While the inherent openness of blockchains is often a benefit, there are some use cases for smart contracts that demand privacy for a variety of commercial or legal reasons, such as when utilizing confidential information as an input to start a smart contract.

Zero-knowledge proofs (ZKPs), which allow one party to cryptographically demonstrate to another that they have knowledge of a piece of information without disclosing the actual underlying information, are becoming a more popular method for achieving anonymity on public blockchain networks. In the context of blockchain networks, a ZKP only provides on-chain information indicating that some hidden information is accurate and is known to the prover with a high degree of certainty.

In this article, we examine how zero-knowledge proofs function to secure users’ privacy, their main advantages, and its future in crypto industry. Let’s begin.

What is ZK proof?

Using a cryptographic technique called zero-knowledge proof, no information is disclosed during a transaction other than the exchange of a value that is known to both the prover and the verifiers (the two ends of the procedure). Zero-knowledge proof is a way for a user to demonstrate to another user that they are aware of an absolute value without actually disclosing any additional or further information.

ZK proofs include the following characteristics:

• Completeness: If the proposition is true and both the prover and the verifier follow the procedure, the verifier will accept the proof with a high probability.
• Soundness: Unless exceedingly unusual circumstances exist, no prover should be able to convince the verifier that the claim is false if it is true.
• Zero-knowledge: Even after conversing with the prover, the verifier still only knows that the assertion is true and knows nothing else about the secret.

Types of Zero Knowledge Proof

The two fundamental types of ZKPs include the following:

• Interactive ZKP: In this, a prover must reach out to a particular verifier. For this, the prover will have to complete a set of tasks. The procedure gets repeated for all verifier.
• Non-interactive ZKP: There is no voluntary interaction between verifier and prover. In this, the prover will have to produce a piece of evidence that anyone can verify and then the process can be deferred. They need specialized software to enhance the non-interactive ZKPs’ mechanism.

Be it any kind, zero knowledge proof must also uphold the following characteristics.

• The statement is the only thing the verifier will learn. It should only take a few milliseconds to complete a challenge if it needs to be brief.
• The proof must adhere to the soundness principle and use zero-knowledge encryption.
• The prover and verifier can only continue when there is a reliable witness.

What are the benefits of using Zero Knowledge Proof projects?

Here are the primary benefits of using  Zero Knowledge Proof projects – 

• Level Up Privacy & Security: One of the primary perks of using Zero-knowledge-proof projects is that they act as a shield to all your sensitive data. ZKP permits you to highlight a sneak peek of the information without disclosing the actual piece of data. This cryptographic technology adds a layer of privacy to your data, preventing unauthorized access and thereby cutting off the chances of data breaches and identity theft. 
• Storage Protection: Zero-knowledge proof comes with a protocol that protects not just the storage unit but also the information contained within it. Needless to add, the access routes are likewise secure in order to provide a smooth and secure experience.
• Tokenization & Verification of Ownership: One of the most promising perks of using Zero-knowledge proofs projects is allowing you to tokenize and verify assets within a blink. For instance, using ZK Proof technology, you can easily tokenize any asset, whether it is property or any other digital asset, and anyone can verify its ownership. The best thing here is your sensitive data will not be hampered during the verification process.
• Data Minimization: ZK Proof exposes simply the information that is absolutely necessary, protecting additional records. This approach, additionally referred to as data minimization, reduces the chance of data leakage as well as cuts off the attack surface for potential hackers.
• Decentralization and Blockchain: Zero Knowledge Proof projects clearly supplement blockchain technology. They allow for interactions on blockchain networks without revealing transaction info, making your data immutable and protected. This arrangement pushes the development of the two most important components of the digital economy, which are decentralized applications and smart contracts.

Conclusion

Decentralization and privacy preserving technology of zero knowledge proof makes it’s a rather unique choice for the industries to get the best of both worlds. The technology can save the datasets and be utilized in the dependable execution environments of smart contract use cases . It is something that will get much more traction in the future. The part about ZK proof projects is that there is always a room for improvement and scalability that often lacks in the competitive technology.