Zero knowledge proof, also known as ZKP, is a method of cryptographic verification where one party gets to prove the other party that a certain statement is real and true. No extra information is revealed. Just enough to tell you about the validity of the statement. Just like you are proving someone that you know is affected without telling them the real password.
Importance of ZKP in crypto
When business is held in blockchain then the transparency gets doubled. Everyone can see the complete transaction data, but of course it hurts the privacy. If you were using zero knowledge proof then it means
● Private transactions are happening on some of the most famous public Blockchain.
● Identity is verified without exposing the sensitive data
● The off chain computation happens efficiently with the verification on chain.
Working method of ZKP
Basic steps
● Commitment
● Challenge
● Responding
Commitment
In this step the person or prover commit that you know some kind of secrets such as password or details about a certain transaction
Challenge
The pro gets a random challenge from the verifier
Responding
The prover gives a response in such a way that proves that he has knowledge of the secret. In this process, no information is revealed.
At the end, if the verifier is satisfied, then the proof of the prover is accepted. Although it takes many rounds.
Interactive and non-interactive ZKP
The zero knowledge, proof of crypto have two categories
● Interactive
● Non-interactive
Interactive
The approval as well as the verifier can have long back-and-forth conversations. Which helps them understand the identity as well as the credibility of each other.
Non-interactive
This contains only one message that travels within the blockchain. Other than that, nothing is involved.
Implementation of zero knowledge proof in crypto
Zero knowledge succinct non-interactive argument of knowledge (zk-SNARKs)
● This is often used in the polygon zkEVM, Zcash, zkSync
● To get verification, you just need a small amount of proof. The verification happens really fast.
● But you need to have a trusted set up in order to achieve the transaction.
Zero knowledge, scalable, transparent argument of knowledge (zk-STARKs)
● This protocol is often used in Mina protocol as well as stark net
● It is more scalable because it doesn’t have any kind of trusted set up
● It requires a large amount of proof.
Future of Zero knowledge proofs
Basically the ZKP is a cornerstone for the decentralised identity, web three privacy as well as scalable computation. Thien L2 and its adoption has increased that’s why the privacy focused apps as well as the web KP is shifting to the real word impacts from the basic theory.
Conclusion
The zero knowledge proofs are always revolutionising. It is changing the way we are thinking about the privacy as well as security and trust of Blockchain. These let us keep transactions secure and safe without having to sacrifice the decentralised systems. The transparency remains constant. It is a rare competition when it comes to the transactions and dealings of the digital world.