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Primer

Zero-knowledge proofs have become an integral pillar going forward in the Web3 ecosystem.
It has the key to unlocking further robust trustless signing mechanisms albeit they come at a cost.
Expensive infrastructure followed by low utilization rates has caused ZK-proof adoption to not be aligned with its efficiency and speed. Fermah takes the mantle to address this and make sure that developers should not be restricted to making advancements in proof generation.

Key Insights

  • One-liner Summary: Fermah is a universal proof generation layer that optimizes ZK proof generation for cost, speed, and reliability.
  • Product Highlights:
    • Functions as a marketplace for zero-knowledge proof (ZKP) generation.
    • Demand Side: Seekers request proof generation for zkRollups, ZK bridges, zkML, etc.
    • Supply Side: Machines like GPUs and FPGAs run by EigenLayer Operators generate proofs.
    • Uses Matchmaker to allocate proof requests efficiently.
  • Growth Vision: Expand Prover Nodes beyond EigenLayer Operators to include FPGAs and VPUs, increasing capacity and reducing costs.

Introduction

  • Project Overview:

Fermah has established 3 parties in the proof generation process. Seekers, Matchmakers, and Operators. A highly efficient interaction then takes place between the components allowing for proof generation to be secure, fast, and scalable.

  • Founders & Team:

    Leadership: Founded by cryptographer Vanishree Rao, who holds a PhD in Cryptography from UCLA and previously served as Lead Cryptographer at O(1) Labs, the team is poised to advance zero-knowledge proofs (ZKPs) as a foundational element for computation

  • Technical Workflow:

    The interaction is simple with secure dependencies, Seekers send Proof Requests to Matchmaker through an RPC Server, and the Matchmaker is then connected to all Operators on a P2P Network. Operators receive task assignments, download the required proof systems and the completed proofs are submitted to the Seeker’s callback URL.

Performance

Network Analysis

  • Current State: The devnet phase relies on EigenLayer Operators.
  • Scalability: Future phases aim to expand hardware diversity (FPGAs, VPUs).

Qualitative Analysis

Go-To-Market (GTM) Strategy

  • Leverages the growing adoption of ZKPs and modular blockchain ecosystems.

  • Initial bootstrapping via EigenLayer enhances network security and adoption.

  • Strong VC push + Founder led marketing has shown great results

    Fermah constantly pushes the narrative of being “The universal proof market” with recent partnership announcements with LayerEdge and Boundless. They are acquiring market share rapidly and helping eliminate the resource-backed problem with ZK-proof generation.

Partnerships

  • EigenLayer provides a restaking-powered security model.
  • Integration with ZK protocols, zkRollups, and zkML solutions.

These result in a deeper level of trust and face value for Fermah further bolstering their presence in the space. The immediate future developments should look like this;

  • Expand Prover Nodes beyond EigenLayer Operators.
  • Introduce crypto-economic incentives for efficient proof generation.

Service Sectors

  • Layer 2 Rollups (e.g., zkSync, Starknet).

  • ZKML applications (privacy-preserving AI).

  • Cross-chain bridges using ZKPs.

    These sectors outline a huge market scope for Fermah to capitalize on while allowing multiple levels of developers and protocols to deploy ZK-based proof generation and reducing costs at the same time.

User Base Assessment

  • Developers need proof generation.
  • Infrastructure providers leveraging GPUs, FPGAs, and VPUs.

Ecosystem and Fundraising

  • Fundraising Overview: (Details needed on investment rounds, backers, etc.)

  • Seed Round Closure: In September 2024, Fermah successfully closed a $5.2 million seed round co-led by a16z CSX fund and Lemniscap. Additional participants included Bankless Ventures, Longhash Ventures, the P-OPS team, Public Works, ZK Validator, Lambda Class, Daedalus, Zero DAO, Velocity Capital, and Daemon Ventures.
    prnewswire.com

  • Notable Angel Investors: Prominent figures such as former Coinbase CTO Balaji Srinivasan; Celestia's Mustafa Al-Bassam and Nick White; Polygon co-founders Sandeep Nailwal, Jaynti Kanani, and Daniel Lubarov; and Aztec's Zac Williamson and Claire Kart also participated as angel investors in this round.

Media & Testimonials

Levitate Labs

Conclusion

  • Strengths:
    • Solves high-cost, low-utilization inefficiencies in proof generation.
    • Uses EigenLayer restaking to bootstrap security and adoption.
  • Weaknesses:
    • Relies on EigenLayer Operators in early stages.
    • Unclear token mechanics (if applicable).
  • Opportunities:
    • Expanding prover infrastructure will reduce costs and increase accessibility.
    • Growing ZK ecosystem (zkRollups, zkML, privacy-preserving computation).
  • Threats:
    • Competition from other ZK computation providers.
    • Hardware constraints in scaling prover nodes efficiently.

Fermah comes into the Zero-Knowledge space with a strong value proposition, solving the main pain point of developers and protocols looking to incorporate ZK-based proofing into their architecture. With the odds favoring them in the future when the demand for ZK proofs rises, the cost comes down. Such a model will surely pay off in the coming future while enabling a secure transition to Zero Knowledge proof generation.

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