How to Implement Zero-Knowledge Proof in Blockchain Applications

Karolina

30 May 2023
How to Implement Zero-Knowledge Proof in Blockchain Applications

As the importance of security and trust have grown within the blockchain technology sphere, it has become vital to establish strong methods for safeguarding sensitive information and maintaining privacy. Zero-knowledge proof, a mechanism that has attracted considerable interest, allows for the verification of data without exposing the actual content. In this article, we will delve into the effective incorporation of zero-knowledge proof within blockchain applications. We will explain how to implement Zero-Knowledge Proof in Blockchain Application. By comprehending its underlying principles and complexities and adhering to the steps detailed below, businesses can utilize this influential instrument to enhance their blockchain solutions in terms of privacy, integrity, and authentication.

Understanding Zero-Knowledge Proof

Fundamentally, zero-knowledge proof is a cryptographic notion permitting one entity, termed as the prover, to demonstrate the accuracy of a certain claim to another entity, called the verifier, without disclosing any details about the claim itself. Put simply, zero-knowledge proof allows the prover to persuade the verifier of a statement's truth while keeping the relevant data or knowledge hidden. This concept was first put forward by Shafi Goldwasser, Silvio Micali, and Charles Rackoff in 1985 and has since emerged as an indispensable resource in maintaining data privacy and security.

For a zero-knowledge proof to be successful, it requires four main elements. The prover, the verifier, the statement, and the proof. The prover is responsible for establishing the truthfulness of a statement without divulging any actual information. On the other hand, it is up to verifier to confirm that proof offered by prover is accurate without acquiring any knowledge concerning underlying details. Meanwhile, the statement symbolizes what the prover seeks to validate whereas proof embodies evidence supplied by prover in order to persuade verifier regarding validity of said statement.

Why Use Zero-Knowledge Proof in Blockchain?

The blockchain technology, characterized by its decentralized nature, transparency, and immutability, has revolutionized various sectors. However, as much as transparency is a boon in blockchain applications, it can sometimes become a bane when it comes to privacy. This is where the concept of Zero-Knowledge Proof (ZKP) comes into play.

Benefits of Zero-Knowledge Proof in Blockchain

Zero-Knowledge Proofs offer several advantages that make them an attractive choice for enhancing privacy and security in blockchain applications:

  • Enhanced Privacy: ZKP allows users to verify transactions without revealing any additional information beyond the fact that the transaction is valid. This helps protect sensitive information from being publicly accessible on the blockchain.
  • Reduced Fraud: By ensuring that only valid transactions are added to the blockchain, ZKPs can significantly decrease the potential for fraudulent activity.
  • Increased Efficiency: In some scenarios, ZKP can reduce the amount of data that needs to be stored on the blockchain. With ZKP, the proof of a transaction's validity can be much smaller than the transaction data itself.
  • Greater Interoperability: ZKP enables secure interactions between different blockchain systems, facilitating cross-chain transactions and increasing the overall interoperability of the blockchain ecosystem.

Current Applications of Zero-Knowledge Proof in Blockchain 

There are several notable applications currently using Zero-Knowledge Proofs to enhance their operations:

  • Zcash: This cryptocurrency uses ZKP (specifically a variant called zk-SNARKs) to provide its users with the option to hide the sender, receiver, and value of transactions, all while allowing network miners to verify transactions without gaining any knowledge about the specifics.
  • Ethereum: Ethereum has been exploring the integration of ZKP to improve both privacy and scalability. It aims to enable private transactions and to create off-chain transactions that can be verified on-chain.
  • StarkWare: StarkWare uses ZKP (specifically zk-STARKs) to enhance scalability and privacy in various applications, including decentralized exchanges and gaming platforms. The technology enables processing and verification of large amounts of data off-chain, reducing the load on the blockchain itself.

These examples illustrate the diverse uses and potential of Zero-Knowledge Proofs in blockchain applications. The ability to prove and verify transactions without revealing any additional information is a powerful tool that can significantly enhance the privacy, security, and efficiency of blockchain systems.

How to Implement Zero-Knowledge Proof in blockchain applications

The initial step involves a comprehensive grasp of ZKP and its variants such as zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) and zk-STARKs (Zero-Knowledge Scalable Transparent ARguments of Knowledge). This involves studying cryptographic principles, mathematical concepts, and computational theories underpinning these proofs.

Read our Ultimate Guide to ZKP: zk-SNARKs vs zk-STARKs

The next phase of 'How to Implement Zero-Knowledge Proof' requires understanding the blockchain platform. This includes knowledge of the platform's architecture, its scripting language, and its privacy and security protocols. The choice of platform may depend on the specific requirements of the application, as different platforms offer varying degrees of support for ZKP.

The actual implementation process begins with defining the private and public inputs for the proof. The private inputs are the data that the prover wants to keep secret. The public inputs are the information that can be openly shared. A 'witness' is then generated, which is a solution to the mathematical problem defined by these inputs.

The next step is the creation of a proving key and a verification key, using a setup algorithm. The proving key generates proofs, and the verification key checks the validity of these proofs. After this, the prover uses the proving key and the witness to create a proof. It asserts that they know a solution to the problem without revealing the solution itself.

Once the proof is generated, it can be verified by anyone using the verification key. This ensures that the proof is valid and that the prover knows the private inputs. All without revealing any additional information.

After the successful verification of the proof, it can be integrated into the blockchain application. This could involve creating transactions that include the proof, or setting up smart contracts that require a valid proof to execute certain functions.

Challenges and Considerations

Incorporating zero-knowledge proof into blockchain applications entails numerous hurdles and deliberations. To capitalize on the advantages of zero-knowledge proof, grasping and alleviating these challenges is vital. Some important aspects to take into account are:

Operational Overhead and Proficiency

Assessing Performance Consequences: The computations in zero-knowledge proof can be demanding, possibly impacting blockchain applications' performance. It is critical to examine the operational overhead induced by the chosen protocol and refine it as much as feasible.

Refinement Approaches: Investigating methods like enhanced algorithms, parallel computation, or assigning calculations to specialized equipment can help alleviate operational overhead and boost efficiency.

Expandability and Compatibility

Tackling Expandability Issues: Zero-knowledge proof protocols might cause challenges in expandability when employed on a massive scale. As the blockchain network expands, both computational necessities and communication intricacies of zero-knowledge proofs can considerably rise. Inspecting expandability solutions, like sharding or layer-two protocols, assists in surmounting these issues.

Compatibility Among Networks: Certifying harmony and compatibility of implementations amidst various blockchain networks is essential for unobstructed collaboration between diverse systems. Contemplate standards and protocols that enable cross-chain interaction to accomplish compatibility.

Security Threats and Confidence Presumptions

Scrutinizing Assumptions and Vulnerabilities. ZKP protocols are founded on distinct assumptions and cryptographic building blocks. Evaluating assumed premises and possible susceptibilities tied to the chosen protocol is imperative. Staying up-to-date with any breakthroughs or latent flaws in the protocol aids in maintaining long-term security.

Supplementary Security Precautions. Although zero-knowledge proofs deliver superior privacy and security, one should not be overly dependent on them. Implementing supplementary safety measures, like secure key administration, encryption, and stringent access control, offers extra levels of safeguarding.

Thorough contemplation of these hurdles and addressing them throughout the implementation stage enables organizations to surmount potential impediments and effectively integrate zero-knowledge proof into their blockchain applications. It is critical to stay current with the newest research and developments in zero-knowledge proof methods to warrant the security, efficacy, and expandability of the executed solution.

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Nextrope as Sponsor at ETH Warsaw 2024: Highlights

Miłosz

04 Oct 2024
Nextrope as Sponsor at ETH Warsaw 2024: Highlights

ETH Warsaw has established itself as a significant event in the Web3 space, gathering developers, entrepreneurs, and investors in the heart of Poland’s capital each year. The 2024 edition was filled with builders and leaders united in advancing decentralized technologies.

Leading Event of Warsaw Blockchain Week

As a blend of conference and hackathon, ETH Warsaw aims to push the boundaries of innovation. For companies and individuals eager to shape the future of tech, the premier summit during Warsaw Blockchain Week offers a unique platform to connect and collaborate.

Major Milestones in Previous Editions

  • Over 1,000 participants attended the forum
  • 222 hackers competed, showcasing groundbreaking technical skills
  • $119,920 in bounties was awarded to boost promising solution development

Key Themes at ETH Warsaw 2024

This year’s discussions were centered around shaping the adoption of blockchain. To emphasize that future implementation requires a wide range of voices, perspectives, and understanding, ETH Warsaw 2024 encouraged participation from individuals of all backgrounds. As the industry stands on the cusp of a potential bull market, building resilient products brings substantial impact. Participants mutually raised an inhibitor posed by poor architecture or suspicious practices.

Infrastructure and Scalability

  • Layer 2 (L2) solutions
  • Zero-Knowledge Proofs (ZKPs)
  • Future of Account Abstraction in Decentralized Applications (DApps)
  • Advancements in Blockchain Interoperability
  • Integration of Artificial Intelligence (AI) and Machine Learning Models (MLMs) with on-chain data

Responsibility

With the premise of robust blockchain systems, we delved into topics such as privacy, advanced security protocols, and white-hacking as essential tools for maintaining trust. Discussions also included consensus mechanisms and their role in the entire infrastructure, beginning with transparent Decentralized Autonomous Organizations (DAOs).

Legal Policies

The track on financial freedom led to the transformative potential of decentralized finance (DeFi). We tackled the challenges and opportunities of blockchain products within a rapidly evolving regulatory landscape.

Mass Adoption

Conversations surrounding accessible platforms underscored the need to simplify onboarding for new users, ultimately crafting solutions that appeal to mainstream audiences. Contributors explored ways to improve user experience (UX), enhance community management, and support Web3 startups.

ETH Legal, co-organized with PKO BP and several leading law firms, studied the implementation of the MiCA guidelines starting next year and affecting the market. It aimed to dissect the complex policies that govern digital assets.

Currently, founders navigate a patchwork of regulations that vary by jurisdiction. There is a clear need for structured protocols that ensure consumer protection and market integrity while attracting more users. Legal experts broke down the implications of existing and anticipated changes on decentralized finance (DeFi), non-fungible tokens (NFTs), business logic, and other emerging technologies.

The importance of ETH Legal extended beyond theoretical discussions. It served as a vital forum for stakeholders to connect and share insights. Thanks to input from renowned experts in the field, attendees left with a deeper understanding of the challenges ahead.

Warsaw Blockchain Week: Nextrope’s Engagement

The Warsaw Blockchain Week 2024 ensured a wide range of activities, with a packed schedule of conferences, hackathons, and networking opportunities. Nextrope actively engaged in several side events throughout the week and recognized the immense potential to foster connections.

Side Events Attended by Nextrope

  • Elympics on TON
  • Aleph Zero Opening Party
  • Cookie3 x NOKS x TON Syndicate
  • Solana House

Nextrope’s Contribution to ETH Warsaw 2024

At ETH Warsaw 2024, Nextrope proudly positioned itself as a Pond Sponsor of the conference and hackathon, reflecting the event's mission. Following a strong track record of partnerships with large financial institutions and startups, we seized the opportunity to share our reflections with the community.

Together, we continue to innovate toward a more decentralized and inclusive future. By actively participating in open conversations about regulatory and technological advancements, Nextrope solidifies its role as an exemplar of dedication, forward-thinking, and technological resources.

Nextrope on Economic Forum 2024: Insights from the Event

Kajetan Olas

14 Sep 2024
Nextrope on Economic Forum 2024: Insights from the Event

The 33rd Economic Forum 2024, held in Karpacz, Poland, gathered leaders from across the globe to discuss the pressing economic and technological challenges. This year, the forum had a special focus on Artificial Intelligence (AI and Cybersecurity, bringing together leading experts and policymakers.

Nextrope was proud to participate in the Forum where we showcased our expertise and networked with leading minds in the AI and blockchain fields.

Economic Forum 2024: A Hub for Innovation and Collaboration

The Economic Forum in Karpacz is an annual event often referred to as the "Polish Davos," attracting over 6,000 participants, including heads of state, business leaders, academics, and experts. This year’s edition was held from September 3rd to 5th, 2024.

Key Highlights of the AI Forum and Cybersecurity Forum

The AI Forum and the VI Cybersecurity Forum were integral parts of the event, organized in collaboration with the Ministry of Digital Affairs and leading Polish universities, including:

  • Cracow University of Technology
  • University of Warsaw
  • Wrocław University of Technology
  • AGH University of Science and Technology
  • Poznań University of Technology

Objectives of the AI Forum

  • Promoting Education and Innovation: The forum aimed to foster education and spread knowledge about AI and solutions to enhance digital transformation in Poland and CEE..
  • Strengthening Digital Administration: The event supported the Ministry of Digital Affairs' mission to build and strengthen the digital administration of the Polish State, encouraging interdisciplinary dialogue on decentralized architecture.
  • High-Level Meetings: The forum featured closed meetings of digital ministers from across Europe, including a confirmed appearance by Volker Wissing, the German Minister for Digital Affairs.

Nextrope's Active Participation in the AI Forum

Nextrope's presence at the AI Forum was marked by our active engagement in various activities in the Cracow University of Technology and University of Warsaw zone. One of the discussion panels we enjoyed the most was "AI in education - threats and opportunities".

Our Key Activities

Networking with Leading AI and Cryptography Researchers.

Nextrope presented its contributions in the field of behavioral profilling in DeFi and established relationships with Cryptography Researchers from Cracow University of Technology and the brightest minds on Polish AI scene, coming from institutions such as Wroclaw University of Technology, but also from startups.

Panel Discussions and Workshops

Our team participated in several panel discussions, covering a variety of topics. Here are some of them

  • Polish Startup Scene.
  • State in the Blockchain Network
  • Artificial Intelligence - Threat or Opportunity for Healthcare?
  • Silicon Valley in Poland – Is it Possible?
  • Quantum Computing - How Is It Changing Our Lives?

Broadening Horizons

Besides tuning in to topics that strictly overlap with our professional expertise we decided to broaden our horizons and participated in panels about national security and cross-border cooperation.

Meeting with clients:

We had a pleasure to deepen relationships with our institutional clients and discuss plans for the future.

Networking with Experts in AI and Blockchain

A major highlight of the Economic Forum in Karpacz was the opportunity to network with experts from academia, industry, and government.

Collaborations with Academia:

We engaged with scholars from leading universities such as the Cracow University of Technology and the University of Warsaw. These interactions laid the groundwork for potential research collaborations and joint projects.

Building Strategic Partnerships:

Our team connected with industry leaders, exploring opportunities for partnerships in regard to building the future of education. We met many extremely smart, yet humble people interested in joining advisory board of one of our projects - HackZ.

Exchanging Knowledge with VCs and Policymakers:

We had fruitful discussions with policymakers and very knowledgable representatives of Venture Capital. The discussions revolved around blockchain and AI regulation, futuristic education methods and dillemas regarding digital transformation in companies. These exchanges provided us with very interesting insights as well as new friendships.

Looking Ahead: Nextrope's Future in AI and Blockchain

Nextrope's participation in the Economic Forum Karpacz 2024 has solidified our position as one of the leading, deep-tech software houses in CEE. By fostering connections with academia, industry experts, and policymakers, we are well-positioned to consult our clients on trends and regulatory needs as well as implementing cutting edge DeFi software.

What's Next for Nextrope?

Continuing Innovation:

We remain committed to developing cutting-edge software solutions and designing token economies that leverage the power of incentives and advanced cryptography.

Deepening Academic Collaborations:

The partnerships formed at the forum will help us stay at the forefront of technological advancements, particularly in AI and blockchain.

Expanding Our Global Reach:

The international connections made at the forum enable us to expand our influence both in CEE and outside of Europe. This reinforces Nextrope's status as a global leader in technology innovation.

If you're looking to create a robust blockchain system and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.