Zero-knowledge: the remarkable science of keeping secrets secret

In an era where data breaches loom as a persistent threat, the need for robust solutions ensuring data confidentiality has never been more critical. With local laws tightening data security requirements globally, organizations face a challenge in protecting sensitive information, such as government defense contracts, trade secrets, healthcare data, and financial records.

Have you been hearing about zero-knowledge (ZK) technology more often lately? Wondering what it is and why it matters? We're here to help you understand the basics, let's demystify some ‘secrets’.

What is zero-knowledge technology?

ZK involves two parties: a prover and a verifier.

• The prover holds confidential information they can’t disclose. They can convince the verifier that a statement with regard to this information is true without sharing the actual information.?
• For this, the system generates a zero-knowledge proof (ZKP) as validation.
• The verifier validates the proof without knowing the actual information, only the statement that proves the truth of the information.

The ‘treasure chest’ example

Imagine you have a secret code that unlocks a treasure chest. You want to prove to your friends that you know the code, but you won’t reveal it to them.

You gather with your friends around the locked treasure chest and declare that you possess the secret code to open it.

To demonstrate your knowledge of the code without revealing it, you ask your friends to step outside the room. Then, you call your friends back into the room and they see that you managed to open the chest. They recognized your ability to open the chest and never found out the actual code. You proved your knowledge without revealing the secret!

How ZKPs work

ZKPs use cryptographic algorithms to prove that certain statements are true.?

There are different types of ZKP protocols, which differ in performance and cryptographic assumptions. Read this blog post to learn more about the types of ZKP protocols.?

Here’s a breakdown of the common ZKP types:

In ZKP technology, ZK Snarks is the most attractive proving system from the verifier’s perspective. By ensuring both efficiency and strong security guarantees, Snarks are a ‘Swiss army knife’ for blockchains and distributed ledgers, with applications in data protection, interoperability, and scalability.

Applications

Learn more about some possible ZK Snarks applications:?

In data protection, ZK Snarks can be applied to process confidential smart contracts and payments, for identity management, and voting, for example.

Sidechains can use ZK-Snarks for secure and efficient cross-chain transactions, ensuring seamless interoperability and enhanced scalability.

Snarks applications are also beneficial for blockchain oracles and light clients, reducing verification costs, optimizing data storage, and ensuring verified transaction integrity for enhanced efficiency and scalability.

Conclusion

Input Output Global, Inc. (IOG) recognizes the paramount significance of zero-knowledge proofs in the realm of blockchain technology.?

With its establishment of ZK-Lab in 2022, IOG solidifies its commitment to researching the foundations and applications of ZKPs, prioritizing security and performance. This investment is exemplified by collaboration with esteemed research institutions. Past success stories include ZK Snark proof systems such as Sonic, applications of ZK such as Zswap and PEReDi, and a line of work on real-world aspects of security with a variety of research papers. Together these works lay the foundation for further research and implementations of Snarks in a blockchain setting.

The hiring of Vanishree Rao as head of cryptography further underscores IOG's dedication to advancing zero-knowledge proof expertise.?

Looking ahead, we can anticipate even greater integration of ZKPs in decentralized solutions, revolutionizing the landscape of secure smart contracts and confidential asset management.?

Midnight, a data protection blockchain platform from IOG that securely safeguards sensitive commercial and personal data, is launching soon on devnet. Stay tuned to learn more about how Midnight will leverage ZK technology.