Do you know it is possible to make a transaction without revealing any information related to your account? Yes, Zero-Knowledge Proofs have such features that will provide maximum data security while making any transaction online. The following section includes the concept of Zero-Knowledge Proofs along with its use and future possibilities.
04 February, 2020 | AtoZ Markets –In digital security, disclosing less information is better and Zero-Knowledge Proofs ensure this. The fewer institutes having your financial information, the less likely they’ll be exposed during a breach. However, there are some ways to cut down on data sharing and retention. So there are some services that you need to know, right? Due to the cryptographic method mentioned as “zero-knowledge proofs” that’s not constantly the case.
The zero-knowledge technique is a mathematical method used to verify stuff without revealing the underlying data. Consider a payment app trying whether you’ve adequate money in your bank account to make a transaction on faith out anything about your account balance. On the other hand, an app confirming a password’s validity without having to process it.
During this manner, zero-knowledge proofs can help a person in all types of sensitive agreements, transactions, and interactions in a private and secure way. Zero-knowledge protocols are probabilistic assessments, which suggests that they are not proving something with the whole certainty. Instead, they provide the information that can mean that the validity of a statement is tremendously probable.
What is Zero-Knowledge Proofs?
The idea of zero-knowledge proofs came to the people in 1985. At that time, some developers named Shafi Goldwasser, Charles Rackoff, and Silvio Micali presented the “knowledge complexity” idea. That idea served as a precursor to Zero-knowledge proofs. As the name suggests, knowledge complexity acts as a metric standard to find the quantity of data needed to validate any transaction.
A zero-knowledge proof is a digital protocol that permits data sharing among two parties without utilizing any transaction-related information. In its most elementary sense, a zero-knowledge proof (also commonly known as ZKP) a protocol through which a digital authentication happens. The overall process completes without any utilization of any passwords or other sensitive data.
As a result, sender’s or receiver’s, are often compromised in any way. This is quite useful, especially since such A level of safety provides an opportunity to speak without disclosing the content.
What You Should Know About Zero-Knowledge Proofs (ZKPs)
Zero-Knowledge Proof is related to the security of data over the internet. Therefore, if you are facing any risk to reveal your transaction history with other people while making any transaction you should know about this. The adoption of this technology will help organizations to keep their information safe from stealing or hacking.
Let’s have a look at what you should know about this technology.
#1 Is ZKP Applicable to Cryptocurrency?
Researchers at MIT first developed the concept of a zero-knowledge proof.
A classic example of zero-knowledge proofs describes two billionaires, Amanda and Smith. They want to understand who has extra money among them without knowing the amount. This technique has inherited importance over the past decade with its effectiveness in blockchain technologies like cryptocurrencies.
For instance, this system is often validating cryptocurrency transactions within blockchain technology. Therefore, it combats fraud without revealing data about which wallet a payment came from. On the other hand, a digital currency that does not incorporate zero-knowledge proofs, like Bitcoin, reveals all of that information.
In terms of cryptocurrency, researchers planned to use zero-knowledge proofs in digital identification mechanisms. This is secured and alternative like certificate photocopies and mobile phone photos of passports. Those ID schemes may allow people to meet a minimum age requirement despite sharing their date of birth, or other relevant information.
Beside Cryptocurrencies, recently improved agility in zero-knowledge proofs can apply to all or any different types of scale comparisons. Therefore, researchers suggest that such techniques could be the potential to use physically. For example, people can use it in nuclear limitations to determine the nuclear missile abilities of many countries by examining their weapons.
#2 Employment of Zero-Knowledge Proofs
Government agencies usually employ this system to find the origin of data without proving how they got the knowledge from. Since its foundation, ZKPs is used as a good array of digital domains. For instance, researchers have used this technology to create novel digital identification tools that reveal any sensitive information associated with them.
In this regard, there are several examples of self-sovereign identity platforms. It allows third-party personnel like government agencies to determine a valid driving license of a person without knowing their ID number. Similarly, governments also can use ZKPs to work out the nuclear capabilities of varied armies without having to spy on their inventories.
In July of 2019, the Defense Advanced Research Projects Agency, or DARPA has released a press release and claimed that it had been performing on a replacement project called SIEVE (Securing Information for Encrypted Verification and Evaluation). The SIEVE creates the use of ZKPs to find the origin of highly secured data without the U.S.
The government has to reveal the way during which it had been acquired. Can ZKPs be integrated into blockchain platforms? Zero-knowledge proofs offer tons of advantages to blockchain systems that make use of the technology. For instance, they assist in making crypto transactions extremely secure because of their high-level encryption.
#3 Zero-Knowledge Proofs in Blockchain Ecosystem
With that said, zero-knowledge proofs possess tons of potential to change in today’s data systems. The main reason behind this is researchers try to identify the best use of this idea to determine any potential flaws. What advantages do ZKPs offer? ZKPs completely eliminate the necessity for passwords when facilitating a transaction. With the increase of Blockchain technology, data safety has become a vital matter to ensure privacy.
The blockchain ecosystem can easily use ZKPs within its context. Several Blockchain ecosystems use this in reference to validate cryptocurrency transactions without disclosing any data. The data could be like where the transactions originated from or where it went or what proportion of money they transferred. The real-world use of this technology is Zcash. Zcash is a crypto platform that employs zero-knowledge proofs (zk-SNARKs) to encrypt native transactions while verifying under the network’s consensus rules.
#4 Future of Zero-Knowledge Proofs
Zero-knowledge proofs transfer data that require two parties without having their passwords or reveal any associated data. This process helps to eliminate many potential risks that include in the password-based authentication protocols. Moreover, ZKPs also help to provide the safety of a person’s online transactions and public cloud accounts. Therefore, in terms of data security and safety, ZKPs has a huge potential in the near future.
Many skilled developers use the digital toolbox, ZoKrates, to verify ZKPs using Solidity. Similarly, a few years ago, JP Morgan adopted Zcash’s zk-SNARKs-based proof of concept to increase the privacy of its native blockchain ecosystem. Moreover, this ecosystem is a fork of the Ethereum blockchain that creates its own smart contract language.
Besides this, over the last 3 years, a variety of platforms have adopted zero-knowledge proof to bolster their native security/privacy capabilities. However, the only potential risk to use ZKP is that a person may lose all information in case of forgetting the source passcode.
Zero-Knowledge Proofs is very potential to put people back in control of their data. This system allows others to verify transaction information without revealing the data itself. Therefore, this will have an enormous impact on finance, health care, and other industries. The main feature of this technology is that it makes transactions while safeguarding data privacy.
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