Blockchain

Zero-Knowledge Proof: Protocol to Share Data

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Are familiar with the word Zero-knowledge proof? What exactly is Zero-knowledge proof? It is a digital protocol that allows for data to be shared between two parties without the use of a password or any other information associated with the transaction. In short, it can be thought of as a protocol through which a digital authentication process can be facilitated without the use of any passwords or other sensitive data. Let’s discuss more about Zero-knowledge proof protocol through this article.

What is Zero-knowledge Proof?

ZKP is an encryption scheme proposed by MIT researchers in the 1980s. The researchers involved in this are Silvio Micali, Shafi Goldwasser, and Charles Rackoff. Zero-knowledge proof also referred to as ZKP is a digital protocol through which a digital authentication process is facilitated. So no information, either from the sender’s or receiver’s end, can be compromised in any way. This ensures extra level safety for tech enthusiasts and is quite useful for them. They can communicate with one another without having to reveal the content of their interactions with any third party. It is generally used by government agencies to determine the origin of certain data without them having to prove how or where they got the information from.

zero knowledge proof

How Zero-Knowledge Proof can be Integrated into Blockchain?

Zero-knowledge proof can enable blockchain transactions to be validated without the need to reveal the identity of the users making a transaction. ZKP is an anonymous system and can be used to validate blockchain transactions without revealing user information, such as financial details. Many of the characteristics of blockchain-enabled users to act anonymously and perform transactions with high-end security. But blockchain networks use public databases. So, anyone having an internet connection can view the list of the network’s transaction history. They can see all the details associated with the transaction and your wallet details, but the name of the user will still remain unknown to them. Zero-knowledge proof is the highly appreciated protocol that is making transactions anonymous in Blockchain. 

Benefits of Zero-Knowledge Proof(ZKP)

Some of the benefits of zkp are:

  • It involves a very simple encryption method
  • Supports secure transactions and does not require anyone to reveal any sort of information
  • the verifier would be convinced without any external help or third party

Types of ZKP

There are two types of zkp. They are

  • Interactive zero-knowledge proof
  • Non-interactive zero-knowledge proof

Interactive zero-knowledge proof performs a series of actions under the mechanism of mathematical probability to convince the verifier of a particular fact. But non-interactive zero-knowledge proof does not require an interactive process. In this, the prover can generate all the challenges first and the verifier can respond later. So it restricts the collision in the channel by using advanced software and sophisticated algorithms. 

ZKP adds a high-level security feature and has the potential to enhance data privacy. There are many real-life examples for this like ZCash, ING, ZCoin, etc. 

Gerald Rene is a journalist based in the US and the former managing editor of a cryptocurrency news outlet. He has been involved in the cryptocurrency industry for over three years. He has written for many outlets and contributed to cybersecurity and technology publications. And his passion currently lies within scalable securities and stability protocols to help grow cryptocurrency investment and bring mass adoption.

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