Back to Course

3. Advanced Course

0% Complete
0/0 Steps
  1. 1. What is Taproot?
  2. 2. Blockchain bridges – what are they?
  3. 3. What is Ethereum Plasma?
  4. 4. What is Ethereum Casper?
  5. 5. What is Zk-SNARK and Zk-STARK? 
  6. 6. What is Selfish Mining? 
  7. 7. What is spoofing in the cryptocurrency market? 
  8. 8. Schnorr signatures - what are they? 
  9. 9. MimbleWimble - what is it? 
  10. 10. What is digital property rights in NFT?
  11. 11. What are ETFs and what role do they play in the cryptocurrency market? 
  12. 12. How to verify a cryptocurrency project – cryptocurrency tokenomics 
  13. 13. What is the 51% attack on blockchain?
  14. 14. What is DAO, and how does it work?
  15. 15. Zero-knowledge proof – a protocol that respects privacy 
  16. 16. What is EOSREX?
  17. 17. What is Proof of Elapsed Time (PoET)?
  18. 18. Mirror Protocol – what it is? 
  19. 19. What are synthetic assets? 
  20. 20. How to create your own NFT? 
  21. 21. Definition of DeFi, and what are its liquidations?
  22. 22. New identity system - Polygon ID
  23. 23. Ethereum Foundation and the Scroll protocol - what is it?
  24. 24. What is Byzantine fault tolerance in blockchain technology?
  25. 25. Scalability of blockchain technology - what is it?
  26. 26. Interchain Security - new Cosmos (ATOM) protocol
  27. 27. Coin Mixing vs. Coin Join - definition, opportunities, and threats
  28. 28. What is Ethereum Virtual Machine (EVM) and how does it work?
  29. 29. Soulbound Tokens - what are they, and how do they work?
  30. 30. Definition of LIDO - what is it?
  31. 31. What are Threshold Signatures, and how do they work?
  32. 32. Blockchain technology and cyberattacks.
  33. 33. Bitcoin script - what it is, and what you should know about it.
  34. 34. What is zkEVM, and what are its basic features?
  35. 35. Do confidential transactions on blockchain exist? What is a Confidential Transaction?
  36. 36. Algorithmic stablecoins - everything you should know about them.
  37. 37. Polygon Zk Rollups ZKP - what should you know about it?
  38. 38. What is Web3 Infura?
  39. 39. Mantle - Ethereum L2 scalability - how does it work?
  40. 40. What is the NEAR Rainbow Bridge?
  41. 41. Liquid Staking Ethereum and LSD tokens. What do you need to know about it?
  42. 42. Top 10 blockchain oracles. How do they work? How do they differ?
  43. 43. What are Web3.js and Ether.js? What are the main differences between them?
  44. 44. What is StarkWare, and recursive validity proofs
  45. 45. Quant Network: scalability of the future
  46. 46. Polygon zkEVM - everything you need to know
  47. 47. What is Optimism (OP), and how do its roll-ups work?
  48. 48. What are RPC nodes, and how do they work?
  49. 49. SEI Network: everything you need to know about the Tier 1 solution for DeFi
  50. 50. Types of Proof-of-Stake Consensus Mechanisms: DPoS, LPoS and BPoS
  51. 51. Bedrock: the epileptic curve that ensures security!
  52. 52. What is Tendermint, and how does it work?
  53. 53. Pantos: how to solve the problem of token transfer between blockchains?
  54. 54. What is asymmetric encryption?
  55. 55. Base-58 Function in Cryptocurrencies
  56. 56. What Is the Nostr Protocol and How Does It Work?
  57. 57. What Is the XDAI Bridge and How Does It Work?
  58. 58. Solidity vs. Rust: What Are the Differences Between These Programming Languages?
  59. 59. What Is a Real-Time Operating System (RTOS)?
  60. 60. What Is the Ethereum Rinkeby Testnet and How Does It Work?
  61. 61. What Is Probabilistic Encryption?
  62. 62. What is a Pinata in Web 3? We explain!
  63. 63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?
  64. 64. What are smart contract audits? Which companies are involved?
  65. 65. How does the AirGapped wallet work?
  66. 66. What is proto-danksharding (EIP-4844) on Ethereum?
  67. 67. What is decentralised storage and how does it work?
  68. 68. How to Recover Cryptocurrencies Sent to the Wrong Address or Network: A Practical Guide
  69. 69. MPC Wallet and Multilateral Computing: Innovative Technology for Privacy and Security
  70. 70. Threshold signature in cryptography: an advanced signing technique!
  71. 71. Vanity address in cryptocurrencies: what is it and what are its characteristics?
  72. 72. Reentrancy Attack on smart contracts: a threat to blockchain security!
  73. 73. Slither: a static analyser for smart contracts!
  74. 74. Sandwich Attack at DeFi: explanation and risks!
  75. 75. Blockchain RPC for Web3: A key technology in the world of decentralized finance!
  76. 76. Re-staking: the benefits of re-posting in staking!
  77. 77. Base: Evolving cryptocurrency transactions with a tier-2 solution from Coinbase
  78. 78. IPFS: A new era of decentralized data storage
  79. 79. Typical vulnerabilities and bridge security in blockchain technology
Lesson 15 of 79
In Progress

15. Zero-knowledge proof – a protocol that respects privacy 

Blockchain technology gives us many benefits, but we have to keep in mind that there is still a lack of privacy for some transactions made through the blockchain. And this is where Zero-knowledge proof steps in and helps, like a knight on a white horse. Combining zero knowledge proof with blockchain gives the user incredible security. So let’s take a closer look at this phenomenon.

How does the zero knowledge protocol work?

Cryptographic protocols are exchange rules edited by the network to manage and secure communications.

Zero knowledge proof is an encryption algorithm. Basically, a mathematical technique for verifying the veracity of information, without revealing the information itself. It distinguishes between two basic “jobs”: the verifier and the verified. How does it work? Using ZKP, the verifier can prove the veracity of the information received to the verified, without revealing any additional information.

To enable such verification, projects using ZKP use several cryptographic algorithms. E.g., using the ZKP method, the payee can verify that the payer who owes him money has the correct amount of money in his account, while not getting any information about the payer’s balance.

Zero-knowledge proof is generally used to enhance the functionality of blockchain technology. The proof provides flexibility and choice to users who value control and freedom, over the information they share. The protocol was invented by Silvio Micali, Shafi Goldwasser and Charles Rackoff in the 1980s. So, as you can see, ZKP was created even earlier than Blockchain.

Types of evidence of zero knowledge:

There are two main types of zero knowledge evidence:

●   Interactive, which consist of tasks or activities that the proof writer performs. The effect is to convince the verifier that they have a particular piece of information. The tasks undertaken in the context of interactive PCAs mainly concern concepts related to mathematical probability.

●   Non-interactive, as the name suggests, requiring no interaction between the verifier and the verified. Confirmation or verification may occur at a later stage. Therefore, non-interactive FPCs require the use of additional computers or software.

In order for zero-knowledge evidence to work in a given system or protocol, it must meet three conditions:

●   They must be complete. What does this mean? If the data presented by the prover is true, the ZKP must enable the verifier to check whether the verified person (prover) is telling the truth.

●   It must be reliable. If the prover is lying, the ZKP must allow the verifier to refute his thesis.

●   And finally – zero knowledge. The verifier knows nothing except that the statement itself is true or false. The details and personal information of the parties remain fully anonymous.

ZKP – advantages and disadvantages

AdvantagesDisadvantages
It does not require complex encryption methods in its operation.The ZKP is limited. It is usually based on mathematical equations and numerical answers.
It does not disclose any personal information of users in public blockchains.Furthermore, it requires enormous computing power to make it work. There are over 2000 calculations per ZKP transaction. And each of these takes time to process properly.
It takes care of and even improves information security by replacing ineffective authentication methods.It works similarly to a cryptocurrency wallet. If the initiator of the transaction forgets their details – all is lost.
It makes the throughput and scalability of Blockchain greater.It is very vulnerable, especially to quantum computing.

Examples of application of ZKP

✔ It is known – blockchain. The use of ZKP provides transparency of the blockchain, such as Ethereum or Bitcoin. It allows for public verification of transactions. Zero-knowledge proofs definitely introduce more privacy into public chains.

✔ Finance. The ING bank, for example, uses this proof. If a loan applicant wishes to consult it, they can prove that their income is within the permissible range, while keeping the monthly salary information to themselves.

✔ Authentication. ZKP is the ideal way to authenticate users, without exchanging secret information such as passwords.

✔ Online voting. Evidence provides the opportunity to vote anonymously, while verifying to voters whether their vote has been counted.

✔ Machine learning. With ZKP, the owner of a machine learning algorithm can convince others of the results about a given model without revealing any information about the model itself.

Summary

Although Zero-knowledge proof offers many possibilities, at the same time it does not give us a 100% guarantee of a claim. Let us remember that zero-knowledge proofs are not real mathematical proofs. The probability of verification by the verifier when the prover lies is still very low. We also mentioned that one of the downsides of ZKP is the need for huge computing power. This makes null proofs unsuitable for slow, mobile devices.

Purchase your favorite tokens on Kanga Exchange