ZetaChain Describes Itself As

ZetaChain is a layer-1 blockchain designed to facilitate universal interoperability across various blockchain ecosystems, including Bitcoin, Ethereum, Solana, and others. Its architecture looks to enable developers to create decentralized applications (dApps) that function across multiple chains without relying on bridges or wrapped tokens. This cross-chain functionality is achieved through ZetaChain's Universal EVM (Ethereum Virtual Machine), which allows for the deployment of smart contracts that can interact with assets and data on connected chains.

Project Function

ZetaChain addresses the fragmentation in the blockchain space by providing a unified platform for cross-chain transactions and dApp development. By enabling direct interaction with both smart contract and non-smart contract chains (such as Bitcoin and Dogecoin), ZetaChain expands the possibilities for developers and enhances user experiences across the crypto ecosystem. Its applications span decentralized finance (DeFi), gaming, social platforms, and more, promoting a more interconnected and efficient blockchain environment.

Security and Architecture

Built on the Cosmos SDK and utilizing Tendermint consensus, ZetaChain operates on a Proof-of-Stake (PoS) mechanism. Its architecture comprises validators, observers, and signers, working together to ensure decentralized and secure connections to external blockchains and layers. The network employs GG20 leaderless Threshold Signature Scheme (TSS) to enhance security, ensuring that private keys are never fully accessible to any single node or individual.

Token Utility

ZETA is a multi-chain utility token that serves several functions within the ZetaChain blockchain and throughout its cross-chain infrastructure. 

1. Securing the DPoS of the ZetaChain consensus via staking/delegation/slashing. 
2. Anti-spam and facilitating fair and efficient use of blockchain resources 
3. Universal gas asset across multiple chains 
4. Represent value transfer between chains

About the Founders

Launched in 2021, the ZetaChain founding team comprises several early Coinbase employees: Dan Romero, Sam Rosenblum, John Yi, and Ankur Nandwani. Brandon Truong, co-founder and Chief Product Officer, studied symbolic systems at Stanford, and joined ZetChain following the sale of his social application company. 

The project has attracted investments from prominent entities, including Blockchain.com | Buy Bitcoin, Ethereum and more with trust , CMT Digital, EagleRise Capital, Foundation Capital, and GSR. Advisors to ZetaChain feature notable figures such as Nathalie McGrath, Coinbase’s first Head of People, and Juan Suarez, former in-house counsel at Coinbase.

Risks of ZETA

Like an investment in other crypto assets, there are some general risks to investing in ZETA. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in ZETA is subject to the following specific risks:

• The Layer-1 space is intensely competitive. Several new blockchains continue to emerge which boast high-profile teams, claim unparalleled transaction speed, energy-efficiency, as well as developer-friendly programming languages. Any potential success associated with ZETA is reliant on the extent to which the ZetaChain is adopted by enterprises and developers.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with ZETA. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The ZETA community and ZetaChain founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of ZETA have no recourse to the ZETA community, ZetaChain founding team, or Uphold if ZETA declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing ZETA on the Uphold Platform, Uphold performed due diligence on ZETA and determined that ZETA is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of ZETA, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of ZETA.
• Any marketing materials put forward by the ZETA social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with ZETA, including any code defects, security breaches and other threats concerning ZETA and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with ZETA, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ZETA.

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on February 12, 2025.