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What is ZK
by Alex

ZK or Zero Knowledge, refers to the use of zero-knowledge protocols that allow users to verify their knowledge of certain critical data or ownership rights without revealing the confidential details themselves, such as private wallet keys.

There are several different types of zero-knowledge protocols (ZK), each of which has its own characteristics and applications. Some of the most well-known types of ZK include:

1. ZK-Proof of knowledge: This type of ZK protocols allows you to prove that a participant has certain information without disclosing the information itself. For example, it is possible to prove knowledge of a secret key without disclosing it.

2. ZK-Proof of statements: These protocols allow you to prove the correctness of a statement without disclosing related data. For example, you can prove that a certain number is a solution to an equation without revealing the solution itself.

3. ZK-evidence with observers: This kind of ZK allows you to prove some statement with the participation of a third party, called an observer, who can verify the proof without disclosing confidential data.

4. ZK-evidence of interaction: These protocols involve interaction between two or more parties, which allows one party to prove to the other the correctness of a certain statement without disclosing unnecessary information.

These are just a few examples of the types of ZK protocols, and there are other options and combinations of these methods for various use cases.

👉 What are the most famous zero-proof solutions?

ZK-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) is a specific type of ZK (Zero-Knowledge) protocol used to prove the validity of a statement without revealing the underlying information. It is part of cryptographic protocols designed to ensure confidentiality and security in various domains such as cryptocurrencies, blockchain, and computer security.

1. ZK-SNARK allows proving that you possess certain information without disclosing the information itself. It provides the following features:

2. Zero Knowledge: The proof does not disclose confidential data.

3. Succinctness: Proofs generated by ZK-SNARK are relatively short and can be verified quickly.

4. Non-Interactivity: The proof occurs unilaterally without the need for interaction between parties.

This type of protocol has become particularly relevant in the context of cryptocurrencies such as Zcash, where it is used to ensure transaction privacy. ZK-SNARK enables proving the validity of a transaction without revealing details about its sender, recipient, or amount. This has made ZK-SNARK an important tool for creating confidential and secure blockchains and cryptocurrency protocols.

👉 ZK-STARK (Zero-Knowledge Scalable Transparent Argument of Knowledge) is another type of ZK (Zero-Knowledge) protocol, which, like ZK-SNARK, is used to prove the truth of a statement without revealing the underlying information. However ZK-STARK differs from ZK-SNARK in several key aspects.

ZK-STARK was designed with scalability and transparency in mind, and unlike ZK-SNARK, it does not require trust in a centralized party when generating proofs. Key characteristics of ZK-STARK include:

1. Scalability: ZK-STARK is capable of handling large volumes of data, making it suitable for a wide range of applications, including public blockchains.

2. Transparency: Unlike ZK-SNARK, ZK-STARK provides transparency, meaning that proofs can be verified without the need to trust specific participants or keys.

3. Quantum-computing security: ZK-STARK provides security even in the context of potential attacks by quantum computers.

The use of ZK-STARK can be particularly valuable in the blockchain and cryptocurrency space, where high scalability and transparency are required without compromising confidentiality. This protocol can be applied to ensure transaction privacy and to verify the execution of smart contracts without revealing confidential data.

👉 ZK-Rollups is a blockchain scaling technology that utilizes zero-knowledge principles for data compression and network performance enhancement. The main idea is to aggregate numerous transactions into a single compressed proof set, which is then published on the blockchain. This proof set contains zero information about transaction details, while maintaining their integrity and validity.

By using ZK-Rollups, the blockchain can process a large number of transactions in a single block without increasing its size or processing time. This significantly improves network performance and reduces transaction fees.

One of the key advantages of ZK-Rollups is that they maintain a high level of blockchain security, as the proofs used to confirm transactions are verified on the blockchain. At the same time, ZK-Rollups ensure user data confidentiality since transaction details are not disclosed.

Thus, ZK-Rollups offer an effective solution for blockchain scalability while preserving its security and confidentiality. They are actively utilized in various blockchain projects to increase throughput and reduce transaction costs.

👉 Optimistic Rollups are a blockchain scaling method that serves as an alternative to ZK-Rollups. Unlike ZK-Rollups, which use zero-knowledge proofs for data compression and proof creation, Optimistic Rollups rely on an "optimistic" approach to transaction verification.

In Optimistic Rollups, all transactions are first executed and confirmed off-chain. Then, only a brief summary, indicating the results of the transactions rather than the transactions themselves, is published on the blockchain. This process is called "rollup".

In the case of Optimistic Rollups, it is assumed that the majority of transactions will be properly confirmed, and only in the event of a dispute or incorrect execution of a transaction does the network apply a mechanism for dispute resolution. During dispute resolution, a complete check of executed transactions occurs to ensure their correctness.

Optimistic Rollups offer higher flexibility and reduce network load by reducing the volume of data published on the blockchain. However, they also require mechanisms for dispute resolution and handling incorrect transactions.

👉 Hybrid Rollups are a variation of rollup technology that combines elements of both optimistic and ZK (Zero-Knowledge) rollups to achieve an optimal balance between efficiency, security, and privacy.

In hybrid rollups, the principles of optimistic rollups are utilized to execute and confirm the majority of transactions off-chain, followed by publishing a brief proof of transaction execution on-chain. However, unlike pure optimistic rollups, where disputes trigger a full verification of all transactions, hybrid rollups may incorporate additional security and privacy provisions using ZK-proofs.

The use of ZK-proofs in hybrid rollups enables an additional level of privacy, as transaction details can remain concealed even in case of disputes or during verification. Meanwhile, a high level of security is maintained through the application of optimistic rollup principles to confirm transaction execution.

Hybrid rollups represent a compromise between optimistic and ZK rollups, allowing for the combination of advantages from both technologies to achieve maximal efficiency and security in blockchain scalability.

👉 Here are the main differences between the listed Zero-Knowledge (ZK) technologies:

1. ZK-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge):

- ZK-SNARK is a formula that allows proving the fulfillment of conditions without disclosing specific data.

- It's a non-interactive method that doesn't require additional information exchange between parties.

2. ZK-STARK (Zero-Knowledge Scalable Transparent Argument of Knowledge):

- ZK-STARK is a more modern version of ZK-proofs, possessing greater scalability and transparency.

- A distinguishing feature of ZK-STARK is the ability to generate proofs without using private keys.

3. ZK-Rollups:

- ZK-Rollups are a blockchain scaling method that compresses transaction data into a compact set and publishes it on the blockchain.

- They provide high blockchain throughput by minimizing the amount of data published on-chain.

4. ZK Optimistic Rollups:

- ZK Optimistic Rollups are also a blockchain scaling method based on an optimistic approach to transaction verification.

- In this approach, transactions are first executed off-chain and then confirmed on-chain.

5. ZK Hybrid Rollups:

- Hybrid rollups combine the principles of optimistic and ZK rollups to achieve a balance between efficiency, security, and privacy.

- They use optimistic methods to execute most transactions off-chain, as well as ZK-proofs to provide additional confidentiality and security.

👉 The Zero-Knowledge (ZK) technology has the potential to become a key element in the cryptocurrency and blockchain industry in the future. Here are some perspectives and directions for the development of ZK technology:

- Privacy and Confidentiality: ZK technology provides a high level of privacy, allowing network participants to prove knowledge of certain data without disclosing it. This makes ZK technology attractive for various applications, including anonymous transactions, protection of personal data, and confidential deals.

- Scalability: The use of ZK technology, such as ZK-Rollups, can help address the scalability issue of the blockchain by processing a large number of transactions in a compressed format, minimizing storage and data processing costs.

- Enhanced Security: ZK proofs can be used to provide an additional level of security in various blockchain applications, such as identity management, auditing, and access control.

- Interoperability: The adoption of ZK technology can improve interoperability between different blockchains and cryptocurrency networks, ensuring secure and confidential interaction between them.

- Blockchain in the Digital Economy: ZK technology can become a key element of the digital economy, supporting secure and private transactions, management of digital assets, and the creation of new forms of business.

Thus, ZK technology has broad prospects and can become an important factor in the development of the cryptocurrency and blockchain industry, providing improvements in privacy, scalability, and security.