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Zero-Knowledge Proofs: An intuitive introduction

Mighty Block

It’s common to hear about web3 initiatives incorporating or aiming to incorporate ZK-proofs for increased privacy. The notion of Zero Knowledge proof (ZK-proof) is not a modern concept; it was first introduced in a paper named “The Knowledge Complexity of Interactive Proof-Systems” in 1985. In this article we will see what a ZK-proof is, offer an intuitive explanation and explore several use cases.

Whether you are a developer or a user, it’s important to understand the core concept behind ZK-Proofs because it will help you understand not only what the product is trying to achieve in matters of security and privacy but also how they are trying to achieve them.

What is a Zero-Knowledge Proof?

ZK-Proof is protocol that involves a Prover and a Verifier and enables the Prover to demonstrate the truth of a statement to the Verifier without disclosing any additional information beyond the veracity of the statement. Essentially, it allows the Prover to prove to the Verifier that they possess knowledge of a specific piece of information, without disclosing it.

How does it work? An intuitive explanation

The Ali Baba cave is a well-known story used to give an intuitive explanation of how the ZK-Proof protocol works. This story is based in a circular cave with one entrance and a magic door opened by a password located in the middle of it. It involves two actors, Bob the verifier and Alice the Prover.

Alice wants to prove to Bob that she knows the password that opens the door placed inside the cave without telling him the word itself. To do that they follows three simple steps:

  1. Alice chooses a random path to enter the cave while Bob waits outside without looking at her.
  2. Bob goes to the entrance of the cave and screams a path.
  3. Alice returns to the entrance using the path that Bob screamed in step 2.

If Bob screams A, and Alice returns using A it can mean two things: either Alice entered the cave through B and knows the password or entered through A and cheated. After all, there is a 50% chance of getting it right.

The key is to iterate this process until it becomes highly improbable for Alice to have cheated in every repetition, given that each time Alice is correct, the probability of cheating is halved.

Where can we apply ZK-Proofs?

Any scenario where someone needs to demonstrate the validity of some statement without giving up the information that validates it is suitable. In web3, ZK-Proofs can enhance privacy.  For instance, they can be used to anonymize transactions between peers, as done in the ZCash z-address to z-address transactions, or to enable anonymous voting for decentralized autonomous organizations (DAOs).

Given the fact that the ZK-Profs are a general cryptography concept, applications can also be found for web2: financial institutions could leverage ZK-Proofs to demonstrate that a person’s income falls within a specific range, without disclosing the precise income amount or  or as a proof of identity, demonstrating that the possession a valid government issued document, without giving it up. 

ZK-Proofs are perfect for this kind of scenario because they can provide strong privacy guarantees without compromising the integrity of the data managed by the system.


Zero-Knowledge proofs have the potential to make the web3 space a more private and safer environment for the users. But as Uncle Ben said in the best Spider-Man movie: “with great power comes great responsibility”. We can’t ignore the fact that these tools can also be used by bad actors to perform illicit activities such as money laundering and illegal transactions. As we continue to develop and apply this technology, it is crucial to consider methods for combating its misuse without sacrificing its benefits. As web3 enthusiasts and developers this can’t be ignored and should be discussed along with the development of ZK-Proof based solutions.

Uniswap V3 To Be Deployed On Avalanche

Mighty Block NTF

Move Comes Ahead Of Imminent License Expiration

Uniswap, the leading decentralized exchange by trading volume, is set to launch its V3 iteration on Avalanche, an Ethereum-compatible Layer-1 blockchain with over $1.5B in total value locked.

LayerZero has been chosen as the bridge for the Avalanche deployment as it supports both the Ethereum and Avalanche networks. LayerZero investors include Uniswap Labs, a16z, and Coinbase.

“The primary urgency behind this proposal is the upcoming BSL expiration on April 1st.” the proposal reads.

Two years after the launch of Uniswap V3, its Business Source License (BSL) is set to expire on April 1, after which developers will be free to copy the codebase. Under BSL, the V3 codebase is closed-source, and can only be used with Uniswap’s permission.

It can be surmised that Uniswap is looking to deploy V3 across the DeFi ecosystem before any potential forks establish themselves. 

Uniswap V3 was launched in March 2021, and its concentrated liquidity feature has been hailed as a breakthrough for automated market makers (AMMs), as it offers far improved capital efficiency.

After the Avalanche deployment is complete, the Uniswap protocol will be available across seven chains, including Ethereum.

Contentious BNB Deployment

Last week, Uniswap was deployed on the BNB Smart Chain, with Wormhole being chosen as the bridging solution.

However, venture capital heavyweight a16z voted against the deployment.

It later came to light that a16z would have voted for the proposal if LayerZero, one of its portfolio companies, had been picked as the bridging solution.

In response to the infighting, Uniswap created the Uniswap Bridge Assessment Committee, tasked with selecting bridges for future deployments of the protocol. The committee is currently assessing 8 bridges and three bridge-agnostic solutions.

Uniswap’s UNI token is down 8% in the past 30 days, according to The Defiant Terminal.

Polygon’s Zero-Knowledge Rollup Goes Live On Mainnet


Polygon has released its Layer 2 blockchain built with zero-knowledge technology, becoming the second company in four days to make a so-called ‘zkEVM’ available to the general public. 

Polygon zkEVM remains in beta, and the company stressed that it should be used with caution – a fact that will change in the coming months, according to co-founder Mihailo Bjelic.

Its release, nevertheless, marks a turning point in Ethereum scaling, he insists.  

“If we can maintain the security of Ethereum, achieve scalability, and do not sacrifice developer and user experience — that’s basically all we need, right?” Polygon co-founder Mihailo Bjelic said in an interview with The Defiant before the launch of Polygon zkEVM. “And zkEVM is, to the best of my knowledge, the only solution that offers all three things simultaneously.”

Polygon’s MATIC token is down around 2% over the past 24 hours, according to data from The Defiant Terminal.


Layer 2 blockchains built with zero-knowledge (zk) technology have been called the “holy grail” of making Ethereum cheaper and more performant. On Friday, Matter Labs released ZkSync Era, marking the first public launch of an Ethereum-compatible rollup secured by the technology. 

Matter Labs, Polygon, and others have raced to bring their rollups to market and storm a Layer 2 field dominated by optimistic rollups Arbitrum and Optimism, which together account for 88% of the crypto assets deposited on rollups, according to L2BEAT.

Scaling Ethereum

Ethereum is slow, and the simplest transactions typically incur a fee of $1 or more. That fee can surge when the network is congested — last May, during a hyped NFT sale from Bored Apes creator Yuga Labs, users incurred an average transaction fee of $474, according to DappRadar.

Layer 2 blockchains, also known as “rollups,” batch and compress user transactions before appending them to the Ethereum blockchain. Doing so dramatically reduces the per-transaction cost and increases the number of transactions Ethereum can handle.

Rollups are considered the most promising technology to scale Ethereum. As such, the companies building them have been valued in the billions. But the field has been dominated by rollups built with so-called optimistic technology, which assumes submitted transactions are valid and provides a seven-day period during which one can dispute potentially fraudulent transactions. This means withdrawals take a week when using the official bridge.

ZK Technology

Zero-knowledge technology makes it possible to prove that a statement is or is not true — that John Smith is a millionaire, say — without revealing any of the information that would typically be required to do so — in this example, John Smith’s bank account or employment history. 

Many privacy-enhancing protocols leverage zero-knowledge technology, but the first Ethereum-compatible zk-rollups to hit the market will not preserve user privacy or obfuscate their transaction history.

Proponents of ZK rollups have long argued that they would be more secure than their “optimistic” competitors while providing instantaneous transaction finality — no seven-day dispute window required.

“It is not possible to execute malicious transactions” on a zero-knowledge rollup, Bjelic said. “You just rely on mathematics.”

But they’re fiendishly complex, and building one that is compatible with the Ethereum Virtual Machine — the EVM in zkEVM — has proven difficult.

“People familiar with the matter have been estimating that it’s gonna take roughly three to five years to build a zkEVM when we started a little bit more than a year ago,” Bjelic said. “This has been really an exciting journey during which we were able to achieve several important breakthroughs from the engineering and cryptography side.”

Polygon zkEVM has been available for developers to test since October. Monday’s release marks its jump to Ethereum’s mainnet.

On the test network, developers are playing around with “test Ether, test MATIC tokens, whatever, there is no real value there,” Bjelic said. “When you’re on mainnet, you’re bridging actual assets. It’s the real thing.”

Work In Progress

Beta is developer shorthand for “work in progress.” Some long-running blockchains are still officially in beta, including Solana and Polygon’s original proof-of-stake sidechain,” Bjelic said. Nevertheless, users should exercise caution in Polygon zkEVM’s first couple of months.

“It’s a bleeding-edge technology that has never been built before,” he said. “We will keep auditing it internally and externally. We have bug bounties etc. It’s a process of the network maturing, and it will take some months, if not a year.”

ZkSync Era was released Friday in alpha, the software development stage before beta.

Rollup Race

The race to launch the first Ethereum-compatible, zero-knowledge rollup has been contentious,  with rival teams sniping at each other on social media over the past several months. Last year, a developer working on a competing zkEVM said Polygon’s zero-knowledge rollup did not meet the criteria to be called a zkEVM.

Bjelic attributed the “Twitter brawls” to the prestige that would come with delivering the first true zkEVM, and brushed off the criticism.

“I think it always, obviously, boils down to the facts,” he said. “Vitalik [Buterin, the founder of Ethereum] helped introduce some clarity when it comes to the concept of zkEVM, and what is, and what is not.…and Polygon is very obviously a zkEVM, I think that’s not a question.”

Polygon is most famous for its long-running blockchain, Polygon Proof-of-Stake. Polygon PoS is popular – with its speed and low fees, it has grown to become the fifth-largest blockchain as measured by total value locked, according to Defi Llama.

While Ethereum-compatible, it is an entirely separate blockchain and does not append its transaction data to Ethereum. Last year, Bjelic said Polygon was working to turn Polygon PoS into a “true” Layer 2 that inherits its security from Ethereum.

Future of Polygon PoS

Which raises the question: having built the “holy grail” of Ethereum scaling, a true rollup, where does that leave Polygon PoS?

“I think there’s definitely room for both,” Bjelic said. Because rollups submit transactions to Ethereum, they have inherent limitations in terms of throughput and how low they can push down transaction fees.

“Polygon PoS chain still has very low fees and can have higher throughput than any rollup, including the zkEVM rollup,” he said. Some applications, such as DeFi lending platforms, which process a relatively small number of high-value transactions, don’t need the speed of PoS but could benefit from the security of a zkEVM. Blockchain-based games, on the other hand, might need fast and cheap transactions, which PoS is better positioned to deliver.

Bjelic said he was happy to release a zkEVM during a period some consider to be crypto’s darkest, with asset values still well below their all-time highs and heightened regulatory scrutiny in the US that has some entrepreneurs looking to move abroad. 

“The climate is generally kind of negative, I would say, and we now more than ever need some excitement,” he said. “And I think the zkEVM is really the technology that can reignite this interest. In some way, it can be kind of like a chatGPT for crypto.” 

2023 will be the year that blockchain games deliver quality and fun | Polygon

gaming web3

There are a lot of people who want blockchain games to stand and deliver. And 2023 is likely to be the year when we get some answers about whether high-quality games will show up using the technology.

Urvit Goel, vice president of games at Polygon, recently talked to games beat about how the blockchain protocol company is trying hard to make that happen.

“Specifically in gaming, 2023 will be the year that blockchain and gaming will be judged heavily on all of the promises that are being made about great games,” Goel said. “We need to start seeing some of those games. There will be enough to start making a determination about quality. A lot of these builders in stealth mode haven’t launched a product yet.”

He notes that Polygon has been at the forefront of Web3 gaming with its recent integration of the popular NFT marketplace Magic Eden as well as top games in the industry such as The Sandbox, Dencentral Games, and more.

While the collapse of FTX set the industry back, DappRadar reported that the Web3 blockchain gaming sector has seen continued investment north of $500 million between October and November, even after the FTX debacle.

“Our focus will be on helping these builders come to market, whether that is with broad tooling to make it easier to launch or new technology for scaling,” Goel said.

Goel joined Polygon about a year ago, diving into Web3 for the first time after a decade of service at Amazon in game-related roles. He serves as the head of games at Polygon, with the goal of driving the adoption of blockchain technology by game developers. He reports to Ryan Wyatt, who previously headed YouTube Gaming and now oversees all of the vertical industries at Polygon.

A $100 million fund

Goel’s job is to connect developers to technology and marketplaces to build better products. Polygon set up a $100 million fund to invest in Web3 gaming and other verticals, using a lot of its own money from when it raised a $450 million funding round.

Goel believes that the blockchain game industry is getting closer to being an adult. In its early years, during the bull run for blockchain and cryptocurrencies, people brought out very simple experiences that took advantage of the financial opportunity but were viewed as a bunch of noise by gamers.

With the bear market, Goel believes the “true builders” who have been working for multiple years are pushing through and removing a lot of the noise.

“What’s left is the high-quality builders in the space who are committed to building great and fun experiences for customers,” Goel said. “These are well-funded teams that have the runway to build great games. Or it’s large Web2 developers who have Web3 initiatives and can continue to build. I’m not seeing a slowdown.”

As for the competition among blockchains, he believes we’ll see many successful blockchains. He doesn’t view others as competition. Rather, the main task is to evangelize the tech so that more people are willing to adopt Web3 gaming. Different blockchains are trying different experiments.

“A rising tide lifts all boats because we are in this phase of the mission where there are a lot of trials,” he said. “We’ve seen what hasn’t worked quite clearly. And if we continue to go through the trials, we can find what it is that will work. It’s similar to how mobile games took off. We’ve only seen the first iteration. The number of chains out there is actually helpful.”

Recovery mode

Fractal and Polygon launch partners.
Fractal and Polygon launch partners.

The FTX crash is definitely a negative event that is hanging over the industry, Goel said. He said it’s worth noting there is a difference between a centralized exchange versus true blockchain technology enablement. The fallout from FTX will take months to unfold, he said.

The $100 million fund is an ecosystem fund that focuses on multiple verticals including gaming, where the company deploys capital to game builders. The fund is still operational and the company is looking at the builders applying to it. Goel said the fund has made hundreds of investments so far.

“The thought behind it is there are a lot of Web3 native builders, and they need support and they need capital,” he said. “We are in a lucky position to deploy part of our treasury to help the ecosystem. It gives builders confidence to see we support them.”

Goel said blockchain games are already strong, as the number of active wallets has been consistently going back up in recent months. And games are accounting for a large part of all blockchain transactions, according to DappRadar.

“The sector is down, but it has held quite strong,” he said. “The thesis is that players are going to play games whether we are in a bull market or a bear market. The other piece is there are a lot of free digital collectibles ready to drive the top of the funnel.”

It reminds him of the early day of free-to-play games where players eventually started making premium purchases.

“We’re still in the early early stages of blockchain gaming. So if you zoom out a little bit, it’s like making predictions about mobile games back in 2000 [before the iPhone came along] That was hard,” he said. “The focus is on helping developers get to the market. Consumers will tell us what they like.”

Goel said he doesn’t think of various segments of the blockchain gaming population yet because the industry is still so small. There is a contingent of crypto-savvy blockchain enthusiasts, and there aren’t enough blockchain games on the market yet. Goel believes the game startups and indie studios will lead the way in blockchain games, as they’re the ones who aren’t afraid to adopt new technology.

And coming up with new kinds of games is better than launching the blockchain equivalent of a Call of Duty game, he said.

“I think you will continue to see a disproportionate amount of funding go into blockchain games,” he said. “I’m bullish for blockchain games. There are more shots on goal at the end of the day.”

Big challenges


Of course, not everything is going swimming. Yosuke Matsuda, CEO of Square Enix, announced he will step aside and promote a younger executive to the top role in June. He was a big advocate of blockchain games and sold off the company’s Western studios to focus on new technologies. (It’s not clear if the new CEO will also focus on blockchain games). The number of active wallets in the blockchain is still pretty small. And the funding could dry up if the economic downturn starts to hurt companies even more.

The blockchain companies are also competing with each other for gaming customers, with ImmutableX poaching studios from both Solana and Polygon and so on.

Goel noted that some of the largest companies in South Korea and some of the largest gaming companies in Japan are still taking their intellectual properties into the blockchain space.

“We’re starting to see some of those dominoes fall. And then what’s that mean for Western game developers? I think that remains to be seen. But this industry is very global,” Goel said.

Meanwhile, the industry needs to improve its infrastructure, whether that is marketplaces, data analytics, wallets, or payment solutions. Game companies shouldn’t have to dedicate their internal staff to do that kind of work.

“We want to partner more closely with developers and help them,” he said.

User acquisition for web3 games: challenges and secrets

Web3 games User Acquisition

Web3 games offer new opportunities for developers — but also new challenges. therefore, This article will cover the Web3 user acquisition challenges and secrets for games, along with tools and past real launch cases.

1. Free to play games

Free-to-play games are all about acquiring players at a reasonable cost and making sure the Average Revenue Per User (aka ARPU) exceeds it, producing a profit. Hence, this article we’ll cover everything about the CAC and LTV challenges and secrets.

Web2 businesses are all about investing less to acquire new users (CAC) than the economic value they produce (LTV), in short: CAC < LTV. This is better explained in the diagram below:

All businesses need to satisfy the formula: CAC < LTV

Firstly, let’s do a brief refresh of what these metrics mean:

1.2 CAC = Customer Acquisition Cost

This is how much it costs to get a new user and the calculation depends on the company setup. The most common way to calculate it is to divide costs / new customers acquired given a period:

CAC = Salaries + Revenue share + Fees / # of new customers

1.3 ARPU = Average Revenue Per User

This metric is the average amount of money generated per user over a period of time. Many companies use ARPDU for daily check on what is going on.

1.4 LTV = Lifetime Value

There are quite a number of ways that you can work this out. As a rough starting point LTV is calculated by multiplying ARPU by the average player lifespan (which you can work out from churn rates).

Consider this example: with an ARPU/month of $5 and a player lifecycle of 5 months, the LTV equals $25.

2. Web3 games user acquisition challenges

Comparatively with Web 2, in the Web3 world Wallet addresses are anonymous, all the previous logic changes completely. As a result, we can’t target users based on their social network profile, and this fact changes everything. We’ll cover in the rest of the article the Web3 CAC and LTV challenges and secrets:

2.1 Web3 games user onboarding introduces high friction

Generally, Web2 games introduce no additional friction to new player: just find the desktop or mobile game you want to try and start playing with a brief tutorial and a bunch of free coins.

Comparatively, the Web3 games customer journey is completely different: as you can see in the list below, each steps introduces friction to the user, increasing the CAC for the game:

  1. Create your Wallet using an easy to use product (ie Metamask)
  2. Do the KYC process (upload your ID, etc)
  3. Fund your Wallet using your bank account or credit card
  4. Buy Ethereum, USDT or MATIC tokens
  5. Go to the Polygon Bridge, transform your tokens to MATIC
  6. Buy the game token (for many games, users need two tokens)
  7. Go to OpenSea, connect your Wallet, learn how to use it
  8. Learn about the game NFTs using Youtube or Discord
  9. Buy your first NFTs
  10. Access the game, connect your Wallet and start playing

In case you are wondering how this User Experience can improve, Constanza Caballero, UX Lead at Mighty Block has written about this topic.

2.2 User segmentation

A common practice for Web2 companies to acquire users is to define their Ideal Customer Profile and then segment their paid campaigns to find more of them.

The web2 customer acquisition funnel

As shown above, this strategy is possible because users sign up to social networks and search engines using their personal information and perform activities that are a clear sign of their interest.

Segmenting user profiles in Web3 games (and any web3 company for the purpose) is not possible because the analogous to the user profile is the Wallet address (an alphanumeric string).

Web3 Look-a-Like audiences?

Lookalike audiences could be a key strategy for web3 GTM strategies

2.3 Measuring Lifetime Value

Free To Play games are used to calculating the economic value of their paying users, also known as “Lifetime Value”: they have the revenue per user in a long period of time and can calculate an average aggregated revenue per user over time.

Although at first sight it seems simple to calculate a web3 LTV (for example calculating inflows vs outflows of an Address), once one puts more thought into the problem, it becomes clear that calculating economic value entering or leaving the game can be ambiguous and confusing.

The relationship between fiat inflow, outflow, Advertisers and a Game Economy

Hence, I believe some questions that will need to be answered to calculate a standard LTV across the gaming industry:

  • Should the NFT marketplace fees (ie: OpenSea) be considered in the LTV calculation?
  • Should the LTV consider only Fiat purchases for game tokens or NFTs?
  • Should the DeFi token pools (ie: Sushi swap pools) be taken into consideration?
  • Should asset prices (ie: NFT floor) be taken into consideration to calculate an LTV over time?

My opinion is that the industry will have to agree on what is to be included into the LTV and what is not: a new standard for the Web3 version of the LTV.

Finally, I believe we’ll need tools to help us track all of this activity to calculate the LTV correctly (new article focusing on this coming soon).

2.4: Acquisition channels

Generally, Web2 companies are used to acquiring users through a mix of well established platforms:

  • Google Search
  • Youtube
  • Tik Tok
  • Facebook
  • Instagram
  • Twitter
  • Discord
  • Reddit

All of these platforms allow marketers to segment their campaigns with personal data (user location, age, gender, etc) and user activity within the platform (Post View, Likes, Shares, Video engagement, etc).

The challenge for Web3 games is that the “Web2 segmentation data” is not so relevant. For example: how do you create your campaigns for a new Web3 RPG game when Instagram won’t show 1) if the User has a Wallet and 2) if the user has shown any interest in Web3 games?

Also, some Web3 companies are trying to segment Addresses based on their past activity in the blockchain, emulating Facebook’s Look-a-Like algorithm to send highly targeted Airdrops to be redeemed in the game, acquiring a new user.

Lookalike audiences could be a key strategy for web3 GTM strategies

To me, it’s unclear if approaches like this will work, although this strategy seems similar to the already successful Web2 user acquisition strategy.

Finally, as any active OpenSea user can testify, if you are interacting with DeFi protocols or just swapping tokens, your Address is a target to receive lots of Airdrops (aka the Spam of Web3) as you can see in this OpenSea account:

The Web3 spam: a view of all the NFTs sent to an Address without it’s consent

Free mint as a user acquisition strategy

One trend that was very strong during 2022 was Free Mints. It is true that selling 10,000 high priced NFTs in 15 seconds was one of the most important reasons for a lot of teams to start developing a blockchain game.

However, everybody realized how unsustainable that was since you needed to justify the incredibly high prices of those NFTs.

The F2P (Free to Play) model was there from the beginning for every game developer, but it seems like everyone was waiting for one successful example which came with Digi Daigaku.

Gabriel Leydon announcing the Digi Daigaku Free NFT mint

3. Conclusions

We have finally covered the Web3 CAC and LTV challenges and secrets throughout the article. Do you see any other important challenges and differences between Web2 and Web3 games that we missed?

This is obviously an open topic, and the gaming industry will evolve these metrics as new products are launched. I expect to see new standards defined, new tools created to measure accurately and a new set of best practices iterate Web3 games.

Different types of cryptocurrency wallets: The one you need

Mighty Block

In Mighty Block, our purpose is to help onboard the next billion users into Web3. To achieve this, users have to know how to use applications that allow them to connect to the web3, also known as wallets. The problem is that there are different types of cryptocurrency wallets, and even more types of users. Which is the best wallet for each of them? Let’s analyze:

Custodial Wallets

Custodial wallets are those that are managed by a third party. It is the closest thing to a “web2” application (such as a social network) since users will authenticate themselves in the way they do in the applications they use in their daily lives using, for example, their email and a password.

Advantages of Custodial Wallets

  • It is very easy to use.
  • Recovering an account if I lose my password is quite accessible.

Disadvantages of Custodial Wallets

  • You are not the owner of your private keys and therefore do not have full control over your funds.

In resume, it’s a centralized solution for a decentralized world.


Regular Self Custody

In these type of wallets, it is the user who must be in charge of storing and securing their private keys. Among these we find: browser wallets, desktop wallets, some apps and hardware wallets.

Advantages of Regular Self Custody Wallets

  • Now we really own our accounts
  • The security of our account depends on ourselves and not on third parties.

Disadvantages of Regular Self Custody Wallets

  • It’s not uncommon to lose access to an account or get hacked.

MPC Wallets

MPC (for Multi-Party Computation) allows multiple parties to participate in the signing of a transaction. Each part will have a private key and thanks to complex cryptographic algorithms the desired signature is achieved.

Advantages of a MPC Wallet

  • It is a decentralized procedure since it does not store private keys in a third party.
  • Reinforces security thanks to complex cryptographic algorithms.

Disadvantages of a MPC Wallet

  • It can be a bit more complex in its usability
  • Requires more than one physical device which can make it difficult to recover funds.
  • It is not compatible (today) with hardware wallets.

Smart Wallets

These are managed by smart contracts and therefore not only allow to store and transfer but also can execute pieces of code that add functionality such as multisignature.

Advantages of Smart Wallets

  • They have flexibility without losing decentralization.
  • You can even add logic to pay fees with ERC20 tokens.

Disadvantages of Smart Wallets

  • The code can expose vulnerabilities and make transaction costs more expensive.

So, which one should I use?

I believe that there is no silver bullet wallet, but I can give you some clues as to which one is best for you. 

  • You are not a technical user and you want the easiest to use? Custodial wallet.
  • I’m a technical user but I’m not careful with my keys. I prefer to have an easy way to recover my account => Custodial wallet
  • I am a technical user and I want a simple way to manage my account, and I am also very careful with my keys => Self custodial
  • I am a technical user who doesn’t take good care of his keys, but who thinks that multi-factor authentication would work for him => MPC
  • I am a technical user who would like to customize the use of his wallet to even adapt it to decentralized applications => Smart Wallet

Why do I recommend a centralized wallet in some scenarios? Because I think it’s the easiest way to start. And if what we are looking for is adoption, it is important first that everyone can use a wallet, and then become experts and choose the most suitable one.

I hope that with this article you now have a clearer idea about the different types of cryptocurrency wallets that exist.

Which wallet do you think is the most appropriate for you? Let me know in the comments !

Polygon to Deliver Zero-Knowledge Powered Rollup

Mighty Block

Layer 2 Sets March 27 Launch Date for Ethereum Scaling Offering

Polygon, the Layer 2 blockchain, plans to deliver an Ethereum-compatible rollup powered by zero-knowledge proofs on March 27, the development team said on Tuesday.

The offering, which is called a zkEVM, is expected to offer enhanced privacy features and validate transactions faster than other Ethereum scaling solutions. Unlike other L2s powered by zero-knowledge proofs, developers will easily be able to deploy code written for Ethereum on Polygon’s offering.

‘Intense and Inspiring’

“After more than a year of intense and inspiring research, development, and testing, we are incredibly proud to launch the first-ever zkEVM mainnet,” Mihailo Bjelic, Polygon’s co-founder, said onTwitter.

The DeFi community is counting on rollups to scale Ethereum, which, despite its ubiquity, has proven ill equipped to handle the workload for decentralized finance. Rollups work by bundling together transactions on a Layer 2 network before submitting the bundle to Ethereum’s mainnet for processing. In other words, this innovation may be crucial in enabling Ethereum to fulfill its promise.

Arbitrum and Optimism, the top Layer 2 networks by total value locked, both use optimistic rollups. Optimistic rollups offer easy compatibility with the Ethereum Virtual Machine (EVM), Ethereum’s core smart contract engine — meaning developers can easily port their from Ethereum’s mainnet to Layer 2.

Rollups powered by zero-knowledge proofs have long been touted as the holy grail for Ethereum scaling due to their improved performance and faster settlement compared to optimistic rollups. 

Next Bull Cycle

“[ZkEVMs] will definitely help scale Ethereum to support more transactions in the future and will be a sorely needed addition to support the next bull cycle,” Bobby Ong, co-founder of CoinGecko, told The Defiant. 

Ong added that the teams that are earliest to secure zkEVM market share will enjoy a significant first-mover advantage over their competitors. 

However, existing solutions are not compatible with the EVM, meaning developers historically have needed to build code from scratch to deploy it on ZK-rollups.

But on July 20, 2022, Scroll, Polygon, and Matter Labs all announced they were developing rollups secured by zero-knowledge proofs, or zkEVMs. Consensys, the blockchain software company chaired by Ethereum co-founder, Joseph Lubin, also revealed it was working on a zkEVM in November.

While Polygon is the first team to publicly reveal a date for the launch of its zkEVM, Scroll has outpaced its rivals in terms of testnet adoption. 

Driven by Speculation

More than 900,000 unique wallets have interacted with the testnet for Scroll’s zkEVM, compared to 544,309 for Matter Labs’ zkSync 2.0 testnet, 85,166 for Polygon, and nearly 20,000 for Consensys, according to Messari.

However, the high levels of testnet activity for Scroll and zkSync 2.0 may be driven by speculation that the projects may airdrop native tokens to early adopters in the future.

Zero-knowledge proofs are a privacy-preserving encryption method that was pioneered in the 1980s but struggled to find product-market-fit until Zcoin and Zcash leveraged the technology for privacy coins in 2016.

Web3 Go-To-Market Strategy: Is Go-To-Community replacement for Go-To-Market?

Mighty Block

In my last article, we discussed the challenges a Product Manager has to deal with when they lead a web3 product. One of the main challenges we discussed was the Web3 Go-to-Market (GTM) strategy and how the frameworks we used to know became obsolete. But is that entirely true? Could we adapt those frameworks to be our baseline for building fantastic products that the community needs? Well, spoiler alert, we can. 

Go-To-Market Strategy 

Let’s start with a basic definition: A GTM strategy is a tactical plan detailing how we are planning to execute a successful product launch, a new market expansion, or a new customer target. It’s designed to mitigate the risk that includes the new launch. 

Or, what we product people usually think, anything and everything which ensures that you build the right product so when you implement the Go-To-Market strategy, it will impact the end user positively and the business, resulting in you keeping your job 😂

Now that we have a clear understanding of what GTM is, let’s see the most common elements and how we can adapt those to our web3 products: 

Main elements of a good GTM

Product Market Fit 

Having a clear reason, a purpose, and a problem to solve is really important. At the moment that you are formulating the GTM, asking why are we building something is the main thing to ensure that we are not just in love with our product. 

Sometimes, we know we believe that we can create needs for our users, but that it’s not entirely true. There has to be a deeper reason for people to consume our products, even if it’s not straightforward. Web3 is not an exception. To understand the product market fit, we need to be embedded in the web3 community, understand what motivates them, what challenges they have and how we can help solve them. 

However, if we want to bring web3 to the masses, we need to understand which problems the people outside of Web3 have that our technology can help solve. 

But first, we need to define the problem. Don’t try to create a need to be solved with blockchain.

Audience and buyers

In web3 we are familiar with what we call our early adopters, our community. They are the ones that are going to engage with the product even before we release it. Building a community is an essential step in our Web3 Go-to-Market marketing strategy. 

A community is going to allow us to perform early validations, confirm our assumptions, test the product, and even participate in the decision-making process. 

Competitive Landscape 

Who else is doing what you are trying to do? 

We used to ask some questions to identify competence such as: 

  • What is the actors’ market share?
  • Who is leading? 
  • What am I offering that is different from theirs?
  • What are their weaknesses? 
  • How loyal are the users to the competitors? 

There are several frameworks and tools that can help you to understand your landscape. 

The most famous are the SWOT analysis, the Porter five forces, and a BCG (from Boston Consulting Group) matrix.

Are those valid for web3? Well, they have existed for a long time, and they are still valid tools, but in this particular industry, we should ask ourselves some additional questions: 

  • Do we have a community that already supports us? If we don’t, it’s time to create it. 
  • Is our product solving a problem that can’t be solved with web2?
  • What do we offer that a “traditional” product does not? 
  • How easy is it for our potential users to switch to our tech? Is this for the masses? Or is it only for tech-savvy people? 


This is the key to how your potential users are going to access our product. For a regular one, we have tho techniques: marketing-intensive and sales-intensive. But in web3, I will say that we can have a new one: Community-centered. 

And what does that mean? 

As I mentioned in the previous sections, we need to create a strong community if we want to succeed in this world. 

Go-to-community (GTC) is a strategy focused on building and engaging with a community of early users, that could help us to increase interest in our product as well as have early feedback. 

But how to start building a community

The same as we have MVPs (Minimum Valuable Products), we could have MVCs (Minimum valuable communities). And here we have a couple of steps to start thinking about building a community from the very beginning:

First: Build
  • Define and share your core proposition & how co-creation works
  • Bootstrapping a community: use tools and applications that are already popular with these users: Discord, Twitter, Telegram, and even some web3 tooling like Crew
  • Depending on your product, a common practice is sharing tokens & retroactive airdrops with early contributors
Second: Engage
  • Gradually opening and broadening up
  • Depending on your organization/company structure, you can progressively decentralize governance and ownership over to the community
  •  Prepare an onboarding journey for new members, especially for those that are newbies in the web3 ecosystem.
Third: Sustain 
  • Getting members to actively participate, engage and contribute
  • Creating the right dynamics between regular members, active contributors, and the core team

Go to community timeline

And how is that going to help us with the Distribution? 

Communities are leading the web3 revolution. Having early adopters with influence in the community could help us to bring real engagement to our product. 

But to reach the masses, we still need to apply some of the traditional GTM strategies for distribution. 

It’s because of that, that Web3 Go-to-Market and Go-to-Community need to be complementary, and we cannot have one without the other if we want to reach a broader audience. 

Web3 Go-to-MarketWeb3 Go-to-Community
Optimizing lead flowHosting meetups and creating educational content
KPIs: Conversion Rate, Repeat Rate, CACKPIs: growth and retention
Strategies like: “Pre-sale”, “Earlybird” Engaged MVC
Feedback: NPS, CSAT, surveysFeedback: Community
How many leads did the forum generate last week?How many people did we help last week?
Value captureValue creation
GTM and GTC comparison

Then, Is Go-To-Community the new Web3 Go-to-Market?

As we saw in the article, one strategy does not replace the other. And both need to coexist if we want to reach a broader audience. To conquer a different niche from the tech-savvies and web3 early adopters, we need to mix traditional strategies with the new ones, to let them engage with our product but then educate them about this new paradigm. 

Our learning Culture

Mighty Block

In Mighty Block we genuinely believe that people’s learning process has a powerful impact on oneself and on the entire team. Learning is the reason for little and big changes in people and also companies.

According to the Society for HR Management (SHRM), A learning culture “consists of a community of workers instilled with a ‘growth mindset.’ People not only want to learn and apply what they’ve learned to help their organization, they also feel compelled to share their knowledge with others.”

How do we develop a culture of learning in Mighty Block?

Web3 has a singular environment: every day you are learning something new. We always stay up to date by focusing on cutting edge technology. This is the reason why learning must be present as the foundation of the company. Culture is the principal intangible enabler of learning.

When we designed our Core Values at Mighty Block the open attitude to learn was at the forefront of the process. We called it: “White Belt Attitude”. For us, it means that  the learning process never ends. The more we know, the more we acknowledge what we don’t know.

If you want to know more about our core values, our last blog article is here.

Always a white belt attitude

How do we implement the “White Belt Attitude” core value?

Peer Connecting: When we asked the Mighty Block team about the latest topics they actually learnt they answered that it takes place in informal conversations where they can debate and share about the projects that they are working on. No formal training, or tutorials. 

It’s possible because of the horizontal communication: On spaces and connections such as workshops, slacks channels, etc. everybody has their own voice, could ask and answer. No questions are silly questions. It helps people bring ideas and perspectives together. The output is always new learning, and the most important reason is the team: experienced and full of “servant heart” attitude. (Servant heart is also one of our core Values: Always ready to help attitude. Serving others makes us all better.)

The challenges of the product we are building: No matter how experienced they are, each new member takes a humble attitude -as a beginner to learn everything about our technologies and product. The kind of product we develop challenges us to be updated and always learning. It makes us reach out to learn, do research, ask questions and look for the best way to perform. It motivates us to be better. 

Recruiting Process: To ensure our learning culture over time each new hire should show the White Belt Attitude since the very first interview. Our recruiting process was designed to get to know each other. It means that at the end of the interviews, we will have a clear picture about the cultural fit with our Core Values. The interview set includes: Cultural Fit interview, Technical Interviews, Tech challenges, etc.

Activities at Mighty Block that incentivize the White belt Attitude

Crypto Research 

Every Friday at 12, Crypto Research meetings take place.

In each session, one team member presents a crypto related topic and shares what they have been researching as well as their findings and learnings. The rest of the team also participates in the presentation by asking questions and debating.

The first crypto research meeting took place within the initial weeks of Mighty Block.

The team investigated and did a lot of research on this topic every week, so we finally organised these meetings to share the discoveries.

Now, these meetings have become the perfect environment to learn something new every week. 

Despite the fact that “crypto research” is always a virtual meeting, on November workshop we did it face to face

Defi Challenge

As well as developing web3 products, the entire team needs to have basic knowledge about Web3, decentralized protocols, NFTs platforms and token management.

So, we decided to make it fun and challenging. Every quarter a new level starts and it has different tasks to complete such as: Install a non custodial wallet, obtain a ERC 20 token, mint a nft, stake a coin, etc. The winner is whoever holds the most ETH at the time of the final settlement.

We identify a lot of learnings because of our mistakes: We spend unnecessary gass, be scammed, and obtain unuseful tokens. But we help each other when the inexperienced need a guide or a new task is very challenging, we share our learnings and new knowledge.

The “Mighty Blog”

Since the beginning the Mighty Blog purpose was to generate a space to share the team knowledge and learnings. Is a big opportunity to share with the world our expertise in the Blockchain space, leaving a mark in the ecosystem, and provide help to the community.

But blogging helps us to learn so many new skills and abilities (i.e: Writing for different audiences, choosing a topic). The process when we write and the content we research also builds our knowledge.

We have already published 9 articles from 8 members of our team. On October 31, we reached 999 views on our own content! We are very proud and excited about what’s coming on (new topics, new podcast episodes).


The Mighty Block team loves to learn and we try to  identify this attribute in all candidates since the first interview. Our challenge was to design a learning culture and strategies which works as an amplifier that encourages both the love of learning and the opportunity to learn.

Mixing creative spaces and activities with traditional training when needed was the strategy we implemented to keep the flame of curiosity alive.

Why Devcon is the most important event for web3 developers


Last month the sixth edition of Devcon was held in the city of Bogotá in Colombia. But first…

What is Devcon?

Devcon is a global conference for Ethereum developers that was created in 2014 and is held every year in different countries and continents:

  • Devcon 0: Berlin (2014)
  • Devcon 1: London (2015)
  • Devcon 2: Shanghai (2016)
  • Devcon 3: Cancun (2017)
  • Devcon 4: Prague (2018)
  • Devcon 5: Tokio (2019)
  • Devcon 6: Bogotá (2020)

2020? Well… It was planned for that year but you can guess what happened. Therefore, this edition was not just another edition: it also meant its definitive return. Because of this, people came from all over the world and that leads me to the next paragraph.

Devcon - The most important Conference
Devcon – The most important Conference

People from all over the world

The fact that it was the return to face-to-face was a great attraction for people from all over the world. Networking opportunities and meeting new people are for me the best things about attending this kind of conferences. You can have a coffee and also an interesting conversation with people who are not from your circle of acquaintances and may not even live on your continent. And there are also specific and funny spaces to generate new links and conversations…

Side events

These meetings are happening around the conference. Events can be from breakfast to after office and even rave parties. It is a great time to generate more informal and relaxed conversations, but it also provides opportunities to discuss technical details and do business. If you were busy watching presentations at the conference, side events are the right place to chat. Regarding presentations, if you were busy there it was because…

First class speakers

The best-known experts in the Ethereum world as Vitalik Buterin were on the grid of this conference. In addition to the technical content, it was very valuable to have the opportunity to approach a speaker and interact directly on the topic of the talk. This is clearly not an option in virtuality. Most of the experts have been present at events prior to the Devcon such as…

EthBogota and EthLatam

EthBogota is one of the hackathons organized by the Ethereum Foundation. It was the weekend before Devcon so the people could attend both events on the same trip. More than 1000 people participated in this competition with more than 500K USD in prizes. The day before the Devcon, a special event was held for the Latin American community that had already had an edition in the city of Buenos Aires: EthLatam. Both events added to the Devcon gave the opportunity to bring many experts closer to a region that seems to emerge as a point of interest…

Latam as a point of interest

Latin America is one of the regions with the highest adoption of cryptocurrencies and blockchain-based projects partially due to economic needs but mostly due to a high technical level and a great capacity to undertake. It is very interesting to see the projects that have come out of this region, such as OpenZeppelin. One of the remarkable progress was in digital identity, and one of the most interesting topics discussed in the conference was Zero Knowledge Proof…

ZK is the future

Something that surprised me was to see a lot of technical content on this topic. Undoubtedly, it is something that will be critical in the coming years and that all of the projects will adopt in one way or another. My recommendation if you are in the web3 industry: learn about Zero Knowledge Proof.

Personal opinion

Personally, it was a great satisfaction to attend the event, being face to face one more time with the community and of course meet new people. The technical content was outstanding, but I must confess that I have to rewatch a lot of the talks to get the most out of them (I think I should do it more often). If you haven’t had a chance to go, stay tuned for next year, and don’t forget to contact me for coffee and a chat there.