Lack of privacy and scalability are the two biggest obstacles hampering the mass adoption of blockchain technology. As beautiful as the idea of a public and permissionless blockchain is, without data privacy, a Web3-heavy future could look like a dystopia in which every single transaction leaves a clear trail open to the public to learn everything about you.

Publicly accessible transaction records are great as verifiable activity proofs, but anyone who cared could go digging, linking payment to payment, and tying your real-world identity to your on-chain trail and could use it against you.

Similarly, a lack of scalability can gravely inhibit the prospects of blockchain adoption. The scalability problem has been at the core of most of the blockchain innovations we’ve seen in the past couple of years. Without sacrificing decentralization, the current state of blockchain technology simply cannot support applications that reach mass adoption.

Then came zero-knowledge proofs — a single solution to both problems.

A ZKP (Which stands for zero-knowledge proof) allows one party to verify (among other things) a claim that a transaction is valid or correct without the need to carry additional information about the transaction. Through them, cryptography found a way to prove the authenticity of a transaction without revealing sensitive information.

The emergence of ZK-proofs signaled a new dawn for the crypto space. Not only could they enable truly private transactions, but they could also help networks like Ethereum scale.

For a zero-knowledge proof to work, it needs to fulfill three conditions — completeness, soundness, and zero-knowledge. ZKPs can be of one of two types — interactive and non-interactive. Interactive zero-knowledge proofs required constant, back-and-forth interactions between the prover and the verifier until the verifier confirmed the truth in the prover’s claims. As such, non-interactive ZKPs came about to offer a more efficient solution.

Non-interactive ZKPs require no back and forth interactions, with a single exchange of information sufficing to satisfy both parties.

What are zk-SNARKs?

zk-SNARK stands for Zero-knowledge Succinct Non-interactive Argument of Knowledge, a type of non-interactive zero-knowledge proof widely used today to build zero-knowledge protocols. Privacy coins like Zcash use them to offer a shielded blockchain experience while providing sufficient proof that every shielded transaction is valid.

To understand their inner workings, we must consider each letter of the acronym:

ZK: This pair represents “zero-knowledge”, signifying that the proof provides no additional information other than the validity of its submitter claims. Any information that describes the nature of the transaction(s), its participants, and the exchanged value is withheld from the verifier.

S: This letter stands for “succinct”, meaning that the proof size is small (occupying little space) paving the way for quick and easy verifications.

N: Stands for non-interactive, meaning that little or no interaction is required between prover and verifier. Everything from proof generation to submission and verification occurs within a single transaction.

ARK: Represents “Argument of Knowledge”.This part adds the quality of computational soundness. Simply put, a bad actor can hardly cheat zk-SNARK based systems without the knowledge to support their claim (i.e. by holding the underlying information they’re trying to forge). This is based on the theory that the bad actor has limited computational power, meaning that anyone with unlimited computational power could create fake proofs. Some zk-SNARK protocols have a way to prevent this kind of attack.

This type of zero-knowledge proof has an important piece of their makeup: they require a trusted setup between prover and verifier. To construct zero-knowledge proofs with them, a set of public parameters is needed, along with the creation of cryptographic keys. You can liken these parameters to the “rules” of a protocol, and they are usually encoded. Meanwhile, the keys make privacy possible.

Zcash is one of the foremost privacy-preserving protocols that use zero-knowledge SNARKs. Some popular ZK-rollups and Layer-2 blockchains also use zk-SNARK-powered ZK technology to provide scalability to traditional blockchain networks like Ethereum.

zk-SNARKs — Tech Features

1. It is a cutting-edge non-interactive zero-knowledge proof protocol, requiring little interaction between prover and verifier. Proof generation, submission, and verification are usually completed within one transaction.

2. It enhances blockchain scalability. Zero-knowledge proofs are much smaller than the average Bitcoin transaction and get verified much quicker. Swift verification and less block space mean more scalability for networks like Ethereum.

3. Major difference among ZK-rollups:

4. Transparency: zk-SNARKs need an initial trusted setup phase to generate the randomness required to generate zero-knowledge proofs. These parameters are usually held in the custody of a small group to protect them. If the parameters fall into the wrong hands, dishonest actors could use them to create false proofs.

5. Security: Zero-knowledge SNARKS use an initial setup to generate parameters and, according to their setup, are computationally sound. Their soundness, however, assumes that provers have limited computing power. However, when a prover uses an unlimited amount of computing power, they will be able to, for instance, make use of a certain algorithm that can execute extremely quick parallel integer factorization computations that can be used to extract a private key from a public key. In other words, they will be able to breach proof systems. Thus, they are in theory vulnerable to quantum computing attacks, therefore, not quantum resistant.

6. Sclability: zk-SNARKs’ computational demand makes them slower to generate proofs compared to the other option. They also consume less gas than zk-STARKs, and they verify proofs faster because of the difference in byte size.

7. Structure: zk-SNARKs are built on elliptic curves, which improve security and privacy under the assumption that it is infeasible to find the discrete logarithm of a random elliptic curve element in relation to a public base point.

zk-SNARKs: Applications and Use Cases

zk-SNARKs are the more popular of the two main non-interactive zero-knowledge proofs. Several projects in the crypto space today have adopted them to further scalability and privacy, with the latter being more widely used.

They generate and verify zero-knowledge proofs quickly, and privacy-enhancing protocols have used them vastly. With them, privacy-enabled blockchains can shield transactions from the public eye, allowing users to provide zero-knowledge proofs in the place of average transaction records.

Some privacy protocols like Panther Protocol have integrated selective disclosure mechanisms that allow users to share the information shielded by the blockchain with trusted third parties.

Another application of zk-SNARKs is identity verification, allowing users to pass KYC and AML requirements without putting their sensitive information at risk. With them, these protocols can allow users to submit a zero-knowledge proof of their identity instead of documents, confirming that they have the required data to be verified without revealing any extra information. They have also been adopted to drive privacy in decentralized finance, gaming, ZK-rollups, and asset ownership.

Source: zk-SNARKs vs zk-STARKs — Comparing Zero-knowledge Proofs (pantherprotocol.io)

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Lack of privacy and scalability are the two biggest obstacles hampering the mass adoption of blockchain technology. As beautiful as the idea of a public and permissionless blockchain is, without data privacy, a Web3-heavy future could look like a dystopia in which every single transaction leaves a clear trail open to the public to learn everything about you.

Publicly accessible transaction records are great as verifiable activity proofs, but anyone who cared could go digging, linking payment to payment, and tying your real-world identity to your on-chain trail and could use it against you.

Similarly, a lack of scalability can gravely inhibit the prospects of blockchain adoption. The scalability problem has been at the core of most of the blockchain innovations we’ve seen in the past couple of years. Without sacrificing decentralization, the current state of blockchain technology simply cannot support applications that reach mass adoption.

Then came zero-knowledge proofs — a single solution to both problems.

A ZKP (Which stands for zero-knowledge proof) allows one party to verify (among other things) a claim that a transaction is valid or correct without the need to carry additional information about the transaction. Through them, cryptography found a way to prove the authenticity of a transaction without revealing sensitive information.

The emergence of ZK-proofs signaled a new dawn for the crypto space. Not only could they enable truly private transactions, but they could also help networks like Ethereum scale.

For a zero-knowledge proof to work, it needs to fulfill three conditions — completeness, soundness, and zero-knowledge. ZKPs can be of one of two types — interactive and non-interactive. Interactive zero-knowledge proofs required constant, back-and-forth interactions between the prover and the verifier until the verifier confirmed the truth in the prover’s claims. As such, non-interactive ZKPs came about to offer a more efficient solution.

Non-interactive ZKPs require no back and forth interactions, with a single exchange of information sufficing to satisfy both parties.

What are zk-SNARKs?

zk-SNARK stands for Zero-knowledge Succinct Non-interactive Argument of Knowledge, a type of non-interactive zero-knowledge proof widely used today to build zero-knowledge protocols. Privacy coins like Zcash use them to offer a shielded blockchain experience while providing sufficient proof that every shielded transaction is valid.

To understand their inner workings, we must consider each letter of the acronym:

ZK: This pair represents “zero-knowledge”, signifying that the proof provides no additional information other than the validity of its submitter claims. Any information that describes the nature of the transaction(s), its participants, and the exchanged value is withheld from the verifier.

S: This letter stands for “succinct”, meaning that the proof size is small (occupying little space) paving the way for quick and easy verifications.

N: Stands for non-interactive, meaning that little or no interaction is required between prover and verifier. Everything from proof generation to submission and verification occurs within a single transaction.

ARK: Represents “Argument of Knowledge”.This part adds the quality of computational soundness. Simply put, a bad actor can hardly cheat zk-SNARK based systems without the knowledge to support their claim (i.e. by holding the underlying information they’re trying to forge). This is based on the theory that the bad actor has limited computational power, meaning that anyone with unlimited computational power could create fake proofs. Some zk-SNARK protocols have a way to prevent this kind of attack.

This type of zero-knowledge proof has an important piece of their makeup: they require a trusted setup between prover and verifier. To construct zero-knowledge proofs with them, a set of public parameters is needed, along with the creation of cryptographic keys. You can liken these parameters to the “rules” of a protocol, and they are usually encoded. Meanwhile, the keys make privacy possible.

Zcash is one of the foremost privacy-preserving protocols that use zero-knowledge SNARKs. Some popular ZK-rollups and Layer-2 blockchains also use zk-SNARK-powered ZK technology to provide scalability to traditional blockchain networks like Ethereum.

zk-SNARKs — Tech Features

1. It is a cutting-edge non-interactive zero-knowledge proof protocol, requiring little interaction between prover and verifier. Proof generation, submission, and verification are usually completed within one transaction.

2. It enhances blockchain scalability. Zero-knowledge proofs are much smaller than the average Bitcoin transaction and get verified much quicker. Swift verification and less block space mean more scalability for networks like Ethereum.

3. Major difference among ZK-rollups:

4. Transparency: zk-SNARKs need an initial trusted setup phase to generate the randomness required to generate zero-knowledge proofs. These parameters are usually held in the custody of a small group to protect them. If the parameters fall into the wrong hands, dishonest actors could use them to create false proofs.

5. Security: Zero-knowledge SNARKS use an initial setup to generate parameters and, according to their setup, are computationally sound. Their soundness, however, assumes that provers have limited computing power. However, when a prover uses an unlimited amount of computing power, they will be able to, for instance, make use of a certain algorithm that can execute extremely quick parallel integer factorization computations that can be used to extract a private key from a public key. In other words, they will be able to breach proof systems. Thus, they are in theory vulnerable to quantum computing attacks, therefore, not quantum resistant.

6. Sclability: zk-SNARKs’ computational demand makes them slower to generate proofs compared to the other option. They also consume less gas than zk-STARKs, and they verify proofs faster because of the difference in byte size.

7. Structure: zk-SNARKs are built on elliptic curves, which improve security and privacy under the assumption that it is infeasible to find the discrete logarithm of a random elliptic curve element in relation to a public base point.

zk-SNARKs: Applications and Use Cases

zk-SNARKs are the more popular of the two main non-interactive zero-knowledge proofs. Several projects in the crypto space today have adopted them to further scalability and privacy, with the latter being more widely used.

They generate and verify zero-knowledge proofs quickly, and privacy-enhancing protocols have used them vastly. With them, privacy-enabled blockchains can shield transactions from the public eye, allowing users to provide zero-knowledge proofs in the place of average transaction records.

Some privacy protocols like Panther Protocol have integrated selective disclosure mechanisms that allow users to share the information shielded by the blockchain with trusted third parties.

Another application of zk-SNARKs is identity verification, allowing users to pass KYC and AML requirements without putting their sensitive information at risk. With them, these protocols can allow users to submit a zero-knowledge proof of their identity instead of documents, confirming that they have the required data to be verified without revealing any extra information. They have also been adopted to drive privacy in decentralized finance, gaming, ZK-rollups, and asset ownership.

Source: zk-SNARKs vs zk-STARKs — Comparing Zero-knowledge Proofs (pantherprotocol.io)

Follow Us:

LinkTree: linktr.ee/VortexDex