New use cases ZK unlocks for DeFi and GameFiZK in action: how zero-knowledge technologies open up new opportunities for DeFi and GameFi

New use cases ZK unlocks for DeFi and GameFiZK in action: how zero-knowledge technologies open up new opportunities for DeFi and GameFi

Zero-knowledge technologies, previously considered primarily in the context of privacy and scaling, are undergoing a qualitative transition from the infrastructure level to the application level in 2025. This is especially true for two key Web3 sectors: decentralized finance (DeFi) and the blockchain gaming industry (GameFi).

Thanks to the improvement of ZK compilers, cheaper proof generation, and the emergence of zkEVM-compatible networks, scenarios that were previously considered either too expensive or impossible without compromising UX and decentralization are becoming feasible.

What has changed in ZK technologies in 2024–2025

Until recently, the main obstacles to using ZK in application products were high computational complexity, narrow compatibility with the EVM, and the lack of convenient development tools. However, now:

·         zkEVM solutions (such as Scroll, Polygon zkEVM, zkSync Era) support regular Solidity contracts without significant limitations;

·         SNARK/STARK proof generation has accelerated by 5-10 times thanks to recursive aggregation and hardware ZK accelerators;

·         Cairo, Noir, RiscZero frameworks have emerged, allowing the creation of ZK applications with native integration into the dApp ecosystem.

This has given impetus not just to Layer 2 platforms, but to new types of applications using zero-knowledge in application logic.

DeFi: ZK opens up private and scalable finance

One of the main trends in DeFi is the introduction of privacy at the level of transactions, orders, and even collateral.

Examples of new opportunities:

ZK liquidity marketplaces, where transactions are made without disclosing offers in the mainnet (an example is Railgun DEX Layer);

1)      ZK bonds and synthetic assets whose structure is hidden from third-party observers, but verifiable by proof;

2)      ZK lending protocols, in which collateral can be proven without disclosing the full balance (privacy-preserving lending);

3)      Participation in DAO with voting based on proofs of participation or identity without disclosing the address.

Technically, this is implemented through zkSNARK protocols and on-chain verifiers built into second-level contracts. Particular attention is drawn to the integration of ZK into order aggregators, allowing transactions to be carried out in private mode while maintaining compatibility with L1 DeFi protocols.

Zero-Knowledge Technologies in DeFi and GameFi: Use Cases and Technical Characteristics

Category

Use Case / Feature

Technical Description

Benefits

Challenges / Notes

DeFi - Privacy

Private order books and DEX layers

ZK proofs enable confidential order matching without revealing orders on-chain

Prevents frontrunning and MEV

Complexity of on-chain proof verification

DeFi - Synthetic Assets

zk-backed synthetic tokens

Synthetic assets with hidden collateral and issuance conditions verified via zkSNARK/STARK

Privacy of positions and collateral

Integration with existing DeFi protocols

DeFi - Lending/Collateral

Privacy-preserving lending

Prove collateral sufficiency without revealing exact balances using zero-knowledge proofs

Enhanced user privacy

Requires complex circuit design for proofs

DeFi - DAO Voting

ZK-based anonymous or selective voting

Voters prove eligibility without revealing identity or vote contents

Increased voter privacy and anti-coercion

Balancing transparency and privacy in governance

GameFi - Off-chain Logic Verification

Off-chain event proofing

Proofs verify that off-chain game events (loot generation, battle results) comply with on-chain rules

Reduced on-chain data/storage, faster gameplay

Ensuring synchronization between off-chain/on-chain

GameFi - Private Moves and Strategies

Zero-knowledge proof of valid moves

Players prove actions are valid without revealing moves to opponents

Prevents cheating and preserves strategy secrecy

Computational cost on clients, user device requirements

GameFi - Hidden Game State

Private inventories, maps, and assets

Zero-knowledge proofs maintain privacy of player data and game state elements

Enhanced immersion and fairness

Complexity in proof generation and verification

GameFi - Cross-chain Progression

Proof of game progress across chains

Recursive ZK proofs enable validation of progress on one chain verified on another

Interoperability and scalability

Coordination of multiple rollup or L2 environments

Technical Enablers

zkEVM compatibility

Running Solidity smart contracts within zk-rollup environments

Seamless migration and broader adoption

zkEVMs still evolving, performance trade-offs

Technical Enablers

Recursive proof aggregation

Combining multiple proofs into one to reduce verification overhead

Significantly lowers on-chain costs

High complexity in circuit design and tooling

Performance

Reduced gas costs

Compressing transaction data and using succinct proofs to minimize Ethereum L1 usage

Enables microtransactions and mass adoption

Proof generation can be computationally intensive

User Experience

Instant finality and fast withdrawals

ZK proofs enable near-instant confirmation of state transitions

Improves UX compared to optimistic rollups

Dependent on proof generation speed

GameFi: ZK makes fair computing and hybrid worlds possible

In GameFi zero-knowledge proofs become a key tool for:

·         verification of off-chain events (e.g. in-game logic, loot generation, damage calculation) without full on-chain storage;

·         implementation of PvP battles without strategy leaks — ZK allows a player to prove that he made a move according to the rules, without revealing the move itself in advance;

·         creation of private game elements, such as hidden locations, inventory or maps, which are not visible to other network participants;

·         support for multi-chain mechanics, where game progress is proven in one rollup, but validated in another without transmitting all the data.

A particularly promising direction has become the use of zk-STARK on clients, where even mobile devices can generate proofs sent to the network infrastructure.

Technically, this is implemented through ZK-friendly game engines and contracts interacting with off-chain performers using WASM and zkVM. Zk-oriented networks specifically for GameFi are also actively developing (for example, Lattice, Manta Pacific, Aleo Games Layer).

Why it matters: gas savings, privacy, and trust

ZK applications enable a new level of UX in Web3, without the need to compromise between performance, security, and decentralization.

For DeFi, this means:

·         no MEV attacks and frontrunning on private DEXs;

·         the ability to use complex financial instruments without revealing the strategy;

·         reduced costs of verifying complex contracts through recursive proofs.

For GameFi:

1)      guaranteed fair play and the impossibility of cheating;

2)      preservation of user data privacy;

3)      the possibility of scalable game worlds with dynamic off-chain content.

Examples of projects and implementations

In 2025, a number of projects have already implemented or are testing similar capabilities:

Aleo is a complete zk platform for private contracts, including gaming cases;

1)      zkSync Era is a platform with support for private DeFi platforms and NFT games;

2)      RiscZero is a zkVM infrastructure that enables off-chain computation to be verifiable;

3)      Mind Network and Manta Pacific are projects that specialize in private applications on top of ZK infrastructures.

Each of them is either building a specific stack for zk applications or tools for integration into existing protocols.

Conclusion

Zero-knowledge proofs are no longer limited to private payments and Layer 2 scaling. In 2025, we see them becoming the foundation for new applications in DeFi and GameFi, where not only transaction speed and cost are important, but also privacy, fairness of computation, and multi-chain verification.