How Zero-Knowledge Proofs Shape Blockchain Technology?

Developers have begun implementing ZKPs to reduce the information exposed on the blockchain

Zero-Knowledge Proof (ZKP) is a method used in cryptography to prove ownership of a specific piece of knowledge without revealing the content of that knowledge. Zero-knowledge proof of work, AKA zero-knowledge proof of computation, is when a prover convinces a verifier that he has correctly executed some computation on secret data without revealing the secrets. Blockchain technology is something that has been gaining heavy momentum these days. 

The internet is one of the most special areas where it is speculated to show progress. While the majority of the global populace is trying to invent new ways to invest in blockchain and crypto, Web3 is about to emerge as the cornerstone of something bigger than the technology industry ever imagined.

Two primary types of Zero-Knowledge Proof

Interactive Zero Knowledge Proofs require the prover to carry out a set of tasks or actions to demonstrate to the verifier that they have specific information. The majority of the tasks that must be completed to pass an interactive Zero Knowledge Proof typically involve some aspect of mathematical probability.

Non-interactive zero-knowledge proofs are zero-knowledge proofs where the interaction between a prover and a verifier can be simulated by the prover, making direct communication to the verifier unnecessary and making proof generation possible to do offline.

How Zero-Knowledge Proofs Shape Blockchain Technology?

By using a ZKP, one can prove the correctness of a computation without revealing any additional information except whether it is indeed correct or not. For example, a blockchain user can prove that he is indeed allowed to make a payment without revealing his identity to the network. ZKPs can help in adding multiple layers of security to files and logins. As a result, ZKPs can present notable obstacles for hackers or manipulators to alter and retrieve the data.

The most notable concern in private blockchain transactions is the numerous loopholes evident in conventional procedures. Thus, ZKPs require more resources than other cryptography methods to process every transaction. Organizations that control sensitive data, such as banks and hospitals, must keep them free from third-party access. ZKPs and blockchain together can make accessing data impossible.