menuIcon
$ 87,614.4
BTC
$ 87,614.4
1.22 %
$ 2,059.69
ETH
$ 2,059.69
0.18 %
$ 0.7501
ADA
$ 0.7501
1.96 %
$ 631.21
BNB
$ 631.21
-1.85 %
$ 143.53
SOL
$ 143.53
2.70 %
Guneet Kaur
Apr 25, 2022
by Guneet Kaur

What Are Zero-Knowledge Proofs And Why They Are Special

Zero-Knowledge Proofs
Due to the public nature of the blockchains, the data is a privacy risk. This is because anyone can access data on the distributed ledger. For instance, you just need a wallet address to access the wallet history on Ether Scan. Hence, there is no privacy of your data. But, here comes zero-knowledge (ZK) proofs to the rescue and protect users against data theft in today’s open-source digital world. ZK proofs allow public blockchain users to demonstrate that they have certain information without revealing it because of the inherent cryptographic proof.

In this article, we will discuss zero-knowledge (ZK) proofs and their significance in today’s blockchain-powered world.

Characteristics of Zero-Knowledge Proofs

The characteristics of zero-knowledge proofs are explained below:

  • Completeness: An honest prover can persuade a verifier that they know the proper input if a statement is true.

  • Zero-knowledge: If the statement is correct, the verifier simply knows that the statement is accurate.

  • Soundness: If a statement is untrue, no dishonest prover can persuade an honest verifier that they are aware of the correct input on their own.

    • Working of Zero-Knowledge Proofs: An Example

    It can be difficult to grasp the concept of ZK proofs. Let's use the game of Where's Waldo to illustrate this. Assume you're playing a game of Where's Waldo. In a sea of characters, you must look for Waldo.

    You've located Waldo and now want to persuade a friend that you know where he is without revealing his whereabouts. What gives that this possibility? Remove Waldo from the picture. You can display Waldo to your friend to let him know you've discovered him, but your friend has no idea where Waldo is. A ZK proof works in a similar manner. 

    In a zero-knowledge proof, one party (the prover) proves to another (the verifier) that the prover knows a value x that meets certain criteria without exposing any information about x.

    In the Where's Waldo scenario, one person proves that they know Waldo's position, and another person confirms this. Throughout this time, no information about Waldo's whereabouts is released, preserving privacy.

    How Do ZK Proofs Allow For Greater Scalability And Privacy?

    In the field of cryptography, zero-knowledge proofs are a game-changer. They have a lot of potential when it comes to blockchain technology. Scalability and privacy are improved with ZK proofs.

    Previously, all parts of a transaction had to be grouped together in a blockchain, such as:

    • verification

    • validation

    • execution

      • Miners must validate each transaction before adding it to a new block. Other nodes must validate the legitimacy of the transactions by processing each one in order to reach a consensus. As a result, the process became clogged as an outcome of this.

      A prover can use ZK proofs to validate each transaction, group them together, and generate evidence of this calculation. The amount of computation required to validate a guarantee is also significantly decreased.

      They don't have to recalculate all of the transactions. So the only thing the verifier has to do is compute (verify) the proof. In essence, zero-knowledge cryptography is a method of publicly verifying the correctness of a calculation without disclosing the inputs.

      Although executions can take place off-chain, they are still as secure as a regular transaction (this is the concept of a ZK rollup). The use of ZK proofs allows blockchains to scale to tens of thousands of TPS. They also enable extremely low-cost transactions by allowing them to be computed off-chain and validated on-chain in a rollup.

      Final thoughts

      Zero-knowledge proofs are a technology that allows for privacy. The prover can perform a hash function (non-reversible function) on the inputs and return the result as well as the proof. The verifier can use this information to confirm that the prover actually executed the function and completed the proof. Because the function inputs are private, no information is leaked.

      Therefore, ZK proofs help resolve the issue of entering the blockchain space due to privacy issues. Blockchain can disrupt industries like financial services, and healthcare only if data is kept private. Therefore, ZK proofs are indeed a blessing for the open-source world.

      Disclaimer:

      This material should not be construed as a recommendation for any particular cryptocurrency. It is not a trading recommendation. The cryptocurrency market is full of unexpected twists and overvalued assets. Before you buy something, do some research. Don't put more money into it than you can afford to lose.

      Follow us on: News
      privacy A public blockchain network zero-knowledge proof Zero-knowledge Technology
      What Are Zero-Knowledge Proofs And Why They Are Special
      Guneet Kaur
      Guneet Kaur is a certified credit and securities analyst. She is MSc Fintech graduate (with distinction) from the University of Stirling, Scotland, United Kingdom. Prior to MSC, she has also done MBA from GNDU (gold medal) and has worked as a global client and partner business manager with Singapore-based MNC. She has written various conference papers and has authored a book titled 'The Magic Of Compounding'. She was the Finalist of the Women in STEM-Lovelace Colloquium that was held in 2019 at the University of Salford, UK, and Royal Bank of Scotland's Hackathon in 2019. Her expertise includes financial modeling, Cryptocurrencies, DeFi, Blockchain, quantitative analysis, academic research, business valuation, business analysis, data visualization, financial fraud, and AML analysis.

      Top Picks