The idea of Zero Knowledge Proof (ZKP) is introduced in this article. Various ZKP kinds, use cases, and implementation techniques are also included.
A new era is required given that people’s information is always being controlled and there is a lack of privacy. Blockchain is advancing the cause of a decentralized system, yet it is insufficient. A brand-new technique called zero knowledge proof is now waiting for a chance in the market.
Many of you may have heard about the zero knowledge proof example, however you may not fully understand how it works. A new protocol called zero knowledge encryption enables the addition of a greater level of protection.
But how effective is it in practice? Could it really be the answer we’re seeking for?
DIFFERENT BLOCKCHAIN CHAINING METHODS
Blockchain is often just a public database used to track who owns how much cryptocurrencies or other digital assets. However, several blockchains operate somewhat differently from one another.
You can find metadata in bitcoin and other contractual logics in ethereum, for instance. In any event, there are two serious use cases for blockchains, mostly private blockchains.
- Possessing external assets, which are represented on the network via tokens. The tokens can also be used by a user to transfer outside assets.
- More widespread uses of data management are more closely tied to increased privacy and application.
Not that all private blockchains provide these two use cases. However, private blockchains are frequently a better option for businesses that want more anonymity and secrecy.
In terms of generic data storage, blockchain does actually provide a wide range of functions. The data must first be proven to be accurate, then timestamped, and then made immutable so that it cannot be altered.
Nevertheless, the information itself is unaffected by the blockchain. Each app may therefore determine what the data can genuinely mean or if it is authentic or not. Any undesirable data might be eliminated or ignored at the app level without further impacting the network.
Blockchains must thus provide internal rules for the process of confirming those transactions if they are to transfer any form of assets. One of the issues with blockchain adoption is that it was lacking this from the beginning.
Can Blockchain Preserve the Required Privacy?
For instance, you could wish to gift your friend Kevin $50. The network must first verify that you actually have $50 in your hands before approving your transaction. Even if multiple blockchains adhere to this regulation, everyone on the network has to be aware that you own $50 in any situation.
This preserves the legitimacy of both your assets and Kevin’s when he receives the funds. But in exchange for this verifying procedure, you give up your privacy.
But there’s a problem. There is no such thing as a conventional identifier name like Kevin in blockchain. Instead, you’ll obtain transaction addresses, and each of these addresses is just a string of numbers that has nothing to do with reality.
Despite the fact that this information is correct, the situation remains unchanged. Why? Well, there are still a lot of methods to identify relationships between people and their addresses.
Current Scenario’s Problem
A user must first know the address in order to conduct business or transmit assets on the chain. You can thus see which address is being sent to when you transfer money. On the other hand, if someone were to pay you, you would be able to identify the source of the money.
A user may simply trace down and identify the address that another user is using if he or she has any knowledge of that user from the real world. Of course they may look through the chain and determine it from their activities.
Although it takes time, knowing is not impossible. The network’s privacy is therefore not maintained by using addresses rather than names.
Is encryption by itself sufficient?
Encryption is intimately tied to the ideas of privacy and sensitive information. We can certainly accomplish so if you merely want to store general data on the blockchain. In this scenario, we would still be able to benefit from timestamps, immutability, and data preservation.
You could still store any data that is only viewable via the distributed ledger because none of them have anything to do with the data type. However, you would still need to rely on other people to confirm its presence in order to contribute to the block’s initial creation. So, the procedure is the same as previously.
This kind of encryption is not permitted for transactions that represent the transfer of any tokenized assets, though. No one on the network will ever be able to utilize the asset safely again if you and Kevin encrypt your transactions. It’s because no one will be able to pinpoint the specific location of the item.
Encryption cannot be the solution since the questioned item would lose value on the ledger.
Privacy and Liquidity: A Conflict
You can see that there will always be a clash between these two if we utilize blockchain for financial purposes. When dealing with assets, a lot of companies are now experiencing this issue.
Despite the fact that the procedure has been replicated in several blockchain pilot projects, the real world is not the same. The excessive activity required by the procedure demonstrates that two addresses are attempting to transact assets.
One of the biggest problems is that information leaks happen in this way, yet there are currently no clear guidelines for using the network.
The majority of companies now resolve all disputes off-chain rather than on-chain, where they may encrypt and obtain anonymity. On-chain settlements with anonymity may change the face of global banking, but blockchain technology has a lot to offer.
The Zero Knowledge Proof, which resolves all of these problems, is the answer we have been searching for.
ZERO KNOWLEDGE PROOF: WHAT IS IT?
Zero-knowledge proof has a really original idea. By using a zero-knowledge proof, a person can demonstrate to another user that they are aware of an absolute value without actually providing any further information.
In this case, the prover might demonstrate to the verifier that he is aware of the value z without providing any additional information to him.
The basic idea behind this idea is to demonstrate expertise without disclosing it. Here, the main goal is to demonstrate your knowledge of a value, z, without revealing z’s identity or any other information.
Seems difficult? It’s really not that tough.
A user would need to be aware of the secret information if he wanted to establish a claim. This would prevent the verifier from telling others the information without truly knowing it.
As a result, the assertion must always declare that the prover is aware of the knowledge but not of the information. In other words, you may say that you know z but not its value. In this context, z can signify anything.
The fundamental approach behind zero knowledge proof applications is this. Otherwise, there won’t be apps that need zero knowledge. Experts view zero knowledge proof applications as a specific example where there is no opportunity of communicating any secret information because of this.
Properties Of Zero Knowledge
Three separate features are required for a zero-knowledge proof to be completely explained. These are:
Completeness: If the claim is accurate and both users abide by the rules as intended, the verifier would be persuaded without the need of any coercive measures.
Soundness: In any situation where the assertion is untrue, the verifier would not be persuaded. (The procedure is statistically tested to make sure the likelihood of untruth is equal to zero.)
Zero-knowledge: The verifier would never have any further information.
To improve accuracy and make sure it takes less exchanges between two peers, researchers are looking into the process further. To maintain privacy, the main objective is to reduce communication and switch to a single reference statement.
Applications that need no prior knowledge are becoming more and more popular. However, the idea is not brand-new. It has existed for almost 20 years. The output and effectiveness of the system have been increased by researchers.
Now, establishing a claim is incredibly simple and effective. The blockchain system may now be used directly.
WHAT IS THE ZERO KNOWLEDGE PROOF PROCESS?
Applications that need zero prior information seem to be a novel protocol. Many of you must be asking, though, how you can support your claim without providing the data. Let me give you two of the most well-known instances to explain.
Let’s begin.
Ali Baba Cave is a prime example.
One of the most popular examples to properly examine how zero knowledge proof authentication functions is this one. Victor is the verifier in this case whereas Peggy is the prover.
Therefore, in order to maintain consistency with zero knowledge proof authentication, the prover would need to be aware of a value z, and the verifier would need to be aware that the prover is aware of that value.
Imagine Peggy somehow has access to a code phrase that can open a magical entrance within the Ali Baba cave. This is how the scenario begins. With the door blocking the route out, the cave resembles a ring. The point where the entry and exit converge is similar.
Victor is now checking to see if Peggy is speaking the truth. She is aware of the key phrase. However, Peggy is a reclusive person and is reluctant to give Victor the secret phrase. So how is Victor supposed to know if she tells the truth or not?
A Different Plan
Victor devises a strategy to deal with the issue. The paths A and B for entry and departure are marked. However, since they intersect at the same spot, path A and path B are just left and right paths. Victor waits outside throughout this investigation, and Peggy enters the cave.
Peggy can choose between paths A and B at this point, but Victor won’t know which she chooses. Victor enters the cave after Peggy enters after selecting a path. Then he screams the name of the route where he wants Peggy to turn around. He can choose either A or B at random.
Actually knowing the secret word would make things very simple. She can return to Victor by using that word to unlock the door. Alternatively, if required, she can take the same route back.
Let’s say Peggy doesn’t actually understand the word. In that instance, she would only be able to go back to Victor if he yelled the name of the path she first selects. Peggy would have a 50% probability of following Victor’s instructions due to the random selection procedure. However, Peggy would not be able to pull a fast one to mislead Victor if he repeated this technique, say, 15 or 25 times.
Victor’s manoeuvre would be less anticipated than zero, and Peggy would be apprehended.
Nevertheless, despite doing this repeatedly, Peggy always manages to return to the location that Victor requests, allowing him to conclude with confidence that she is really aware of the secret phrase.
What Takes Place with a Third-Party View?
Victor would often need to have a covert camera to record the transaction if a third party is viewing this scenario. But whatever Victor shouts, the camera can only catch; it may be either A or B. When he screams B or A, it would also capture Peggy showing up at those locations.
If two individuals agree to falsify this tape from the beginning, it could be simple for them to do. No one else would be persuaded by this record that Peggy genuinely knows the secret phrase. Even if someone watches the experiment from the cave, he won’t be persuaded.
How then do they demonstrate the validity of the experiment?
The zero knowledge proof authentication will no longer be useful if Victor flips a coin and then decides which way to go based on it. However, the coin toss would be sufficient for any impartial witness to confirm that Peggy is familiar with the word.
Victor could then demonstrate the objectivity of the experiment without having heard of the phrase. It won’t be completely knowledge-proof, though.
Victor can use a random number generator with certain predetermined patterns, like the coin, in digital cryptography to do coin flips. However, if Victor’s coin acts as a random number generator, he and Peggy may have staged the experiment once more.
Therefore, it won’t be as effective as a simple coin flip, even with a number generator.
A single test only
Did you note that Peggy was able to demonstrate her knowledge of the word without pronouncing it on the first try? Victor and Peggy must then enter the cave simultaneously in this situation. Victor would be able to observe Peggy pass through A and emerge from B without giving away the secret.
But this sort of evidence would persuade anybody. Because she can’t claim that she and Victor colluded, Peggy doesn’t want anybody else to know about it. She doesn’t even know who is aware of her knowledge, let alone how to regulate it.
A second illustration is « A Color-Blind Friend and Two Balls. »
This kind of experiment for zero knowledge proof authentication would need two identical balls in two different colours, but of the same size. The experiment has a lot of fans. This new approach was initially proposed by Konstantinos Chalkias and Mike Hearn. Use two cards of different colours to do this experiment as well.
Imagine you have two balls, a colorblind friend, and the following scenario. The balls must be the same size and both red and green. Your pal doesn’t believe they are different and is convinced they are the same thing.
Therefore, you must demonstrate that they are distinct colours without revealing which is whose.
You give your friend the balls, and he hides them behind his back. Then he lets you view a ball that he pulls out at random. After returning the ball, he picks another ball at random.
This time, you also get to view the ball. He would then ask you if you thought he had shifted the ball or not. He’ll continue doing this for a while, I’m sure.
Now that you are color-sighted, it is obvious to you whether he swapped the ball or not. You would have a 50% chance of answering right if all the balls were the same colour.
You would accomplish the three zero knowledge qualities and the likelihood of anticipation would become zero.
But make sure your pal doesn’t know which is red and which is green. By doing this, you will be able to maintain the third attribute, « zero knowledge. »
INTERACTIVE ZERO KNOWLEDGE PROOF
There are two types of zero-knowledge encryption:
- Interactive demonstration of ignorance.
- 0 knowledge proof that is not interactive.
Let’s find out what they are.
Interactive Zero Knowledge Proof: The Basics
Interactions between peers or any computer systems would be necessary for this kind of zero knowledge proof authentication. The knowledge may be validated and proven by communicating between the validator and prover.
This is the blockchain scenario that requires zero expertise. In this case, you would be demonstrating without revealing the comprehension. However, you’re also sharing it with the individual you’re chatting with. As a result, if someone is merely observing you two, he cannot confirm your information.
Even if it’s one of the strongest privacy techniques, proving it to multiple people still takes a lot of work. This is due to the fact that you would need to explain the same thing to each individual several times since they wouldn’t be able to agree with you just by watching.
To implement this protocol, the verifier would need to provide some sort of interactive response. Otherwise, the prover will never be able to support their own claims. An experiment or challenge might be included in the interactive input. Naturally, the procedure must persuade the verifier that it possesses the information.
In other instances, the verifier might film the procedure and then play it for others so they can watch it as well. But ultimately, it is up to them whether or not they could persuade others. They may or may not accept it.
This is why an interactive zero knowledge proof blockchain is more effective with a small number of users than a big one.
NON-INTERACTIVE ZERO KNOWLEDGE PROOF
In order to prove one’s claim to a bigger audience, non-interactive zero knowledge proof blockchain is available. However, you are not necessarily need to use the non-interactive blockchain with zero knowledge proof to check. Frequently, you may be able to locate any dependable source that may serve as a vouch for you.
But if no one is available, non-interactive zero knowledge proof blockchain is the best option.
The Sudoku Card Challenge
One of the most challenging games, Sudoku has straightforward rules. The numbers 1 through 9 should only appear once in each of the rows, sectors, and columns.
Consider that you already know the answer to this conundrum, which may take even computers days to solve. How can the verifier know that you are not deceiving him if you wish to sell the solution, then? You would have to demonstrate your understanding without giving the verifier the answer.
Let’s look at your options.
The Solution
You would require 27 cards, numbered from 1 to 9. Therefore, 27 cards would have the number 1, while another 27 would include the number 2. You’d require 243 cards altogether.
Now you would need to place three cards in a box that matched the solution. In other words, if the box’s right number is five, you will place three cards with the number five in it.
You can see that certain solutions in a Sudoku table are always displayed. The card should be placed face up in these boxes. You’ll arrange the cards backwards on boxes without the solution.
Now, without disclosing it, you must demonstrate that you have dealt all of your cards correctly. You must:
Up until you have nine piles, take the top card from each column. For rows and sectors, do the same thing.
Then you would have to rearrange each pile before turning it over to see the numbers.
You are aware of the fundamental rule, which states that each row, sector, and column must include one instance of each number from 1 to 9. The verifier would know that you have the solution if all of your pile contains the numbers 1 through 9 only once.
The easiest technique to convince many people of your point without using more resources or spending more money is non-interactive.
EXPLAINING ZK-SNARKS AND THE ZERO KNOWLEDGE PROOF
You must already be familiar with zk-SNARKS. Ever questioned what it really is? The non-interactive zero knowledge proof example notion is used by the technology known as zk-SNARKS. To provide more anonymity, Zcash makes use of this type of encryption.
Zero-Knowledge Succinct Non-Interactive Argument of Knowledge is really what it stands for.
Three distinct algorithms make up this system:
Key Generator: The key generator configures a setting to produce a key pair. In this scenario, a reliable source may create a private or public key pair and then obliterate the private portion. A new key pair was then created using the public portion. Here, one would be used to verify, and the other to prove.
Prove: To demonstrate his expertise, the prover must use the proving key and some feedback from the general audience. He will provide private witnesses in this instance and then provide the necessary context to support his claim.
Verifier: The verification would require the verification key in order to determine if the statement was true or false. To determine if it is accurate or untrue, he must consider the feedback from the public as well as the supporting evidence.
The zk-SNARKS must furthermore maintain in addition to these three things:
Zero-knowledge: The only thing the verifier would discover is the truth of the assertion. In a nutshell: Any challenge may need to be very short in order to be proved in a matter of milliseconds.
Non-Interactive: All that would be communicated from the user to the verifier is the stamen. Further communication with the prover won’t be possible for the verifier.
Argument: The polynomial-time proof would be constrained and retain the validity of zero knowledge encryption.
Of Knowledge: Without a reliable witness, the Prover and Verifier are unable to carry out the procedure.
BUSINESSES THAT USE ZERO KNOWLEDGE ENCRYPTION
Let’s look at some of the well-known businesses that employ this protocol now that you are familiar with zero knowledge proof.
Significant Projects
Zcash
Most blockchain platforms make the transactions between peers public. It’s not simply one of the blockchain’s drawbacks; it also prevents its development. But when it comes to transactions, Zcash can offer complete secrecy.
It uses the fundamentals of zero knowledge proof and is an open-source, permissionless blockchain platform. It is protected during the transaction procedure. On the blockchain, it will thus discover the value, the sender, and the recipient.
The introduction of zk-SNARKS is another of its claims to fame, and many have since followed in its footsteps.
ING
A bank with a basis in the Netherlands named The ING has launched a zero knowledge blockchain. Although they introduced a slightly modified version of the zero knowledge technique known as zero knowledge range proof. They use a lot less processing power than necessary in this one.
It has a direct connection to the financial world, namely the value of mortgages. Without disclosing your wage, you will be able to demonstrate that you make enough money to qualify for a mortgage.
Although it is open source right now, it poses a significant threat to existing financial blockchains.
PIVX
This business seeks to alter the conventional manner in which things are done. PIVX aims to create a secure harbour for your financial statements in a system where everything is handled and controlled by others. On a new integration they are developing, they will use the zero knowledge proof example.
In this case, the only item that would be made public is the receipt of the payment. In other words, you would be able to see that money was sent, but the address or quantity would be concealed. With his new integration, PIVX guarantees a higher transaction rate with the added benefit of secrecy.
Zcoin
In order to provide further protection and entirely anonymous transactions, the firm uses the Zerocoin technology. The zero knowledge proof example principle is evidently followed by the Zerocoin system. Zcoin, on the other hand, provides scalability that many blockchain networks do not.
You will be able to protect your identity and your network usage to the maximum extent here by using Zcoin. It’s an excellent technique to safeguard fungibility.
But do not mistake them for Zcash. They do not split off of one another and have distinct processes.
Famous Vendors
StarkWare
Another outstanding business that makes the most of the zero knowledge proof example of technology is StarkWare. However, they seem to have altered the standard SNARKs protocol. They employ STARK technology as opposed to SNARKs.
With a transparent transaction system, StarkWare seeks to address the privacy and scalability issues with blockchain. They are now working on creating the hardware and software to support their STARK technology, which will result in greater results.
The trusted setup will be eliminated as a result of this new technology eliminating the hidden inflation issue. The abbreviation for Zero Knowledge Scalable Transparent ARgument of Knowledge is zkSTARK. It will still be quantum resistant but the concealed inflation is gone.
This brand-new STARK technology may represent the advancement of SNARKs.
QED-it
One of the startups using zero knowledge proof to ensure security is this one. Israeli-based QED-it is able to handle private data without the knowledge of outside parties. For better data management, you can incorporate into your system.
Popular clients of theirs include Deloitte and BNP Paribas. The major objective is to give businesses privacy. Over the previous two years, they enhanced their concept and created whole new SNARK systems that can handle any circumstance.
Real-time risk assessment, supply chain management, asset management, predictive maintenance, and many more applications are just a few of their use cases.
WHERE IS ZKP USABLE?
Cryptography and reliable devices must be compatible with ZKP, or zero knowledge proof, use cases. Mobile appears to be the best option in this situation when compared to other gadgets. Unlike browsers, they offer a secure runtime environment. It’s not completely risk-free, though.
Where can you employ zero knowledge proof use cases is the crucial question, though.
Messaging
End-to-end encryption for messages is required. This makes it impossible for anybody to view your private messages without the client. A trust check between two users and a server is required. Instead of exposing any further information, ZKP offers that end-to-end trust. ZKP would make it such that no one could ever again hack their way to your communication.
This is one of the use cases that requires no prior knowledge.
Authentication
Zero knowledge proof can assist in securely communicating sensitive information such as authentication information. Here, ZKP may continue to provide a secure route so that the user can utilize their authentication details privately. He would effectively be able to stop data leaks as a result.
Providing Data
It is vital to share data online without a third party’s knowledge. No matter how protective they may pretend to be, there are always certain hazards when sharing something over the network.
There is always a chance that someone will hack in or intercept when information is being sent; in this case, ZKP can be of great assistance.
This is yet another excellent application of zero knowledge proofs.
Security for Sensitive Data (Credit Card Information)
A higher level of security is required for sensitive data, like credit card numbers and bank statements. The bank keeps the history of credit cards. You must, however, contact with their server in order to request the information from them.
Even though banks use a secure connection, a person’s credit card history is much more sensitive than typical data. The banks may offer stronger security in this situation by using blocks as well as whole information encryption.
Your history will receive the appropriate layer of protection since banks would only alter the relevant blocks and leave the other blocks alone. ZKP is able to deliver that.
Complex Documentation
ZKP has the power to prevent any user from accessing complicated documents that he isn’t allowed to examine. You simply need to modify certain blocks to provide access and deny access to other users because ZKP may encrypt the data in chunks.
Unauthorized individuals won’t be able to read your papers if you do it this way.
Storage Safety
It could offer better storage utility protection. ZKP is outfitted with the protocol to deter hackers. With this, both your storage unit and the data inside of it will be encrypted. Not to add that the access channel will also be highly secured.
File System Control
The zero-knowledge proof protocol has the ability to safeguard anything in a file system. Different levels of protection can be applied to data, users, and even individual logins. In such instance, it can be a fantastic use case.
These application cases for zero knowledge are all applicable to real-world situations.
USE OF ZERO KNOWLEDGE PROOFS ARCHITECTURE
You must be aware of its foundations before implementing something that is zero knowledge proof.
Key-Wrapping Procedure
A single data stream is divided into several smaller chunks using ZKP. They are all individually encrypted. The only person who will have access to the encryption key in a zero knowledge proof implementation is the user, who may use it to both encrypt and decode data.
Managing Privileges
We’ll use containers to hold the keys. The user must compare his ownership tag, though, if he wishes to modify the storage key. He will be able to modify it if they are the same, but if they are not, it will not change.
Controlling Requests
In your implementation of zero knowledge proofing, you should make sure that nobody can just add up messages. Every action must be converted to API instructions since users can only access it through the blockchain network.
No one could circumvent your security measures in this way.
Reduce All Attacks
A flawed network exists on the blockchain. Even while the assault is reduced, it is not entirely eliminated. Therefore, combine ZKP with other measurements when integrating it into a system. You will eliminate the remaining assaults that can possibly damage the network in this manner. These techniques must be used appropriately for zero knowledge proof implementation.
Zero Knowledge System: How Important Is It?
By far, Zero Knowledge Proof has demonstrated its ability to manage enterprise size enterprises. The public ledger system, where your transactions are visible to everyone, is not popular with everyone. Yes, addresses help you maintain your anonymity, but they are also trackable.
Furthermore, blockchain is not the greatest option for storing additional sensitive data. The current privacy procedure is inadequate since businesses deal with a lot of sensitive information.
Blockchain can be made better by zero knowledge proofs stated, and all of its flaws can be eliminated. Despite being a wonderful technology, many businesses aren’t interested in blockchain. But everyone may now make use of it thanks to the Zero Knowledge proof given.
So, the response would be that yes, the zero knowledge mechanism is unquestionably a crucial aspect of blockchain.
CONCLUSION
Blockchain has its own set of benefits and drawbacks. Even while it initially appeared to be quite promising, it really comes with a lot of baggage. The development of this excellent technology is being slowed down by these flaws.
However, since the advent of the knight in shining armor-style zero knowledge system, things have begun to shift. Blockchain may now be the incredibly secure platform that everyone had dreamed for.
