ZK Proof Markets Need More Than Speed, They Need Privacy
ZK Proof Markets Need More Than Speed, They Need Privacy
May 29, 2025
ZK proof markets are decentralized coordination layers that match demand for ZKPs with provers who can generate them efficiently. On one side, you have rollups, DeFi protocols, and apps that need regular proof generation to stay trustless and efficient. On the other, you have operators running optimized software or specialized hardware that can handle the load.
Proof generation is expensive. For most protocols, it’s not just inefficient to handle in-house, it’s operationally impossible. GPUs, FPGAs, or even ASICs are required to generate ZKPs fast enough to support production-grade systems. Maintaining that infrastructure solo is a cost sink and a distraction.
Proof markets abstract that burden. They let builders offload computation to third-party provers without compromising trust assumptions. Proofs can be verified by anyone. That’s the key unlock. Developers get scale, without having to manage servers or secure sensitive computation pipelines themselves.
But abstraction introduces exposure. Offloading computation means externalizing sensitive inputs — and trusting the market to handle them securely.
There’s one catch: proof markets, by default, are not private. Submitting a job typically means handing over your proving inputs and witness data to a third party. That’s a glaring surface for both data leakage and economic front-running.
Fermah closes this hole with CPD — Confidential Proof Dispatch. CPD encrypts all job metadata, proving inputs, and execution context before dispatch. Only the designated prover can decrypt the payload, using session-specific keys tied to their prover identity and attested by a verifiable enclave or MPC round. This ensures no intermediaries, not even the market operator, can view or tamper with the sensitive data.
CPD enforces privacy at the protocol level, not as an off-chain patch. It integrates with zkVMs and proving schedulers directly, maintaining zero-knowledge guarantees throughout the job lifecycle. No other proof market today offers protocol-native confidential dispatch with this level of integrity — where no job can be intercepted, censored, or leaked en route.
As DeFi demand for privacy and scalability grows, proof markets will become critical infrastructure. Not just for cost optimization, but to unlock new design space for apps that were previously constrained by local compute or batch latency. Markets like Fermah and =Nil; are leading that shift. Fermah is solving privacy in distributed compute. =Nil; is solving trust-minimized access to proprietary data. Both are necessary. Neither is redundant.
How ZK Proof Markets Work
ZK proof markets turn expensive computation into a tradable service. Under the hood, they coordinate five core steps:
1. Task Submission. Applications submit proof jobs with the full proving context: circuit, constraint system, inputs, and proof type. This isn’t just a job post — it’s an API-level agreement. The task defines everything a prover needs to know.
2. Prover Matching. The market selects provers based on declared capabilities, availability, or bid pricing. Some markets run open auctions. Others use delegated scheduling or stake-weighted rotation. Either way, it’s not about trust. It’s about guarantees: a prover either completes the job or gets slashed.
3. Proof Generation. Provers execute the circuit using local compute. For larger circuits, this might span multiple GPUs or distributed infrastructure. Performance matters. Especially when proof composition or recursion is involved.
4. Verification and Payout. Once generated, the proof is verified on-chain or through a pre-agreed verifier. If valid, the prover receives payment via escrow or a programmable rewards module.
5. Dispute and Integrity. Markets integrate slashing, bonds, or reputation systems to penalize invalid submissions. The system doesn't assume honest actors. It forces honest behavior through verifiability and incentives.
Advanced systems like Fermah and =Nil; go beyond the basics. Fermah supports recursive proofs, GPU-level acceleration, and private dispatch via CPD. =Nil; pushes into zkLLVM territory, letting you compile from C++ or Rust straight into provable systems. Both aim to make outsourced proving viable at scale — but they optimize for very different developer profiles.
The Need for ZKP Generation Marketplaces in DeFi
Zero-knowledge proofs are no longer an exotic add-on. They’re table stakes for scaling, privacy, and protocol integrity. But generating them at production scale? That’s still a pain.
Proofs are compute-heavy. They eat cycles, bandwidth, and memory. Doing it well means maintaining custom hardware — GPUs, FPGAs, sometimes ASICs — and tuning every layer of the pipeline. Most DeFi teams are not set up for this. And they shouldn’t have to be.
Proof markets shift that burden off the core dev team and onto specialized infrastructure providers. The upside isn’t just convenience. It’s leverage.
Here’s why ZKP marketplaces like Fermah and =Nil; are essential for modern DeFi:
Cost Efficiency. Generating ZKPs in-house is expensive. Proof markets aggregate demand and distribute load across provers, driving cost per proof down. You get economies of scale without building your own proving cluster.
Infrastructure Access. Small teams get access to serious compute. No GPU farm? No problem. Proof markets give you on-demand access to high-performance provers without needing to hire hardware engineers.
Speed and Throughput. Markets match tasks to the fastest available nodes. That means faster proofs, lower latency, and less time waiting on verification before finality. In DeFi, seconds matter.
Security by Design. Proof validity is verifiable. Even when outsourced. And most proof markets layer in additional guarantees — slashing conditions, reputation scores, redundant verification — so trust isn’t required.
Elastic Scale. As your app grows, proof markets scale with you. Whether you're pushing a few proofs per hour or hundreds per second, the infrastructure expands without re-architecture.
For builders, the takeaway is clear: outsourcing ZKP generation isn’t a shortcut. It’s infrastructure. Proof markets let you focus on protocol logic, not proof logistics.
Choose Fermah if you need universal circuit support, native EigenLayer integration, and — critically — actual privacy guarantees. Most proof markets outsource compute but expose sensitive inputs. Fermah is the only one (as of now) solving this with Coordinated Prover Deployment (CPD), keeping prover execution private without breaking verifiability.
Choose =Nil; if your stack is Rust-heavy, your circuits live in zkLLVM, or you’re optimizing for Ethereum-native workflows.
Both markets are scalable. Only one is private. Choose accordingly.
Fermah on EigenLayer: Universal Proving Meets Restaking Security
Fermah is a credibly neutral proof market designed for scale. Supply is bootstrapped by EigenLayer Operators — restakers who contribute GPUs, FPGAs, or other specialized hardware in exchange for yield and security guarantees. Demand is open-ended.
Market Structure: Fermah routes ZKP jobs through its matchmaker. This aggregator groups tasks to maximize throughput and minimize cost, then dispatches them to restaked operators. The result is a generalized proving layer that compresses both overhead and coordination.
Proof Systems: zkVMs, zkEVMs, Groth16, PLONK, STARKs — if it proves, Fermah runs it. The platform doesn’t bet on one proving scheme. It builds an abstraction layer that optimizes for latency, scale, and cost-per-proof across all of them.
Incentives: Restakers get rewarded for reliable compute. Users get discounted rates via bulk matching. Fermah’s flywheel comes from collapsing per-proof coordination into batch economics. More demand fuels better matching. More supply drives down cost.
Privacy Bonus: Most proof markets leak data to provers. Fermah doesn’t. With Coordinated Prover Deployment (CPD), users can select provers without revealing sensitive inputs. This is a structural advantage — and the only known privacy-preserving model in production.
Who It’s For: Teams building zkRollups, privacy rails, zkML, or cross-chain apps — and who want to abstract away proving infrastructure without compromising on proof system compatibility or data confidentiality.
=Nil; Foundation: zkLLVM, Ethereum-first, and Developer-Centric
=Nil; is a decentralized proving network focused on dev accessibility and Ethereum-native integration. It raised $22M to build infrastructure for scalable, modular proof generation, with zkLLVM at the core.
Market Structure: Think traditional marketplace: requesters post proving jobs, generators bid to fulfill them. Payments and reputation systems are used to enforce reliability. The open model favors flexibility and cost-optimization over tight system coupling.
Proof Systems: =Nil; specializes in zkLLVM — a toolchain that compiles code from C++, Rust, and JavaScript into circuits. This makes it ideal for developers who already write in these languages and want to zkify existing logic without starting from scratch.
Incentives: Pricing and performance are governed by market forces. This keeps costs fluid and encourages specialized provers to compete on efficiency. It also means reliability varies by supplier and job type.
Scalability: No reliance on EigenLayer. Supply comes from anywhere, and demand isn’t gated. For many, this simplicity is a feature — especially for projects with lighter workloads or those just entering the ZK space.
Who It’s For: Teams building Ethereum-based zkApps in zkLLVM, or those who prefer a fully open, modular proving market without dependency on staking ecosystems.
Comparative Analysis: Fermah vs. =Nil;
Both Fermah and =Nil; are racing to become infrastructure primitives for zero-knowledge compute. They tackle the same bottleneck—scalable proof generation—but do so from opposite ends of the tradeoff spectrum.
Fermah is embedded inside EigenLayer’s economic and security architecture. You get restaking-backed trust assumptions, a universal interface for any proof system, and aggregation at the network layer. That makes it ideal for teams building general-purpose ZK apps or rollups who want predictable economics and long-term alignment with Ethereum’s shared security.
=Nil; Foundation, on the other hand, is optimized for specificity. Their zkLLVM stack brings ZK compatibility to high-level languages like C++ and Rust, with integration hooks into Ethereum for verification. This makes it a tactical fit for teams that care about tooling, need deeper control over constraints, or want to ZK-enable legacy systems without migrating to zkDSLs.
Here’s how they diverge at the protocol level:
The split isn’t ideological. It’s architectural.
Fermah is building infrastructure for the many—abstracting away the proving layer, and standardizing it as middleware.
=Nil; is building power tools for the few—turning complex systems into proof-friendly pipelines without rewriting them from scratch.
The real winners will likely be DeFi protocols and rollups that use both. One for orchestration at scale. One for tight control and optimizations.
In either case, proof markets shift the ZK stack from niche cryptographic engineering into operational infrastructure. Just like AWS did for compute.
And that changes everything.
Conclusion
Proof generation is no longer a backend detail. It’s the scalability layer. The privacy boundary. The trust surface.
Fermah and =Nil; Foundation offer two distinct but complementary visions for how that layer should operate.
Fermah builds for universality and scale, anchoring on EigenLayer’s restaked infrastructure and introducing private delegation with CPD. It’s credibly neutral, horizontally extensible, and designed to absorb ZK workloads without bleeding privacy or compute costs.
=Nil; Foundation opts for vertical specialization. It leans into zkLLVM, optimizing for teams building zkApps in C++, Rust, or JavaScript. Its proof market is standalone and protocol-subsidized, making it attractive for cost-sensitive or Ethereum-native projects.
Both address the same bottleneck: ZK proofs are expensive, complex, and compute-bound. But the next billion proofs don’t need to be. Abstract the infrastructure, commoditize the generation layer, and let markets compete on performance.
DeFi teams choosing a proving layer today aren’t just buying speed. They’re deciding how their privacy scales, how their trust model enforces boundaries, and how resilient their system becomes when the chain gets adversarial.
Proof markets aren’t a convenience. They’re an upgrade surface. And the sooner you adopt one, the faster your protocol stops bleeding resources trying to act like a prover.
Use them.
Don’t rebuild what the market has already optimized.
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Follow-up: Conduct a follow-up review to ensure that the remediation steps were effective and that the smart contract is now secure.
Follow-up: Conduct a follow-up review to ensure that the remediation steps were effective and that the smart contract is now secure.
In Brief
Remitano suffered a $2.7M loss due to a private key compromise.
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Hacks
Hacks Analysis
Huobi | Amount Lost: $8M
On September 24th, the Huobi Global exploit on the Ethereum Mainnet resulted in a $8 million loss due to the compromise of private keys. The attacker executed the attack in a single transaction by sending 4,999 ETH to a malicious contract. The attacker then created a second malicious contract and transferred 1,001 ETH to this new contract. Huobi has since confirmed that they have identified the attacker and has extended an offer of a 5% white hat bounty reward if the funds are returned to the exchange.