Zero-knowledge proofs, also known as ZKPs, are presently required for meeting the challenges including preserving confidentiality that happens to be presently holding the blockchain projects back. Zero-knowledge proofs are based on blockchain and they facilitate organizations with various record-keeping systems to be legitimately in sync on a record by record basis without transferring sensitive data.
Recently, much progress has been made around zero-knowledge proofs. All kinds of solutions are increasingly coming on the market for deploying zero-knowledge proofs broadly. For example, when it comes to putting mortgage requests on the blockchain, through zero-knowledge proofs, as a kind of notary, it can automatically be easy to reject or grant such requests. However, the greatest challenge lies in the complexity of its developments.
Zero-knowledge proofs happen to be pretty much complicated to develop as compared to coding a smart contract without privacy, however, for security purposes, corporates are anticipated to shift from developing DApps to developing ZApps. As privacy happens to be the main concern here, let us learn more about how ZKPs can establish privacy.
Blockchain and Zero-Knowledge Proofs
As public blockchain platforms do not come with capacities to address transaction and data privacy, applying zero-knowledge proof techniques is an imminent need.
In an unusual blockchain setup, every transaction happens to be broadcasted to all the participants present and the details of communication intended for two parties remain visible to others as well. This might end up in a breach of confidentiality or privacy.
Zero-knowledge proofs, in such cases, can ensure that others only come to know that a legitimate transaction has taken place, however, no data happens to be accessible to them regarding the recipient, quantity, or type of asset transferred as well as the sender.
Privacy Use Cases of Zero-Knowledge Proofs in a Blockchain System
Zero-knowledge proof can be implemented in the following areas in a blockchain system:
- Messaging: In the case of messaging, end-to-end encryption happens to be imperative so that no one reads your private messages. For ensuring more security, the platforms related to messaging request users to verify their identity and vice versa. However, with zero-knowledge proofs, they will be capable of building an end-to-end trust in the world of messaging without leaking any additional data. It is one of the prime applications of ZKPs in the world of blockchain.
- Storage protection: storage protection is another use case of zero-knowledge proof in the storage utility field. ZKPs come with protocols that not just safeguard the entire storage unit, but also the data in it. Apart from that, the access channels also happen to be protected to provide a secure and seamless experience.
- Authentication: Zero-knowledge proof conditionally helps in transmitting sensitive data like authentication data with enhanced security. It can help build a reliable channel for users to utilize their data without revealing it. In this manner, avoiding data leakage is possible in the worst of scenarios.
- Complex documentation: As zero-knowledge proof comes with the potential to encrypt information in chunks, it facilitates the management of certain blocks for providing access to a specific user, hence restricting the access for others. This is a brilliant area where zero-knowledge proof comes into existence.
- Private blockchain transactions: When it comes to sending private blockchain transactions, it is essentially important to keep that out of the reach of intermediaries. Presently, while the conventional methods happened to be somewhat protective, they come with certain loopholes as well. When integrated wisely, the concept assists in making it approximately impossible to intercept or hack a private blockchain transaction.
- Sensitive data security: Zero-knowledge proof additionally redefines the way blockchain is revamping the world of transactions. It adds high-end securities to every block incorporating sensitive banking data like your history and credit card details that banks require to manipulate only demanded blocks when a user requests for data. In this case, other blocks stay untouched and hence are protected.
- File system control: File system control is another area where we can witness effective zero-knowledge proof implementation. The idea adds various layers of security to the users, login credentials, and files that make it pretty difficult to manipulate or hack the stored information.
These are some of the use cases of ZKPs in an environment of blockchain.
Confidentiality and privacy will proceed to be an area of concern in the modern digital age. Therefore, technologies like zero-knowledge proofs show immense promise when it comes to determining the validity of a transaction without compromising the essential details and enforcing honest behavior. The application and usage of techniques related to ZKPs in combination with the technology of blockchain are bound to grow as more productive techniques get invented in the up-and-coming times.