer model (likely run by the team or a few nodes). Over time, they plan to introduce a robust validator/sequencer set where $PLUME stakers help secure the network, and possibly even transition to a fully independent consensus. The founder’s note about building an optimized L1 with a new crypto-economic model hints that Plume might implement a novel Proof-of-Stake or hybrid security model to protect high-value RWAs on-chain. Milestones in this category would include open-sourcing more of the stack, running incentivized testnet for node operators, and implementing fraud proofs or zk-proofs (if moving beyond an optimistic rollup).

• Feature Upgrades: Plume’s roadmap also includes adding advanced features demanded by institutions. This could involve:

  • Privacy enhancements: e.g., integrating zero-knowledge proofs for confidential transactions or identity, so that sensitive financial details of RWAs (like borrower info or cashflow data) can be kept private on a public ledger. The mention of FHE and zkTLS suggests research in enabling private yet verifiable asset handling.
  • Compliance and Identity: Plume already has AML screening and compliance modules, but future work will refine on-chain identity (perhaps DID integration in Plume Passport) so that RWA tokens can enforce transfer restrictions or only be held by eligible investors when required.
  • Interoperability: Further integrations with cross-chain protocols (expanding on LayerZero) and bridges so that Plume’s RWA liquidity can seamlessly flow into major ecosystems like Ethereum mainnet, Layer-2s, and even other app-chains. The SkyLink omnichain yield product is likely part of this, enabling users on other chains to tap yields from Plume’s RWA pools.

• Growth Targets: Plume’s leadership has publicly stated goals like “tokenize $3 billion+ in assets by Q4 2024” and eventually far more. While $1.25B was the short-term pipeline at launch, the journey to $3B in tokenized RWAs is an explicit milestone. Longer term, given the trillions in institutional assets potentially tokenizable, Plume will measure success in how much real-world value it brings on-chain. Another metric is TVL and user adoption: by April 2025 the RWA tokenization market crossed $20B in TVL overall, and Plume aspires to capture a significant share of that. If its partnerships mature (e.g., if even 5% of that $1 trillion Goldfinch pipeline comes on-chain), Plume’s TVL could grow exponentially.

• Recent Highlights: By spring 2025, Plume had several noteworthy milestones:

  • The Apollo investment (Apr 2025) – which not only brought funding but also the opportunity to work with Apollo’s portfolio (Apollo manages $600B+ including credit, real estate, and private equity assets that could eventually be tokenized).
  • Grayscale consideration (Apr 2025) – being added to Grayscale’s watchlist is a milestone in recognition, potentially paving the way for a Plume investment product for institutions.
  • RWA Market Leadership: Plume’s team frequently publishes the “Plumeberg” Newsletters noting RWA market trends. In one, they celebrated RWA protocols surpassing $10B TVL and noted Plume’s key role in the narrative. They have positioned Plume as core infrastructure as the sector grows, which suggests a milestone of becoming a reference platform in the RWA conversation.

In essence, Plume’s roadmap is about scaling up and out: scale up in terms of assets (from hundreds of millions to billions tokenized), and scale out in terms of features (privacy, compliance, decentralization) and integrations (connecting to more assets and users globally). Each successful asset onboarding (be it a Brazilian credit deal or an Apollo fund tranche) is a development milestone in proving the model. If Plume can maintain momentum, upcoming milestones might include major financial institutions launching products directly on Plume (e.g., a bank issuing a bond on Plume), or government entities using Plume for public asset auctions – all part of the longer-term vision of Plume as a global on-chain marketplace for real-world finance.

Metrics and Traction​

While still early, Plume Network’s traction can be gauged by a combination of testnet metrics, partnership pipeline, and the overall growth of RWA on-chain:

• Testnet Adoption: Plume’s incentivized testnet (2023) saw extraordinary participation. 18 million+ unique addresses and 280 million transactions were recorded – numbers rivaling or exceeding many mainnets. This was driven by an enthusiastic community drawn by Plume’s airdrop incentives and the allure of RWAs. It demonstrates a strong retail interest in the platform (though many may have been speculators aiming for rewards, it nonetheless seeded a large user base). Additionally, over 200 DeFi protocols deployed contracts on the testnet, signaling broad developer interest. This effectively primed Plume with a large user and developer community even before launch.

• Community Size: Plume quickly built a social following in the millions (e.g., 1M followers on X/Twitter, 450k in Discord, etc.). They brand their community members as “Goons” – over 1 million “Goon” NFTs were minted as a part of testnet achievements. Such gamified growth reflects one of the fastest community buildups in recent Web3 memory, indicating that the narrative of real-world assets resonates with a wide audience in crypto.

• Ecosystem and TVL Pipeline: At mainnet launch, Plume projected having over $1 billion in real-world assets tokenized or available on day one. In a statement, co-founder Chris Yin highlighted proprietary access to high-yield, privately held assets that are “exclusively” coming to Plume. Indeed, specific assets lined up included:

  • $500M from a Credbull private credit fund,
  • $300M in solar energy farms (Plural Energy),
  • $120M in healthcare (Medicaid receivables),
  • plus mineral rights and other esoteric assets. These sum to ~$1B, and Yin stated the aim to reach $3B tokenized by end of 2024. Such figures, if realized, would place Plume among the top chains for RWA TVL. By comparison, the entire RWA sector’s on-chain TVL was about $20B as of April 2025, so $3B on one platform would be a very significant share.

• Current TVL / Usage: Since mainnet launch is recent, concrete TVL figures on Plume aren’t yet publicly reported like on DeFiLlama. However, we know several integrated projects bring their own TVL:

  • Ondo’s products (OUSG, etc.) had $623M in market value around early 2024 – some of that may now reside or be mirrored on Plume.
  • The tokenized assets via Mercado Bitcoin (Brazil) add $40M pipeline.
  • Goldfinch Prime’s pool could attract large deposits (Goldfinch’s legacy pools originated ~$100M+ of loans; Prime could scale higher with institutions).
  • If Nest vaults aggregate multiple yields, that could quickly accumulate nine-figure TVL on Plume as stablecoin holders seek 5-10% yields from RWAs. As a qualitative metric, demand for RWA yields has been high even in bear markets – for instance, tokenized Treasury funds like Ondo’s saw hundreds of millions in a few months. Plume, concentrating many such offerings, could see a rapid uptick in TVL as DeFi users rotate into more “real” yields.

• Transactions and Activity: We might anticipate relatively lower on-chain transaction counts on Plume compared to say a gaming chain, because RWA transactions are higher-value but less frequent (e.g., moving millions in a bond token vs. many micro-transactions). That said, if secondary trading picks up (on an order book exchange or AMM on Plume), we could see steady activity. The presence of 280M test txns suggests Plume can handle high throughput if needed. With Plume’s low fees (designed to be cheaper than Ethereum) and composability, it encourages more complex strategies (like looping collateral, automated yield strategies by smart contracts) which could drive interactions.

• Real-World Impact: Another “metric” is traditional participation. Plume’s partnership with Apollo and others means institutional AuM (Assets under Management) connected to Plume is in the tens of billions (just counting Apollo’s involved funds, BlackRock’s BUIDL fund, etc.). While not all that value is on-chain, even a small allocation from each could quickly swell Plume’s on-chain assets. For example, BlackRock’s BUIDL fund (tokenized money market) hit $1B AUM within a year. Franklin Templeton’s on-chain government money fund reached $368M. If similar funds launch on Plume or existing ones connect, those figures reflect potential scale.

• Security/Compliance Metrics: It’s worth noting Plume touts being fully onchain 24/7, permissionless yet compliant. One measure of success will be zero security incidents or defaults in the initial cohorts of RWA tokens. Metrics like payment yields delivered to users (e.g., X amount of interest paid out via Plume smart contracts from real assets) will build credibility. Plume’s design includes real-time auditing and on-chain verification of asset collateral (some partners provide daily transparency reports, as Ondo does for USDY). Over time, consistent, verified yield payouts and perhaps credit ratings on-chain could become key metrics to watch.

In summary, early indicators show strong interest and a robust pipeline for Plume. The testnet numbers demonstrate crypto community traction, and the partnerships outline a path to significant on-chain TVL and usage. As Plume transitions to steady state, we will track metrics like how many asset types are live, how much yield is distributed, and how many active users (especially institutional) engage on the platform. Given that the entire RWA category is growing fast (over $22.4B TVL as of May 2025, with a 9.3% monthly growth rate), Plume’s metrics should be viewed in context of this expanding pie. There is a real possibility that Plume could emerge as a leading RWA hub capturing a multi-billion-dollar share of the market if it continues executing.

Real-World Assets (RWA) in Web3: Overview and Significance​

Real-World Assets (RWAs) refer to tangible or financial assets from the traditional economy that are tokenized on blockchain – in other words, digital tokens that represent ownership or rights to real assets or cash flows. These can include assets like real estate properties, corporate bonds, trade invoices, commodities (gold, oil), stocks, or even intangible assets like carbon credits and intellectual property. RWA tokenization is arguably one of the most impactful trends in crypto, because it serves as a bridge between traditional finance (TradFi) and decentralized finance (DeFi). By bringing real-world assets on-chain, blockchain technology can inject transparency, efficiency, and broader access into historically opaque and illiquid markets.

The significance of RWAs in Web3 has grown dramatically in recent years:

• They unlock new sources of collateral and yield for the crypto ecosystem. Instead of relying on speculative token trading or purely crypto-native yield farming, DeFi users can invest in tokens that derive value from real economic activity (e.g., revenue from a real estate portfolio or interest from loans). This introduces “real yield” and diversification, making DeFi more sustainable.
• For traditional finance, tokenization promises to increase liquidity and accessibility. Assets like commercial real estate or loan portfolios, which typically have limited buyers and cumbersome settlement processes, can be fractionalized and traded 24/7 on global markets. This can reduce financing costs and democratize access to investments that were once restricted to banks or large funds.
• RWAs also leverage blockchain’s strengths: transparency, programmability, and efficiency. Settlement of tokenized securities can be near-instant and peer-to-peer, eliminating layers of intermediaries and reducing settlement times from days to seconds. Smart contracts can automate interest payments or enforce covenants. Additionally, the immutable audit trail of blockchains enhances transparency – investors can see exactly how an asset is performing (especially when coupled with oracle data) and trust that the token supply matches real assets (with on-chain proofs of reserve, etc.).
• Importantly, RWA tokenization is seen as a key driver of the next wave of institutional adoption of blockchain. Unlike the largely speculative DeFi summer of 2020 or the NFT boom, RWAs appeal directly to the finance industry’s core, by making familiar assets more efficient. A recent report by Ripple and BCG projected that the market for tokenized assets could reach **$18.9 trillion** by 2033, underscoring the vast addressable market. Even nearer term, growth is rapid – as of May 2025, RWA projects’ TVL was $22.45B (up ~9.3% in one month) and projected to hit ~$50B by end of 2025. Some estimates foresee **$1–$3 trillion tokenized by 2030**, with upper scenarios as high as $30T if adoption accelerates.

In short, RWA tokenization is transforming capital markets by making traditional assets more liquid, borderless, and programmable. It represents a maturation of the crypto industry – moving beyond purely self-referential assets toward financing the real economy. As one analysis put it, RWAs are “rapidly shaping up to be the bridge between traditional finance and the blockchain world”, turning the long-hyped promise of blockchain disrupting finance into a reality. This is why 2024–2025 has seen RWAs touted as the growth narrative in Web3, attracting serious attention from big asset managers, governments, and Web3 entrepreneurs alike.

Key Protocols and Projects in the RWA Space​

The RWA landscape in Web3 is broad, comprising various projects each focusing on different asset classes or niches. Here we highlight some key protocols and platforms leading the RWA movement, along with their focus areas and recent progress:

(Table sources: Centrifuge TVL, Maple transition and loan volume, Goldfinch Prime description, Ondo stats, Ondo–BlackRock partnership, Maker & market projection, Maple rank.)

Centrifuge: Often cited as the first RWA DeFi protocol (launched 2019), Centrifuge allows asset originators (like financing companies) to pool real-world assets and issue ERC-20 tokens called DROP (senior tranche) and TIN (junior tranche) representing claims on the asset pool. These tokens can be used as collateral in MakerDAO or held for yield. Centrifuge operates its own chain for efficiency but connects to Ethereum for liquidity. It currently leads the pack in on-chain private credit TVL (~$409M), demonstrating product-market fit in areas like invoice financing. A recent development is Centrifuge partnering with Clearpool’s upcoming RWA chain (Ozea) to expand its reach, and working on Centrifuge V3 which will enable assets to be composable across any EVM chain (so Centrifuge pools could be tapped by protocols on chains like Ethereum, Avalanche, or Plume).

Maple Finance: Maple showed the promise and perils of undercollateralized DeFi lending. It provided a platform for delegate managers to run credit pools lending to market makers and crypto firms on an unsecured basis. After high-profile defaults in 2022 (e.g. Orthogonal Trading’s collapse related to FTX) which hit Maple’s liquidity, Maple chose to reinvent itself with a safer model. Now Maple’s focus is twofold: (1) RWA “cash management” – giving stablecoin lenders access to Treasury yields, and (2) overcollateralized crypto lending – requiring borrowers to post liquid collateral (BTC/ETH). The Treasury pool (in partnership with Icebreaker Finance) was launched on Solana in 2023, then on Ethereum, enabling accredited lenders to earn ~5% on USDC by purchasing short-duration U.S. Treasury notes. Maple also introduced Maple Direct pools that lend to institutions against crypto collateral, effectively becoming a facilitator for more traditional secured lending. The Maple 2.0 architecture (launched Q1 2023) improved transparency and control for lenders. Despite setbacks, Maple has facilitated nearly $2.5B in loans cumulatively and remains a key player, now straddling both crypto and RWA lending. Its journey underscores the importance of proper risk management and has validated the pivot to real-world collateral for stability.

Goldfinch: Goldfinch’s innovation was to allow “borrower pools” where real-world lending businesses (like microfinance institutions or fintech lenders) could draw stablecoin liquidity from DeFi without posting collateral, instead relying on the “trust-through-consensus” model (where backers stake junior capital to vouch for the borrower). It enabled loans in places like Kenya, Nigeria, Mexico, etc., delivering yields often above 10%. However, to comply with regulations and attract larger capital, Goldfinch introduced KYC gating and Prime. Now with Goldfinch Prime, the protocol is basically onboarding well-known private credit fund managers and letting non-US accredited users provide capital to them on-chain. For example, rather than lending to a single fintech lender, a Goldfinch Prime user can invest in a pool that aggregates many senior secured loans managed by Ares or Apollo – essentially investing in slices of those funds (which off-chain are massive, e.g. Blackstone’s private credit fund is $50B+). This moves Goldfinch upmarket: it’s less about frontier market fintech loans and more about giving crypto investors an entry to institutional-grade yield (with lower risk). Goldfinch’s GFI token and governance remain, but the user base and pool structures have shifted to a more regulated stance. This reflects a broader trend: RWA protocols increasingly working directly with large TradFi asset managers to scale.

Ondo Finance: Ondo’s transformation is a case study in adapting to demand. When DeFi degen yields dried up in the bear market, the thirst for safe yield led Ondo to tokenize T-bills and money market funds. Ondo set up a subsidiary (Ondo Investments) and registered offerings so that accredited and even retail (in some regions) could buy regulated fund tokens. Ondo’s flagship OUSG token is effectively tokenized shares of a short-term US Treasuries ETF; it grew quickly to over half a billion in circulation, confirming huge demand for on-chain Treasuries. Ondo also created USDY, which takes a step further by mixing T-bills and bank deposits to approximate a high-yield savings account on-chain. At ~4.6% APY and a low $500 entry, USDY aims for mass market within crypto. To complement these, Ondo’s Flux protocol lets holders of OUSG or USDY borrow stablecoins against them (solving liquidity since these tokens might otherwise be lockups). Ondo’s success has made it a top-3 RWA issuer by TVL. It’s a prime example of working within regulatory frameworks (SPVs, broker-dealers) to bring traditional securities on-chain. It also collaborates (e.g., using BlackRock’s fund) rather than competing with incumbents, which is a theme in RWA: partnership over disruption.

MakerDAO: While not a standalone RWA platform, Maker deserves mention because it effectively became one of the largest RWA investors in crypto. Maker realized that diversifying DAI’s collateral beyond volatile crypto could both stabilize DAI and generate revenue (through real-world yields). Starting with small experiments (like a loan to a U.S. bank, and vaults for Centrifuge pool tokens), Maker ramped up in 2022-2023 by allocating hundreds of millions of DAI to buy short-term bonds and invest in money market funds via custody accounts. By mid-2023 Maker had allocated $500M to a BlackRock-managed bond fund and a similar amount to a startup (Monetalis) to invest in Treasuries – these are analogous to Ondo’s approach but done under Maker governance. Maker also onboarded loans like the Societe Generale $30M on-chain bond, and vaults for Harbor Trade’s Trade Finance pool, etc. The revenue from these RWA investments has been substantial – by some reports, Maker’s RWA portfolio generates tens of millions in annualized fees, which has made DAI’s system surplus grow (and MKR token started buybacks using those profits). This RWA strategy is central to Maker’s “Endgame” plan, where eventually Maker might spin out specialized subDAOs to handle RWA. The takeaway is that even a decentralized stablecoin protocol sees RWA as key to sustainability, and Maker’s scale (with DAI ~$5B supply) means it can materially impact real-world markets by deploying liquidity there.

Others: There are numerous other projects in the RWA space, each carving out a niche:

• Tokenized Commodities: Projects like Paxos Gold (PAXG) and Tether Gold (XAUT) have made gold tradable on-chain (combined market cap of ~$1.4B). These tokens give the convenience of crypto with the stability of gold and are fully backed by physical gold in vaults.
• Tokenized Stocks: Firms like Backed Finance and Synthesized (formerly Mirror, etc.) have issued tokens mirroring equity like Apple (bAAPL) or Tesla. Backed’s tokens (e.g., bNVDA for Nvidia) are 100% collateralized by shares held by a custodian and available under EU regulatory sandbox exemptions, enabling 24/7 trading of stocks on DEXs. The total for tokenized stocks is still small (~$0.46B), but growing as interest in around-the-clock trading and fractional ownership picks up.
• Real Estate Platforms: Lofty AI (Algorand-based) allows fractional ownership of rental properties with tokens as low as $50 per fraction. RealT (Ethereum) offers tokens for shares in rental homes in Detroit and elsewhere (paying rental income as USDC dividends). Real estate is a huge market ($300T+ globally), so even a fraction coming on-chain could dwarf other categories; projections see $3–4 Trillion in tokenized real estate by 2030-2035 if adoption accelerates. While current on-chain real estate is small, pilots are underway (e.g., Hong Kong’s government sold tokenized green bonds; Dubai is running a tokenized real estate sandbox).
• Institutional Funds: Beyond Ondo, traditional asset managers are launching tokenized versions of their funds. We saw BlackRock’s BUIDL (a tokenized money market fund that grew from $100M to $1B AUM in one year). WisdomTree issued 13 tokenized ETFs by 2025. Franklin Templeton’s government money fund (BENJI token on Polygon) approached $370M AUM. These efforts indicate that large asset managers view tokenization as a new distribution channel. It also means competition for crypto-native issuers, but overall it validates the space. Many of these tokens target institutional or accredited investors initially (to comply with securities laws), but over time could open to retail as regulations evolve.

Why multiple approaches? The RWA sector has a diverse cast because the space “real-world assets” is extremely broad. Different asset types have different risk, return, and regulatory profiles, necessitating specialized platforms:

• Private credit (Maple, Goldfinch, Centrifuge) focuses on lending and debt instruments, requiring credit assessment and active management.
• Tokenized securities/funds (Ondo, Backed, Franklin) deal with regulatory compliance to represent traditional securities on-chain one-to-one.
• Real estate involves property law, titles, and often local regulations – some platforms work on REIT-like structures or NFTs that confer ownership of an LLC that owns a property.
• Commodities like gold have simpler one-to-one backing models but require trust in custody and audits.

Despite this fragmentation, we see a trend of convergence and collaboration: e.g., Centrifuge partnering with Clearpool, Goldfinch partnering with Plume (and indirectly Apollo), Ondo’s assets being used by Maker and others, etc. Over time, we may get interoperability standards (perhaps via projects like RWA.xyz, which is building a data aggregator for all RWA tokens).

Common Asset Types Being Tokenized​

Almost any asset with an income stream or market value can, in theory, be tokenized. In practice, the RWA tokens we see today largely fall into a few categories:

• Government Debt (Treasuries & Bonds): This has become the largest category of on-chain RWA by value. Tokenized U.S. Treasury bills and bonds are highly popular as they carry low risk and ~4-5% yield – very attractive to crypto holders in a low DeFi yield environment. Multiple projects offer this: Ondo’s OUSG, Matrixdock’s treasury token (MTNT), Backed’s TBILL token, etc. As of May 2025, government securities dominate tokenized assets with ~$6.79B TVL on-chain, making it the single biggest slice of the RWA pie. This includes not just U.S. Treasuries, but also some European government bonds. The appeal is global 24/7 access to a safe asset; e.g., a user in Asia can buy a token at 3 AM that effectively puts money in U.S. T-Bills. We also see central banks and public entities experimenting: e.g., the Monetary Authority of Singapore (MAS) ran Project Guardian to explore tokenized bonds and forex; Hong Kong’s HSBC and CSOP launched a tokenized money market fund. Government bonds are likely the “killer app” of RWA to date.

• Private Credit & Corporate Debt: These include loans to businesses, invoices, supply chain finance, consumer loans, etc., as well as corporate bonds and private credit funds. On-chain private credit (via Centrifuge, Maple, Goldfinch, Credix, etc.) is a fast-growing area and forms over 50% of the RWA market by count of projects (though not by value due to Treasuries being big). Tokenized private credit often offers higher yields (8-15% APY) because of higher risk and less liquidity. Examples: Centrifuge tokens (DROP/TIN) backed by loan portfolios; Goldfinch’s pools of fintech loans; Maple’s pools to market makers; JPMorgan’s private credit blockchain pilot (they did intraday repo on-chain); and startups like Flowcarbon (tokenizing carbon credit-backed loans). Even trade receivables from governments (Medicaid claims) are being tokenized (as Plume highlighted). Additionally, corporate bonds are being tokenized: e.g., European Investment Bank issued digital bonds on Ethereum; companies like Siemens did a €60M on-chain bond. There’s about $23B of tokenized “global bonds” on-chain as of early 2025 – a figure that’s still small relative to the $100+ trillion bond market, but the trajectory is upward.

• Real Estate: Tokenized real estate can mean either debt (e.g., tokenized mortgages, real estate loans) or equity/ownership (fractional ownership of properties). Thus far, more activity has been in tokenized debt (because it fits into DeFi lending models easily). For instance, parts of a real estate bridge loan might be turned into DROP tokens on Centrifuge and used to generate DAI. On the equity side, projects like Lofty have tokenized residential rental properties (issuing tokens that entitle holders to rental income and a share of sale proceeds). We’ve also seen a few REIT-like tokens (RealT’s properties, etc.). Real estate is highly illiquid traditionally, so tokenization’s promise is huge – one could trade fractions of a building on Uniswap, or use a property token as collateral for a loan. That said, legal infrastructure is tricky (you often need each property in an LLC and the token represents LLC shares). Still, given projections of $3-4 Trillion tokenized real estate by 2030-35, many are bullish that this sector will take off as legal frameworks catch up. A notable example: RedSwan tokenized portions of commercial real estate (like student housing complexes) and raised millions via token sales to accredited investors.

• Commodities: Gold is the poster child here. Paxos Gold (PAXG) and Tether Gold (XAUT) together have over $1.4B market cap, offering investors on-chain exposure to physical gold (each token = 1 fine troy ounce stored in vault). These have become popular as a way to hedge in crypto markets. Other commodities tokenized include silver, platinum (e.g., Tether has XAGT, XAUT, etc.), and even oil to some extent (there were experiments with tokens for oil barrels or hash-rate futures). Commodity-backed stablecoins like Ditto’s eggs or soybean tokens have popped up, but gold remains dominant due to its stable demand. We can also include carbon credits and other environmental assets: tokens like MCO2 (Moss Carbon Credit) or Toucan’s nature-based carbon tokens had a wave of interest in 2021 as corporates looked at on-chain carbon offsets. In general, commodities on-chain are straightforward as they’re fully collateralized, but they require trust in custodians and auditors.

• Equities (Stocks): Tokenized stocks allow 24/7 trading and fractional ownership of equities. Platforms like Backed (out of Switzerland) and DX.Exchange / FTX (earlier) issued tokens mirroring popular stocks (Tesla, Apple, Google, etc.). Backed’s tokens are fully collateralized (they hold the actual shares via a custodian and issue ERC-20 tokens representing them). These tokens can be traded on DEXs or held in DeFi wallets, which is novel since conventional stock trading is weekdays only. As of 2025, about $460M of tokenized equities are circulating – still a tiny sliver of the multi-trillion stock market, but it’s growing. Notably, in 2023, MSCI launched indices tracking tokenized assets including tokenized stocks, signaling mainstream monitoring. Another angle is synthetic equities (Mirroring stock price via derivatives without holding the stock, as projects like Synthetix did), but regulatory pushback (they can be seen as swaps) made the fully backed approach more favored now.

• Stablecoins (fiat-backed): It’s worth mentioning that fiat-backed stablecoins like USDC, USDT are essentially tokenized real-world assets (each USDC is backed by $1 in bank accounts or T-bills). In fact, stablecoins are the largest RWA by far – over $200B in stablecoins outstanding (USDT, USDC, BUSD, etc.), mostly backed by cash, Treasury bills, or short-term corporate debt. This has often been cited as the first successful RWA use-case in crypto: tokenized dollars became the lifeblood of crypto trading and DeFi. However, in the RWA context, stablecoins are usually considered separately, because they are currency tokens, not investment products. Still, the existence of stablecoins has paved the way for other RWA tokens (and indeed, projects like Maker and Ondo effectively channel stablecoin capital into real assets).

• Miscellaneous: We are starting to see even more exotic assets:

  • Fine Art and Collectibles: Platforms like Maecenas and Masterworks explored tokenizing high-end artworks (each token representing a share of a painting). NFTs have proven digital ownership, so it’s conceivable real art or luxury collectibles can be fractionalized similarly (though legal custody and insurance are considerations).
  • Revenue-Sharing Tokens: e.g., CityDAO and other DAOs experimented with tokens that give rights to a revenue stream (like a cut of city revenue or business revenue). These blur the line between securities and utility tokens.
  • Intellectual Property and Royalties: There are efforts to tokenize music royalties (so fans can invest in an artist’s future streaming income) or patents. Royalty Exchange and others have looked into this, allowing tokens that pay out when, say, a song is played (using smart contracts to distribute royalties).
  • Infrastructure and Physical assets: Companies have considered tokenizing things like data center capacity, mining hashpower, shipping cargo space, or even infrastructure projects (some energy companies looked at tokenizing ownership in solar farms or oil wells – Plume itself mentioned “uranium, GPUs, durian farms” as possibilities). These remain experimental but show the broad range of what could be brought on-chain.

In summary, virtually any asset that can be legally and economically ring-fenced can be tokenized. The current focus has been on financial assets with clear cash flows or store-of-value properties (debt, commodities, funds) because they fit well with investor demand and existing law (e.g., an SPV can hold bonds and issue tokens relatively straightforwardly). More complex assets (like direct property ownership or IP rights) will likely take longer due to legal intricacies. But the tide is moving in that direction, as the technology proves itself with simpler assets first and then broadens.

It’s also important to note that each asset type’s tokenization must grapple with how to enforce rights off-chain: e.g., if you hold a token for a property, how do you ensure legal claim on that property? Solutions involve legal wrappers (LLCs, trust agreements) that recognize token holders as beneficiaries. Standardization efforts (like the ERC-1400 standard for security tokens or initiatives by the Interwork Alliance for tokenized assets) are underway to make different RWA tokens more interoperable and legally sound.

Recent Trends, Innovations, and Challenges in RWA​

Trends & Innovations:

• Institutional Influx: Perhaps the biggest trend is the entrance of major financial institutions and asset managers into the RWA blockchain space. In the past two years, giants like BlackRock, JPMorgan, Goldman Sachs, Fidelity, Franklin Templeton, WisdomTree, and Apollo have either invested in RWA projects or launched tokenization initiatives. For example, BlackRock’s CEO Larry Fink publicly praised “the tokenization of securities” as the next evolution. BlackRock’s own tokenized money market fund (BUIDL) reaching $1B AUM in one year is a proof-point. WisdomTree creating 13 tokenized index funds by 2025 shows traditional ETFs coming on-chain. Apollo not only invested in Plume but also partnered on tokenized credit (Apollo and Hamilton Lane worked with Figure’s Provenance to tokenize parts of their funds). The involvement of such institutions has a flywheel effect: it legitimizes RWA in the eyes of regulators and investors and accelerates development of compliant platforms. It’s telling that surveys show 67% of institutional investors plan to allocate an average 5.6% of their portfolio to tokenized assets by 2026. High-net-worth individuals similarly are showing ~80% interest in exposure via tokenization. This is a dramatic shift from the 2017-2018 ICO era, as now the movement is institution-led rather than purely grassroots crypto-led.

• Regulated On-Chain Funds: A notable innovation is bringing regulated investment funds directly on-chain. Instead of creating new instruments from scratch, some projects register traditional funds with regulators and then issue tokens that represent shares. Franklin Templeton’s OnChain U.S. Government Money Fund is a SEC-registered mutual fund whose share ownership is tracked on Stellar (and now Polygon) – investors buy a BENJI token which is effectively a share in a regulated fund, subject to all the usual oversight. Similarly, ARB ETF (Europe) launched a fully regulated digital bond fund on a public chain. This trend of tokenized regulated funds is crucial because it marries compliance with blockchain’s efficiency. It basically means the traditional financial products we know (funds, bonds, etc.) can gain new utility by existing as tokens that trade anytime and integrate with smart contracts. Grayscale’s consideration of $PLUME and similar moves by other asset managers to list crypto or RWA tokens in their offerings also indicates convergence of TradFi and DeFi product menus.

• Yield Aggregation and Composability: As more RWA yield opportunities emerge, DeFi protocols are innovating to aggregate and leverage them. Plume’s Nest is one example of aggregating multiple yields into one interface. Another example is Yearn Finance beginning to deploy vaults into RWA products (Yearn considered investing in Treasuries through protocols like Notional or Maple). Index Coop created a yield index token that included RWA yield sources. We are also seeing structured products like tranching on-chain: e.g., protocols that issue a junior-senior split of yield streams (Maple explored tranching pools to offer safer vs. riskier slices). Composability means you could one day do things like use a tokenized bond as collateral in Aave to borrow a stablecoin, then use that stablecoin to farm elsewhere – complex strategies bridging TradFi yield and DeFi yield. This is starting to happen; for instance, Flux Finance (by Ondo) lets you borrow against OUSG and then you could deploy that into a stablecoin farm. Leveraged RWA yield farming may become a theme (though careful risk management is needed).

• Real-Time Transparency & Analytics: Another innovation is the rise of data platforms and standards for RWA. Projects like RWA.xyz aggregate on-chain data to track the market cap, yields, and composition of all tokenized RWAs across networks. This provides much-needed transparency – one can see how big each sector is, track performance, and flag anomalies. Some issuers provide real-time asset tracking: e.g., a token might be updated daily with NAV (net asset value) data from the TradFi custodian, and that can be shown on-chain. The use of oracles is also key – e.g., Chainlink oracles can report interest rates or default events to trigger smart contract functions (like paying out insurance if a debtor defaults). The move towards on-chain credit ratings or reputations is also starting: Goldfinch experimented with off-chain credit scoring for borrowers, Centrifuge has models to estimate pool risk. All of this is to make on-chain RWAs as transparent (or more so) than their off-chain counterparts.

• Integration with CeFi and Traditional Systems: We see more blending of CeFi and DeFi in RWA. For instance, Coinbase introduced “Institutional DeFi” where they funnel client funds into protocols like Maple or Compound Treasury – giving institutions a familiar interface but yield sourced from DeFi. Bank of America and others have discussed using private blockchain networks to trade tokenized collateral with each other (for faster repo markets, etc.). On the retail front, fintech apps may start offering yields that under the hood come from tokenized assets. This is an innovation in distribution: users might not even know they’re interacting with a blockchain, they just see better yields or liquidity. Such integration will broaden the reach of RWA beyond crypto natives.

Challenges:

Despite the excitement, RWA tokenization faces several challenges and hurdles:

• Regulatory Compliance and Legal Structure: Perhaps the number one challenge. By turning assets into digital tokens, you often turn them into securities in the eyes of regulators (if they weren’t already). This means projects must navigate securities laws, investment regulations, money transmitter rules, etc. Most RWA tokens (especially in the US) are offered under Reg D (private placement to accredited investors) or Reg S (offshore) exemptions. This limits participation: e.g., retail US investors usually cannot buy these tokens legally. Additionally, each jurisdiction has its own rules – what’s allowed in Switzerland (like Backed’s stock tokens) might not fly in the US without registration. There’s also the legal enforceability angle: a token is a claim on a real asset; ensuring that claim is recognized by courts is crucial. This requires robust legal structuring (LLCs, trusts, SPVs) behind the scenes. It’s complex and costly to set up these structures, which is why many RWA projects partner with legal firms or get acquired by existing players with licenses (for example, Securitize handles a lot of heavy lifting for others). Compliance also means KYC/AML: unlike DeFi’s permissionless nature, RWA platforms often require investors to undergo KYC and accreditation checks, either at token purchase or continuously via whitelists. This friction can deter some DeFi purists and also means these platforms can’t be fully open to “anyone with a wallet” in many cases.

• Liquidity and Market Adoption: Tokenizing an asset doesn’t automatically make it liquid. Many RWA tokens currently suffer from low liquidity/low trading volumes. For instance, if you buy a tokenized loan, there may be few buyers when you want to sell. Market makers are starting to provide liquidity for certain assets (like stablecoins or Ondo’s fund tokens on DEXes), but order book depth is a work in progress. In times of market stress, there’s concern that RWA tokens could become hard to redeem or trade, especially if underlying assets themselves aren’t liquid (e.g., a real estate token might effectively only be redeemable when the property is sold, which could take months/years). Solutions include creating redemption mechanisms (like Ondo’s funds allow periodic redemptions through the Flux protocol or directly with the issuer), and attracting a diverse investor base to trade these tokens. Over time, as more traditional investors (who are used to holding these assets) come on-chain, liquidity should improve. But currently, fragmentation across different chains and platforms also hinders liquidity – efforts to standardize and maybe aggregate exchanges for RWA tokens (perhaps a specialized RWA exchange or more cross-listings on major CEXes) are needed.

• Trust and Transparency: Ironically for blockchain-based assets, RWAs often require a lot of off-chain trust. Token holders must trust that the issuer actually holds the real asset and won’t misuse funds. They must trust the custodian holding collateral (in case of stablecoins or gold). They also must trust that if something goes wrong, they have legal recourse. There have been past failures (e.g., some earlier “tokenized real estate” projects that fizzled, leaving token holders in limbo). So, building trust is key. This is done through audits, on-chain proof-of-reserve, reputable custodians (e.g., Coinbase Custody, etc.), and insurance. For example, Paxos publishes monthly audited reports of PAXG reserves, and USDC publishes attestations of its reserves. MakerDAO requires overcollateralization and legal covenants when engaging in RWA loans to mitigate risk of default. Nonetheless, a major default or fraud in a RWA project could set the sector back significantly. This is why, currently, many RWA protocols focus on high-credit quality assets (government bonds, senior secured loans) to build a track record before venturing into riskier territory.

• Technological Integration: Some challenges are technical. Integrating real-world data on-chain requires robust oracles. For example, pricing a loan portfolio or updating NAV of a fund requires data feeds from traditional systems. Any lag or manipulation in oracles can lead to incorrect valuations on-chain. Additionally, scalability and transaction costs on mainnets like Ethereum can be an issue – moving potentially thousands of real-world payments (think of a pool of hundreds of loans, each with monthly payments) on-chain can be costly or slow. This is partly why specialized chains or Layer-2 solutions (like Plume, or Polygon for some projects, or even permissioned chains) are being used – to have more control and lower cost for these transactions. Interoperability is another technical hurdle: a lot of RWA action is on Ethereum, but some on Solana, Polygon, Polkadot, etc. Bridging assets between chains securely is still non-trivial (though projects like LayerZero, as used by Plume, are making progress). Ideally, an investor shouldn’t have to chase five different chains to manage a portfolio of RWAs – smoother cross-chain operability or a unified interface will be important.

• Market Education and Perception: Many crypto natives originally were skeptical of RWAs (seeing them as bringing “off-chain risk” into DeFi’s pure ecosystem). Meanwhile, many TradFi people are skeptical of crypto. There is an ongoing need to educate both sides about the benefits and risks. For crypto users, understanding that a token is not just another meme coin but a claim on a legal asset with maybe lock-up periods, etc., is crucial. We’ve seen cases where DeFi users got frustrated that they couldn’t instantly withdraw from a RWA pool because off-chain loan settlements take time – managing expectations is key. Similarly, institutional players often worry about issues like custody of tokens (how to hold them securely), compliance (avoiding wallets that interact with sanctioned addresses, etc.), and volatility (ensuring the token technology is stable). Recent positive developments, like Binance Research showing RWA tokens have lower volatility and even considered “safer than Bitcoin” during certain macro events, help shift perception. But broad acceptance will require time, success stories, and likely regulatory clarity that holding or issuing RWA tokens is legally safe.

• Regulatory Uncertainty: While we covered compliance, a broader uncertainty is regulatory regimes evolving. The U.S. SEC has not yet given explicit guidance on many tokenized securities beyond enforcing existing laws (which is why most issuers use exemptions or avoid U.S. retail). Europe introduced MiCA (Markets in Crypto Assets) regulation which mostly carves out how crypto (including asset-referenced tokens) should be handled, and launched a DLT Pilot Regime to let institutions trade securities on blockchain with some regulatory sandboxes. That’s promising but not permanent law yet. Countries like Singapore, UAE (Abu Dhabi, Dubai), Switzerland are being proactive with sandboxes and digital asset regulations to attract tokenization business. A challenge is if regulations become too onerous or fragmented: e.g., if every jurisdiction demands a slightly different compliance approach, it adds cost and complexity. On the flip side, regulatory acceptance (like Hong Kong’s recent encouragement of tokenization or Japan exploring on-chain securities) could be a boon. In the U.S., a positive development is that certain tokenized funds (like Franklin’s) got SEC approval, showing that it’s possible within existing frameworks. But the looming question: will regulators eventually allow wider retail access to RWA tokens (perhaps through qualified platforms or raising the caps on crowdfunding exemptions)? If not, RWAfi might remain predominantly an institutional play behind walled gardens, which limits the “open finance” dream.

• Scaling Trustlessly: Another challenge is how to scale RWA platforms without introducing central points of failure. Many current implementations rely on a degree of centralization (an issuer that can pause token transfers to enforce KYC, a central party that handles asset custody, etc.). While this is acceptable to institutions, it’s philosophically at odds with DeFi’s decentralization. Over time, projects will need to find the right balance: e.g., using decentralized identity solutions for KYC (so it’s not one party controlling the whitelist but a network of verifiers), or using multi-sig/community governance to control issuance and custody operations. We’re seeing early moves like Maker’s Centrifuge vaults where MakerDAO governance approves and oversees RWA vaults, or Maple decentralizing pool delegate roles. But full “DeFi” RWA (where even legal enforcement is trustless) is a hard problem. Eventually, maybe smart contracts and real-world legal systems will interface directly (for example, a loan token smart contract that can automatically trigger legal action via a connected legal API if default occurs – this is futuristic but conceivable).

In summary, the RWA space is rapidly innovating to tackle these challenges. It’s a multi-disciplinary effort: requiring savvy in law, finance, and blockchain tech. Each success (like a fully repaid tokenized loan pool, or a smoothly redeemed tokenized bond) builds confidence. Each challenge (like a regulatory action or an asset default) provides lessons to strengthen the systems. The trajectory suggests that many of these hurdles will be overcome: the momentum of institutional involvement and the clear benefits (efficiency, liquidity) mean tokenization is likely here to stay. As one RWA-focused newsletter put it, “tokenized real-world assets are emerging as the new institutional standard… the infrastructure is finally catching up to the vision of on-chain capital markets.”

Regulatory Landscape and Compliance Considerations​

The regulatory landscape for RWAs in crypto is complex and still evolving, as it involves the intersection of traditional securities/commodities laws with novel blockchain technology. Key points and considerations include:

• Securities Laws: In most jurisdictions, if an RWA token represents an investment in an asset with an expectation of profit (which is often the case), it is deemed a security. For example, in the U.S., tokens representing fractions of income-generating real estate or loan portfolios squarely fall under the definition of investment contracts (Howey Test) or notes, and thus must be registered or offered under an exemption. This is why nearly all RWA offerings to date in the U.S. use private offering exemptions (Reg D 506(c) for accredited investors, Reg S for offshore, Reg A+ for limited public raises, etc.). Compliance with these means restricting token sales to verified investors, implementing transfer restrictions (tokens can only move between whitelisted addresses), and providing necessary disclosures. For instance, Ondo’s OUSG and Maple’s Treasury pool required investors to clear KYC/AML and accreditation checks, and tokens are not freely transferable to unapproved wallets. This creates a semi-permissioned environment, quite different from open DeFi. Europe under MiFID II/MiCA similarly treats tokenized stocks or bonds as digital representations of traditional financial instruments, requiring prospectuses or using the DLT Pilot regime for trading venues. Bottom line: RWA projects must integrate legal compliance from day one – many have in-house counsel or work with legal-tech firms like Securitize, because any misstep (like selling a security token to the public without exemption) could invite enforcement.

• Consumer Protection and Licensing: Some RWA platforms may need additional licenses. For example, if a platform holds customer fiat to convert into tokens, it might need a money transmitter license or equivalent. If it provides advice or brokerage (matching borrowers and lenders), it might need broker-dealer or ATS (Alternative Trading System) licensing (this is why some partner with broker-dealers – Securitize, INX, Oasis Pro etc., which have ATS licenses to run token marketplaces). Custody of assets (like real estate deeds or cash reserves) might require trust or custody licenses. Anchorage being a partner to Plume is significant because Anchorage is a qualified custodian – institutions feel more at ease if a licensed bank is holding the underlying asset or even the private keys of tokens. In Asia and the Middle East, regulators have been granting specific licenses for tokenization platforms (e.g., the Abu Dhabi Global Market’s FSRA issues permissions for crypto assets including RWA tokens, MAS in Singapore gives project-specific approvals under its sandbox).

• Regulatory Sandboxes and Government Initiatives: A positive trend is regulators launching sandboxes or pilot programs for tokenization. The EU’s DLT Pilot Regime (2023) allows approved market infrastructures to test trading tokenized securities up to certain sizes without full compliance with every rule – this has led to several European exchanges piloting blockchain bond trading. Dubai announced a tokenization sandbox to boost its digital finance hub. Hong Kong in 2023-24 made tokenization a pillar of its Web3 strategy, with Hong Kong’s SFC exploring tokenized green bonds and art. The UK in 2024 consulted on recognizing digital securities under English law (they already recognize crypto as property). Japan updated its laws to allow security tokens (they call them “electronically recorded transferable rights”) and several tokenized securities have been issued there under that framework. These official programs indicate a willingness by regulators to modernize laws to accommodate tokenization – which could eventually simplify compliance (e.g., creating special categories for tokenized bonds that streamline approval).

• Travel Rule / AML: Crypto’s global nature triggers AML laws. FATF’s “travel rule” requires that when crypto (including tokens) above a certain threshold is transferred between VASPs (exchanges, custodians), identifying info travels with it. If RWA tokens are mainly transacted on KYC’ed platforms, this is manageable, but if they enter the wider crypto ecosystem, compliance gets tricky. Most RWA platforms currently keep a tight grip: transfers are often restricted to whitelisted addresses whose owners have done KYC. This mitigates AML concerns (as every holder is known). Still, regulators will expect robust AML programs – e.g., screening wallet addresses against sanctions (OFAC lists, etc.). There was a case of a tokenized bond platform in the UK that had to unwind some trades because a token holder became a sanctioned entity – such scenarios will test protocols’ ability to comply. Many platforms build in pause or freeze functions to comply with law enforcement requests (this is controversial in DeFi, but for RWA it’s often non-negotiable to have the ability to lock tokens tied to wrongdoing).

• Taxation and Reporting: Another compliance consideration: how are these tokens taxed? If you earn yield from a tokenized loan, is it interest income? If you trade a tokenized stock, do wash sale rules apply? Tax authorities have yet to issue comprehensive guidance. In the interim, platforms often provide tax reports to investors (e.g., a Form 1099 in the US for interest or dividends earned via tokens). The transparency of blockchain can help here, as every payment can be recorded and categorized. But cross-border taxation (if someone in Europe holds a token paying US-source interest) can be complex – requiring things like digital W-8BEN forms, etc. This is more of an operational challenge than a roadblock, but it adds friction that automated compliance tech will need to solve.

• Enforcement and Precedents: We’ve not yet seen many high-profile enforcement actions specifically for RWA tokens – likely because most are trying to comply. However, we have seen enforcement in adjacent areas: e.g., the SEC’s actions against crypto lending products (BlockFi, etc.) underscore that offering yields without registering can be a violation. If an RWA platform slipped up and, say, allowed retail to buy security tokens freely, it could face similar action. There’s also the question of secondary trading venues: If a decentralized exchange allows trading of a security token between non-accredited investors, is that unlawful? Likely yes in the US. This is why a lot of RWA tokens are not listed on Uniswap or are wrapped in a way that restricts addresses. It’s a fine line to walk between DeFi liquidity and compliance – many are erring on the side of compliance, even if it reduces liquidity.

• Jurisdiction and Conflict of Laws: RWAs by nature connect to specific jurisdictions (e.g., a tokenized real estate in Germany falls under German property law). If tokens trade globally, there can be conflicts of law. Smart contracts might need to encode which law governs. Some platforms choose friendly jurisdictions for incorporation (e.g., the issuer entity in the Cayman Islands and the assets in the U.S., etc.). It’s complex but solvable with careful legal structuring.

• Investor Protection and Insurance: Regulators will also care about investor protection: ensuring that token holders have clear rights. For example, if a token is supposed to be redeemable for a share of asset proceeds, the mechanism for that must be legally enforceable. Some tokens represent debt securities that can default – what disclosures were given about that risk? Platforms often publish offering memorandums or prospectuses (Ondo did for its tokens). Over time, regulators might require standardized risk disclosures for RWA tokens, much like mutual funds provide. Also, insurance might be mandated or at least expected – for instance, insuring a building in a real estate token, or having crime insurance for a custodian holding collateral.

• Decentralization vs Regulation: There’s an inherent tension: the more decentralized and permissionless you make an RWA platform, the more it rubs against current regulations which assume identifiable intermediaries. One evolving strategy is to use Decentralized Identities (DID) and verifiable credentials to square this circle. E.g., a wallet could hold a credential that proves the owner is accredited without revealing their identity on-chain, and smart contracts could check for that credential before allowing transfer – making compliance automated and preserving some privacy. Projects like Xref (on XDC network) and Astra Protocol are exploring this. If successful, regulators might accept these novel approaches, which could allow permissionless trading among vetted participants. But that’s still in nascent stages.

In essence, regulation is the make-or-break factor for RWA adoption. The current landscape shows regulators are interested and cautiously supportive, but also vigilant. The RWA projects that thrive will be those that proactively embrace compliance yet innovate to make it as seamless as possible. Jurisdictions that provide clear, accommodative rules will attract more of this business (we’ve seen significant tokenization activity gravitate to places like Switzerland, Singapore, and the UAE due to clarity there). Meanwhile, the industry is engaging with regulators – for instance, by forming trade groups or responding to consultations – to help shape sensible policies. A likely outcome is that regulated DeFi will emerge as a category: platforms like those under Plume’s umbrella could become Alternative Trading Systems (ATS) or registered digital asset securities exchanges for tokenized assets, operating under licenses but with blockchain infrastructure. This hybrid approach may satisfy regulators’ objectives while still delivering the efficiency gains of crypto rails.

Investment and Market Size Data​

The market for tokenized real-world assets has grown impressively and is projected to explode in the coming years, reaching into the trillions of dollars if forecasts hold true. Here we’ll summarize some key data points on market size, growth, and investment trends:

• Current On-Chain RWA Market Size: As of mid-2025, the total on-chain Real-World Asset market (excluding traditional stablecoins) is in the tens of billions. Different sources peg slightly different totals depending on inclusion criteria, but a May 2025 analysis put it at $22.45 billion in Total Value Locked. This figure was up ~9.3% from the previous month, showcasing rapid growth. The composition of that ~$22B (as previously discussed) includes around $6.8B in government bonds, $1.5B in commodity tokens, $0.46B in equities, $0.23B in other bonds, and a few billion in private credit and funds. For perspective, this is still small relative to the broader crypto market (which is ~$1.2T in market cap as of 2025, largely driven by BTC and ETH), but it’s the fastest-growing segment of crypto. It’s also worth noting stablecoins (~$226B) if counted would dwarf these numbers, but usually they’re kept separate.

• Growth Trajectory: The RWA market has shown a 32% annual growth rate in 2024. If we extrapolate or consider accelerating adoption, some estimate $50B by end of 2025 as plausible. Beyond that, industry projections become very large:

  • BCG and others (2030+): The often-cited BCG/Ripple report projected $16 trillion by 2030 (and ~$19T by 2033) in tokenized assets. This includes broad tokenization of financial markets (not just DeFi-centric usage). This figure would represent about 10% of all assets tokenized, which is aggressive but not unthinkable given tokenization of cash (stablecoins) is already mainstream.
  • Citi GPS Report (2022) talked about $4–5 trillion tokenized by 2030 as a base case, with higher scenarios if institutional adoption is faster.
  • The LinkedIn analysis we saw noted projections ranging from $1.3 trillion to $30 trillion by 2030 – indicating a lot of uncertainty but consensus that trillions are on the table.
  • Even the conservative end (say $1-2T by 2030) would mean a >50x increase from today’s ~$20B level, which gives a sense of the strong growth expectations.

• Investment into RWA Projects: Venture capital and investment is flowing into RWA startups:

  • Plume’s own funding ($20M Series A, etc.) is one example of VC conviction.
  • Goldfinch raised ~$25M (led by a16z in 2021). Centrifuge raised ~$4M in 2021 and more via token sales; it’s also backed by Coinbase and others.
  • Maple raised $10M Series A in 2021, then additional in 2022.
  • Ondo raised $20M in 2022 (from Founders Fund and Pantera) and more recently did a token sale.
  • There’s also new dedicated funds: e.g., a16z’s crypto fund and others earmarked portions for RWA; Franklin Templeton in 2022 joined a $20M round for a tokenization platform; Matrixport launched a $100M fund for tokenized Treasuries.
  • Traditional finance is investing: Nasdaq Ventures invested in a tokenization startup (XYO Network), London Stock Exchange Group acquired TORA (with tokenization capabilities), etc.
  • We see mergers too: Securitize acquired Distributed Technology Markets to get a broker-dealer; INX (token exchange) raising money to expand offerings.

  Overall, tens of millions have been invested into the leading RWA protocols, and larger financial institutions are acquiring stakes or forming joint ventures in this arena. Apollo’s direct investment in Plume and Hamilton Lane partnering with Securitize to tokenize funds (with Hamilton Lane’s funds being multi-billion themselves) show that this is not just VC bets but real money engagement.

• Notable On-Chain Assets and Performance: Some data on specific tokens can illustrate traction:

  • Ondo’s OUSG: launched early 2023, by early 2025 it had >$580M outstanding, delivering ~4-5% yield. It rarely deviates in price because it’s fully collateralized and redeemable.
  • Franklin’s BENJI: by mid-2023 reached $270M, and by 2024 ~$368M. It’s one of the first instances of a major US mutual fund being reflected on-chain.
  • MakerDAO’s RWA earnings: Maker, through its ~$1.6B RWA investments, was earning on the order of $80M+ annualized in yield by late 2023 (mostly from bonds). This turned Maker’s finances around after crypto yields dried up.
  • Maple’s Treasury pool: in its pilot, raised ~$22M for T-bill investments from <10 participants (institutions). Maple’s total lending after restructuring is smaller now (~$50-100M active loans), but it’s starting to tick up as trust returns.
  • Goldfinch: funded ~$120M loans and repaid ~$90M with ~<$1M in defaults (they had one notable default from a lender in Kenya but recovered partially). GFI token once peaked at a $600M market cap in late 2021, now much lower (~$50M), indicating market re-rating of risk but still interest.
  • Centrifuge: about 15 active pools. Some key ones (like ConsolFreight’s invoice pool, New Silver’s real estate rehab loan pool) each in the $5-20M range. Centrifuge’s token (CFG) has a market cap around $200M in 2025.
  • Overall RWA Returns: Many RWA tokens offer yields in the 4-10% range. For example, Aave’s yield on stablecoins might be ~2%, whereas putting USDC into Goldfinch’s senior pool yields ~8%. This spread draws DeFi capital gradually into RWA. During crypto market downturns, RWA yields looked especially attractive as they were stable, leading analysts to call RWAs a “safe haven” or “hedge” in Web3.

• Geographical/Market Segments: A breakdown by region: A lot of tokenized Treasuries are US-based assets offered by US or global firms (Ondo, Franklin, Backed). Europe’s contributions are in tokenized ETFs and bonds (several German and Swiss startups, and big banks like Santander and SocGen doing on-chain bond issues). Asia: Singapore’s Marketnode platform is tokenizing bonds; Japan’s SMBC tokenized some credit products. The Middle East: Dubai’s DFSA approved a tokenized fund. Latin America: a number of experiments, e.g., Brazil’s central bank is tokenizing a portion of bank deposits (as part of their CBDC project, they consider tokenizing assets). Africa: projects like Kotani Pay looked at tokenized micro-asset financing. These indicate tokenization is a global trend, but the US remains the biggest source of underlying assets (due to Treasuries and large credit funds) while Europe is leading on regulatory clarity for trading.

• Market Sentiment: The narrative around RWAs has shifted very positively in 2024-2025. Crypto media, which used to focus mostly on pure DeFi, now regularly reports on RWA milestones (e.g., “RWA market surpasses $20B despite crypto downturn”). Ratings agencies like Moody’s are studying on-chain assets; major consulting firms (BCG, Deloitte) publish tokenization whitepapers. The sentiment is that RWAfi could drive the next bull phase of crypto by bringing in trillions of value. Even Grayscale considering a Plume product suggests investor appetite for RWA exposure packaged in crypto vehicles. There’s also recognition that RWA is partly counter-cyclical to crypto – when crypto yields are low, people seek RWAs; when crypto booms, RWA provides stable diversification. This makes many investors view RWA tokens as a way to hedge crypto volatility (e.g., Binance research found RWA tokens remained stable and even considered “safer than Bitcoin” during certain macro volatility).

To conclude this section with hard numbers: $20-22B on-chain now, heading to $50B+ in a year or two, and potentially $1T+ within this decade. Investment is pouring in, with dozens of projects collectively backed by well over $200M in venture funding. Traditional finance is actively experimenting, with over $2-3B in real assets already issued on public or permissioned chains by big institutions (including multiple $100M+ bond issues). If even 1% of the global bond market (~$120T) and 1% of global real estate (~$300T) gets tokenized by 2030, that’d be several trillion dollars – which aligns with those bullish projections. There are of course uncertainties (regulation, interest rate environments, etc. can affect adoption), but the data so far supports the idea that tokenization is accelerating. As Plume’s team noted, “the RWA sector is now leading Web3 into its next phase” – a phase where blockchain moves from speculative assets to the backbone of real financial infrastructure. The deep research and alignment of heavyweights behind RWAs underscore that this is not a fleeting trend but a structural evolution of both crypto and traditional finance.

Sources:

• Plume Network Documentation and Blog
• News and Press: CoinDesk, The Block, Fortune (via LinkedIn)
• RWA Market Analysis: RWA.xyz, LinkedIn RWA Report
• Odaily/ChainCatcher Analysis
• Goldfinch and Prime info, Ondo info, Centrifuge info, Maple info, Apollo quote, Binance research mention, etc.

Introduction: The Need for Verifiable AI on Blockchain​

As AI systems grow in influence, ensuring their outputs are trustworthy becomes critical. Traditional methods rely on institutional assurances (essentially “just trust us”), which offer no cryptographic guarantees. This is especially problematic in decentralized contexts like blockchains, where a smart contract or user must trust an AI-derived result without being able to re-run a heavy model on-chain. Zero-knowledge Machine Learning (zkML) addresses this by allowing cryptographic verification of ML computations. In essence, zkML enables a prover to generate a succinct proof that “the output $Y$ came from running model $M$ on input $X$” – without revealing $X$ or the internal details of $M$. These zero-knowledge proofs (ZKPs) can be verified by anyone (or any contract) efficiently, shifting AI trust from “policy to proof”.

On-chain verifiability of AI means a blockchain can incorporate advanced computations (like neural network inferences) by verifying a proof of correct execution instead of performing the compute itself. This has broad implications: smart contracts can make decisions based on AI predictions, decentralized autonomous agents can prove they followed their algorithms, and cross-chain or off-chain compute services can provide verifiable outputs rather than unverifiable oracles. Ultimately, zkML offers a path to trustless and privacy-preserving AI – for example, proving an AI model’s decisions are correct and authorized without exposing private data or proprietary model weights. This is key for applications ranging from secure healthcare analytics to blockchain gaming and DeFi oracles.

How zkML Works: Compressing ML Inference into Succinct Proofs​

At a high level, zkML combines cryptographic proof systems with ML inference so that a complex model evaluation can be “compressed” into a small proof. Internally, the ML model (e.g. a neural network) is represented as a circuit or program consisting of many arithmetic operations (matrix multiplications, activation functions, etc.). Rather than revealing all intermediate values, a prover performs the full computation off-chain and then uses a zero-knowledge proof protocol to attest that every step was done correctly. The verifier, given only the proof and some public data (like the final output and an identifier for the model), can be cryptographically convinced of the correctness without re-executing the model.

To achieve this, zkML frameworks typically transform the model computation into a format amenable to ZKPs:

• Circuit Compilation: In SNARK-based approaches, the computation graph of the model is compiled into an arithmetic circuit or set of polynomial constraints. Each layer of the neural network (convolutions, matrix multiplies, nonlinear activations) becomes a sub-circuit with constraints ensuring the outputs are correct given the inputs. Because neural nets involve non-linear operations (ReLUs, Sigmoids, etc.) not naturally suited to polynomials, techniques like lookup tables are used to handle these efficiently. For example, a ReLU (output = max(0, input)) can be enforced by a custom constraint or lookup that verifies output equals input if input≥0 else zero. The end result is a set of cryptographic constraints that the prover must satisfy, which implicitly proves the model ran correctly.
• Execution Trace & Virtual Machines: An alternative is to treat the model inference as a program trace, as done in zkVM approaches. For instance, the JOLT zkVM targets the RISC-V instruction set; one can compile the ML model (or the code that computes it) to RISC-V and then prove each CPU instruction executed properly. JOLT introduces a “lookup singularity” technique, replacing expensive arithmetic constraints with fast table lookups for each valid CPU operation. Every operation (add, multiply, bitwise op, etc.) is checked via a lookup in a giant table of pre-computed valid outcomes, using a specialized argument (Lasso/SHOUT) to keep this efficient. This drastically reduces the prover workload: even complex 64-bit operations become a single table lookup in the proof instead of many arithmetic constraints.
• Interactive Protocols (GKR Sum-Check): A third approach uses interactive proofs like GKR (Goldwasser–Kalai–Rotblum) to verify a layered computation. Here the model’s computation is viewed as a layered arithmetic circuit (each neural network layer is one layer of the circuit graph). The prover runs the model normally but then engages in a sum-check protocol to prove that each layer’s outputs are correct given its inputs. In Lagrange’s approach (DeepProve, detailed next), the prover and verifier perform an interactive polynomial protocol (made non-interactive via Fiat-Shamir) that checks consistency of each layer’s computations without re-doing them. This sum-check method avoids generating a monolithic static circuit; instead it verifies the consistency of computations in a step-by-step manner with minimal cryptographic operations (mostly hashing or polynomial evaluations).

Regardless of approach, the outcome is a succinct proof (typically a few kilobytes to a few tens of kilobytes) that attests to the correctness of the entire inference. The proof is zero-knowledge, meaning any secret inputs (private data or model parameters) can be kept hidden – they influence the proof but are not revealed to verifiers. Only the intended public outputs or assertions are revealed. This allows scenarios like “prove that model $M$ when applied to patient data $X$ yields diagnosis $Y$, without revealing $X$ or the model’s weights.”

Enabling on-chain verification: Once a proof is generated, it can be posted to a blockchain. Smart contracts can include verification logic to check the proof, often using precompiled cryptographic primitives. For example, Ethereum has precompiles for BLS12-381 pairing operations used in many zk-SNARK verifiers, making on-chain verification of SNARK proofs efficient. STARKs (hash-based proofs) are larger, but can still be verified on-chain with careful optimization or possibly with some trust assumptions (StarkWare’s L2, for instance, verifies STARK proofs on Ethereum by an on-chain verifier contract, albeit with higher gas cost than SNARKs). The key is that the chain does not need to execute the ML model – it only runs a verification which is much cheaper than the original compute. In summary, zkML compresses expensive AI inference into a small proof that blockchains (or any verifier) can check in milliseconds to seconds.

Lagrange DeepProve: Architecture and Performance of a zkML Breakthrough​

DeepProve by Lagrange Labs is a state-of-the-art zkML inference framework focusing on speed and scalability. Launched in 2025, DeepProve introduced a new proving system that is dramatically faster than prior solutions like Ezkl. Its design centers on the GKR interactive proof protocol with sum-check and specialized optimizations for neural network circuits. Here’s how DeepProve works and achieves its performance:

• One-Time Preprocessing: Developers start with a trained neural network (currently supported types include multilayer perceptrons and popular CNN architectures). The model is exported to ONNX format, a standard graph representation. DeepProve’s tool then parses the ONNX model and quantizes it (converts weights to fixed-point/integer form) for efficient field arithmetic. In this phase, it also generates the proving and verification keys for the cryptographic protocol. This setup is done once per model and does not need to be repeated per inference. DeepProve emphasizes ease of integration: “Export your model to ONNX → one-time setup → generate proofs → verify anywhere”.

• Proving (Inference + Proof Generation): After setup, a prover (which could be run by a user, a service, or Lagrange’s decentralized prover network) takes a new input $X$ and runs the model $M$ on it, obtaining output $Y$. During this execution, DeepProve records an execution trace of each layer’s computations. Instead of translating every multiplication into a static circuit upfront (as SNARK approaches do), DeepProve uses the linear-time GKR protocol to verify each layer on the fly. For each network layer, the prover commits to the layer’s inputs and outputs (e.g., via cryptographic hashes or polynomial commitments) and then engages in a sum-check argument to prove that the outputs indeed result from the inputs as per the layer’s function. The sum-check protocol iteratively convinces the verifier of the correctness of a sum of evaluations of a polynomial that encodes the layer’s computation, without revealing the actual values. Non-linear operations (like ReLU, softmax) are handled efficiently through lookup arguments in DeepProve – if an activation’s output was computed, DeepProve can prove that each output corresponds to a valid input-output pair from a precomputed table for that function. Layer by layer, proofs are generated and then aggregated into one succinct proof covering the whole model’s forward pass. The heavy lifting of cryptography is minimized – DeepProve’s prover mostly performs normal numeric computations (the actual inference) plus some light cryptographic commitments, rather than solving a giant system of constraints.

• Verification: The verifier uses the final succinct proof along with a few public values – typically the model’s committed identifier (a cryptographic commitment to $M$’s weights), the input $X$ (if not private), and the claimed output $Y$ – to check correctness. Verification in DeepProve’s system involves verifying the sum-check protocol’s transcript and the final polynomial or hash commitments. This is more involved than verifying a classic SNARK (which might be a few pairings), but it’s vastly cheaper than re-running the model. In Lagrange’s benchmarks, verifying a DeepProve proof for a medium CNN takes on the order of 0.5 seconds in software. That is ~0.5s to confirm, for example, that a convolutional network with hundreds of thousands of parameters ran correctly – over 500× faster than naively re-computing that CNN on a GPU for verification. (In fact, DeepProve measured up to 521× faster verification for CNNs and 671× for MLPs compared to re-execution.) The proof size is small enough to transmit on-chain (tens of KB), and verification could be performed in a smart contract if needed, although 0.5s of computation might require careful gas optimization or layer-2 execution.

Architecture and Tooling: DeepProve is implemented in Rust and provides a toolkit (the zkml library) for developers. It natively supports ONNX model graphs, making it compatible with models from PyTorch or TensorFlow (after exporting). The proving process currently targets models up to a few million parameters (tests include a 4M-parameter dense network). DeepProve leverages a combination of cryptographic components: a multilinear polynomial commitment (to commit to layer outputs), the sum-check protocol for verifying computations, and lookup arguments for non-linear ops. Notably, Lagrange’s open-source repository acknowledges it builds on prior work (the sum-check and GKR implementation from Scroll’s Ceno project), indicating an intersection of zkML with zero-knowledge rollup research.

To achieve real-time scalability, Lagrange pairs DeepProve with its Prover Network – a decentralized network of specialized ZK provers. Heavy proof generation can be offloaded to this network: when an application needs an inference proved, it sends the job to Lagrange’s network, where many operators (staked on EigenLayer for security) compute proofs and return the result. This network economically incentivizes reliable proof generation (malicious or failed jobs get the operator slashed). By distributing work across provers (and potentially leveraging GPUs or ASICs), the Lagrange Prover Network hides the complexity and cost from end-users. The result is a fast, scalable, and decentralized zkML service: “verifiable AI inferences fast and affordable”.

Performance Milestones: DeepProve’s claims are backed by benchmarks against the prior state-of-the-art, Ezkl. For a CNN with ~264k parameters (CIFAR-10 scale model), DeepProve’s proving time was ~1.24 seconds versus ~196 seconds for Ezkl – about 158× faster. For a larger dense network with 4 million parameters, DeepProve proved an inference in ~2.3 seconds vs ~126.8 seconds for Ezkl (~54× faster). Verification times also dropped: DeepProve verified the 264k CNN proof in ~0.6s, whereas verifying the Ezkl proof (Halo2-based) took over 5 minutes on CPU in that test. The speedups come from DeepProve’s near-linear complexity: its prover scales roughly O(n) with the number of operations, whereas circuit-based SNARK provers often have superlinear overhead (FFT and polynomial commitments scaling). In fact, DeepProve’s prover throughput can be within an order of magnitude of plain inference runtime – recent GKR systems can be <10× slower than raw execution for large matrix multiplications, an impressive achievement in ZK. This makes real-time or on-demand proofs more feasible, paving the way for verifiable AI in interactive applications.

Use Cases: Lagrange is already collaborating with Web3 and AI projects to apply zkML. Example use cases include: verifiable NFT traits (proving an AI-generated evolution of a game character or collectible is computed by the authorized model), provenance of AI content (proving an image or text was generated by a specific model, to combat deepfakes), DeFi risk models (proving a model’s output that assesses financial risk without revealing proprietary data), and private AI inference in healthcare or finance (where a hospital can get AI predictions with a proof, ensuring correctness without exposing patient data). By making AI outputs verifiable and privacy-preserving, DeepProve opens the door to “AI you can trust” in decentralized systems – moving from an era of “blind trust in black-box models” to one of “objective guarantees”.

SNARK-Based zkML: Ezkl and the Halo2 Approach​

The traditional approach to zkML uses zk-SNARKs (Succinct Non-interactive Arguments of Knowledge) to prove neural network inference. Ezkl (by ZKonduit/Modulus Labs) is a leading example of this approach. It builds on the Halo2 proving system (a PLONK-style SNARK with polynomial commitments over BLS12-381). Ezkl provides a tooling chain where a developer can take a PyTorch or TensorFlow model, export it to ONNX, and have Ezkl compile it into a custom arithmetic circuit automatically.

How it works: Each layer of the neural network is converted into constraints:

• Linear layers (dense or convolution) become collections of multiplication-add constraints that enforce the dot-products between inputs, weights, and outputs.
• Non-linear layers (like ReLU, sigmoid, etc.) are handled via lookups or piecewise constraints because such functions are not polynomial. For instance, a ReLU can be implemented by a boolean selector $b$ with constraints ensuring $y = x \cdot b$ and $0 \le b \le 1$ and $b=1$ if $x>0$ (one way to do it), or more efficiently by a lookup table mapping $x \mapsto \max(0,x)$ for a range of $x$ values. Halo2’s lookup arguments allow mapping 16-bit (or smaller) chunks of values, so large domains (like all 32-bit values) are usually “chunked” into several smaller lookups. This chunking increases the number of constraints.
• Big integer ops or divisions (if any) are similarly broken into small pieces. The result is a large set of R1CS/PLONK constraints tailored to the specific model architecture.

Ezkl then uses Halo2 to generate a proof that these constraints hold given the secret inputs (model weights, private inputs) and public outputs. Tooling and integration: One advantage of the SNARK approach is that it leverages well-known primitives. Halo2 is already used in Ethereum rollups (e.g. Zcash, zkEVMs), so it’s battle-tested and has an on-chain verifier readily available. Ezkl’s proofs use BLS12-381 curve, which Ethereum can verify via precompiles, making it straightforward to verify an Ezkl proof in a smart contract. The team has also provided user-friendly APIs; for example, data scientists can work with their models in Python and use Ezkl’s CLI to produce proofs, without deep knowledge of circuits.

Strengths: Ezkl’s approach benefits from the generality and ecosystem of SNARKs. It supports reasonably complex models and has already seen “practical integrations (from DeFi risk models to gaming AI)”, proving real-world ML tasks. Because it operates at the level of the model’s computation graph, it can apply ML-specific optimizations: e.g. pruning insignificant weights or quantizing parameters to reduce circuit size. It also means model confidentiality is natural – the weights can be treated as private witness data, so the verifier only sees that some valid model produced the output, or at best a commitment to the model. The verification of SNARK proofs is extremely fast (typically a few milliseconds or less on-chain), and proof sizes are small (a few kilobytes), which is ideal for blockchain usage.

Weaknesses: Performance is the Achilles’ heel. Circuit-based proving imposes large overheads, especially as models grow. It’s noted that historically, SNARK circuits could be a million times more work for the prover than just running the model itself. Halo2 and Ezkl optimize this, but still, operations like large matrix multiplications generate tons of constraints. If a model has millions of parameters, the prover must handle correspondingly millions of constraints, performing heavy FFTs and multiexponentiation in the process. This leads to high proving times (often minutes or hours for non-trivial models) and high memory usage. For example, proving even a relatively small CNN (e.g. a few hundred thousand parameters) can take tens of minutes with Ezkl on a single machine. The team behind DeepProve cited that Ezkl took hours for certain model proofs that DeepProve can do in minutes. Large models might not even fit in memory or require splitting into multiple proofs (which then need recursive aggregation). While Halo2 is “moderately optimized”, any need to “chunk” lookups or handle wide-bit operations translates to extra overhead. In summary, scalability is limited – Ezkl works well for small-to-medium models (and indeed outperformed some earlier alternatives like naive Stark-based VMs in benchmarks), but struggles as model size grows beyond a point.

Despite these challenges, Ezkl and similar SNARK-based zkML libraries are important stepping stones. They proved that verified ML inference is possible on-chain and have active usage. Notably, projects like Modulus Labs demonstrated verifying an 18-million-parameter model on-chain using SNARKs (with heavy optimization). The cost was non-trivial, but it shows the trajectory. Moreover, the Mina Protocol has its own zkML toolkit that uses SNARKs to allow smart contracts on Mina (which are Snark-based) to verify ML model execution. This indicates a growing multi-platform support for SNARK-based zkML.

STARK-Based Approaches: Transparent and Programmable ZK for ML​

zk-STARKs (Scalable Transparent ARguments of Knowledge) offer another route to zkML. STARKs use hash-based cryptography (like FRI for polynomial commitments) and avoid any trusted setup. They often operate by simulating a CPU or VM and proving the execution trace is correct. In context of ML, one can either build a custom STARK for the neural network or use a general-purpose STARK VM to run the model code.

General STARK VMs (RISC Zero, Cairo): A straightforward approach is to write inference code and run it in a STARK VM. For example, Risc0 provides a RISC-V environment where any code (e.g., C++ or Rust implementation of a neural network) can be executed and proven via a STARK. Similarly, StarkWare’s Cairo language can express arbitrary computations (like an LSTM or CNN inference) which are then proved by the StarkNet STARK prover. The advantage is flexibility – you don’t need to design custom circuits for each model. However, early benchmarks showed that naive STARK VMs were slower compared to optimized SNARK circuits for ML. In one test, a Halo2-based proof (Ezkl) was about 3× faster than a STARK-based approach on Cairo, and even 66× faster than a RISC-V STARK VM on a certain benchmark in 2024. This gap is due to the overhead of simulating every low-level instruction in a STARK and the larger constants in STARK proofs (hashing is fast but you need a lot of it; STARK proof sizes are bigger, etc.). However, STARK VMs are improving and have the benefit of transparent setup (no trusted setup) and post-quantum security. As STARK-friendly hardware and protocols advance, proving speeds will improve.

DeepProve’s approach vs STARK: Interestingly, DeepProve’s use of GKR and sum-check yields a proof more akin to a STARK in spirit – it’s an interactive, hash-based proof with no need for a structured reference string. The trade-off is that its proofs are larger and verification is heavier than a SNARK. Yet, DeepProve shows that careful protocol design (specialized to ML’s layered structure) can vastly outperform both generic STARK VMs and SNARK circuits in proving time. We can consider DeepProve as a bespoke STARK-style zkML prover (though they use the term zkSNARK for succinctness, it doesn’t have a traditional SNARK’s small constant-size verification, since 0.5s verify is bigger than typical SNARK verify). Traditional STARK proofs (like StarkNet’s) often involve tens of thousands of field operations to verify, whereas SNARK verifies in maybe a few dozen. Thus, one trade-off is evident: SNARKs yield smaller proofs and faster verifiers, while STARKs (or GKR) offer easier scaling and no trusted setup at the cost of proof size and verify speed.

Emerging improvements: The JOLT zkVM (discussed earlier under JOLTx) is actually outputting SNARKs (using PLONKish commitments) but it embodies ideas that could be applied in STARK context too (Lasso lookups could theoretically be used with FRI commitments). StarkWare and others are researching ways to speed up proving of common operations (like using custom gates or hints in Cairo for big int ops, etc.). There’s also Circomlib-ML by Privacy&Scaling Explorations (PSE), which provides Circom templates for CNN layers, etc. – that’s SNARK-oriented, but conceptually similar templates could be made for STARK languages.

In practice, non-Ethereum ecosystems leveraging STARKs include StarkNet (which could allow on-chain verification of ML if someone writes a verifier, though cost is high) and Risc0’s Bonsai service (which is an off-chain proving service that emits STARK proofs which can be verified on various chains). As of 2025, most zkML demos on blockchain have favored SNARKs (due to verifier efficiency), but STARK approaches remain attractive for their transparency and potential in high-security or quantum-resistant settings. For example, a decentralized compute network might use STARKs to let anyone verify work without a trusted setup, useful for longevity. Also, some specialized ML tasks might exploit STARK-friendly structures: e.g. computations heavily using XOR/bit operations could be faster in STARKs (since those are cheap in boolean algebra and hashing) than in SNARK field arithmetic.

Summary of SNARK vs STARK for ML:

• Performance: SNARKs (like Halo2) have huge proving overhead per gate but benefit from powerful optimizations and small constants for verify; STARKs (generic) have larger constant overhead but scale more linearly and avoid expensive crypto like pairings. DeepProve shows that customizing the approach (sum-check) yields near-linear proving time (fast) but with a STARK-like proof. JOLT shows that even a general VM can be made faster with heavy use of lookups. Empirically, for models up to millions of operations: a well-optimized SNARK (Ezkl) can handle it but might take tens of minutes, whereas DeepProve (GKR) can do it in seconds. STARK VMs in 2024 were likely in between or worse than SNARKs unless specialized (Risc0 was slower in tests, Cairo was slower without custom hints).
• Verification: SNARK proofs verify quickest (milliseconds, and minimal data on-chain ~ a few hundred bytes to a few KB). STARK proofs are larger (dozens of KB) and take longer (tens of ms to seconds) to verify due to many hashing steps. In blockchain terms, a SNARK verify might cost e.g. ~200k gas, whereas a STARK verify could cost millions of gas – often too high for L1, acceptable on L2 or with succinct verification schemes.
• Setup and Security: SNARKs like Groth16 require a trusted setup per circuit (unfriendly for arbitrary models), but universal SNARKs (PLONK, Halo2) have a one-time setup that can be reused for any circuit up to certain size. STARKs need no setup and use only hash assumptions (plus classical polynomial complexity assumptions), and are post-quantum secure. This makes STARKs appealing for longevity – proofs remain secure even if quantum computers emerge, whereas current SNARKs (BLS12-381 based) would be broken by quantum attacks.

We will consolidate these differences in a comparison table shortly.

FHE for ML (FHE-o-ML): Private Computation vs. Verifiable Computation​

Fully Homomorphic Encryption (FHE) is a cryptographic technique that allows computations to be performed directly on encrypted data. In the context of ML, FHE can enable a form of privacy-preserving inference: for example, a client can send encrypted input to a model host, the host runs the neural network on the ciphertext without decrypting it, and sends back an encrypted result which the client can decrypt. This ensures data confidentiality – the model owner learns nothing about the input (and potentially the client learns only the output, not the model’s internals if they only get output). However, FHE by itself does not produce a proof of correctness in the same way ZKPs do. The client must trust that the model owner actually performed the computation honestly (the ciphertext could have been manipulated). Usually, if the client has the model or expects a certain distribution of outputs, blatant cheating can be detected, but subtle errors or use of a wrong model version would not be evident just from the encrypted output.

Trade-offs in performance: FHE is notoriously heavy in computation. Running deep learning inference under FHE incurs orders-of-magnitude slowdown. Early experiments (e.g., CryptoNets in 2016) took tens of seconds to evaluate a tiny CNN on encrypted data. By 2024, improvements like CKKS (for approximate arithmetic) and better libraries (Microsoft SEAL, Zama’s Concrete) have reduced this overhead, but it remains large. For example, a user reported that using Zama’s Concrete-ML to run a CIFAR-10 classifier took 25–30 minutes per inference on their hardware. After optimizations, Zama’s team achieved ~40 seconds for that inference on a 192-core server. Even 40s is extremely slow compared to a plaintext inference (which might be 0.01s), showing a ~$10^3$–$10^4\times$ overhead. Larger models or higher precision increase the cost further. Additionally, FHE operations consume a lot of memory and require occasional bootstrapping (a noise-reduction step) which is computationally expensive. In summary, scalability is a major issue – state-of-the-art FHE might handle a small CNN or simple logistic regression, but scaling to large CNNs or Transformers is beyond current practical limits.

Privacy advantages: FHE’s big appeal is data privacy. The input can remain completely encrypted throughout the process. This means an untrusted server can compute on a client’s private data without learning anything about it. Conversely, if the model is sensitive (proprietary), one could envisage encrypting the model parameters and having the client perform FHE inference on their side – but this is less common because if the client has to do the heavy FHE compute, it negates the idea of offloading to a powerful server. Typically, the model is public or held by server in the clear, and the data is encrypted by the client’s key. Model privacy in that scenario is not provided by default (the server knows the model; the client learns outputs but not weights). There are more exotic setups (like secure two-party computation or multi-key FHE) where both model and data can be kept private from each other, but those incur even more complexity. In contrast, zkML via ZKPs can ensure model privacy and data privacy at once – the prover can have both the model and data as secret witness, only revealing what’s needed to the verifier.

No on-chain verification needed (and none possible): With FHE, the result comes out encrypted to the client. The client then decrypts it to obtain the actual prediction. If we want to use that result on-chain, the client (or whoever holds the decryption key) would have to publish the plaintext result and convince others it’s correct. But at that point, trust is back in the loop – unless combined with a ZKP. In principle, one could combine FHE and ZKP: e.g., use FHE to keep data private during compute, and then generate a ZK-proof that the plaintext result corresponds to a correct computation. However, combining them means you pay the performance penalty of FHE and ZKP – extremely impractical with today’s tech. So, in practice FHE-of-ML and zkML serve different use cases:

• FHE-of-ML: Ideal when the goal is confidentiality between two parties (client and server). For instance, a cloud service can host an ML model and users can query it with their sensitive data without revealing the data to the cloud (and if the model is sensitive, perhaps deploy it via FHE-friendly encodings). This is great for privacy-preserving ML services (medical predictions, etc.). The user still has to trust the service to faithfully run the model (since no proof), but at least any data leakage is prevented. Some projects like Zama are even exploring an “FHE-enabled EVM (fhEVM)” where smart contracts could operate on encrypted inputs, but verifying those computations on-chain would require the contract to somehow enforce correct computation – an open challenge likely requiring ZK proofs or specialized secure hardware.
• zkML (ZKPs): Ideal when the goal is verifiability and public auditability. If you want anyone (or any contract) to be sure that “Model $M$ was evaluated correctly on $X$ and produced $Y$”, ZKPs are the solution. They also provide privacy as a bonus (you can hide $X$ or $Y$ or $M$ if needed by treating them as private inputs to the proof), but their primary feature is the proof of correct execution.

A complementary relationship: It’s worth noting that ZKPs protect the verifier (they learn nothing about secrets, only that the computation was correctly done), whereas FHE protects the prover’s data from the computing party. In some scenarios, these could be combined – for example, a network of untrusted nodes could use FHE to compute on users’ private data and then provide ZK proofs to the users (or blockchain) that the computations were done according to the protocol. This would cover both privacy and correctness, but the performance cost is enormous with today’s algorithms. More feasible in the near term are hybrids like Trusted Execution Environments (TEE) plus ZKP or Functional Encryption plus ZKP – these are beyond our scope, but they aim to provide something similar (TEEs keep data/model secret during compute, then a ZKP can attest the TEE did the right thing).

In summary, FHE-of-ML prioritizes confidentiality of inputs/outputs, while zkML prioritizes verifiable correctness (with possible privacy). Table 1 below contrasts the key properties:

Table 1: Comparison of zk-SNARK, zk-STARK, and FHE approaches for machine learning inference (performance and privacy trade-offs).

Use Cases and Implications for Web3 Applications​

The convergence of AI and blockchain via zkML unlocks powerful new application patterns in Web3:

• Decentralized Autonomous Agents & On-Chain Decision-Making: Smart contracts or DAOs can incorporate AI-driven decisions with guarantees of correctness. For example, imagine a DAO that uses a neural network to analyze market conditions before executing trades. With zkML, the DAO’s smart contract can require a zkSNARK proof that the authorized ML model (with a known hash commitment) was run on the latest data and produced the recommended action, before the action is accepted. This prevents malicious actors from injecting a fake prediction – the chain verifies the AI’s computation. Over time, one could even have fully on-chain autonomous agents (contracts that query off-chain AI or contain simplified models) making decisions in DeFi or games, with all their moves proven correct and policy-compliant via zk proofs. This raises the trust in autonomous agents, since their “thinking” is transparent and verifiable rather than a black-box.

• Verifiable Compute Markets: Projects like Lagrange are effectively creating verifiable computation marketplaces – developers can outsource heavy ML inference to a network of provers and get back a proof with the result. This is analogous to decentralized cloud computing, but with built-in trust: you don’t need to trust the server, only the proof. It’s a paradigm shift for oracles and off-chain computation. Protocols like Ethereum’s upcoming DSC (decentralized sequencing layer) or oracle networks could use this to provide data feeds or analytic feeds with cryptographic guarantees. For instance, an oracle could supply “the result of model X on input Y” and anyone can verify the attached proof on-chain, rather than trusting the oracle’s word. This could enable verifiable AI-as-a-service on blockchain: any contract can request a computation (like “score these credit risks with my private model”) and accept the answer only with a valid proof. Projects such as Gensyn are exploring decentralized training and inference marketplaces using these verification techniques.

• NFTs and Gaming – Provenance and Evolution: In blockchain games or NFT collectibles, zkML can prove traits or game moves were generated by legitimate AI models. For example, a game might allow an AI to evolve an NFT pet’s attributes. Without ZK, a clever user might modify the AI or the outcome to get a superior pet. With zkML, the game can require a proof that “pet’s new stats were computed by the official evolution model on the pet’s old stats”, preventing cheating. Similarly for generative art NFTs: an artist could release a generative model as a commitment; later, when minting NFTs, prove each image was produced by that model given some seed, guaranteeing authenticity (and even doing so without revealing the exact model to the public, preserving the artist’s IP). This provenance verification ensures authenticity in a manner akin to verifiable randomness – except here it’s verifiable creativity.

• Privacy-Preserving AI in Sensitive Domains: zkML allows confirmation of outcomes without exposing inputs. In healthcare, a patient’s data could be run through an AI diagnostic model by a cloud provider; the hospital receives a diagnosis and a proof that the model (which could be privately held by a pharmaceutical company) was run correctly on the patient data. The patient data remains private (only an encrypted or committed form was used in the proof), and the model weights remain proprietary – yet the result is trusted. Regulators or insurance could also verify that only approved models were used. In finance, a company could prove to an auditor or regulator that its risk model was applied to its internal data and produced certain metrics without revealing the underlying sensitive financial data. This enables compliance and oversight with cryptographic assurances rather than manual trust.

• Cross-Chain and Off-Chain Interoperability: Because zero-knowledge proofs are fundamentally portable, zkML can facilitate cross-chain AI results. One chain might have an AI-intensive application running off-chain; it can post a proof of the result to a different blockchain, which will trustlessly accept it. For instance, consider a multi-chain DAO using an AI to aggregate sentiment across social media (off-chain data). The AI analysis (complex NLP on large data) is done off-chain by a service that then posts a proof to a small blockchain (or multiple chains) that “analysis was done correctly and output sentiment score = 0.85”. All chains can verify and use that result in their governance logic, without each needing to rerun the analysis. This kind of interoperable verifiable compute is what Lagrange’s network aims to support, by serving multiple rollups or L1s simultaneously. It removes the need for trusted bridges or oracle assumptions when moving results between chains.

• AI Alignment and Governance: On a more forward-looking note, zkML has been highlighted as a tool for AI governance and safety. Lagrange’s vision statements, for example, argue that as AI systems become more powerful (even superintelligent), cryptographic verification will be essential to ensure they follow agreed rules. By requiring AI models to produce proofs of their reasoning or constraints, humans retain a degree of control – “you cannot trust what you cannot verify”. While this is speculative and involves social as much as technical aspects, the technology could enforce that an AI agent running autonomously still proves it is using an approved model and hasn’t been tampered with. Decentralized AI networks might use on-chain proofs to verify contributions (e.g., a network of nodes collaboratively training a model can prove each update was computed faithfully). Thus zkML could play a role in ensuring AI systems remain accountable to human-defined protocols even in decentralized or uncontrolled environments.

In conclusion, zkML and verifiable on-chain AI represent a convergence of advanced cryptography and machine learning that stands to enhance trust, transparency, and privacy in AI applications. By comparing the major approaches – zk-SNARKs, zk-STARKs, and FHE – we see a spectrum of trade-offs between performance and privacy, each suitable for different scenarios. SNARK-based frameworks like Ezkl and innovations like Lagrange’s DeepProve have made it feasible to prove substantial neural network inferences with practical effort, opening the door to real-world deployments of verifiable AI. STARK-based and VM-based approaches promise greater flexibility and post-quantum security, which will become important as the field matures. FHE, while not a solution for verifiability, addresses the complementary need of confidential ML computation, and in combination with ZKPs or in specific private contexts it can empower users to leverage AI without sacrificing data privacy.

The implications for Web3 are significant: we can foresee smart contracts reacting to AI predictions, knowing they are correct; markets for compute where results are trustlessly sold; digital identities (like Worldcoin’s proof-of-personhood via iris AI) protected by zkML to confirm someone is human without leaking their biometric image; and generally a new class of “provable intelligence” that enriches blockchain applications. Many challenges remain – performance for very large models, developer ergonomics, and the need for specialized hardware – but the trajectory is clear. As one report noted, “today’s ZKPs can support small models, but moderate to large models break the paradigm”; however, rapid advances (50×–150× speedups with DeepProve over prior art) are pushing that boundary outward. With ongoing research (e.g., on hardware acceleration and distributed proving), we can expect progressively larger and more complex AI models to become provable. zkML might soon evolve from niche demos to an essential component of trusted AI infrastructure, ensuring that as AI becomes ubiquitous, it does so in a way that is auditable, decentralized, and aligned with user privacy and security.

One of the core promises of blockchain technology like Ethereum is a degree of anonymity. Participants, known as validators, are supposed to operate behind a veil of cryptographic pseudonyms, protecting their real-world identity and, by extension, their security.

However, a recent research paper titled "Deanonymizing Ethereum Validators: The P2P Network Has a Privacy Issue" from researchers at ETH Zurich and other institutions reveals a critical flaw in this assumption. They demonstrate a simple, low-cost method to link a validator's public identifier directly to the IP address of the machine it's running on.

In short, Ethereum validators are not nearly as anonymous as many believe. The findings were significant enough to earn the researchers a bug bounty from the Ethereum Foundation, acknowledging the severity of the privacy leak.

How the Vulnerability Works: A Flaw in the Gossip​

To understand the vulnerability, we first need a basic picture of how Ethereum validators communicate. The network consists of over a million validators who constantly "vote" on the state of the chain. These votes are called attestations, and they are broadcast across a peer-to-peer ($P2P$) network to all other nodes.

With so many validators, having everyone broadcast every vote to everyone else would instantly overwhelm the network. To solve this, Ethereum’s designers implemented a clever scaling solution: the network is divided into 64 distinct communication channels, known as subnets.

• By default, each node (the computer running the validator software) subscribes to only two of these 64 subnets. Its primary job is to diligently relay all messages it sees on those two channels.
• When a validator needs to cast a vote, its attestation is randomly assigned to one of the 64 subnets for broadcast.

This is where the vulnerability lies. Imagine a node whose job is to manage traffic for channels 12 and 13. All day, it faithfully forwards messages from just those two channels. But then, it suddenly sends you a message that belongs to channel 45.

This is a powerful clue. Why would a node handle a message from a channel it's not responsible for? The most logical conclusion is that the node itself generated that message. This implies that the validator who created the attestation for channel 45 is running on that very machine.

The researchers exploited this exact principle. By setting up their own listening nodes, they monitored the subnets from which their peers sent attestations. When a peer sent a message from a subnet it wasn't officially subscribed to, they could infer with high confidence that the peer hosted the originating validator.

The method proved shockingly effective. Using just four nodes over three days, the team successfully located the IP addresses of over 161,000 validators, representing more than 15% of the entire Ethereum network.

Why This Matters: The Risks of Deanonymization​

Exposing a validator's IP address is not a trivial matter. It opens the door for targeted attacks that threaten individual operators and the health of the Ethereum network as a whole.

1. Targeted Attacks and Reward Theft Ethereum announces which validator is scheduled to propose the next block a few minutes in advance. An attacker who knows this validator's IP address can launch a Denial-of-Service (DDoS) attack, flooding it with traffic and knocking it offline. If the validator misses its four-second window to propose the block, the opportunity passes to the next validator in line. If the attacker is that next validator, they can then claim the block rewards and valuable transaction fees (MEV) that should have gone to the victim.

2. Threats to Network Liveness and Safety A well-resourced attacker could perform these "sniping" attacks repeatedly, causing the entire blockchain to slow down or halt (a liveness attack). In a more severe scenario, an attacker could use this information to launch sophisticated network-partitioning attacks, potentially causing different parts of the network to disagree on the chain's history, thus compromising its integrity (a safety attack).

3. Revealing a Centralized Reality The research also shed light on some uncomfortable truths about the network's decentralization:

• Extreme Concentration: The team found peers hosting a staggering number of validators, including one IP address running over 19,000. The failure of a single machine could have an outsized impact on the network.
• Dependence on Cloud Services: Roughly 90% of located validators run on cloud providers like AWS and Hetzner, not on the computers of solo home stakers. This represents a significant point of centralization.
• Hidden Dependencies: Many large staking pools claim their operators are independent. However, the research found instances where validators from different, competing pools were running on the same physical machine, creating hidden systemic risks.

Mitigations: How Can Validators Protect Themselves?​

Fortunately, there are ways to defend against this deanonymization technique. The researchers proposed several mitigations:

• Create More Noise: A validator can choose to subscribe to more than two subnets—or even all 64. This makes it much harder for an observer to distinguish between relayed messages and self-generated ones.
• Use Multiple Nodes: An operator can separate validator duties across different machines with different IPs. For example, one node could handle attestations while a separate, private node is used only for proposing high-value blocks.
• Private Peering: Validators can establish trusted, private connections with other nodes to relay their messages, obscuring their true origin within a small, trusted group.
• Anonymous Broadcasting Protocols: More advanced solutions like Dandelion, which obfuscates a message's origin by passing it along a random "stem" before broadcasting it widely, could be implemented.

Conclusion​

This research powerfully illustrates the inherent trade-off between performance and privacy in distributed systems. In its effort to scale, Ethereum's $P2P$ network adopted a design that compromised the anonymity of its most critical participants.

By bringing this vulnerability to light, the researchers have given the Ethereum community the knowledge and tools needed to address it. Their work is a crucial step toward building a more robust, secure, and truly decentralized network for the future.

We're thrilled to announce a significant expansion to BlockEden.xyz's API Marketplace with the addition of three cutting-edge blockchain networks: Base, Berachain, and Blast. These new offerings reflect our commitment to providing developers with comprehensive access to the most innovative blockchain infrastructures, enabling seamless development across multiple ecosystems.

Base: Coinbase's Ethereum L2 Solution​

Base is an Ethereum Layer 2 (L2) solution developed by Coinbase, designed to bring millions of users into the onchain ecosystem. As a secure, low-cost, developer-friendly Ethereum L2, Base combines the robust security of Ethereum with the scalability benefits of optimistic rollups.

Our new Base API endpoint lets developers:

• Access Base's infrastructure without managing their own nodes
• Leverage high-performance RPC connections with 99.9% uptime
• Build applications that benefit from Ethereum's security with lower fees
• Seamlessly interact with Base's expanding ecosystem of applications

Base is particularly appealing for developers looking to create consumer-facing applications that require Ethereum's security but at a fraction of the cost.

Berachain: Performance Meets EVM Compatibility​

Berachain brings a unique approach to blockchain infrastructure, combining high performance with complete Ethereum Virtual Machine (EVM) compatibility. As an emerging network gaining significant attention from developers, Berachain offers:

• EVM compatibility with enhanced throughput
• Advanced smart contract capabilities
• A growing ecosystem of innovative DeFi applications
• Unique consensus mechanisms optimized for transaction speed

Our Berachain API provides developers with immediate access to this promising network, allowing teams to build and test applications without the complexity of managing infrastructure.

Blast: The First Native Yield L2​

Blast stands out as the first Ethereum L2 with native yield for ETH and stablecoins. This innovative approach to yield generation makes Blast particularly interesting for DeFi developers and applications focused on capital efficiency.

Key benefits of our Blast API include:

• Direct access to Blast's native yield mechanisms
• Support for building yield-optimized applications
• Simplified integration with Blast's unique features
• High-performance RPC connections for seamless interactions

Blast's focus on native yield represents an exciting direction for Ethereum L2 solutions, potentially setting new standards for capital efficiency in the ecosystem.

Seamless Integration Process​

Getting started with these new networks is straightforward with BlockEden.xyz:

1. Visit our API Marketplace and select your desired network
2. Create an API key through your BlockEden.xyz dashboard
3. Integrate the endpoint into your development environment using our comprehensive documentation
4. Start building with confidence, backed by our 99.9% uptime guarantee

Why Choose BlockEden.xyz for These Networks?​

BlockEden.xyz continues to distinguish itself through several core offerings:

• High Availability: Our infrastructure maintains 99.9% uptime across all supported networks
• Developer-First Approach: Comprehensive documentation and support for seamless integration
• Unified Experience: Access multiple blockchain networks through a single, consistent interface
• Competitive Pricing: Our compute unit credit (CUC) system ensures cost-effective scaling

Looking Forward​

The addition of Base, Berachain, and Blast to our API Marketplace represents our ongoing commitment to supporting the diverse and evolving blockchain ecosystem. As these networks continue to mature and attract developers, BlockEden.xyz will be there to provide the reliable infrastructure needed to build the next generation of decentralized applications.

We invite developers to explore these new offerings and provide feedback as we continue to enhance our services. Your input is invaluable in helping us refine and expand our API marketplace to meet your evolving needs.

Ready to start building on Base, Berachain, or Blast? Visit BlockEden.xyz API Marketplace today and create your access key to begin your journey!

For the latest updates and announcements, connect with us on Twitter or join our community on Discord.

In the rapidly evolving landscape of blockchain technology, a familiar name has stepped into the arena with a bold vision. Sony, the entertainment and technology giant, has launched Soneium—an Ethereum Layer-2 blockchain designed to bridge the gap between cutting-edge Web3 innovations and mainstream internet services. But what exactly is Soneium, and why should you care? Let's dive in.

What is Soneium?​

Soneium is a Layer-2 blockchain built on top of Ethereum, developed by Sony Block Solutions Labs—a joint venture between Sony Group and Startale Labs. Launched in January 2025 after a successful testnet phase, Soneium aims to "realize the open internet that transcends boundaries" by making blockchain technology accessible, scalable, and practical for everyday use.

Think of it as Sony's attempt to make blockchain as user-friendly as its PlayStations and Walkmans once made gaming and music.

The Tech Behind Soneium​

For the tech-curious among us, Soneium is built on Optimism's OP Stack, which means it uses the same optimistic rollup framework as other popular Layer-2 solutions. In plain English? It processes transactions off-chain and only periodically posts compressed data back to Ethereum, making transactions faster and cheaper while maintaining security.

Soneium is fully compatible with the Ethereum Virtual Machine (EVM), so developers familiar with Ethereum can easily deploy their applications on the platform. It also joins Optimism's "Superchain" ecosystem, allowing it to communicate easily with other Layer-2 networks like Coinbase's Base.

What Makes Soneium Special?​

While there are already several Layer-2 solutions on the market, Soneium stands out for its focus on entertainment, creative content, and fan engagement—areas where Sony has decades of experience and vast resources.

Imagine buying a movie ticket and receiving an exclusive digital collectible that grants access to bonus content. Or attending a virtual concert where your NFT ticket becomes a memento with special perks. These are the kinds of experiences Sony envisions building on Soneium.

The platform is designed to support:

• Gaming experiences with faster transactions for in-game assets
• NFT marketplaces for digital collectibles
• Fan engagement apps where communities can interact with creators
• Financial tools for creators and fans
• Enterprise blockchain solutions

Sony's Partnerships Power Soneium​

Sony isn't going it alone. The company has forged strategic partnerships to bolster Soneium's development and adoption:

• Startale Labs, a Singapore-based blockchain startup led by Sota Watanabe (co-founder of Astar Network), is Sony's key technical partner
• Optimism Foundation provides the underlying technology
• Circle ensures that USD Coin (USDC) serves as a primary currency on the network
• Samsung has made a strategic investment through its venture arm
• Alchemy, Chainlink, Pyth Network, and The Graph provide essential infrastructure services

Sony is also leveraging its internal divisions—including Sony Pictures, Sony Music Entertainment, and Sony Music Publishing—to pilot Web3 fan engagement projects on Soneium. For example, the platform has already hosted NFT campaigns for the "Ghost in the Shell" franchise and various music artists under Sony's label.

Early Signs of Success​

Despite being just a few months old, Soneium has shown promising traction:

• Its testnet phase saw over 15 million active wallets and processed over 47 million transactions
• Within the first month of mainnet launch, Soneium attracted over 248,000 on-chain accounts and about 1.8 million addresses interacting with the network
• The platform has successfully launched several NFT drops, including a collaboration with Web3 music label Coop Records

To fuel growth, Sony and Astar Network launched a 100-day incentive campaign with a 100 million token reward pool, encouraging users to try out apps, supply liquidity, and be active on the platform.

Security and Scalability: A Balancing Act​

Security is paramount for Sony, especially as it carries its trusted brand into the blockchain space. Soneium inherits Ethereum's security while adding its own protective measures.

Interestingly, Sony has taken a somewhat controversial approach by blacklisting certain smart contracts and tokens deemed to infringe on intellectual property. While this has raised questions about decentralization, Sony argues that some curation is necessary to protect creators and build trust with mainstream users.

On the scalability front, Soneium's very purpose is to enhance Ethereum's throughput. By processing transactions off-chain, it can handle a much higher volume of transactions at much lower costs—crucial for mass adoption of applications like games or large NFT drops.

The Road Ahead​

Sony has outlined a multi-phase roadmap for Soneium:

1. First year: Onboarding Web3 enthusiasts and early adopters
2. Within two years: Integrating Sony products like Sony Bank, Sony Music, and Sony Pictures
3. Within three years: Expanding to enterprises and general applications beyond Sony's ecosystem

The company is gradually rolling out its NFT-driven Fan Marketing Platform, which will allow brands and artists to easily issue NFTs to fans, offering perks like exclusive content and event access.

While Soneium currently relies on ETH for gas fees and uses ASTR (Astar Network's token) for incentives, there's speculation about a potential Soneium native token in the future.

How Soneium Compares to Other Layer-2 Networks​

In the crowded Layer-2 market, Soneium faces competition from established players like Arbitrum, Optimism, and Polygon. However, Sony is carving a unique position by leveraging its entertainment empire and focusing on creative use cases.

Unlike purely community-driven Layer-2 networks, Soneium benefits from Sony's brand trust, access to content IP, and a potentially huge user base from existing Sony services.

The trade-off is less decentralization (at least initially) compared to networks like Optimism and Arbitrum, which have issued tokens and implemented community governance.

The Big Picture​

Sony's Soneium represents a significant step toward blockchain mass adoption. By focusing on content and fan engagement—areas where Sony excels—the company is positioning Soneium as a bridge between Web3 enthusiasts and everyday consumers.

If Sony can successfully convert even a fraction of its millions of customers into Web3 participants, Soneium could become one of the first truly mainstream blockchain platforms.

The experiment has just begun, but the potential is enormous. As the lines between entertainment, technology, and blockchain continue to blur, Soneium may well be at the forefront of this convergence, bringing blockchain technology to the masses one gaming avatar or music NFT at a time.

The Speed Revolution Ethereum Has Been Waiting For?​

In the high-stakes world of blockchain scaling solutions, a new contender has emerged that's generating both excitement and controversy. MegaETH is positioning itself as Ethereum's answer to ultra-fast chains like Solana—promising sub-millisecond latency and an astonishing 100,000 transactions per second (TPS).

But these claims come with significant trade-offs. MegaETH is making calculated sacrifices to "Make Ethereum Great Again," raising important questions about the balance between performance, security, and decentralization.

As infrastructure providers who've seen many promising solutions come and go, we at BlockEden.xyz have conducted this analysis to help developers and builders understand what makes MegaETH unique—and what risks to consider before building on it.

What Makes MegaETH Different?​

MegaETH is an Ethereum Layer-2 solution that has reimagined blockchain architecture with a singular focus: real-time performance.

While most L2 solutions improve on Ethereum's ~15 TPS by a factor of 10-100x, MegaETH aims for 1,000-10,000x improvement—speeds that would put it in a category of its own.

Revolutionary Technical Approach​

MegaETH achieves its extraordinary speed through radical engineering decisions:

1. Single Sequencer Architecture: Unlike most L2s that use multiple sequencers or plan to decentralize, MegaETH uses a single sequencer for ordering transactions, deliberately choosing performance over decentralization.

2. Optimized State Trie: A completely redesigned state storage system that can handle terabyte-level state data efficiently, even on nodes with limited RAM.

3. JIT Bytecode Compilation: Just-in-time compilation of Ethereum smart contract bytecode, bringing execution closer to "bare-metal" speed.

4. Parallel Execution Pipeline: A multi-core approach that processes transactions in parallel streams to maximize throughput.

5. Micro Blocks: Targeting ~1ms block times through continuous "streaming" block production rather than batch processing.

6. EigenDA Integration: Using EigenLayer's data availability solution instead of posting all data to Ethereum L1, reducing costs while maintaining security through Ethereum-aligned validation.

This architecture delivers performance metrics that seem almost impossible for a blockchain:

• Sub-millisecond latency (10ms target)
• 100,000+ TPS throughput
• EVM compatibility for easy application porting

Testing the Claims: MegaETH's Current Status​

As of March 2025, MegaETH's public testnet is live. The initial deployment began on March 6th with a phased rollout, starting with infrastructure partners and dApp teams before opening to broader user onboarding.

Early testnet metrics show:

• ~1.68 Giga-gas per second throughput
• ~15ms block times (significantly faster than other L2s)
• Support for parallel execution that will eventually push performance even higher

The team has indicated that the testnet is running in a somewhat throttled mode, with plans to enable additional parallelization that could double gas throughput to around 3.36 Ggas/sec, moving toward their ultimate target of 10 Ggas/sec (10 billion gas per second).

The Security and Trust Model​

MegaETH's approach to security represents a significant departure from blockchain orthodoxy. Unlike Ethereum's trust-minimized design with thousands of validating nodes, MegaETH embraces a centralized execution layer with Ethereum as its security backstop.

The "Can't Be Evil" Philosophy​

MegaETH employs an optimistic rollup security model with some unique characteristics:

1. Fraud Proof System: Like other optimistic rollups, MegaETH allows observers to challenge invalid state transitions through fraud proofs submitted to Ethereum.

2. Verifier Nodes: Independent nodes replicate the sequencer's computations and would initiate fraud proofs if discrepancies are found.

3. Ethereum Settlement: All transactions are eventually settled on Ethereum, inheriting its security for final state.

This creates what the team calls a "can't be evil" mechanism—the sequencer can't produce invalid blocks or alter state incorrectly without being caught and punished.

The Centralization Trade-off​

The controversial aspect: MegaETH runs with a single sequencer and explicitly has "no plans to ever decentralize the sequencer." This brings two significant risks:

1. Liveness Risk: If the sequencer goes offline, the network could halt until it recovers or a new sequencer is appointed.

2. Censorship Risk: The sequencer could theoretically censor certain transactions or users in the short term (though users could ultimately exit via L1).

MegaETH argues these risks are acceptable because:

• The L2 is anchored to Ethereum for final security
• Data availability is handled by multiple nodes in EigenDA
• Any censorship or fraud can be seen and challenged by the community

Use Cases: When Ultra-Fast Execution Matters​

MegaETH's real-time capabilities unlock use cases that were previously impractical on slower blockchains:

1. High-Frequency Trading and DeFi​

MegaETH enables DEXs with near-instant trade execution and order book updates. Projects already building include:

• GTE: A real-time spot DEX combining central limit order books and AMM liquidity
• Teko Finance: A money market for leveraged lending with rapid margin updates
• Cap: A stablecoin and yield engine that arbitrages across markets
• Avon: A lending protocol with orderbook-based loan matching

These DeFi applications benefit from MegaETH's throughput to operate with minimal slippage and high-frequency updates.

2. Gaming and Metaverse​

The sub-second finality makes fully on-chain games viable without waiting for confirmations:

• Awe: An open-world 3D game with on-chain actions
• Biomes: An on-chain metaverse similar to Minecraft
• Mega Buddies and Mega Cheetah: Collectible avatar series

Such applications can deliver real-time feedback in blockchain games, enabling fast-paced gameplay and on-chain PvP battles.

3. Enterprise Applications​

MegaETH's performance makes it suitable for enterprise applications requiring high throughput:

• Instantaneous payments infrastructure
• Real-time risk management systems
• Supply chain verification with immediate finality
• High-frequency auction systems

The key advantage in all these cases is the ability to run compute-intensive applications with immediate feedback while still being connected to Ethereum's ecosystem.

The Team Behind MegaETH​

MegaETH was co-founded by a team with impressive credentials:

• Li Yilong: PhD in computer science from Stanford specializing in low-latency computing systems
• Yang Lei: PhD from MIT researching decentralized systems and Ethereum connectivity
• Shuyao Kong: Former Head of Global Business Development at ConsenSys

The project has attracted notable backers, including Ethereum co-founders Vitalik Buterin and Joseph Lubin as angel investors. Vitalik's involvement is particularly noteworthy, as he rarely invests in specific projects.

Other investors include Sreeram Kannan (founder of EigenLayer), VC firms like Dragonfly Capital, Figment Capital, and Robot Ventures, and influential community figures such as Cobie.

Token Strategy: The Soulbound NFT Approach​

MegaETH introduced an innovative token distribution method through "soulbound NFTs" called "The Fluffle." In February 2025, they created 10,000 non-transferable NFTs representing at least 5% of the total MegaETH token supply.

Key aspects of the tokenomics:

• 5,000 NFTs were sold at 1 ETH each (raising ~$13-14 million)
• The other 5,000 NFTs were allocated to ecosystem projects and builders
• The NFTs are soulbound (cannot be transferred), ensuring long-term alignment
• Implied valuation of around $540 million, extremely high for a pre-launch project
• The team has raised approximately $30-40 million in venture funding

Eventually, the MegaETH token is expected to serve as the native currency for transaction fees and possibly for staking and governance.

How MegaETH Compares to Competitors​

vs. Other Ethereum L2s​

Compared to Optimism, Arbitrum, and Base, MegaETH is significantly faster but makes bigger compromises on decentralization:

• Performance: MegaETH targets 100,000+ TPS vs. Arbitrum's ~250 ms transaction times and lower throughput
• Decentralization: MegaETH uses a single sequencer vs. other L2s' plans for decentralized sequencers
• Data Availability: MegaETH uses EigenDA vs. other L2s posting data directly to Ethereum

vs. Solana and High-Performance L1s​

MegaETH aims to "beat Solana at its own game" while leveraging Ethereum's security:

• Throughput: MegaETH targets 100k+ TPS vs. Solana's theoretical 65k TPS (typically a few thousand in practice)
• Latency: MegaETH ~10 ms vs. Solana's ~400 ms finality
• Decentralization: MegaETH has 1 sequencer vs. Solana's ~1,900 validators

vs. ZK-Rollups (StarkNet, zkSync)​

While ZK-rollups offer stronger security guarantees through validity proofs:

• Speed: MegaETH offers faster user experience without waiting for ZK proof generation
• Trustlessness: ZK-rollups don't require trust in a sequencer's honesty, providing stronger security
• Future Plans: MegaETH may eventually integrate ZK proofs, becoming a hybrid solution

MegaETH's positioning is clear: it's the fastest option within the Ethereum ecosystem, sacrificing some decentralization to achieve Web2-like speeds.

The Infrastructure Perspective: What Builders Should Consider​

As an infrastructure provider connecting developers to blockchain nodes, BlockEden.xyz sees both opportunities and challenges in MegaETH's approach:

Potential Benefits for Builders​

1. Exceptional User Experience: Applications can offer instant feedback and high throughput, creating Web2-like responsiveness.

2. EVM Compatibility: Existing Ethereum dApps can port over with minimal changes, unlocking performance without rewrites.

3. Cost Efficiency: High throughput means lower per-transaction costs for users and applications.

4. Ethereum Security Backstop: Despite centralization at the execution layer, Ethereum settlement provides a security foundation.

Risk Considerations​

1. Single Point of Failure: The centralized sequencer creates liveness risk—if it goes down, so does your application.

2. Censorship Vulnerability: Applications could face transaction censorship without immediate recourse.

3. Early-Stage Technology: MegaETH's novel architecture hasn't been battle-tested at scale with real value.

4. Dependency on EigenDA: Using a newer data availability solution adds an additional trust assumption.

Infrastructure Requirements​

Supporting MegaETH's throughput will require robust infrastructure:

• High-capacity RPC nodes capable of handling the firehose of data
• Advanced indexing solutions for real-time data access
• Specialized monitoring for the unique architecture
• Reliable bridge monitoring for cross-chain operations

Conclusion: Revolution or Compromise?​

MegaETH represents a bold experiment in blockchain scaling—one that deliberately prioritizes performance over decentralization. Whether this approach succeeds depends on whether the market values speed more than decentralized execution.

The coming months will be critical as MegaETH transitions from testnet to mainnet. If it delivers on its performance promises while maintaining sufficient security, it could fundamentally reshape how we think about blockchain scaling. If it stumbles, it will reinforce why decentralization remains a core blockchain value.

For now, MegaETH stands as one of the most ambitious Ethereum scaling solutions to date. Its willingness to challenge orthodoxy has already sparked important conversations about what trade-offs are acceptable in pursuit of mainstream blockchain adoption.

At BlockEden.xyz, we're committed to supporting developers wherever they build, including high-performance networks like MegaETH. Our reliable node infrastructure and API services are designed to help applications thrive across the multi-chain ecosystem, regardless of which approach to scaling ultimately prevails.

Looking to build on MegaETH or need reliable node infrastructure for high-throughput applications? Contact Email: info@BlockEden.xyz to learn how we can support your development with our 99.9% uptime guarantee and specialized RPC services across 27+ blockchains.

The Web3 Scaling Problem​

The blockchain industry faces a persistent challenge: how do we scale to support millions of users without sacrificing security or decentralization?

Ethereum, the leading smart contract platform, processes roughly 15 transactions per second on its base layer. During periods of high demand, this limitation has led to exorbitant gas fees—sometimes exceeding $100 per transaction during NFT mints or DeFi farming frenzies.

This scaling bottleneck presents an existential threat to Web3 adoption. Users accustomed to the instant responsiveness of Web2 applications won't tolerate paying $50 and waiting 3 minutes just to swap tokens or mint an NFT.

Enter the solution that's rapidly reshaping blockchain architecture: Rollups-as-a-Service (RaaS).

Understanding Rollups-as-a-Service (RaaS)​

RaaS platforms enable developers to deploy their own custom blockchain rollups without the complexity of building everything from scratch. These services transform what would normally require a specialized engineering team and months of development into a streamlined, sometimes one-click deployment process.

Why does this matter? Because rollups are the key to blockchain scaling.

Rollups work by:

• Processing transactions off the main chain (Layer 1)
• Batching these transactions together
• Submitting compressed proofs of these transactions back to the main chain

The result? Drastically increased throughput and significantly reduced costs while inheriting security from the underlying Layer 1 blockchain (like Ethereum).

"Rollups don't compete with Ethereum—they extend it. They're like specialized Express lanes built on top of Ethereum's highway."

This approach to scaling is so promising that Ethereum officially adopted a "rollup-centric roadmap" in 2020, acknowledging that the future isn't a single monolithic chain, but rather an ecosystem of interconnected, purpose-built rollups.

Caldera: Leading the RaaS Revolution​

Among the emerging RaaS providers, Caldera stands out as a frontrunner. Founded in 2023 and having raised $25M from prominent investors including Dragonfly, Sequoia Capital, and Lattice, Caldera has quickly positioned itself as a leading infrastructure provider in the rollup space.

What Makes Caldera Different?​

Caldera distinguishes itself in several key ways:

1. Multi-Framework Support: Unlike competitors who focus on a single rollup framework, Caldera supports major frameworks like Optimism's OP Stack and Arbitrum's Orbit/Nitro technology, giving developers flexibility in their technical approach.

2. End-to-End Infrastructure: When you deploy with Caldera, you get a complete suite of components: reliable RPC nodes, block explorers, indexing services, and bridge interfaces.

3. Rich Integration Ecosystem: Caldera comes pre-integrated with 40+ Web3 tools and services, including oracles, faucets, wallets, and cross-chain bridges (LayerZero, Axelar, Wormhole, Connext, and more).

4. The Metalayer Network: Perhaps Caldera's most ambitious innovation is its Metalayer—a network that connects all Caldera-powered rollups into a unified ecosystem, allowing them to share liquidity and messages seamlessly.

5. Multi-VM Support: In late 2024, Caldera became the first RaaS to support the Solana Virtual Machine (SVM) on Ethereum, enabling Solana-like high-performance chains that still settle to Ethereum's secure base layer.

Caldera's approach is creating what they call an "everything layer" for rollups—a cohesive network where different rollups can interoperate rather than exist as isolated islands.

Real-World Adoption: Who's Using Caldera?​

Caldera has gained significant traction, with over 75 rollups in production as of late 2024. Some notable projects include:

• Manta Pacific: A highly scalable network for deploying zero-knowledge applications that uses Caldera's OP Stack combined with Celestia for data availability.

• RARI Chain: Rarible's NFT-focused rollup that processes transactions in under a second and enforces NFT royalties at the protocol level.

• Kinto: A regulatory-compliant DeFi platform with on-chain KYC/AML and account abstraction capabilities.

• Injective's inEVM: An EVM-compatible rollup that extends Injective's interoperability, connecting the Cosmos ecosystem with Ethereum-based dApps.

These projects highlight how application-specific rollups enable customization not possible on general-purpose Layer 1s. By late 2024, Caldera's collective rollups had reportedly processed over 300 million transactions for 6+ million unique wallets, with nearly $1 billion in total value locked (TVL).

How RaaS Compares: Caldera vs. Competitors​

The RaaS landscape is becoming increasingly competitive, with several notable players:

Conduit​

• Focuses exclusively on Optimism and Arbitrum ecosystems
• Emphasizes a fully self-serve, no-code experience
• Powers approximately 20% of Ethereum's mainnet rollups, including Zora

AltLayer​

• Offers "Flashlayers"—disposable, on-demand rollups for temporary needs
• Focuses on elastic scaling for specific events or high-traffic periods
• Demonstrated impressive throughput during gaming events (180,000+ daily transactions)

Sovereign Labs​

• Building a Rollup SDK focused on zero-knowledge technologies
• Aims to enable ZK-rollups on any base blockchain, not just Ethereum
• Still in development, positioning for the next wave of multi-chain ZK deployment

While these competitors excel in specific niches, Caldera's comprehensive approach—combining a unified rollup network, multi-VM support, and a focus on developer experience—has helped establish it as a market leader.

The Future of RaaS and Blockchain Scaling​

RaaS is poised to reshape the blockchain landscape in profound ways:

1. The Proliferation of App-Specific Chains​

Industry research suggests we're moving toward a future with potentially millions of rollups, each serving specific applications or communities. With RaaS lowering deployment barriers, every significant dApp could have its own optimized chain.

2. Interoperability as the Critical Challenge​

As rollups multiply, the ability to communicate and share value between them becomes crucial. Caldera's Metalayer represents an early attempt to solve this challenge—creating a unified experience across a web of rollups.

3. From Isolated Chains to Networked Ecosystems​

The end goal is a seamless multi-chain experience where users hardly need to know which chain they're on. Value and data would flow freely through an interconnected web of specialized rollups, all secured by robust Layer 1 networks.

4. Cloud-Like Blockchain Infrastructure​

RaaS is effectively turning blockchain infrastructure into a cloud-like service. Caldera's "Rollup Engine" allows dynamic upgrades and modular components, treating rollups like configurable cloud services that can scale on demand.

What This Means for Developers and BlockEden.xyz​

At BlockEden.xyz, we see enormous potential in the RaaS revolution. As an infrastructure provider connecting developers to blockchain nodes securely, we're positioned to play a crucial role in this evolving landscape.

The proliferation of rollups means developers need reliable node infrastructure more than ever. A future with thousands of application-specific chains demands robust RPC services with high availability—precisely what BlockEden.xyz specializes in providing.

We're particularly excited about the opportunities in:

1. Specialized RPC Services for Rollups: As rollups adopt unique features and optimizations, specialized infrastructure becomes crucial.

2. Cross-Chain Data Indexing: With value flowing between multiple rollups, developers need tools to track and analyze cross-chain activities.

3. Enhanced Developer Tools: As rollup deployment becomes simpler, the need for sophisticated monitoring, debugging, and analytics tools grows.

4. Unified API Access: Developers working across multiple rollups need simplified, unified access to diverse blockchain networks.

Conclusion: The Modular Blockchain Future​

The rise of Rollups-as-a-Service represents a fundamental shift in how we think about blockchain scaling. Rather than forcing all applications onto a single chain, we're moving toward a modular future with specialized chains for specific use cases, all interconnected and secured by robust Layer 1 networks.

Caldera's approach—creating a unified network of rollups with shared liquidity and seamless messaging—offers a glimpse of this future. By making rollup deployment as simple as spinning up a cloud server, RaaS providers are democratizing access to blockchain infrastructure.

At BlockEden.xyz, we're committed to supporting this evolution by providing the reliable node infrastructure and developer tools needed to build in this multi-chain future. As we often say, the future of Web3 isn't a single chain—it's thousands of specialized chains working together.

Looking to build on a rollup or need reliable node infrastructure for your blockchain project? Contact Email: info@BlockEden.xyz to learn how we can support your development with our 99.9% uptime guarantee and specialized RPC services across 27+ blockchains.

For years, the Ethereum Name Service (ENS) was seen by many as a niche tool for crypto enthusiasts—a way to replace long, clunky wallet addresses with human-readable .eth names. But in 2025, that perception is outdated. ENS has evolved into a foundational layer for programmable brand identity, turning a simple name into a portable, verifiable, and unified anchor for your company’s entire digital presence.

It’s no longer just about brand.eth. It’s about making brand.com crypto-aware, issuing verifiable roles to employees, and building trust with customers through a single, canonical source of truth. This is the guide for businesses on why ENS now matters and how to implement it today.

TL;DR

• ENS turns a name (e.g., brand.eth or brand.com) into a programmable identity that maps to wallets, apps, websites, and verified profile data.
• You don’t have to abandon your DNS domain: with Gasless DNSSEC, a brand.com can function as an ENS name without on-chain fees at setup.
• .eth pricing is transparent and renewal-based (shorter names cost more), and the revenue funds the public-good protocol via the ENS DAO.
• Subnames like alice.brand.eth or support.brand.com let you issue roles, perks, and access—time-boxed and constrained by NameWrapper “fuses” and expiry.
• ENS is moving core functionality to L2 in ENSv2, with trust-minimized resolution via CCIP‑Read—important for cost, speed, and scale.

Why ENS Matters for Modern Companies​

For businesses, identity is fragmented. You have a domain name for your website, social media handles for marketing, and separate accounts for payments and operations. ENS offers a way to unify these, creating a single, authoritative identity layer.

• Unified, Human-Readable Identity: At its core, ENS maps a memorable name to cryptographic addresses. But its power extends far beyond a single blockchain. With multi-chain support, your brand.eth can point to your Bitcoin treasury, Solana operations wallet, and Ethereum smart contracts simultaneously. Your brand’s name becomes the single, user-friendly anchor for payments, applications, and profiles across the web3 ecosystem.
• Deep Ecosystem Integration: ENS isn't a speculative bet on a niche protocol; it's a web3 primitive. It is natively supported across major wallets (Coinbase Wallet, MetaMask), browsers (Brave, Opera), and decentralized applications (Uniswap, Aave). When partners like GoDaddy integrate ENS, it signals a convergence between web2 and web3 infrastructure. By adopting ENS, you are plugging your brand into a vast, interoperable network.
• Rich, Verifiable Profile Data: Beyond addresses, ENS names can store standardized text records for profile information like an avatar, email, social media handles, and a website URL. This turns your ENS name into a canonical, machine-readable business card. Your support, marketing, and engineering tools can all pull from the same verified source, ensuring consistency and building trust with your users.

Two Onramps: .eth vs. “Bring Your Own DNS”​

Getting started with ENS is flexible, offering two primary paths that can and should be used together.

1. Register brand.eth​

This is the web3-native approach. Registering a .eth name gives you a crypto-native asset that signals your brand's commitment to the ecosystem. The process is straightforward and transparent.

• Clear Fee Schedule: Fees are paid annually in ETH to prevent squatting and fund the protocol. Prices are based on scarcity: 5+ character names are just $5/year, 4-character names are$160/year, and 3-character names are $640/year.
• Set a Primary Name: Once you own brand.eth, you should set it as the "Primary Name" (also known as a reverse record) for your main company wallet. This is a critical step that allows wallets and dapps to display your memorable name instead of your long address, dramatically improving user experience and trust.

2. Enhance brand.com Inside ENS (No Migration Required)​

You don't need to abandon your valuable web2 domain. Thanks to a feature called Gasless DNSSEC, you can link your existing DNS domain to a crypto wallet, effectively upgrading it into a fully functional ENS name.

• Zero On-chain Cost for Owners: The process allows a brand.com to become resolvable within the ENS ecosystem without requiring the domain owner to submit an on-chain transaction.
• Mainstream Registrar Support: GoDaddy has already streamlined this with a one-click “Crypto Wallet” record, powered by this ENS feature. Other major registrars that support DNSSEC can also be configured to work with ENS.

Pragmatic advice: Do both. Use brand.eth for your web3-native audience and treasury operations. Simultaneously, bring brand.com into ENS to unify your entire brand footprint and provide a seamless bridge for your existing user base.

Zero-to-One Rollout: A One-Week Plan​

Deploying ENS doesn't have to be a multi-quarter project. A focused team can establish a robust presence in about a week.

• Day 1–2: Name & Policy Claim brand.eth and link your existing DNS name using the Gasless DNSSEC method. This is also the time to establish an internal policy on canonical spelling, use of emojis, and normalization rules. ENS uses a standard called ENSIP-15 to handle name variations, but it's crucial to be aware of homoglyphs (characters that look alike) to prevent phishing attacks against your brand.

• Day 3: Primary Names & Wallets For your company’s treasury, operations, and payment wallets, set the Primary Name (reverse record) so that they resolve to treasury.brand.eth or a similar name. Use this opportunity to populate multi-coin address records (BTC, SOL, etc.) to ensure payments sent to your ENS name are correctly routed, no matter the chain.

• Day 4: Profile Data Fill out the standardized text records on your primary ENS name. At a minimum, set email, url, com.twitter, and avatar. An official avatar adds immediate visual verification in supported wallets. For enhanced security, you can also add a public PGP key.

• Day 5: Subnames Begin issuing subnames like alice.brand.eth for employees or support.brand.com for departments. Use the NameWrapper to apply security "fuses" that can, for example, prevent the subname from being transferred. Set an expiry date to automatically revoke access when a contract ends or an employee leaves.

• Day 6: Website / Docs Decentralize your web presence. Pin your press kit, terms of service, or a status page to a decentralized storage network like IPFS or Arweave and link it to your ENS name via the contenthash record. For universal access, users can resolve this content through public gateways like eth.limo.

• Day 7: Integrate in Product Start using ENS in your own application. Use libraries like viem with ensjs to resolve names, normalize user inputs, and show avatars. When looking up addresses, perform a reverse lookup to display the user's Primary Name. Be sure to use a resolver gateway that supports CCIP-Read to ensure your app is future-proof for ENSv2's L2 architecture.

Common Patterns That Pay Off Fast​

Once set up, ENS unlocks powerful, practical use cases that deliver immediate value.

• Safer, Simpler Payments: Instead of copying and pasting a long, error-prone address, put pay.brand.eth on your invoices. By publishing all your multi-coin addresses under one name, you drastically reduce the risk of customers sending funds to the wrong address or chain.
• Authentic Support & Social Presence: Publish your official social media handles in your ENS text records. Some tools can already verify these records, creating a strong defense against impersonation. A support.brand.eth name can point directly to a dedicated support wallet or secure messaging endpoint.
• Decentralized Web Presence: Host a tamper-evident status page or critical documentation at brand.eth using the contenthash. Because the link is on-chain, it cannot be taken down by a single provider, offering a higher degree of resilience for essential information.
• A Programmable Org Chart: Issue employee.brand.eth subnames that grant access to internal tools or token-gated channels. With NameWrapper fuses and expiry dates, you can create a dynamic, programmable, and automatically-revocable identity system for your entire organization.
• Gas-Light User Experiences: For high-volume use cases like issuing loyalty IDs or tickets as subnames, on-chain transactions are too slow and expensive. Use an offchain resolver with CCIP-Read. This standard allows ENS names to be resolved from L2s or even traditional databases in a trust-minimized way. Industry leaders like Uniswap (uni.eth) and Coinbase (cb.id) already use this pattern to scale their user identity systems.

Security & Governance You Shouldn’t Skip​

Treat your primary ENS name like you treat your primary domain name: as a critical piece of company infrastructure.

• Separate “Owner” from “Manager”: This is a core security principle. The "Owner" role, which has the power to transfer the name, should be secured in a cold storage multisig wallet. The "Manager" role, which can update day-to-day records like IP addresses or avatars, can be delegated to a more accessible hot wallet. This separation of powers drastically reduces the blast radius of a compromised key.
• Use NameWrapper Protections: When issuing subnames, use the NameWrapper to burn fuses like CANNOT_TRANSFER to lock them to a specific employee or CANNOT_UNWRAP to enforce your governance policies. All permissions are governed by an expiry date you control, providing time-boxed access by default.
• Monitor Renewals: Don’t lose your .eth name because of a missed payment. Calendar your renewal dates and remember that while .eth names have a 90-day grace period, the policies for subnames are entirely up to you.

Developer Quickstart (TypeScript)​

Integrating ENS resolution into your app is simple with modern libraries like viem. This snippet shows how to look up an address from a name, or a name from an address.

import { createPublicClient, http } from "viem";
import { mainnet } from "viem/chains";
import { normalize, getEnsAddress, getEnsName, getEnsAvatar } from "viem/ens";

const client = createPublicClient({ chain: mainnet, transport: http() });

export async function lookup(nameOrAddress: string) {
  if (nameOrAddress.endsWith(".eth") || nameOrAddress.includes(".")) {
    // Name → Address (normalize input per ENSIP-15)
    const name = normalize(nameOrAddress);
    const address = await getEnsAddress(client, {
      name,
      gatewayUrls: ["https://ccip.ens.xyz"],
    });
    const avatar = await getEnsAvatar(client, { name });
    return { type: "name", name, address, avatar };
  } else {
    // Address → Primary Name (reverse record)
    const name = await getEnsName(client, {
      address: nameOrAddress as `0x${string}`,
      gatewayUrls: ["https://ccip.ens.xyz"],
    });
    return { type: "address", address: nameOrAddress, name };
  }
}

Two key takeaways from this code:

• normalize is essential for security. It enforces ENS naming rules and helps prevent common phishing and spoofing attacks from look-alike names.
• gatewayUrls points to a Universal Resolver that supports CCIP-Read. This makes your integration forward-compatible with the upcoming move to L2 and off-chain data.

For developers building with React, the ENSjs library offers higher-level hooks and components that wrap these common flows, making integration even faster.

Choosing and Protecting Your Name: Brand & Legal​

• Normalization and Usability: Familiarize yourself with ENSIP-15 normalization. Set clear internal guidelines on the use of emojis or non-ASCII characters, and actively screen for "confusables" that could be used to impersonate your brand.
• Trademark Reality Check: .eth names operate outside of the traditional ICANN framework and its UDRP dispute resolution process. Trademark owners cannot rely on the same legal rails they use for DNS domains. Therefore, defensive registration of key brand terms is a prudent strategy. (This is not legal advice; consult with counsel.)

What’s Next: ENSv2 and the Move to L2​

The ENS protocol is not static. The next major evolution, ENSv2, is underway.

• Protocol Moving to L2: To reduce gas costs and increase speed, the core ENS registry will be migrated to a Layer 2 network. Name resolution will be bridged back to L1 and other chains via CCIP-Read and cryptographic proof systems. This will make registering and managing names significantly cheaper, unlocking richer application patterns.
• Seamless Migration Plan: The ENS DAO has published a detailed migration plan to ensure existing names can be moved to the new system with minimal friction. If you operate at scale, this is a key development to follow.

Implementation Checklist​

Use this checklist to guide your team’s implementation.

• Claim brand.eth; link brand.com via Gasless DNSSEC.
• Park ownership of the name in a secure multisig; delegate manager roles.
• Set a Primary Name on all organizational wallets.
• Publish multi-coin addresses for payments.
• Fill out text records (email, url, social, avatar).
• Issue subnames for teams, employees, and services using fuses and expiry.
• Host a minimal decentralized site (e.g., status page) and set the contenthash.
• Integrate ENS resolution (viem/ensjs) into your product; normalize all inputs.
• Calendar all .eth name renewal dates and monitor expiry.

ENS is ready for business. It has moved beyond a simple naming system to become a critical piece of infrastructure for any company building for the next generation of the internet. By establishing a programmable and persistent identity, you lower risk, create smoother user experiences, and ensure your brand is ready for a decentralized future.

ETHDenver 2025, branded the “Year of The Regenerates,” solidified its status as one of the world’s largest Web3 gatherings. Spanning BUIDLWeek (Feb 23–26), the Main Event (Feb 27–Mar 2), and a post-conference Mountain Retreat, the festival drew an expected 25,000+ participants. Builders, developers, investors, and creatives from 125+ countries converged in Denver to celebrate Ethereum’s ethos of decentralization and innovation. True to its community roots, ETHDenver remained free to attend, community-funded, and overflowing with content – from hackathons and workshops to panels, pitch events, and parties. The event’s lore of “Regenerates” defending decentralization set a tone that emphasized public goods and collaborative building, even amid a competitive tech landscape. The result was a week of high-energy builder activity and forward-looking discussions, offering a snapshot of Web3’s emerging trends and actionable insights for industry professionals.

Emerging Web3 Trends Spotlighted by Speakers​

No single narrative dominated ETHDenver 2025 – instead, a broad spectrum of Web3 trends took center stage. Unlike last year (when restaking via EigenLayer stole the show), 2025’s agenda was a sprinkle of everything: from decentralized physical infrastructure networks (DePIN) to AI agents, from regulatory compliance to real-world asset tokenization (RWA), plus privacy, interoperability, and more. In fact, ETHDenver’s founder John Paller addressed concerns about multi-chain content by noting “95%+ of our sponsors and 90% of content is ETH/EVM-aligned” – yet the presence of non-Ethereum ecosystems underscored interoperability as a key theme. Major speakers reflected these trend areas: for example, zk-rollup and Layer-2 scaling was highlighted by Alex Gluchowski (CEO of Matter Labs/zkSync), while multi-chain innovation came from Adeniyi Abiodun of Mysten Labs (Sui) and Albert Chon of Injective.

The convergence of AI and Web3 emerged as a strong undercurrent. Numerous talks and side events focused on decentralized AI agents and “DeFi+AI” crossovers. A dedicated AI Agent Day showcased on-chain AI demos, and a collective of 14 teams (including Coinbase’s developer kit and NEAR’s AI unit) even announced the Open Agents Alliance (OAA) – an initiative to provide permissionless, free AI access by pooling Web3 infrastructure. This indicates growing interest in autonomous agents and AI-driven dApps as a frontier for builders. Hand-in-hand with AI, DePIN (decentralized physical infrastructure) was another buzzword: multiple panels (e.g. Day of DePIN, DePIN Summit) explored projects bridging blockchain with physical networks (from telecom to mobility).

Cuckoo AI Network made waves at ETHDenver 2025, showcasing its innovative decentralized AI model-serving marketplace designed for creators and developers. With a compelling presence at both the hackathon and community-led side events, Cuckoo AI attracted significant attention from developers intrigued by its ability to monetize GPU/CPU resources and easily integrate on-chain AI APIs. During their dedicated workshop and networking session, Cuckoo AI highlighted how decentralized infrastructure could efficiently democratize access to advanced AI services. This aligns directly with the event's broader trends—particularly the intersection of blockchain with AI, DePIN, and public-goods funding. For investors and developers at ETHDenver, Cuckoo AI emerged as a clear example of how decentralized approaches can power the next generation of AI-driven dApps and infrastructure, positioning itself as an attractive investment opportunity within the Web3 ecosystem.

Privacy, identity, and security remained top-of-mind. Speakers and workshops addressed topics like zero-knowledge proofs (zkSync’s presence), identity management and verifiable credentials (a dedicated Privacy & Security track was in the hackathon), and legal/regulatory issues (an on-chain legal summit was part of the festival tracks). Another notable discussion was the future of fundraising and decentralization of funding: a Main Stage debate between Dragonfly Capital’s Haseeb Qureshi and Matt O’Connor of Legion (an “ICO-like” platform) about ICOs vs. VC funding captivated attendees. This debate highlighted emerging models like community token sales challenging traditional VC routes – an important trend for Web3 startups navigating capital raising. The take-away for professionals is clear: Web3 in 2025 is multidisciplinary – spanning finance, AI, real assets, and culture – and staying informed means looking beyond any one hype cycle to the full spectrum of innovation.

Sponsors and Their Strategic Focus Areas​

ETHDenver’s sponsor roster in 2025 reads like a who’s-who of layer-1s, layer-2s, and Web3 infrastructure projects – each leveraging the event to advance strategic goals. Cross-chain and multi-chain protocols made a strong showing. For instance, Polkadot was a top sponsor with a hefty $80k bounty pool, incentivizing builders to create cross-chain DApps and appchains. Similarly, **BNB Chain, Flow, Hedera, and Base (Coinbase’s L2)** each offered up to$50k for projects integrating with their ecosystems, signaling their push to attract Ethereum developers. Even traditionally separate ecosystems like Solana and Internet Computer joined in with sponsored challenges (e.g. Solana co-hosted a DePIN event, and Internet Computer offered an “Only possible on ICP” bounty). This cross-ecosystem presence drew some community scrutiny, but ETHDenver’s team noted that the vast majority of content remained Ethereum-aligned. The net effect was interoperability being a core theme – sponsors aimed to position their platforms as complementary extensions of the Ethereum universe.

Scaling solutions and infrastructure providers were also front and center. Major Ethereum L2s like Optimism and Arbitrum had large booths and sponsored challenges (Optimism’s bounties up to $40k), reinforcing their focus on onboarding developers to rollups. New entrants like **ZkSync and Zircuit** (a project showcasing an L2 rollup approach) emphasized zero-knowledge tech and even contributed SDKs (ZkSync promoted its Smart Sign-On SDK for user-friendly login, which hackathon teams eagerly used). **Restaking and modular blockchain infrastructure** was another sponsor interest – **EigenLayer** (pioneering restaking) had its own$50k track and even co-hosted an event on “Restaking & DeFAI (Decentralized AI)”, marrying its security model with AI topics. Oracles and interoperability middleware were represented by the likes of Chainlink and Wormhole, each issuing bounties for using their protocols.

Notably, Web3 consumer applications and tooling had sponsor support to improve user experience. Uniswap’s presence – complete with one of the biggest booths – wasn’t just for show: the DeFi giant used the event to announce new wallet features like integrated fiat off-ramps, aligning with its sponsorship focus on DeFi usability. Identity and community-focused platforms like Galxe (Gravity) and Lens Protocol sponsored challenges around on-chain social and credentialing. Even mainstream tech companies signaled interest: PayPal and Google Cloud hosted a stablecoin/payments happy hour to discuss the future of payments in crypto. This blend of sponsors shows that strategic interests ranged from core infrastructure to end-user applications – all converging at ETHDenver to provide resources (APIs, SDKs, grants) to developers. For Web3 professionals, the heavy sponsorship from layer-1s, layer-2s, and even Web2 fintechs highlights where the industry is investing: interoperability, scalability, security, and making crypto useful for the next wave of users.

Hackathon Highlights: Innovative Projects and Winners​

At the heart of ETHDenver is its legendary #BUIDLathon – a hackathon that has grown into the world’s largest blockchain hackfest with thousands of developers. In 2025 the hackathon offered a record $1,043,333+ prize pool to spur innovation. Bounties from 60+ sponsors targeted key Web3 domains, carving the competition into tracks such as: DeFi & AI, NFTs & Gaming, Infrastructure & Scalability, Privacy & Security, and DAOs & Public Goods. This track design itself is insightful – for example, pairing DeFi with AI hints at the emergence of AI-driven financial applications, while a dedicated Public Goods track reaffirms community focus on regenerative finance and open-source development. Each track was backed by sponsors offering prizes for best use of their tech (e.g. Polkadot and Uniswap for DeFi, Chainlink for interoperability, Optimism for scaling solutions). The organizers even implemented quadratic voting for judging, allowing the community to help surface top projects, with final winners chosen by expert judges.

The result was an outpouring of cutting-edge projects, many of which offer a glimpse into Web3’s future. Notable winners included an on-chain multiplayer game “0xCaliber”, a first-person shooter that runs real-time blockchain interactions inside a classic FPS game. 0xCaliber wowed judges by demonstrating true on-chain gaming – players buy in with crypto, “shoot” on-chain bullets, and use cross-chain tricks to collect and cash out loot, all in real time. This kind of project showcases the growing maturity of Web3 gaming (integrating Unity game engines with smart contracts) and the creativity in merging entertainment with crypto economics. Another category of standout hacks were those merging AI with Ethereum: teams built “agent” platforms that use smart contracts to coordinate AI services, inspired by the Open Agents Alliance announcement. For example, one hackathon project integrated AI-driven smart contract auditors (auto-generating security test cases for contracts) – aligning with the decentralized AI trend observed at the conference.

Infrastructure and tooling projects were also prominent. Some teams tackled account abstraction and user experience, using sponsor toolkits like zkSync’s Smart Sign-On to create wallet-less login flows for dApps. Others worked on cross-chain bridges and Layer-2 integrations, reflecting ongoing developer interest in interoperability. In the Public Goods & DAO track, a few projects addressed real-world social impact, such as a dApp for decentralized identity and aid to help the homeless (leveraging NFTs and community funds, an idea reminiscent of prior ReFi hacks). Regenerative finance (ReFi) concepts – like funding public goods via novel mechanisms – continued to appear, echoing ETHDenver’s regenerative theme.

While final winners were being celebrated by the end of the main event, the true value was in the pipeline of innovation: over 400 project submissions poured in, many of which will live on beyond the event. ETHDenver’s hackathon has a track record of seeding future startups (indeed, some past BUIDLathon projects have grown into sponsors themselves). For investors and technologists, the hackathon provided a window into bleeding-edge ideas – signaling that the next wave of Web3 startups may emerge in areas like on-chain gaming, AI-infused dApps, cross-chain infrastructure, and solutions targeting social impact. With nearly $1M in bounties disbursed to developers, sponsors effectively put their money where their mouth is to cultivate these innovations.

Networking Events and Investor Interactions​

ETHDenver is not just about writing code – it’s equally about making connections. In 2025 the festival supercharged networking with both formal and informal events tailored for startups, investors, and community builders. One marquee event was the Bufficorn Ventures (BV) Startup Rodeo, a high-energy showcase where 20 hand-picked startups demoed to investors in a science-fair style expo. Taking place on March 1st in the main hall, the Startup Rodeo was described as more “speed dating” than pitch contest: founders manned tables to pitch their projects one-on-one as all attending investors roamed the arena. This format ensured even early-stage teams could find meaningful face time with VCs, strategics, or partners. Many startups used this as a launchpad to find customers and funding, leveraging the concentrated presence of Web3 funds at ETHDenver.

On the conference’s final day, the BV BuffiTank Pitchfest took the spotlight on the main stage – a more traditional pitch competition featuring 10 of the “most innovative” early-stage startups from the ETHDenver community. These teams (separate from the hackathon winners) pitched their business models to a panel of top VCs and industry leaders, competing for accolades and potential investment offers. The Pitchfest illustrated ETHDenver’s role as a deal-flow generator: it was explicitly aimed at teams “already organized…looking for investment, customers, and exposure,” especially those connected to the SporkDAO community. The reward for winners wasn’t a simple cash prize but rather the promise of joining Bufficorn Ventures’ portfolio or other accelerator cohorts. In essence, ETHDenver created its own mini “Shark Tank” for Web3, catalyzing investor attention on the community’s best projects.

Beyond these official showcases, the week was packed with investor-founder mixers. According to a curated guide by Belong, notable side events included a “Meet the VCs” Happy Hour hosted by CertiK Ventures on Feb 27, a StarkNet VC & Founders Lounge on March 1, and even casual affairs like a “Pitch & Putt” golf-themed pitch event. These gatherings provided relaxed environments for founders to rub shoulders with venture capitalists, often leading to follow-up meetings after the conference. The presence of many emerging VC firms was also felt on panels – for example, a session on the EtherKnight Stage highlighted new funds like Reflexive Capital, Reforge VC, Topology, Metalayer, and Hash3 and what trends they are most excited about. Early indications suggest these VCs were keen on areas like decentralized social media, AI, and novel Layer-1 infrastructure (each fund carving a niche to differentiate themselves in a competitive VC landscape).

For professionals looking to capitalize on ETHDenver’s networking: the key takeaway is the value of side events and targeted mixers. Deals and partnerships often germinate over coffee or cocktails rather than on stage. ETHDenver 2025’s myriad investor events demonstrate that the Web3 funding community is actively scouting for talent and ideas even in a lean market. Startups that came prepared with polished demos and a clear value proposition (often leveraging the event’s hackathon momentum) found receptive audiences. Meanwhile, investors used these interactions to gauge the pulse of the developer community – what problems are the brightest builders solving this year? In summary, ETHDenver reinforced that networking is as important as BUIDLing: it’s a place where a chance meeting can lead to a seed investment or where an insightful conversation can spark the next big collaboration.

Venture Capital Trends and Investment Opportunities in Web3​

A subtle but important narrative throughout ETHDenver 2025 was the evolving landscape of Web3 venture capital itself. Despite the broader crypto market’s ups and downs, investors at ETHDenver signaled strong appetite for promising Web3 projects. Blockworks reporters on the ground noted “just how much private capital is still flowing into crypto, undeterred by macro headwinds,” with seed stage valuations often sky-high for the hottest ideas. Indeed, the sheer number of VCs present – from crypto-native funds to traditional tech investors dabbling in Web3 – made it clear that ETHDenver remains a deal-making hub.

Emerging thematic focuses could be discerned from what VCs were discussing and sponsoring. The prevalence of AI x Crypto content (hackathon tracks, panels, etc.) wasn’t only a developer trend; it reflects venture interest in the “DeFi meets AI” nexus. Many investors are eyeing startups that leverage machine learning or autonomous agents on blockchain, as evidenced by venture-sponsored AI hackhouses and summits. Similarly, the heavy focus on DePIN and real-world asset (RWA) tokenization indicates that funds see opportunity in projects that connect blockchain to real economy assets and physical devices. The dedicated RWA Day (Feb 26) – a B2B event on the future of tokenized assets – suggests that venture scouts are actively hunting in that arena for the next Goldfinch or Centrifuge (i.e. platforms bringing real-world finance on-chain).

Another observable trend was a growing experimentation with funding models. The aforementioned debate on ICOs vs VCs wasn’t just conference theatrics; it mirrors a real venture movement towards more community-centric funding. Some VCs at ETHDenver indicated openness to hybrid models (e.g. venture-supported token launches that involve community in early rounds). Additionally, public goods funding and impact investing had a seat at the table. With ETHDenver’s ethos of regeneration, even investors discussed how to support open-source infrastructure and developers long-term, beyond just chasing the next DeFi or NFT boom. Panels like “Funding the Future: Evolving Models for Onchain Startups” explored alternatives such as grants, DAO treasury investments, and quadratic funding to supplement traditional VC money. This points to an industry maturing in how projects are capitalized – a mix of venture capital, ecosystem funds, and community funding working in tandem.

From an opportunity standpoint, Web3 professionals and investors can glean a few actionable insights from ETHDenver’s venture dynamics: (1) Infrastructure is still king – many VCs expressed that picks-and-shovels (L2 scaling, security, dev tools) remain high-value investments as the industry’s backbone. (2) New verticals like AI/blockchain convergence and DePIN are emerging investment frontiers – getting up to speed in these areas or finding startups there could be rewarding. (3) Community-driven projects and public goods might see novel funding – savvy investors are figuring out how to support these sustainably (for instance, investing in protocols that enable decentralized governance or shared ownership). Overall, ETHDenver 2025 showed that while the Web3 venture landscape is competitive, it’s brimming with conviction: capital is available for those building the future of DeFi, NFTs, gaming, and beyond, and even bear-market born ideas can find backing if they target the right trend.

Developer Resources, Toolkits, and Support Systems​

ETHDenver has always been builder-focused, and 2025 was no exception – it doubled as an open-source developer conference with a plethora of resources and support for Web3 devs. During BUIDLWeek, attendees had access to live workshops, technical bootcamps, and mini-summits spanning various domains. For example, developers could join a Bleeding Edge Tech Summit to tinker with the latest protocols, or drop into an On-Chain Legal Summit to learn about compliant smart contract development. Major sponsors and blockchain teams ran hands-on sessions: Polkadot’s team hosted hacker houses and workshops on spinning up parachains; EigenLayer led a “restaking bootcamp” to teach devs how to leverage its security layer; Polygon and zkSync gave tutorials on building scalable dApps with zero-knowledge tech. These sessions provided invaluable face-time with core engineers, allowing developers to get help with integration and learn new toolkits first-hand.

Throughout the main event, the venue featured a dedicated #BUIDLHub and Makerspace where builders could code in a collaborative environment and access mentors. ETHDenver’s organizers published a detailed BUIDLer Guide and facilitated an on-site mentorship program (experts from sponsors were available to unblock teams on technical issues). Developer tooling companies were also present en masse – from Alchemy and Infura (for blockchain APIs) to Hardhat and Foundry (for smart contract development). Many unveiled new releases or beta tools at the event. For instance, MetaMask’s team previewed a major wallet update featuring gas abstraction and an improved SDK for dApp developers, aiming to simplify how apps cover gas fees for users. Several projects launched SDKs or open-source libraries: Coinbase’s “Agent Kit” for AI agents and the collaborative Open Agents Alliance toolkit were introduced, and Story.xyz promoted its Story SDK for on-chain intellectual property licensing during their own hackathon event.

Bounties and hacker support further augmented the developer experience. With over 180 bounties offered by 62 sponsors, hackers effectively had a menu of specific challenges to choose from, each coming with documentation, office hours, and sometimes bespoke sandboxes. For example, Optimism’s bounty challenged devs to use the latest Bedrock opcodes (with their engineers on standby to assist), and Uniswap’s challenge provided access to their new API for off-ramp integration. Tools for coordination and learning – like the official ETHDenver mobile app and Discord channels – kept developers informed of schedule changes, side quests, and even job opportunities via the ETHDenver job board.

One notable resource was the emphasis on quadratic funding experiments and on-chain voting. ETHDenver integrated a quadratic voting system for hackathon judging, exposing many developers to the concept. Additionally, the presence of Gitcoin and other public goods groups meant devs could learn about grant funding for their projects after the event. In sum, ETHDenver 2025 equipped developers with cutting-edge tools (SDKs, APIs), expert guidance, and follow-on support to continue their projects. For industry professionals, it’s a reminder that nurturing the developer community – through education, tooling, and funding – is critical. Many of the resources highlighted (like new SDKs, or improved dev environments) are now publicly available, offering teams everywhere a chance to build on the shoulders of what was shared at ETHDenver.

Side Events and Community Gatherings Enriching the ETHDenver Experience​

What truly sets ETHDenver apart is its festival-like atmosphere – dozens of side events, both official and unofficial, created a rich tapestry of experiences around the main conference. In 2025, beyond the National Western Complex where official content ran, the entire city buzzed with meetups, parties, hackathons, and community gatherings. These side events, often hosted by sponsors or local Web3 groups, significantly contributed to the broader ETHDenver experience.

On the official front, ETHDenver’s own schedule included themed mini-events: the venue had zones like an NFT Art Gallery, a Blockchain Arcade, a DJ Chill Dome, and even a Zen Zone to decompress. The organizers also hosted evening events such as opening and closing parties – e.g., the “Crack’d House” unofficial opening party on Feb 26 by Story Protocol, which blended an artsy performance with hackathon award announcements. But it was the community-led side events that truly proliferated: according to an event guide, over 100 side happenings were tracked on the ETHDenver Luma calendar.

Some examples illustrate the diversity of these gatherings:

• Technical Summits & Hacker Houses: ElizaOS and EigenLayer ran a 9-day Vault AI Agent Hacker House residency for AI+Web3 enthusiasts. StarkNet’s team hosted a multi-day hacker house culminating in a demo night for projects on their ZK-rollup. These provided focused environments for developers to collaborate on specific tech stacks outside the main hackathon.
• Networking Mixers & Parties: Every evening offered a slate of choices. Builder Nights Denver on Feb 27, sponsored by MetaMask, Linea, EigenLayer, Wormhole and others, brought together innovators for casual talks over food and drink. 3VO’s Mischief Minded Club Takeover, backed by Belong, was a high-level networking party for community tokenization leaders. For those into pure fun, the BEMO Rave (with Berachain and others) and rAIve the Night (an AI-themed rave) kept the crypto crowd dancing late into the night – blending music, art, and crypto culture.
• Special Interest Gatherings: Niche communities found their space too. Meme Combat was an event purely for meme enthusiasts to celebrate the role of memes in crypto. House of Ink catered to NFT artists and collectors, turning an immersive art venue (Meow Wolf Denver) into a showcase for digital art. SheFi Summit on Feb 26 brought together women in Web3 for talks and networking, supported by groups like World of Women and Celo – highlighting a commitment to diversity and inclusion.
• Investor & Content Creator Meetups: We already touched on VC events; additionally, a KOL (Key Opinion Leaders) Gathering on Feb 28 let crypto influencers and content creators discuss engagement strategies, showing the intersection of social media and crypto communities.

Crucially, these side events weren’t just entertainment – they often served as incubators for ideas and relationships in their own right. For instance, the Tokenized Capital Summit 2025 delved into the future of capital markets on-chain, likely sparking collaborations between fintech entrepreneurs and blockchain developers in attendance. The On-Chain Gaming Hacker House provided a space for game developers to share best practices, which may lead to cross-pollination among blockchain gaming projects.

For professionals attending large conferences, ETHDenver’s model underscores that value is found off the main stage as much as on it. The breadth of unofficial programming allowed attendees to tailor their experience – whether one’s goal was to meet investors, learn a new skill, find a co-founder, or just unwind and build camaraderie, there was an event for that. Many veterans advise newcomers: “Don’t just attend the talks – go to the meetups and say hi.” In a space as community-driven as Web3, these human connections often translate into DAO collaborations, investment deals, or at the very least, lasting friendships that span continents. ETHDenver 2025’s vibrant side scene amplified the core conference, turning one week in Denver into a multi-dimensional festival of innovation.

Key Takeaways and Actionable Insights​

ETHDenver 2025 demonstrated a Web3 industry in full bloom of innovation and collaboration. For professionals in the space, several clear takeaways and action items emerge from this deep dive:

• Diversification of Trends: The event made it evident that Web3 is no longer monolithic. Emerging domains like AI integration, DePIN, and RWA tokenization are as prominent as DeFi and NFTs. Actionable insight: Stay informed and adaptable. Leaders should allocate R&D or investment into these rising verticals (e.g. exploring how AI could enhance their dApp, or how real-world assets might be integrated into DeFi platforms) to ride the next wave of growth.
• Cross-Chain is the Future: With major non-Ethereum protocols actively participating, the walls between ecosystems are lowering. Interoperability and multi-chain user experiences garnered huge attention, from MetaMask adding Bitcoin/Solana support to Polkadot and Cosmos-based chains courting Ethereum developers. Actionable insight: Design for a multi-chain world. Projects should consider integrations or bridges that tap into liquidity and users on other chains, and professionals may seek partnerships across communities rather than staying siloed.
• Community & Public Goods Matter: The “Year of the Regenerates” theme wasn’t just rhetoric – it permeated the content via public goods funding discussions, quadratic voting for hacks, and events like SheFi Summit. Ethical, sustainable development and community ownership are key values in the Ethereum ethos. Actionable insight: Incorporate regenerative principles. Whether through supporting open-source initiatives, using fair launch mechanisms, or aligning business models with community growth, Web3 companies can gain goodwill and longevity by not being purely extractive.
• Investor Sentiment – Cautious but Bold: Despite bear market murmurs, ETHDenver showed that VCs are actively scouting and willing to bet big on Web3’s next chapters. However, they are also rethinking how to invest (e.g. more strategic, perhaps more oversight on product-market fit, and openness to community funding). Actionable insight: If you’re a startup, focus on fundamentals and storytelling. The projects that stood out had clear use cases and often working prototypes (some built in a weekend!). If you’re an investor, the conference affirmed that infrastructure (L2s, security, dev tools) remains high-priority, but differentiating via theses in AI, gaming, or social can position a fund at the forefront.
• Developer Experience is Improving: ETHDenver highlighted many new toolkits, SDKs, and frameworks lowering the barrier for Web3 development – from account abstraction tools to on-chain AI libraries. Actionable insight: Leverage these resources. Teams should experiment with the latest dev tools unveiled (e.g. try out that zkSync Smart SSO for easier logins, or use the Open Agents Alliance resources for an AI project) to accelerate their development and stay ahead of the competition. Moreover, companies should continue engaging with hackathons and open developer forums as a way to source talent and ideas; ETHDenver’s success in turning hackers into founders is proof of that model.
• The Power of Side Events: Lastly, the explosion of side events taught an important lesson in networking – opportunities often appear in casual settings. A chance encounter at a happy hour or a shared interest at a small meetup can create career-defining connections. Actionable insight: For those attending industry conferences, plan beyond the official agenda. Identify side events aligned with your goals (whether it’s meeting investors, learning a niche skill, or recruiting talent) and be proactive in engaging. As seen in Denver, those who immersed themselves fully in the week’s ecosystem walked away with not just knowledge, but new partners, hires, and friends.

In conclusion, ETHDenver 2025 was a microcosm of the Web3 industry’s momentum – a blend of cutting-edge tech discourse, passionate community energy, strategic investment moves, and a culture that mixes serious innovation with fun. Professionals should view the trends and insights from the event as a roadmap for where Web3 is headed. The actionable next step is to take these learnings – whether it’s a newfound focus on AI, a connection made with an L2 team, or inspiration from a hackathon project – and translate them into strategy. In the spirit of ETHDenver’s favorite motto, it’s time to #BUIDL on these insights and help shape the decentralized future that so many in Denver came together to envision.