How ZK-Proofs Help in Restoring Trust in Blockchain
The crypto landscape has faced numerous fraud incidents, cybercrime, and virtual theft, leading to public scepticism about blockchain technology. To maintain trust and optimism, talented crypto professionals are working on securing blockchain ecosystems. The zero-knowledge proof theory is a unique methodology that aims to maintain the safety of blockchain systems.
Explaining ZK-Proofs
The digital era has led to increased concerns about data security and privacy due to the easy storage, transfer, and analysis of personal and corporate data. Zero-knowledge proof (ZKP) is a cryptography method that ensures the truth of information without disclosing real-life information. This provides flexibility and choice for those seeking control over their information. Combining blockchain technology with ZKP can address various use cases.
The zero-knowledge proof (ZK-proof) principle, invented at MIT University in the 1980s, is a fool-proof method for securing information by limiting the probability of cyber breaches within digital systems. It aims to verify data without requiring full review by participants.
The methodology of ZK-proofs may seem paradoxical to untrained individuals, but it allows for checking information without verifying the entire content.
Let’s look at the example of a ZK-proof procedure. Assume that Party X possesses two balls with red and blue colours to ensure that Party Y can distinguish them. However, Party X is unaware of the colour difference, making it difficult for Party X to verify this information without knowing the colours.
If Party X shows two balls to Party Y multiple times, randomly changing the position of the balls. If Party Y guesses the colours, they have a low chance of getting lucky. One can use the probability formula to demonstrate this case: there is a one out of two chance to guess the balls the first time, one out of four the second time and so on. By the twentieth time, the chances are one out of several billion, making it virtually impossible to fake information knowledge. ZK-proofs also work like this, allowing parties to verify information without exposing themselves to the entire content.
ZK-proofs offer numerous practical applications in various industries, including politics, manufacturing, finance, law, tech, and healthcare. They provide a robust security layer for informational channels, ensuring the integrity of local networks. ZK-proofs can be expanded into larger systems for data security beyond simple transactions. There are two main variations: ZK rollups and ZK snarks, with ZK snarks extending the zero-knowledge principle to prevent parties from examining even a fraction of transactional data.
Types of ZK-Proofs
Zero-knowledge proofs come in two types: interactive and non-interactive.
Interactive ZK-proofs involve a back-and-forth conversation between a prover and a verifier in person or over the internet. This interaction requires multiple rounds for the verifier to request more information. While possible for large problems, it introduces time and computational cost concerns and requires communication from all players.
Non-interactive ZK-proofs are a type of proof that does not require interaction between the prover and verifier. Instead, the prover generates a single, self-contained evidence that the verifier can independently check without further communication. This approach is more convenient and efficient than interactive proofs, as it doesn’t require multiple online interactions or messages. However, it may not be feasible for certain situations, such as when extra information is needed or when proving complex propositions.
The confidence needed between the prover and verifier is a fundamental distinction between interactive and non-interactive zero-knowledge proofs. In interactive proofs, the verifier must trust the prover to follow protocol and respond honestly, while in non-interactive proofs, the verifier can independently check the proof without relying on the prover’s information.
Advantages of ZK-Proofs
ZK-proofs, despite being relatively unproven, are a promising concept that could potentially address numerous issues in the blockchain landscape.
Easy Usage
Users won’t have any technological difficulties even if adopting ZKP is a hefty request. Ultimately, ZKPs will function as automatic protocols, akin to encryption techniques, so consumers won’t encounter technological challenges while utilising this revolutionary innovation.
Enhanced Security
ZKPs are the ideal way to reduce the numerous security issues that arise with blockchain networks. Cyberattacks are typically the result of data leaks rather than technical hacking alone while phishing attacks and related crimes rely on deceiving network users. However, if the majority of market players can no longer access the data, there won’t be anything to exploit.
Second, ZKPs are fantastic news for individual users as they can enable individuals to communicate with internet platforms and create digital profiles without revealing any personal information.
Conclusion
Zero-knowledge proofs (ZKPs) are a potential breakthrough in the cryptocurrency space since they provide an infallible defence against cyberattacks and can reassure the public about the security of blockchain technology.
