Zero-Knowledge Proofs and Their Application in Blockchain Privacy Solutions

As the digital world that we are in right now keeps advancing and keeps developing, one of the major challenges is the aspect of privacy of individuals because in as much as the crypto or the Blockchain world keeps developing and keeps advancing, it is something of a beauty to actually admire and the fact that the Blockchain technology offers this transparency is the main advantage.

Image Source

But in as much as it offers this massive advantage, I will say it also comes with its own disadvantages and one of them is tampering with the privacy that individuals or even organisations should actually have. Every blessed day, it is getting more difficult as the problem is causing more challenges but one of the major solutions that has been given is the aspect of the zero knowledge proofs which has been put in place to actually enhance privacy so that both trust and security can be achieved.

Before I go deeper, I will like to establish what Zero knowledge proof is. They works in a way whereby it gives this advantage for one party to give their knowledge they have to the other party. Of course it was started by Shafi Goldwasser in the year 1980 and since then have grown to become something but. There are some major characteristics I have come to discover that ZKPs have which makes it to stand out.

Image Source

The first one of course is completeness. Completeness in the sense that a statement is always true. It also gives this soundness whereby if perhaps a statement turns out to be false, there is a dishonest prover for it. The last one is what I called the zero knowledge also. All these major attributes I talked about give ZKPs a massive added advantage.

There is a need for privacy in the Blockchain which I will like to talk about. The fact that Blockchain works in a very transparent manner which helps to makes sure that accountants is achieved, sometimes that transparency is misunderstood and which can even lead to some very sensitive and private informations and data to be exposed and leaked which at the end of the day tamper with the privacy of the information or the individuals that owns those information or data. In financial transactions, there is a need to have privacy to protect the personal identity of the person involved in the financial transactions.

There are a whole lot of application of zero knowledge in the Blockchain that I believe if we can make use of can go a long way to promote the privacy on the Blockchain technology. The first is the private transactions most especially in the aspect of the financial world. The second one is the aspect of identity verification. It goes a long way to help users verify their identity by not making them expose some vital or should I say sensitive aspect of their information.