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  3. What is Zero-knowledge proof (ZKP)? Details about ZKP

What is Zero-knowledge proof (ZKP)? Details about ZKP

  1. 1. Zero-knowledge Proof (ZKP)?
  2. 2. Some characteristics of Zero-knowledge Proof
  3. 3. How Zero-knowledge Proof works
  4. 4. Advantages and disadvantages of Zero-knowledge Proof
  5. 4.1. Advantages of Zero-knowledge Proof (ZKP)
  6. 4.2. Limitations of Zero-knowledge Proof (ZKP)
  7. 5. Comparison between SNARK and STARK
  8. 6. Common Applications of Zero-knowledge Proof Zero-knowledge
  9. 7. Information about ZKP in Blockchain
  10. 7.1. The state of the Zk Rollup market
  11. 7.2. StarkWare's Strong Market Traction
  12. 8. Blockchains applying Zero-knowledge Proof
  13. 8.1. StarkWare
  14. 8.2. Matters Labs
  15. 8.3. Secret Network
  16. 8.4. Immutable X
  17. 8.5. dYdX
  18. 8.6. Polygon
  19. 8.7. Mina Protocol
  20. 8.8. Dusk Network

What is Zero-knowledge proof? What features does this technology have? How does the method work? What are the advantages and disadvantages of this technology? Should you use it or not? BHO Network will answer all questions about ZKP technology right below this article. Let's follow along!

1. Zero-knowledge Proof (ZKP)?

Zero-knowledge Proof (ZKP) is essentially a cryptographic technology. ZKP works based on the method that a Prover party (the verifier) ​​proves to the Verifier (verifier) ​​that the information he provides is accurate without disclosing any real-life information.

To understand better, follow the following example: Party A wants to transact with Party B and requires Party B to present an ID card to secure information. Party B does not want to give the actual ID card to Party A, but Party B can still prove that the information they provide is correct. Zero-knowledge Proof technology was created to perform the above-proof task.

Zero-knowledge Proof (ZKP) is essentially a cryptographic technology

2. Some characteristics of Zero-knowledge Proof

Zero-knowledge Proof has several basic characteristics that distinguish it from other technologies. Here are three essential attributes of ZKP:

  • Completeness: The verifier will be convinced when providing enough information and evidence to prove the claim accurately.
  • Reasonableness: If the information and evidence are not reasonable, the verifier will know that the statement is false. It is difficult for you to cheat, except for some small probability.
  • Zero-knowledge: The verifier will not have any additional information beyond the current statement and its authenticity. All other information will be hidden.

ZKP is complete, rational and Zero-knowledge

3. How Zero-knowledge Proof works

To understand how Zero-knowledge Proof, let's follow an example of Zero-knowledge Proof, the "Alibaba Cave" example.

Imagine, Alice and Bob are standing in front of a cave with two paths leading to two separate roads (road A and road B). In this cave, there will be a door connecting the two passages that can only be opened with a secret code. Now, Alice owns that cipher, Bob wants to repurchase it Alice.

Bob first needs Alice to prove that he owns the code. So how can Alice prove it without revealing the contents of the cipher?

Bob will first ask Alice to enter the cave randomly on two paths A and B at random. Upon reaching the connecting door, Bob will ask Alice which exit to exit. There are two cases:

  • First, Alice can easily pass through without opening the door connecting the two roads.
  • Second, Alice can go through the path Bob requested because Alice knows the password for the door connecting the two paths.

To make sure that a case doesn't happen, Bob will have to forcibly repeat his tests up to a certain number of times to confirm that Alice holds the password. As for Alice, there is no need to share the contents of the cipher either.

Thus, the way ZKP is similar to the above. The proving party will provide the confirming party with the correct information without disclosing any information other than the statement.

How ZKP works through Alice and Bob's example

Read more: What is Mining Pool? How Mining Pool Works?

4. Advantages and disadvantages of Zero-knowledge Proof

Zero-knowledge Proof is a technology full of mining potential. However, every problem has two sides. The information below will give you some advantages and disadvantages of ZKP.

4.1. Advantages of Zero-knowledge Proof (ZKP)

Zero-knowledge Proof has new technologies that attract users. Here are some of the special advantages of ZKP:

  • Privacy and security: Ensures the confidentiality and security of users when only performing the task of confirming the completeness and reasonableness of the statement without providing provide additional information. Therefore, ZKP is not only used in layer 2 to expand but also used in privacy and security applications such as: Monero, Zcash,...
  • Scalability for Blockchain: StarkNET, Loopring, and Zksync are wallets, Typical examples of using Zero-knowledge Proof to increase throughput and scalability for Layer 1 Blockchains.

4.2. Limitations of Zero-knowledge Proof (ZKP)

Along with the advantages mentioned above, Zero-knowledge Proof still has the following limitations:

Requires a large amount of computation

The ZKP protocols are made up of a large number of complex algorithms. That requires a huge amount of computation to operate and compute. This problem will cause many difficulties for popular computers participating in the authentication process.

Not developer friendly

One downside of this Zero-knowledge Proof is that it is not user-friendly. Layer 2 is one of the applications of Zero-knowledge Proof to improve Blockchain scalability.

But currently, the applications of Zk Rollup are limited to simple payments. Besides that, Zk Rollup does not yet support the ability to aggregate. This causes many limitations for users of this technology.

ZKP requires a large amount of computation and is difficult for users

5. Comparison between SNARK and STARK

SNARK and STARK are two popular protocols on the market today. Zk-SNARK (Succinct Non-interactive Argument Of Knowledge) was launched in 2012. This protocol pioneered in providing a new edge to the technology.

Zk-SNARK has brevity i.e. logarithmic scale verification time. Besides, the non-interaction does not allow any interaction after the pre-treatment stage, including "hazardous waste".

Meanwhile, Zk-STARK (Scalable Transparent Argument Of Knowledge) was born in 2018 by StarkWare. This is a relatively new technology, which has two main advantages:

  • Transparent: The system eliminates “Toxic Waste”, ie works without needing a reliable setup.
  • Scalable: This protocol is scalable in terms of computational speed and size regarding semi-linear time scaling. One more important thing is to verify the total along with the processing time will be scaled by multi Logarithmic. In terms of size of evidence, STARK is much larger than SNARK

SNARK and STARK are two popular protocols on the market today

6. Common Applications of Zero-knowledge Proof Zero-knowledge

Technology Proof was created to bring many conveniences to users, ensuring privacy and security. So Zero-knowledge Proof is applied to many different problems. Here are some typical applications of ZKP:

Secure messaging app

Compared to traditional applications, when texting, you need to confirm your identity, for ZKP, you do not need to do this. ZKP uses technology to encrypt data end-to-end allowing messages to be sent privately.

Besides, Zero-knowledge Proof also helps individuals verify their identity without having to provide any actual information.

ZKP uses technology to encrypt data end-to-end allowing messages to be sent privately

Application in Blockchain

ZKP promises to be one of the leading technologies in the solution to help expand Blockchain. Zk Rollup solutions make the verification process - confirm transactions quickly. This comes in handy for Ethereum and layer 1 scaling enormously.

Verification

ZKP will restrict any access if it is not the author.

Application in the document

Technology Zero-knowledge Proof helps to transmit information in a highly secure manner. Ensure user privacy and security.

Application in data sharing

Zero-knowledge Proof allows data to be transmitted on-chain without going go through a third party.

Application in the security of sensitive information

ZKP enhances the security of sensitive information such as bank statements or Credit Card,...

Application in storage protection

This is one of the technologies worth choosing. Choose to protect storage from hackers.

ZKP protects stored information from hacker attacks

Applications in system control files

ZKP can perform file system protection. For each file, the user and user create layers of protection for the files.

ZKP is applied in a variety of fields

7. Information about ZKP in Blockchain

Zero-knowledge Proof is a helpful technology for users. ZKP will bring you exciting experiences with security and anonymity technology. The information below will give you a more specific view of the current market:

7.1. The state of the Zk Rollup market

Market is still new, but it has already created a buzz in the market. The Zk Rollup ecosystem consists of many applications, wallets and other infrastructures mainly focused on Ethereum and Blockchain layer 1.

Current indicators show the interest of users and developers in this technology. StarkWare's StarkEx has a TVL of over $1.2 billion with over 75 million transactions executed.

Zk Rollup's diverse ecosystems such as zkSync, zkNFT, imToken...

7.2. StarkWare's Strong Market Traction

StarkWare has strong market traction. The protocol did close to $9.5 billion in trading volume at its peak, briefly surpassing Coinbase's spot exchange volume.

The strong trading volume shows the market traction of StarkWare

Read more: What is IGO? Overview of the IGO project

8. Blockchains applying Zero-knowledge Proof

Zero-knowledge Proof technology is vigorously applied in many Blockchains, bringing many benefits to users and developers. Here are some popular Blockchain applications of Zero-knowledge Proof:

8.1. StarkWare

StarkWare was founded in 2018 by a leading scientist of computing Zk. This technology is built on top of Zk-STARKs.products StarkWare uses the Turing platform and programming language to create a Cairo prototype.

StarkWare brings Validium solutions to customers (StarkEx). This is one of the first Zero-knowledge Proof product-market fit with other protocols. Dapp DeFi and NFT have taken advantage of this solution to provide a more convenient user experience.

The most apparent strength of StarkWare is proving its scaling solution. Therefore, the amount of investment capital has increased gradually over the years.

StarkWare brings Validium solution - one of the first scale solutions of Zero-knowledge Proof

8.2. Matters Labs

Matters Labs was founded in 2019 by Alex Gluchowski and Alex Vlasov who both have deep expertise in Ethereum and ZK research and development.

8.3. Secret Network

Secret Network performs calculations in TEE (Trusted Execution Environments) for enhanced security and privacy. This is the first anonymous Smart Contract to launch the Mainnet.

The TEE is an essential piece of a computer that can run computations and store data that even the owner cannot access. This ensures Node is still accessing calculations while both input and output are in a fully encrypted state.

Currently, Secret NetWork owns many different sectors such as: Lending Protocol, NFT Marketplace, and Liquid Staking Protocol,...

Secret Network Ecosystem Roadmap

8.4. Immutable X

Immutable X is a Validium for NFT on Ethereum, built on StarkEx. Performing NFT transactions and NFT-related operations is the main application of Immutable X.

Although this is an outstanding NFT Protocol of Zk Rollup technology, there is still a lot of room for improvement because the transaction volume is still relatively low.

Immutable X is a Validium for NFT on Ethereum

8.5. dYdX

This is a Trading Platform built on StarkEx. The platform supports many products such as: Spot Trading, Margin, and Perpetuals.

dYdX is currently holding a TVL $960M and a daily trading volume of around $500M. This is one of the leading derivatives exchanges today.

dYdX is a leading derivative exchange today

8.6. Polygon

Polygon is also another essential element of Rollup. Now Polygon has launched Nightfall, a privacy-focused Rollup in partnership with EY. Polygon has essentially deployed three Rollups to serve the following purposes:

  • Polygon Hermez (Zk Rollup)
  • Polygon Nightfall (Zk Rollup for privacy)
  • Polygon Miden (STARK-based, EVM Rollup)

Polygon is important player importance of Rollup

8.7. Mina Protocol

Mina Protocol (formerly known as Coda Protocol). Evan Shapiro and Isaac Meckler are the two scientists who founded Mina Protocol. In March 2021, Mina Protocol officially Mainnet after nearly three years of development.

This project has received many investments such as: Multicoin Capital, and Polychain Capital, .... Mina Protocol is designed towards a constant size of 22kb to become the world's lightest Blockchain.

Mina Protocol is developed towards the goal of the world's lightest Blockchain

8.8. Dusk Network

This is a Privacy Blockchain for financial applications. ZKP is the technology used to base Smart Contracts.

Dusk Network's goal is to be the first layer 1 to support Smart Contract ZKP. Financial investors can be assured of high security through the use of ZKP PLONK Proof technology to confirm and verify transactions.

Dusk Network is a Privacy Blockchain for Financial Applications

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Here are the details on “what is Zero-knowledge Proof”? This technology will bring many valuable applications to users and developers. If you have questions, do not hesitate to visit BHO Network for more helpful information!

Published on November 01, 2022

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