This Week in Web3 | 3.27.23

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Here's what we'll cover today:

• It's Zk's time to shine: Polygon launches zkEVM and ZkSync launches Era Mainnet

• Coinbase's love-hate relationship with the SEC

• Product updates from our CEO & Co-Founder, Dariya

• Community Feature: Hashflow

Sarah at Layer3

WEB3 DIGEST

The battle of the zkEVMs

Now that the Arbitrum airdrop has officially begun, it's zkEVM's main character moment.

The world of Ethereum scaling is heating up with the deployment of not one but two new zero-knowledge Ethereum Virtual Machines (zkEVMs), promising faster transactions and reduced costs with zero-knowledge (ZK) technology. In this battle, it's Polygon and Matter Labs who are leading the charge.

Earlier today, Polygon unveiled its own zkEVM, a Layer 2 (L2) scaling solution leveraging ZK proofs for Ethereum, maintaining EVM equivalence while offering higher throughput and lower fees. Developers can deploy existing contracts to Polygon zkEVM, and users can transact at lower gas costs, all without compromising security.

Meanwhile, Matter Labs has also opened its zkSync Era mainnet to users after a month of developer access only. As a ZK rollup with EVM compatibility, zkSync Era simplifies the design and reconfiguration of applications for developers familiar with the Ethereum ecosystem. CEO of Matter Labs Alex Gluchowski states that over 200 projects are ready for deployment on the ZK rollup, and the platform will feature native Account Abstraction for a more user-friendly experience.

As these two platforms race to deliver zkEVMs, the future of Ethereum scaling looks bright, with ZK tech having its rightful main character moment to push the boundaries of Ethereum's speed, efficiency, and compatibility.

However, one question remains: Does this rivalry mean that some compromises will be made in the name out-shipping your competitor? Only time will tell.

INFORMATION DIET

Sarah's Recommended Reads: WTF is a Wells Notice?

Welcome to Sarah's Recommended Reads! Here, I'll be summarizing well-written articles or threads by web3 thinkers and builders that you should know about. 

This week, we're talking about the SEC's love hate relationship with Coinbase. You've probably heard about the SEC indicating their intention to file an enforcement action against Coinbase in this Wells Notice letter, but what does it all mean?

A Wells Notice is a notification issued by regulators to inform individuals or companies of completed investigations where infractions have been discovered, or almost like a notice of the SEC's intention to take action (how nice!). By nature, it is extremely broad, but a few speculate that the SEC is specifically targeting Coinbase's spot market as well as its Earn, Prime and Wallet products. This would include its staking product (Earn), which currently enables any user to stake Ethereum and earn up to 6% APY without an validator.

As a result, Coinbase CEO Brian Armstrong is calling on crypto enthusiasts in the U.S. to take political action. Armstrong and other Coinbase executives took to Twitter Spaces recently, urging Americans to press their local congresspersons to adopt a pro-crypto stance via Crypto 435, an advocacy program launched by Coinbase in February.

With around 50 million Americans invested in crypto, Coinbase's Head of US Policy, Kara Calvert, highlighted the power of this significant voting bloc.

Crypto enthusiasts are facing a unique challenge, as the SEC has been particularly aggressive in their approach, with some arguing that a lack of clear regulatory guidelines is hampering growth in the U.S. And I tend to agree—if the SEC can pressure Coinbase to get rid of its most promising non-custodial products, then...the future of crypto innovation in the U.S. isn't looking too bright.

Quick Hits

• Sui Mainnet will launch in Q2 of this year – link

• OKX to cease operations in Canada by June 22, 2023 – link

• Sony Files Patent for NFTs to Allow Transfers Between Games and Consoles – link

• Telegram Users Can Now Transfer USDT Through Chats – link

Product Updates from Dariya

Hey everyone!

Last week we added several improvements to make Layer3 more fun to use, especially with friends. Take a look at our changelog here:

• Reimagined UI: Redesigned UI to be friendlier, perfect for crypto newcomers

• Referrals: Level 20+ users can earn achievements by inviting friends to Layer3

• Dynamic Preview Images: Added dynamic images in link previews for improved quest sharing experience

Coming up:

• Wallet Partnerships: Announcement of an exciting new wallet partnership

• New chain support: Expanding quests to new chains for more exploring opportunities

And remember, we love meeting our users. Shoot me a DM @dariyaxyz!

— Dariya, Co-Founder and CEO

COMMUNITY FEATURE

Featured Partner: Hashflow

Are you ready to take an inter-planetary journey with us with Hashflow? 🪐

We've partnered with Hashflow to introduce users to the Hashverse, an immersive gamified DAO enabling users to stake tokens, complete quests, and earn Hashflow tokens & 
one-of-a-kind NFTs. All users who complete this Quest will get entered into a giveaway for 100 allowlist spots for Hashflow's Season 1 Mystery Box NFTs, which will eventually come with 1-6 items for you to trade!

Additionally, you'll also get the chance to win one of 50 Creation's Coffers NFTs. What are you waiting for?

As always, thank you for reading!

Join our Telegram, Discord, and Twitter to stay up-to-date on the latest Quests, communities, and more. Until next week, frens.

Cheers,

Sarah from Layer3