ZK Rollup Trademark Dispute: Competitors Urge Matter Labs to Retract Application for zkSync

  • An application by Matter Labs to register “ZK” as a trademark has been met with a robust response from competitors StarkWare, Algorand, and Polygon.
  • “We condemn this behavior in the strongest possible terms, as a transparent attempt by a corporation to claim ownership over something that does not belong to it,” the group wrote in a statement posted yesterday on GitHub.
  • “We speak as some of the original creators of ZK or Zero-Knowledge cryptography, as academic cartographers, and as ZK researchers and developers from leading projects.”

Discover the latest controversy in the crypto world as Matter Labs faces backlash over its attempt to trademark “ZK” technology. Learn about the implications and reactions from industry leaders.

Controversy Surrounding Matter Labs’ Trademark Application

Matter Labs, the developer behind zkSync technology, submitted an application to register “ZK” as a trademark in February. This move has sparked significant backlash from competitors, including StarkWare, Algorand, and Polygon. These entities argue that the term “ZK,” which stands for zero-knowledge, is a fundamental concept in cryptography and should not be monopolized by any single company.

Industry Leaders’ Reactions

In a statement posted on GitHub, the group of competitors expressed their strong disapproval of Matter Labs’ actions. They emphasized that zero-knowledge cryptography is a community-driven innovation and should remain accessible to all. “We condemn this behavior in the strongest possible terms, as a transparent attempt by a corporation to claim ownership over something that does not belong to it,” the statement read. This sentiment was echoed by Idyllic Labs co-founder and CEO Will Chen, who described Matter Labs’ actions as “hollow.”

Implications of the Trademark Application

Registering a trademark typically takes at least a year, but applicants can use proof of an accepted application to conduct business. Matter Labs has allegedly used its pending application to approach exchanges, asking to register a token under the ticker name “ZK.” This has raised concerns among competitors who believe that such actions could set a dangerous precedent for the industry.

Historical Context of Zero-Knowledge Proofs

Zero-knowledge proofs were first described in a 1985 MIT research paper titled “The Knowledge Complexity of Interactive Proof Systems.” These proofs have gained popularity in cryptocurrency projects because they allow for the verification of data without revealing the data itself. For instance, a protocol can confirm that a user has sufficient funds to complete a transaction without disclosing the exact amount in the user’s wallet. This technology is crucial for maintaining privacy in smart contract applications.

Matter Labs’ Justification

Matter Labs has defended its decision to apply for the trademark, stating that it aims to ensure the term “ZK” can be used freely in relation to its technologies, such as ZK Sync and ZK Stack. “Like it or not, trademarks are the only legal tool available for this today,” the team wrote on Twitter. However, this justification has not quelled the criticism. Rebecca Rettig, chief legal officer at Polygon Labs, questioned the motives behind the application, suggesting that if Matter Labs was forced to apply due to a challenge, they should disclose that information.

Conclusion

The controversy surrounding Matter Labs’ attempt to trademark “ZK” technology highlights the ongoing tension between innovation and intellectual property in the crypto space. While Matter Labs argues that trademarks are necessary to protect their technology, competitors believe that such actions could stifle community-driven advancements. As the trademark application process unfolds, the industry will be watching closely to see how this dispute impacts the future of zero-knowledge cryptography.

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