From Layer 2 to Data Verification: How Zero-Knowledge Proofs Are Redefining the Boundaries of Web3 Infrastructure

Throughout the evolution of the crypto industry, zero-knowledge proofs have long been closely associated with concepts like "Rollup" and "Ethereum scaling." Over the past two years, ZK-Rollup has emerged as the leading Layer 2 solution, effectively alleviating congestion on the mainnet and laying the foundation for ecosystem growth. Yet, the inertia of technological progress often causes the market to overlook its deeper potential.

As of July 29, 2026, the market is voting with real capital on the future of ZK technology. Among these, Onsen Token (ON) stands out. According to Gate market data, its price is $0.23461, with a 24-hour increase of 7.51%, a 30-day surge of 186.42%, and a 90-day gain of 110.10%. This price movement isn’t an isolated event—it reflects the market’s repricing of the "ZK-driven data infrastructure" sector.

The boundaries of zero-knowledge proof applications are undergoing a pivotal shift—from off-chain computation to on-chain verification, and from a performance tool to a foundation of trust. This article will break down how ZK technology is moving beyond the singular Rollup narrative, expanding into privacy computing, AI verification, and decentralized identity systems. We’ll also explore the logic behind ZK data infrastructure projects like Orochi.

ZK-Rollup: The Indispensable Foundation

Before we look to the future of ZK technology, we must acknowledge its contributions to scaling the industry in recent years. ZK-Rollup compresses thousands of transactions into a single proof, submitting it to the Ethereum mainnet for verification. This dramatically reduces transaction fees and increases throughput.

This phase of technical maturity not only fostered a large developer talent pool, but more importantly, proved the feasibility of zero-knowledge proofs at the public chain level. Projects like StarkNet and zkSync Era have demonstrated that cryptographic algorithms can significantly boost performance while maintaining decentralized security. However, as Layer 2 competition intensifies, simply being "cheap" and "fast" is no longer enough to create a lasting moat. The industry is now asking: Beyond compressing block space, what else can ZK proofs verify?

Beyond Scaling: Privacy Computing and Data Verification

Today, the use cases for zero-knowledge proofs have expanded significantly. Its core value is no longer limited to "performance optimization"; it now encompasses "data authenticity verification" and "privacy protection."

Breakthroughs in privacy computing. In traditional blockchain architecture, all data is publicly accessible. However, for enterprise applications or high-frequency traders, privacy around strategies and holdings is crucial. ZK technology allows one party to prove the correctness of a computation to a verifier without revealing the specific input values. For example, in compliant on-chain lending scenarios, a borrower can prove to a lender that their assets exceed a certain threshold without disclosing the exact balance. This "selective disclosure" mechanism is becoming a compliance bridge between traditional finance and DeFi.

AI and data verifiability. This is one of the fastest-growing areas of exploration. As AI-generated content proliferates, verifying the origin and authenticity of data has become a pain point. With ZK proofs, the inference process of an AI model can be encrypted and packaged, generating a "proof of computational validity." Users can enjoy AI services while verifying that the result was indeed produced by a specific model with specific inputs, rather than being manipulated. This provides reliable off-chain data sources for on-chain automated market making, risk scoring, and robo-advisors.

Decentralized Identity: Sovereignty Restored Through ZK

Identity systems are the final piece of the Web3 infrastructure puzzle, and arguably the most socially valuable application for ZK technology. Traditional digital identity relies on centralized institutions (like Google or government agencies) for authentication, leaving users unable to control their privacy.

ZK-powered identity solutions (such as zkPass and similar protocols) allow users to hold off-chain credentials (like passport chip data or social scores) and generate a ZK proof to submit to a DApp. Verifiers only need to confirm that "the user meets KYC requirements" or "the user holds a degree from a certain university," without accessing the original sensitive documents. This mechanism not only reduces the legal risk for platforms storing sensitive data, but also truly enables "self-sovereign identity."

This trend shows that ZK is moving from a backstage "scaling engine" to a front-stage "trust protocol." It empowers Web3 to verify data authenticity without relying on third parties—a fundamental building block for a decentralized society.

Market Validation: Onsen Token (ON) and the Logic of ZK Data Infrastructure

All of these technological advancements point to a core demand: efficient, low-cost networks for data proof and verification. This is precisely where ZK-driven data infrastructure projects like Orochi are focusing their efforts. Onsen Token (ON), a key asset in this ecosystem, provides a clear case study for analyzing the conversion of technical value into market value.

As of July 29, 2026, Onsen Token (ON) has a total market cap of $46.445 million, ranking 454th. Its 24-hour trading volume is $6.6326 million, indicating strong liquidity and high participation. Historical data shows ON bottomed at $0.06042 over the past year and reached a high of $0.40000. While the current price is still below its historical peak, the recent strong rebound (up 39.76% in the past 7 days) suggests capital is reassessing its value.

The logic behind this price recovery is as follows: As ZK technology shifts from the single Rollup competition to the data verification layer, the market needs networks capable of supporting large-scale data proofs. If Orochi can achieve breakthroughs in ZK proof generation efficiency and verification costs, its ecosystem token ON will capture the value of data service fees. The current neutral-to-bullish market sentiment, combined with a fixed total supply of 1 billion tokens, provides room for deflationary or burn mechanisms in its long-term development (subject to its tokenomics). Investors are betting that ZK data infrastructure will become the fourth core sector after public chains, DeFi, and NFTs.

Risks and Outlook

Despite the broad prospects, risks must be assessed based on verifiable logic.

Technical maturity risk. Although ZK proof generation speed has improved, proof times for complex general computations remain lengthy. If projects like Orochi can’t meet internet-level latency standards, mass adoption will face bottlenecks.

Standardization risk. Currently, there are many types of ZK circuits and proof systems (such as Groth16, Plonk, etc.), but a lack of unified interoperability standards. This could lead to "island effects" similar to early public chains, limiting cross-network data verification.

Competitive risk. In addition to emerging ZK data projects, traditional cloud service providers (like AWS) are also exploring confidential computing. Web3 infrastructure must demonstrate that the added trust value of decentralization outweighs its increased costs, or it will struggle to achieve widespread adoption.

Conclusion

The evolution of zero-knowledge proof technology mirrors the internet’s transition from dial-up to fiber broadband—initially solving "connection speed," and later addressing "connection quality" and "trust cost." From Layer 2 scaling to today’s multidimensional expansion into privacy computing, AI verification, and identity systems, ZK is reshaping the underlying logic of Web3.

The market performance of Onsen Token (ON) is only a small footnote in this larger narrative at the capital level. The true anchor of value lies here: As data becomes a core production factor, ZK-driven data infrastructure will deliver uncompromising privacy and authenticity to the on-chain world. For industry professionals, understanding this paradigm shift from "performance" to "trust" may be the key to gaining an edge in the next cycle.

FAQ

Q: What are the main current applications of zero-knowledge proofs (ZK)?

Today, ZK technology has moved beyond Layer 2 scaling solutions to cover privacy computing (hiding transaction amounts and user data), AI verification (ensuring the authenticity of AI inference results), and decentralized identity systems (enabling minimal data disclosure and self-sovereign identity).

Q: How has Onsen Token (ON) performed recently?

As of July 29, 2026, ON is priced at $0.23461. Over the past 24 hours, it rose 7.51%; in the last 30 days, it surged 186.42%; and over the past 90 days, it gained 110.10%. Its market cap is about $46.445 million, showing strong momentum for a rebound.

Q: What is the relationship between Orochi and ZK data infrastructure?

Orochi is a ZK-driven data infrastructure project. It aims to leverage zero-knowledge proof technology to provide efficient data verification services for Web3, addressing challenges in on-chain data authenticity and privacy protection. This marks a shift for ZK technology from "scaling" to "verification."

Q: What are the advantages of ZK technology in data verification?

The advantages of ZK verification are its "conciseness" and "privacy." Verifiers don’t need to re-execute complex computations; proofs can be validated in milliseconds. At the same time, the proof process doesn’t reveal original data (such as age or balance), only disclosing the "verification passed" result.

Q: What challenges does ZK data infrastructure face?

Key challenges include: lengthy delays in generating complex ZK proofs, lack of unified interoperability standards among different ZK systems, and cost competitiveness compared to centralized cloud services. These factors will directly impact the speed of mass adoption.