Zero-Knowledge is one of the most hyped narratives that we have for the upcoming bull market. Soon, projects will start popping up more and more, and CoinMarketCap will be filled with ZK this and ZK that. Therefore, we need to understand what this is and the difference between SNARKs , roll-ups and starks.
Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARKs)
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zk-SNARKs allow one party (the prover) to prove to another party (the verifier) the validity of a statement without revealing any additional information beyond the fact that the statement is true. They are succinct, non-interactive, and rely on a trusted setup phase.
How zk-SNARKs Operate
Setup Phase: Cryptographic parameters are generated, often requiring a trusted setup.
Prover's Computation: The prover constructs a proof demonstrating the validity of a statement without revealing sensitive information.
Verification: The verifier checks the proof's validity without needing access to the underlying data.
Solving Ethereum's Layer 1 Challenges
Scalability: zk-SNARKs enable batching of transactions, reducing the computational load on Ethereum's main chain and increasing throughput.
Privacy: They allow for confidential transactions, concealing sender, receiver, and transaction amount information, enhancing privacy on the blockchain.
Zero-Knowledge Rollups (ZK-Rollups)
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ZK-Rollups are Layer 2 scaling solutions that aggregate multiple transactions off-chain while maintaining the security guarantees of the main chain. They utilize zero-knowledge proofs for transaction validation.
How ZK-Rollups Operate
Data Availability: Transaction data is posted on the main chain for transparency and verification purposes.
Computation Offloading: Transaction processing occurs off-chain, with zero-knowledge proofs generated to demonstrate their validity.
Verification: Validators on the main chain verify the correctness of the proofs without needing to execute the transactions themselves.
Solving Ethereum's Layer 1 Challenges
Scalability: ZK-Rollups significantly increase Ethereum's transaction throughput by offloading computation to Layer 2, reducing congestion on Layer 1.
Cost Efficiency: They lower transaction fees by minimizing the computational load and storage requirements on Ethereum's main chain.
Zero-Knowledge Scalable Transparent Argument of Knowledge (ZK-STARKs)
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ZK-STARKs are cryptographic proof systems that offer scalability and transparency without relying on a trusted setup. They allow for efficient verification of large datasets while maintaining privacy and security.
How ZK-STARKs Operate
Scalability: ZK-STARKs leverage homomorphic hashing to aggregate large datasets into concise proofs, making them highly scalable.
Transparency: They do not require a trusted setup, enhancing trust and auditability of the proofs.
Verification: Validators can efficiently verify the correctness of the proofs without needing to trust the prover.
Solving Ethereum's Layer 1 Challenges
Scalability: ZK-STARKs offer a scalable solution for Ethereum by enabling efficient validation of large amounts of data, reducing the computational overhead on Layer 1.
Transparency and Trustlessness: Their transparency enhances trust and auditability, making them suitable for various applications, including decentralized finance and data verification.
Difference Between zk-SNARKs, ZK-Rollups, and ZK-STARKs
zk-SNARKs: Focus on privacy and scalability directly on Layer 1, requiring a trusted setup.
ZK-Rollups: Offload computation to Layer 2, improving scalability and reducing costs by aggregating transactions off-chain.
ZK-STARKs: Offer scalability and transparency without a trusted setup, making them suitable for applications requiring high throughput and trustless verification.
In this link you can find all the crypto that are deployed and use Zero-Knowledge proof.
