Privacy is one of the most important factors, especially for the internet. This is made possible thanks to a new “Zero knowledge proof” tool. Without knowing your date of birth, this tool will prove that your age is over 18. Any given undisclosed financial transaction will prove that you have enough money without revealing any account balance details. A risk of confidentiality or theft is removed from the network.
“Zero-knowledge proof” is an emerging cryptographic protocol. While the idea of online privacy has been around for a long time, there is a growing obsession with blockchain and cryptocurrencies. Zcash, a digital currency launched in late 2016, had a major online security issue that is rectified using the Zero-knowledge practice.
Privacy is almost futile for cryptocurrencies like bitcoin and blockchain systems in which transactions are visible to everyone. Being theoretically anonymous, they must be combined with other data for the identification of the user. All financial institution security issues are resolved and confidentiality is also guaranteed. The main obstacle to adapting blockchain technology is its confidentiality. Banks, where customer privacy must be considered, this is the best way to use blockchain in their payment system zk-SNARKS, must be added to blockchain based payment system by big bank JPMorgan Chase to ensure confidentiality. Despite the promises, protocols like zk-SNARK are also heavy and slow. A “secure setup” is required by them which creates a cryptographic key. But the key when it falls into the wrong hands will lead to a compromise of the whole system. Thus, most research suggests using “zero knowledge proof”.
Any zero-knowledge application must meet 3 requirements:
1.completeness: “A proof of zero knowledge and a blockchain”Should always return ‘true’ if the input is true.
2. Strength: zero-knowledge proof is never tricked to return “zero” if the entry is false.
3.Privacy: No other party will get the entry.
How does zero-knowledge proof work?
The best way to explain the process of “zero knowledge proof and blockchain”Is by non-numerical examples which are, of course, far from the complexity of zero-knowledge proof but explain very well how they work.
Suppose there are blind people and two balls, one black and one white. You then want to blindly prove that these balls are indeed different colors without revealing the color of each ball.
You do this by asking a blind person to hide the two balls under the table and bring back a ball so that you can see it. After that he has to hide the ball under the table and then show the same ball or the other. So you can prove to a blind man that the color is different by telling him if he changed the ball under the table or not.
Of course, other people might think you’re lucky and aren’t quite sure the two balls are different colors. After each round, your chances of being right consistently with sheer luck halve. So with 5 spins you have a 1 in 32 chance of being successful in pretending. With 10 turns it’s 1 in 1024, and with 20 turns it’s about one in a million. In this way, one can achieve the desired probabilistic level of proof, although absolute certainty will never be reached.
Evidence of zero knowledge that is actually not tied to the bullet, of course, but proof of the validity of all types of data. This includes financial data or personal data.
What is zk-snarks?
You may have found the term “zk-Snarks”. This term was introduced in 2012 by Nir Bitansky, Ran Canetti, Alessandro Chiesa & Eran Tromer and describes a particular variation of the zero knowledge technique. zk-SNARKs introduces a number of innovations that make it usable on the blockchain. Most importantly, zk-SNARK reduces the size of the proofs and the computational effort required to verify them.
Proof of zero knowledge on the blockchain
The zero-knowledge protocol allows the transfer of assets across the peer-to-peer blockchain network with complete confidentiality. In ordinary blockchain transactions, when an asset is sent from one party to another, the details of the transaction can be seen by every part of the network. Conversely, in an unconscious transaction, the others only know that a valid transaction has taken place, but nothing about the sender, recipient, asset class and quantity. The identity and the amount spent can remain hidden, and problems like “front-running” can be avoided.
The most important blockchain-based system using zero-proof knowledge is ZCash, which is also the first cryptocurrency to implement zk-SNARKs. Other blockchain-based systems have also incorporated “zero knowledge proof and blockchain”In their solutions to enable verified transactions while protecting user / transaction privacy. Perhaps the best known is Ethereum, which applies zk-SNARKS as part of the Byzantine upgrade.
Give consumers back control of their data
Our Customer Nuggets take it a step further and use unconscious storage to improve the privacy of personal data in a variety of ways, not just for payments.
Trust is very important in every business interaction. To do business, whether online or in the physical world, we need to know who we are dealing with and whether they will deliver on their promises or not. The problem is, this comes at the expense of privacy. To judge whether you can trust someone, you need to know what kind of person they are, get some personal data, or even a credit card number. Knowledgeless storage, which is built into the blockchain Nuggets have the potential to make blockchain technology truly personal.
With Nuggets, it is possible for people to make a financial deal, create an online account, or verify your identity without having to reveal your personal details.