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Zero-Knowledge Proof, or Zero-Knowledge Protocol, is a probabilistic-based verification method that includes “fact-like statements” and “statements about personal knowledge”. The verifier asks the prover based on certain randomness. If the correct answer is given, the prover has a high probability of possessing what he claims to be “knowledge.” Zero-Knowledge Proof can verify that you did spend the money without revealing which currency was spent.
Being able to answer a question of “Does a user have enough money to send to another user” without knowing who the user is, or exactly how much they have, is one of the primary use cases for Zero-Knowledge Proofs in blockchain. — Demiro Massessi
Why It Matters?
Data privacy is one of the most important subjects nowadays. Protection of personal data related to the identity of individuals (date of birth, bank statements, transaction histories, education credentials) is vitally important and will continuously increase in importance. In the era of technology, we are generating truly mind-boggling amounts of data like never before and the data that we are constantly creating about ourselves is up for grabs. Big companies like Google and Facebook have leveraged on our data to become tech giants that dominate the world today. However, the recent breakthroughs in cryptography and the rise of blockchain enable a new way to help protect our data and identity, even from organizations that we interact with. Zero-Knowledge Proof may be the answer.
The Principle of Zero-Knowledge Proof
Zero-Knowledge Proof is an encryption scheme originally proposed by MIT researchers in the 1980s. Zero-Knowledge Proof agreement is a method by which one party (certifying party) can prove that something is true to the other party (verifying party). Except for the fact that this specific statement is true, no additional information is disclosed.
For example, current websites store the hash value of the user’s password in their web servers. In order to verify that the client actually knows the password, most websites currently use the method of hashing the password input by the client and comparing it with the stored result.
Zero-Knowledge Proof can protect user’ account from leakage. if Zero-Knowledge Proof can be realized, then the client password is unknown to anyone but can still authenticate the client login. When a server is attacked, the user’s account is still secure because the client’s password is not stored in the web server.
Interactive Zero-Knowledge Proof
The basic of Zero-Knowledge Proof protocol is interactive. It requires the verifier to constantly ask a series of questions about the “knowledge” the prover possess.
Disclaimer
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