Zk proof, or zero-knowledge proof, is an authentication method that involves a prover and verifier. A prover will prove to the verifier that they know a piece of information, such as a mathematical solution, without revealing it. These proof systems are deployed in blockchain networks to increase their levels of privacy and security.
Shafi Goldwasser and Silvio Micali introduced the concept of a zero-knowledge proof in the mid-80s. They showed that it was possible to prove some properties of a number without disclosing the number itself. They also demonstrated that interactions between a prover and a verifier could result in less information required to prove a theorem.
Zk proofs fulfil two basic requirements: completeness and soundness. The ability of the prover to demonstrate knowledge of a piece of information accurately is known as completeness. A verifier must determine whether the prover has the relevant information for the proof to be sound. Finally, the proof must fulfil the completeness and soundness requirements without revealing the information in question.
How Does a ZK Proof Work?
Zk proofs usually involve three steps: setup, interaction, and verification. In the setup stage, a prover and verifier agree on the algorithm to be used to verify the proof. In the interaction stage, a prover generates a statement to prove. They use the algorithm to confirm that the statement is true. The crypto proof is usually a series of computations that convert the original information into simpler statements and is sent to the verifier, who checks its validity using the algorithm.
Finally, in the verification stage, verifiers will accept the statement as true after they conclude that the proof is valid. Verifiers are not shown the information except what is necessary to establish its validity. This process ensures that the proof has zero knowledge and that the verifier can accept it without revealing additional information. These steps are for interactive Zk proofs, which consist of communication between the prover and verifier. Other types of crypto proof may not require communication between them.
ZK Proof advantages
Scalability
Zk proofs allow a blockchain platform to store significantly less information. This feature helps reduce bandwidth usage. It also increases the speed at which blockchain transactions can be validated, increasing platform scalability.
Security
They use hash functions to generate proofs of information. Hash functions are nearly impossible to crack, making platforms highly secure against threats or hacks.
Low transaction costs
Reducing the amount of data to be shared with the main blockchain also decreases the time for processing a blockchain transaction. Low processing times help reduce the cost of completing blockchain transactions.
Privacy
Zero knowledge of the data helps to maintain the anonymity and privacy of a blockchain platform. Scammers cannot access information to cause damage, as no additional information is being shared.
Zk proof use cases
- Personal identification such as a voter id, passport, or driver’s license
- Proof of income, such as bank statements, payslips, or tax returns.
- It can be used to identify employer information, such as company name, phone number, and manager’s name.
- Proof of residence, such as a rent agreement or electricity bill with name and address
- They are effective in increasing the speed and scalability of decentralized exchanges.
- They can be used for many tasks on online gaming platforms, such as to prevent cheating and demonstrate no changes to the game’s code. Micro-transactions can be completed quickly and securely.
Types of Zero-Knowledge Proofs
There are various types of Zk proofs, and each has its advantages in terms of verification time, proof size, and others.
zk-SNARKs
SNARKS stands for succinct, non-interactive arguments of knowledge that are easy to verify. They produce proofs using elliptical curves, making them more gas-efficient than the hash functions employed by STARKS.
zk-STARKs
STARK stands for the scalable, transparent argument of knowledge, and its proofs require minimum interaction between the prover and the verifier. This feature makes them faster than SNARKs.
PLONK
PLONK stands for permutations over Lagrange bases for oecumenical non-interactive arguments of knowledge and it deploys a universally trusted system
Bulletproofs
Bulletproofs are non-interactive Zk proofs, designed to enable private crypto transactions. Loopring and StarkNet are some of the crypto projects using this technology.
Future of ZK proofs
The future of zero-knowledge proofs is becoming an essential technology to build a more decentralized crypto ecosystem. It has issues such as adoption and throughput, but it is helping in dApp adoption and other crypto use cases. Blockchain networks do not need to spend on other layer-2 solutions if Zk proofs become easier to integrate with base blockchains. Hardware and software upgrades can lead to complex Zk proof variants, leading to more secure and faster proofs in the future.
Conclusion
Zero-knowledge proofs are proving to be a revolutionary technology in the crypto ecosystem. Privacy-first crypto projects have unlocked their potential and have become an efficient tool to fight against data breaches and other security threats. It can solve issues we face on and off the blockchain and has many use cases, from privacy on public blockchains to anonymous voting. We can expect more applications of Zk proofs as it improves its integration with base blockchains.
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