How Does Blockchain Affect Zero-Knowledge Proof?
How Does Blockchain Affect Zero-Knowledge Proof?
By CoinUnited
18 May 2023
Co-founded by Kenny Li, Manta Network is a customizable privacy Layer 1 protocol enabled by zero-knowledge proof technology. A zero-knowledge proof (ZKP) is a sort of cryptography that verifies the veracity of data without disclosing that data in the process. Increasingly, it is relied upon in the blockchain, cryptocurrency, and decentralized finance (DeFi) industries to improve privacy and security. In order to improve customers' privacy and security when using DeFi services like lending, borrowing, and trading, several projects are already utilizing ZKPs. As blockchain and Web3 apps continue to spread, zero-knowledge proofs are poised to play a pivotal role in the industry. Just how does the zero-knowledge proof function?
In a zero-knowledge proof, the prover proves the verifier that a statement is true without disclosing any extra information. This is especially helpful if the prover considers the information to be private and does not wish for it to be seen by the verifier. The verifier can utilize the prover's unique mathematical proof to determine whether or not the assertion is true. They are unable to utilize the proof to piece together the missing data. One may imagine a tunnel with two different entrances labeled A and B. The sole way through the tunnel is blocked by a closed door that requires a special code in order to be opened (A to B). Since you know the secret code, you offer to sell it to Mrs. X so that she can enter the tunnel. While you'd rather she pay you up front before you expose the code, she's insisting you show your code knowledge pronto. Specifically, she may do this by waiting at the tunnel's entrance and observing your passage through it. This will convince her that your knowledge of the code is genuine.
The need for confidentiality and security in digital transactions has fueled the rise of zero-knowledge proofs in blockchain and cryptocurrencies. ZKPs fill a rising demand in the blockchain and cryptocurrency industries for a mechanism to validate transactions without disclosing private information. The use of zero-knowledge proofs (ZKPs) has gained popularity in recent years, with several ZKP-based protocols being released and major blockchains using ZKP roll-ups. At the DevCon 2022 conference, more over 20% of all lectures were about zero-knowledge proofs, a clear evidence of their popularity.
The growing popularity of a particular kind of zero-knowledge proofs (ZKP) called zk-SNARKs is a key advancement in this field. Private token transactions and protected lending and borrowing are only two examples of the many uses for zk-SNARKs in the DeFi space. Improvements in scalability and speed through zkRoll-ups are also a significant recent breakthrough in the field of zero-knowledge proofs.
One special kind of zero-knowledge proofs, called zero-knowledge succinct non-interactive arguments of knowledge (zk-SNARKs), allows a statement to be confirmed without disclosing any details about the statement being proved. Zcash and JPMorgan Chase's blockchain-based payment system both make use of zk-SNARKs.
A scaling solution for blockchain networks, zkRoll-ups allow for the transaction of numerous transactions into a single, bigger one for the sake of blockchain recording. One example is BNB Chain, which in 2022 released its zkBNB testnet based on the zkRoll-up protocol. Hundreds of transactions may be bundled together off-chain with zkBNB, and a cryptographic proof can be generated to verify the legitimacy of all of them at once. For large-scale, low-latency applications, zkRoll-ups are a good choice because of the balance they offer between scalability and security.
Some applications of zero-knowledge proofs have already come to fruition, and others are anticipated to materialize in the near future.
Users' identities may be validated with zero-knowledge proofs without disclosing any of their private information. This has potential uses in contexts such as digital voting systems, where users' identities must be authenticated without revealing their true identities.
Zero-knowledge proofs are widely used in crypto, with one of the most common applications being the facilitation of private transactions. In order to conduct anonymous transactions on the decentralized exchange (DEX), Manta Network's MantaPay DApp makes use of Zero Knowledge Proofs (ZKPs). The platform's users are able to safeguard their anonymity while conducting business with the service.
Zero-knowledge proofs are used by the cryptocurrency Zcash to allow for anonymous transactions. To protect users' anonymity, these transactions hide sender and destination addresses from the public blockchain and obfuscate the transaction sent or received.
Assets can be tokenized and their ownership verified using zero-knowledge proofs. Tokenizing a property, for instance, makes it possible for anybody to confirm their ownership without disclosing any additional personal information.
The collecting and dissemination of financial data is subject to stringent rules in some countries, which can be challenging for decentralized systems to meet. With the use of zero-knowledge proofs, sensitive data may be communicated to regulators while remaining hidden from prying eyes. By bridging the gap between decentralized platforms and traditional financial institutions, this can make it simpler for DeFi to meet regulatory requirements in different countries.
Possible future technology advances can be attributed to zero-knowledge proofs.
The requirement for cross-blockchain interoperability is growing as the blockchain and DeFi ecosystems mature. Cross-chain privacy layers will make it possible to perform anonymous transactions across several blockchain networks.
Additionally, a novel sort of zero-knowledge proof called zk-STARKs (zero-knowledge scalable transparent argument of knowledge) is being used more frequently since it is more efficient and safe than zk-SNARKs.
Complexity and lack of familiarity with this field of cryptography make zero-knowledge proof technology a challenge for some development teams. This divide can be narrowed by providing developers from a variety of disciplines with access to intuitive ZKP toolkits.
Although zero-knowledge proofs offer a novel approach to confirming the veracity of information without disclosing private details, no such proof can be considered absolutely reliable. Users should be aware that ZKPs are not infallible, even if the likelihood of verification while the prover is lying is low. On top of that, zero-knowledge proving techniques demand a lot of processing power. The high number of contacts between verifiers and provers in certain types of ZKPs makes high-performance computation a must. However, in some cases, the processing demands of the algorithms may make practical use of ZKPs impractical.
Zero-knowledge proofs are attracting a lot of interest because of their potential for privacy protection and massive scalability. More and more use of this cryptocurrency in blockchain, cryptocurrencies, and DeFi should mean the introduction of cutting-edge offerings that benefit consumers considerably. Security, privacy, and efficiency in DApp ecosystems are all areas where zero-knowledge proofs are anticipated to play a pivotal role.
In a zero-knowledge proof, the prover proves the verifier that a statement is true without disclosing any extra information. This is especially helpful if the prover considers the information to be private and does not wish for it to be seen by the verifier. The verifier can utilize the prover's unique mathematical proof to determine whether or not the assertion is true. They are unable to utilize the proof to piece together the missing data. One may imagine a tunnel with two different entrances labeled A and B. The sole way through the tunnel is blocked by a closed door that requires a special code in order to be opened (A to B). Since you know the secret code, you offer to sell it to Mrs. X so that she can enter the tunnel. While you'd rather she pay you up front before you expose the code, she's insisting you show your code knowledge pronto. Specifically, she may do this by waiting at the tunnel's entrance and observing your passage through it. This will convince her that your knowledge of the code is genuine.
The need for confidentiality and security in digital transactions has fueled the rise of zero-knowledge proofs in blockchain and cryptocurrencies. ZKPs fill a rising demand in the blockchain and cryptocurrency industries for a mechanism to validate transactions without disclosing private information. The use of zero-knowledge proofs (ZKPs) has gained popularity in recent years, with several ZKP-based protocols being released and major blockchains using ZKP roll-ups. At the DevCon 2022 conference, more over 20% of all lectures were about zero-knowledge proofs, a clear evidence of their popularity.
The growing popularity of a particular kind of zero-knowledge proofs (ZKP) called zk-SNARKs is a key advancement in this field. Private token transactions and protected lending and borrowing are only two examples of the many uses for zk-SNARKs in the DeFi space. Improvements in scalability and speed through zkRoll-ups are also a significant recent breakthrough in the field of zero-knowledge proofs.
One special kind of zero-knowledge proofs, called zero-knowledge succinct non-interactive arguments of knowledge (zk-SNARKs), allows a statement to be confirmed without disclosing any details about the statement being proved. Zcash and JPMorgan Chase's blockchain-based payment system both make use of zk-SNARKs.
A scaling solution for blockchain networks, zkRoll-ups allow for the transaction of numerous transactions into a single, bigger one for the sake of blockchain recording. One example is BNB Chain, which in 2022 released its zkBNB testnet based on the zkRoll-up protocol. Hundreds of transactions may be bundled together off-chain with zkBNB, and a cryptographic proof can be generated to verify the legitimacy of all of them at once. For large-scale, low-latency applications, zkRoll-ups are a good choice because of the balance they offer between scalability and security.
Some applications of zero-knowledge proofs have already come to fruition, and others are anticipated to materialize in the near future.
Users' identities may be validated with zero-knowledge proofs without disclosing any of their private information. This has potential uses in contexts such as digital voting systems, where users' identities must be authenticated without revealing their true identities.
Zero-knowledge proofs are widely used in crypto, with one of the most common applications being the facilitation of private transactions. In order to conduct anonymous transactions on the decentralized exchange (DEX), Manta Network's MantaPay DApp makes use of Zero Knowledge Proofs (ZKPs). The platform's users are able to safeguard their anonymity while conducting business with the service.
Zero-knowledge proofs are used by the cryptocurrency Zcash to allow for anonymous transactions. To protect users' anonymity, these transactions hide sender and destination addresses from the public blockchain and obfuscate the transaction sent or received.
Assets can be tokenized and their ownership verified using zero-knowledge proofs. Tokenizing a property, for instance, makes it possible for anybody to confirm their ownership without disclosing any additional personal information.
The collecting and dissemination of financial data is subject to stringent rules in some countries, which can be challenging for decentralized systems to meet. With the use of zero-knowledge proofs, sensitive data may be communicated to regulators while remaining hidden from prying eyes. By bridging the gap between decentralized platforms and traditional financial institutions, this can make it simpler for DeFi to meet regulatory requirements in different countries.
Possible future technology advances can be attributed to zero-knowledge proofs.
The requirement for cross-blockchain interoperability is growing as the blockchain and DeFi ecosystems mature. Cross-chain privacy layers will make it possible to perform anonymous transactions across several blockchain networks.
Additionally, a novel sort of zero-knowledge proof called zk-STARKs (zero-knowledge scalable transparent argument of knowledge) is being used more frequently since it is more efficient and safe than zk-SNARKs.
Complexity and lack of familiarity with this field of cryptography make zero-knowledge proof technology a challenge for some development teams. This divide can be narrowed by providing developers from a variety of disciplines with access to intuitive ZKP toolkits.
Although zero-knowledge proofs offer a novel approach to confirming the veracity of information without disclosing private details, no such proof can be considered absolutely reliable. Users should be aware that ZKPs are not infallible, even if the likelihood of verification while the prover is lying is low. On top of that, zero-knowledge proving techniques demand a lot of processing power. The high number of contacts between verifiers and provers in certain types of ZKPs makes high-performance computation a must. However, in some cases, the processing demands of the algorithms may make practical use of ZKPs impractical.
Zero-knowledge proofs are attracting a lot of interest because of their potential for privacy protection and massive scalability. More and more use of this cryptocurrency in blockchain, cryptocurrencies, and DeFi should mean the introduction of cutting-edge offerings that benefit consumers considerably. Security, privacy, and efficiency in DApp ecosystems are all areas where zero-knowledge proofs are anticipated to play a pivotal role.
