Wondering about the role of Zero Knowledge Proofs in Blockchain? Let’s start a journey to understand how zero knowledge proofs are changing blockchain.
Don’t you think that you are revealing too much personal information about yourself while showing your driving license to the bartender for ID verification? If yes, it is inevitable to look for an innovative way to share only the data that people want to share, rather than disclosing all the information. With the rise of information capitalism, it is important to find solutions that can ensure the privacy and security of user information.
While Blockchain is a trustworthy alternative for obtaining the desired privacy and security of information exchange, it features transparency as a setback. Therefore, Zero Knowledge Proof (ZKP) has been considered as one of the prominent solutions for achieving the requirements of transaction confidentiality. The following discussion points out the essential factors that have been responsible for introducing some striking changes in blockchain.
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What are Zero Knowledge Proofs?
Cryptography has been associated with blockchain as one of the most crucial components since its inception. As a matter of fact, cryptography on blockchain is the foremost reason for its large scale adoption across different industries for various companies. The ZKP Blockchain applications emerged with the arrival of a new cryptography protocol or mechanism based on mathematical foundations.
The introduction of zero knowledge proof indicated a new chapter in the world of cryptography. It is one of the most prominent examples of cryptographic innovation with diverse applications, including secure and anonymous transactions on public blockchain networks and nuclear disarmament.
Working of Zero Knowledge Proofs
The functionality of ZKP aims at allowing a prover to convince a verifier about a specific fact without revealing the actual information. For example, you can find out the balance in your bank account without having to access your bank details and personal information. Zero knowledge proof can help in achieving this outcome by leveraging its three fundamental traits. The three fundamental aspects characterizing a ZKP include the following,
- Completeness of the transaction is important. It implies that the truth of a statement convinces the verifier about the fact that the prover has possession of the required input.
- Soundness is the second important trait in the design of a ZKP. It indicates that a dishonest prover cannot convince the verifier about the fact that they have the required input when their statement is false.
- The final and most critical factor in the design of a zero knowledge proof refers to zero knowledge. The primary indication of zero knowledge aspect in ZKP points out towards non-disclosure of information. Irrespective of the fact that the statement is true or false, the verifier must not learn anything about the information.
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Types of ZKPs
Now, let us reflect briefly on the types of ZKPs before moving towards the ZKP blockchain combination. The two most common types of ZKPs refer to interactive zero-knowledge proof and non-interactive zero knowledge proof. Interactive ZKPs involve a series of actions that the prover has to complete for convincing the verifier about a specific fact.
The series of actions in interactive ZKPs are associated with the concepts of mathematical probability. On the other hand, non-interactive ZKPs don’t involve any interactive process. In the case of non-interactive ZKPs, the prover could create all challenges combined together, and the verifier could respond at a later stage. Although non-interactive ZKPs can reduce the possibilities of collusion, they require additional software and machines for identifying the experiment sequence.
Another notable category of ZKPs that have emerged recently refer to zk-SNARKs or zero knowledge- Succinct Non-Interactive Argument of Knowledge. zk-SNARK is the most popular technique among zero knowledge proof alternatives. It can help in defining quadratic equation that leverages public data, private data, and inputs for generating proof.
Then, the verifier can validate the proof for completing the transaction. The most renowned example of the use of zk-SNARKs refers to ZCash, a cryptocurrency. In addition, zk-SNARKs can also serve as an ideal choice for tasks such as proving the age of an individual without sharing their personal information.
Advantages of Zero Knowledge Proofs
With a clear impression of the fundamental explanations and different categories of ZKPs, it is important to understand the benefits of ZKPs.
- The most prominent benefit of zero knowledge proof directly refers to simplicity. Users can leverage the most prominent advantage of zero knowledge proofs in the form of simplicity as it does not require any complicated encryption methods.
- At the same time, ZKPs are also associated with better security, especially with the condition to avoid revealing any type of information.
- Another promising benefit associated with the working of ZKPs refers to the shortening of transactions on blockchain. As a result, users don’t have to face concerns about information storage for including compatibility and identity with different types of assets.
- Zero knowledge proofs can provide a unique combination of privacy and scalability for promoting universal inclusion in blockchain. Speaking of privacy, zero knowledge proof benefits always have it as one of the top priorities.
- Individuals are aware of safety of their information without any compromises in access to services that demand data or identification.
- The continuously inclining orientation towards a better and secure future would foster the chances of adopting ZKPs to achieve privacy.
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How Can You Use ZKPs in Blockchain?
As of now, you must have anticipated the different reasons that point out towards using ZKPs in blockchain. Although the ZKP blockchain symbiotic relationship has not been discussed enough, industry leaders, professionals, and decision-makers are recognizing the value of ZKPs.
The scalability of ZKPs can allow the growth of blockchain while also providing the assurance of flexibility to users, along with improved control and freedom related to their information. Therefore, it is inevitable to wonder about the potential ways in which ZKPs are actually changing the world of blockchain.
In order to find how zero knowledge proof is changing blockchain, let us reflect on the different areas in the blockchain system where ZKPs are applicable.
Messaging Applications in Blockchain
The foremost area of application for ZKPs in blockchain refers to messaging. End-to-encryption is a mandatory requirement in a privacy-oriented world. Encryption of messages aims at ensuring that no third party is able to view the communication between two individuals.
Generally, messaging platforms require that users should verify their identity to the server, and the server must recognize the user. On the other hand, zero knowledge proof allows the development of end-to-end trust in the world of messaging without leaving out any additional information. Therefore, the applications of ZKP in messaging applications are one of their major applications in the domain of blockchain.
The transmission of sensitive information has slowly turned into a massive priority for enterprises, especially with radically expanding information systems and relevant functionalities. Zero knowledge proof can provide the ideal platform for transmission of sensitive information such as authentication information along with the assurance of improved security.
Zero knowledge proofs can help in development of a secure channel tailored for users to use their information without exposure. As a result, ZKPs can help considerably in avoiding the concerns of data leakage in the worst-case scenarios.
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Taking File System Control to Next Level
Zero knowledge proofs are also considered as one of the potential instruments for revolutionizing the aspects of file system control. Zero knowledge proof can help in adding various layers of security to the users, files, and also the logins. As a result, ZKPs can present notable difficulties for hacking or manipulation of the data stored in file system.
Support for Complex Documentation Procedures
Zero knowledge proofs can also find reliable applications in the blockchain world for complicated documentation procedures. It can help in providing the facility for encryption of data in chunks. As a result, users could easily gain control over specific blocks in order to enable access for a specific user. At the same time, it also ensures the restriction of access for other users. Therefore, ZKPs can easily ensure the best safeguards for complex documentation while restricting access for non-authorized individuals.
The ZKP blockchain relationship is also crucial for addressing a prominent concern in the domain of storage utility. ZKPs are considered as one of the helpful resources to improve the efficiency of storage protection approaches and methods. Zero knowledge proofs include a protocol for security of the storage unit alongside the information included in the storage unit. Most important of all, the access channels also enjoy formidable safeguards that enable a highly secure and seamless experience.
Safeguards for Sensitive Information
The role of zero knowledge proof in changing blockchain is also important for defining the approaches followed by blockchain for revamping transactions. ZKP can offer a high-end security level for all blocks that contain vulnerable banking information such as financial information and transaction history.
The high-end security level allows banks to introduce modifications only in the required blocks upon any user’s request for information. At the same time, the other blocks are not tampered with, thereby providing the assurance of comprehensive protection.
Transmitting Private Blockchain Transactions
Transmission of private blockchain transactions is one of the prominent mentions among different notable implementations of ZKP in blockchain. Private Blockchain transactions must be safeguarded from any third party while sending them.
The most important concern in sending private blockchain transactions refers to the various loopholes evident in the conventional methods. The effective integration of zero knowledge proof with private blockchain transactions can make them resilient towards any form of hacking or interception.
Real Impact of Applications of ZKP in Blockchain
Now, we have an impression of different ways in which zero knowledge proofs are applicable in blockchain. So, let us move towards the real-life implications of using ZKPs in blockchain. The most prominent outcome of implementing ZKPs in blockchain ecosystem refers to the revised perception of trust.
Blockchain has found a wide range of applications across various sectors such as information system management platforms, governance, and technology. As the applications of zero knowledge proof clearly establish improved trust and credibility, they have the potential for changing the significance of trust in relationships. Let us take a look at some of the most notable examples showcasing the impact of ZKPs on blockchain.
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Changing Relationships between Individuals, Governments, and Corporations
One of the foremost aspects of ZKPs and blockchain refers to the impact on interactions between individuals, corporations, and governments. Zero knowledge proof offers a reliable instrument for proving the truth without revealing any other information. Therefore, ZKPs can help us in creating a new world with a proven guarantee of trust in every transaction.
Users don’t have to depend on judgment anymore with the applications of ZKPs. During the exchange of data, the receiver should verify the integrity of data alongside bearing the vulnerability to potential data breaches. The privacy-enhancing technology in ZKPs transforms the conventional approach for data exchanges.
As a result, ZKPs can help in creating a world with the replacement of the need for trust with technological advancement. The importance of ZKPs is evident in resolving problems of communicating secure information without any concerns for an interception. At the same time, it is also suitable for mobile networks, IoT, and online communications, thereby turning passwords obsolete.
Democratizing Vote Verification
The most prominent example of applying zero knowledge proof with blockchain refers to their democratic role in verifying votes. ZKPs can provide reliable solutions for auditable voting by recording the votes on a public blockchain.
As a result, voting processes would not require any third party verification alongside excluding the need for censorship. ZKPs can allow voters to prove their eligibility for voting, thereby preventing exposure of their sensitive personal information. In addition, voters can also demand immutable proof for inclusion of their vote in final vote tally.
Streamlining Blockchain Transaction Validity
Another prominent example of the ZKP blockchain applications in real-world refers to case of ING. ING has announced a solution that leverages ZKPs with Corda, a renowned enterprise blockchain platform, to ensure transaction validity. Prior to the introduction of ZKPs, Corda was limited to the selection of privacy and security. However, now it has two functionalities together.
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The most important inference from the information presented here directly refers to the long-term prospects of ZKPs in blockchain. Zero knowledge proof has definitely emerged as a complementary solution for various challenges in blockchain technology. Transparency in blockchain can take the backseat with ZKPs.
Now, users can get better control and proof of ownership of data through the use of ZKPs in blockchain. Zero knowledge proofs are slowly gaining the attention of enterprises around the world despite having been around for 30 years. If you want to explore more about the potential of ZKPs in the blockchain ecosystem, then start learning more now with the Zero knowledge proof masterclass!