The Good Tech Companies - How Will Space and Time’s USDC Payments Change ZK Coprocessing, And Why Now

Episode Date: September 18, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/how-will-space-and-times-usdc-payments-change-zk-coprocessing-and-why-now. Space and Time ad...ds USDC payments for ZK coprocessing, placing stablecoins at the center of onchain compute and developer workflows. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #web3, #good-company, #space-and-time, #space-and-time-news, #cryptocurrency, #blockchain, #circle, #stablecoin, and more. This story was written by: @ishanpandey. Learn more about this writer by checking @ishanpandey's about page, and for more stories, please visit hackernoon.com. Space and Time adds USDC payments for ZK coprocessing, placing stablecoins at the center of onchain compute and developer workflows.

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Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. How will Space and Times U.S.D.C. payments change ZK. co-processing, and why now? By a Sean Pondy, the news and what is actually changing. Space and Times says developers can now pay for zero knowledge co-processing with USDC, a stable coin issued by regulated affiliates of Circle. The company says the network will accept USDC and convert it to SXT, the network token used inside the protocol. The development coincides with Space and Time's recent main net launch, Scott Dykstra, co-founder and CTO of Space and Time, said, greater than, enabling USDC payments on space
Starting point is 00:00:41 and time is a huge milestone for the SX greater than ecosystem. We're focused on empowering developers to build secure, expressive greater than applications on-chain with the industry's first sub-second ZK co-processor, and greater than the integration of USDC unlocks a smoother, more efficient way to power smart greater than contracts and on-chain apps at scale. Space and time positions its proof of SQL system as a coprocessor that can prove SQL queries against large datasets and then deliver those results to smart contracts. The project's documentation and code base describe online latenshazan sub-second targets on benchmarked workloads. Stablecoins account for most crypto transfer value today.
Starting point is 00:01:23 Chain Ellisis reports that stablecoins represent more than two-thirds of recent cryptocurrency. transaction value. VISA's on-chain analytics show that after filtering out in organic flows, the last 30 days of adjusted stable coin volume still total in the hundreds of billions of dollars, and that retail-sized transfers remain a small slice of activity. This indicates that stable coins are already the unit of account for larger settlement flows and treasury activity in Web3. Brian Schultz, vice president, corporate development and circle ventures at Circle, said, greater than, we're excited to see USDC live on space and time, a platform advancing the greater than frontier of zero knowledge infrastructure. USDC's footprint has expanded in 2025. Circle's annual
Starting point is 00:02:07 report cites a 78% year-over-year increase in USDC circulation in 2024, and third-party trackers show current issuance around the low to mid-70 billions across chains. This context explains why a developer platform would add USDC as a payment rail. Developers already hold stable coins to fund operations, pay contributors, and manage Dow treasuries. Industry datasets and reports point to stablecoins taking a large share of defy collateral and treasury mixes, which reduces currency mismatch when paying for services. Accepting USDA aligns a compute network with how builders actually move funds on chain. What a ZK co-processor does, explained with an example. A co-processer moves heavy computation off the base chain, proves the result with a zero knowledge proof,
Starting point is 00:02:55 and returns only a compact proof and output to a contract. Imagine an on-chain game that needs to check a player's activity across one million past transactions. Doing that on-chain is not practical. A coprocessor reads the data off-chain, runs the query, generates a proof, and the contract verifies the proof before updating state. Verification is the on-chain step that consumes gas. On On Ethereum today, verifying a Groth 16 proof with a small number of public inputs typically costs around 200,000 gas because of the pairing pre-compiles that Ethereum exposes. Independent write-ups and protocol blogs put the order of magnitude near that level, and optimizations or different schemes shift costs up or down.
Starting point is 00:03:38 Space and times proof of SQL targets SQL queries, not general bytecode. The project says it can prove aggregates over millions of rows at online latencies, feed a proof to smart contracts. That design competes with ZKVM-based systems that prove arbitrary programs, which can be more flexible but may have different latency and cost profiles. How space and time compares with other co-processing options. Risk Zero's bonsai markets approving service and API that can scale with parallel proofs, targeting enterprise workloads in ZKVM programs. SikinctSyspe 1 is a ZKVM and network where developers write Rust and compile to RISCV. and public benchmarks highlight progress on proof times and GPU Provers.
Starting point is 00:04:22 Lagrange offers a coprocessor that pre-processes chain data into a verifiable database and runs proofs across a distributed Prover network, and it has disclosed funding and operator sets. Together these projects show a field moving toward modular off-chain compute that returns ZK Proofs on-chain. Risk Zero, Axiom focuses on historical Ethereum state access and computes over that data, and documents how smart contracts can request verified reads and computation for reflection over chain history. This is a narrower, data-centric path that many defy and governance use cases need. Space and time instead emphasizes SQL over mixed on-chain and off-chain sources. These are different product choices, and buyers will map them to their data and latency needs.
Starting point is 00:05:07 When a platform accepts USDC for usage, it reduces one source of friction, because builders do not have to swap treasury assets to a platform token before they run jobs. Space and time still uses S-XT inside the protocol, but the USDC front door meets teams where their funds already sit. That is the tangible change for developers. The cost model, with a transparent calculation, consider a contract that verifies one Groth 16 proof with three public inputs. Multiple sources estimate around 200,000 gas for verification. If the average gas price is between one and three GWEI, a range that Etherscans tracker has shown in 2025 at times, the on-chain verification would cost roughly zero. 0-006-Eth at an ETH price of $4,500, that is about 90 cents to $2.70 per verification.
Starting point is 00:06:02 This is only the verification step, not the off-chain proving service fee that a co-processer charges, which is priced by the provider and now payable in USDC on space and time. On layer 2 networks, verification costs can be lower in dollar terms because gas price is lower and ETH is bridge, so developers often place the verifier own an L2, then settle security to Ethereum through the roll-up. The USDC payment change does not alter the gas math, it only changes how a developer funds the off-chain component. If a team batches many user actions into one proof or uses proof aggregation, the amortized verification cost per user action decreases. Research and provider docs show aggregation strategies that trade proving time for smaller on-chain costs, which can be important for consumer scale apps. Market timing and risk factors.
Starting point is 00:06:52 The stable coin market is growing, and USDC's circulation has been rising through 2025. Circle went public in June 2025, and public filings and coverage show that USDA growth is now a core driver of Circle's revenue profile. This indicates durable institutional focus on stable coin rails. remains a key variable. The Bank of England has floated caps on stable coin holdings for users and businesses, while the United States is moving toward clearer federal frameworks. Any restriction that limits stable coin U.S. age would change the total addressable market for developer payments in stable coins. Platforms that depend on one stable coin must monitor jurisdictional rules and
Starting point is 00:07:33 distribution channels. The ZK co-processor category is competitive. Many vendors publish performance claims and numbers can vary by circuit, hardware, and workload. Teams should test against their own queries, data sizes, and latency budgets, rather than relying on marketing benchmarks alone. Public docs for Groth 16 verification help set a baseline for the on-chain piece, but the off-chain proving time and price are provider-specific. Funding and ecosystem signal, space and time has raised capital from Microsoft's M-12 and later investors, with reporting and investor pages listing Circle Ventures among participants. Circles Venture Arm invests across infrastructure and applications that expand USDCUs. The payment integration aligns with that portfolio logic. Stable coin
Starting point is 00:08:21 payment features are also appearing across defy, exchanges, and custody platforms. McKinsey's 2025 analysis frames tokenized cash and stable coins as a driver for cross-border payments and treasury operations. The direction of travel suggests compute networks will keep adding stable coin-based pricing and settlement. Developers should track whether USDC payment reduces churn at the start of a build. Signs would include faster time to first proof, lower failed job rates due to funding issues, and fewer swaps in transaction logs when funding co-processor accounts. Those are measurable outcomes, final outlook, USDC payments for ZK co-processing are a practical step. Teams that whole-stable coins can start without managing a platform token position, and that removes one
Starting point is 00:09:08 step in a build. The conversion to S-XT inside the protocol still preserves the project's token model, and it keeps accounting internal to space and time. The open question is not whether USDC is convenient, it is whether developers can show end-to-end latency and cost that fits real applications. The market Hosmani co-processor options, and the winner will be the platform that gives predictable latency, transparent pricing, and clean developer ergonomics across chains. This news connects two trends, stable coins as operating capital and zero knowledge co-processing as infrastructure. The combination fits how teams ship smart contracts today. The evidence to watch is not just payment choice adoption, it is the number of production apps that rely on verifiable
Starting point is 00:09:52 datapaths, the frequency of proofs per day, and the unit economics per proof verified on chain. If those metrics trend up while developer setup steps trend down, USDC payments will have been more than a billing change. It will have been a change in how on chain compute is budgeted and consumed. Don't forget to like and share the story. This author is an independent contributor publishing via our business blogging program. Hacker Noon has reviewed the report for quality, but the claims here and belong to the author. Hashtag D.YO thank you for listening to this Hacker Noon story, read by artificial intelligence. Visit hackernoon.com to read, write, learn and publish.

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