Zero-knowledge Succinct Non-interactive Argument of Knowledge that allows one party to prove they possess certain information without revealing it. zk-SNARKs plays a major role in instances where high confidentiality is required. For example, it should be useful in financial transactions, secure voting systems, decentralized storage networks, and maintain user privacy in digital platforms. Each part of zk-SNARK refers to specific characteristics of that.
Zero-Knowledge: The Prover can disclose verifier that they possess that particular information without showing it.
Succinct: The proof length is only a few hundred bytes at most so that it can be verified within a few milliseconds.
Non-Interactive: The proof consists of only a single message.
Argument: This term is used to define these types of proofs since here the word proof doesn’t fit the definition.
Knowledge: This is the information held by the prover.
Pros and Cons of zk-SNARKs
| Pros | Cons |
| Privacy and efficiency No need for extended interactions between the parties involved | Possibility of creating false proofs and counterfeit funds. |
Applications of zk-SNARKs
Some of the applications of zk-SNARK are listed below:
- Privacy-Preserving Blockchain Transactions
Even though blockchain offers privacy to asset transactions it still can be traced. zk-SNARK doesn’t have this drawback since it only sends proof of transaction rather than disclosing sensitive details.
- Privatized Governance
zk-SNARKs can be used for implementing privacy in government activities. This will be very useful while casting votes since it does not reveal the identity.
- Decentralized Identity Management
This is the most promising application that can be used to describe and verify an identity without revealing personal details.
- Scalable Rollups
Scalability is the major issue in blockchain networks and zk-SNARK-powered blockchain rollups could resolve this. Computational effort is canceled out with the blockchain.
- Supply Chain Management
This could improve the standards of the supply chain industry. All the sensitive information is maintained securely and doesn’t disclose any delivery details.
Which Coins Use zk-SNARKs?
SNARK Crypto is generally referred to as a privacy coin. To uplift user privacy within the cryptocurrency space, the coin utilizes zk-SNARKs technology. Some examples of this include:
- Zcash (ZEC)
- Verge (XVG)
- Monero (XMR)
- Dash (DASH)
- Beam (BEAM)
- Horizen (ZEN)
- Bytecoin (BCN)
The susceptibility of private keys is the major concern with zk-SNARKs. This can result in the creation of fraudulent proofs.
Filecoin can be used in an instance where a decentralized storage network is a kin to a blockchain-based Dropbox. Here, provers must show on-chain data storage to the network’s nodes. This step is highly important for ensuring data integrity and security.
To keep operation efficient, the network needs a solution for the verification. SNARKs have provided a solution by lowering the time and data needed for storage verification. SNARK will reduce the data transfer volume required for storage proof, thus reducing the operational cost and boosting the overall network efficiency.
How Does zk-SNARK Work?
To facilitate privacy in the transaction, zk-SNARKs are encoded into the blockchain’s core programming. This typically works by combining mathematical equations with cryptography functionality. SNARK’s non-interactivity implies a contextual tie with blockchain technology.
The zero-knowledge proofs generally involve sending messages to and fro to verify information. Only a single two-way transactional message is enough to perform for zk-SNARKs. Here only output is given importance everything else is irrelevant.
The entire process is carried forward by mathematical formulas and cryptographic hashes. Output is generally created in fewer byres and also executed within milliseconds. This functionality is applied where high throughput is required at minimal cost.
Final Verdict
To conclude zk-SNARK in a few lines, we can say that, zk-SNARKs provides a revolutionary way to boost privacy and security in digital transactions. They do not reveal the actual data rather they just show the proof which is called argument, this ensures confidentiality and integrity. This is highly useful in fields such as cryptocurrency, secure voting systems, and digital identity verification.
FAQs
- What does zk-SNARK stand for?
- zk-SNARK is the abbreviation for Zero-knowledge Succinct Non-interactive Argument of Knowledge. It is an application of zero-knowledge proofs.
- What is the difference between zero-knowledge proofs and zk-SNARKs?
- The difference between zero-knowledge proofs (ZKP) and zk-SNARKs is that zero-knowledge proof is the technology on which the application of zk-SNARKs is developed.
- Which Cryptocurrency uses zk-SNARKs?
- Zcash was the first cryptocurrency developed using zk-SNARKs.