A Tech Watch on Zero-Knowledge Proofs
The Zero-Knowledge Proof
The Zero-Knowledge Proof represents a major breakthrough in cryptography. This technology allows an entity, whether a person or a computer, to prove the authenticity of information without disclosing any other data about it. To illustrate how it works, imagine a person being able to prove they know a password without revealing that password to anyone.
The fundamental idea behind the zero-knowledge proof is to verify information by performing an action, without that action revealing anything else. For example, in the context of color recognition, one might want to prove that Bob can distinguish between red and blue colors. To do this, Alice can have two balls, a red one in her left hand and a blue one in her right. If Bob indeed has this ability, he will be able to determine whether Alice has swapped the balls between her hands when they are hidden behind her back. Bob must then indicate whether Alice made a change or not. If Bob succeeds at this task, it means he indeed knows the colors, and Alice is certain of it.
This cryptographic approach is powerful because it allows for quick verification of information, usually with a binary answer (yes or no; 1 or 0). Moreover, it is up to the proving party (in our example, Bob) to demonstrate their knowledge, not the verifying party (Alice) to reveal sensitive information. Thus, this technology can be used for multiple and simultaneous verifications, without compromising confidentiality and with very few resources.
For a more detailed explanation of Zero-Knowledge Proof technology, you can watch this video: Explanation of Zero-Knowledge Proof technology.
November 2022: Dropbox implements zero-knowledge encryption
Dropbox announced it would offer end-to-end encryption for its business users by acquiring key assets from Boxcryptor, a Germany-based cloud security company. Boxcryptor adds an extra layer of security with client-side “zero-knowledge” encryption, giving the user complete control over who can decrypt their data.
Via Techcrunch: link
January 2023: List of actors using Zero-Knowledge Proof
- ZkSync: https://zksync.io/
- Starkware Ecosystem: https://starkware.co/
- Dropbox: https://www.dropbox.com/
- Polygon Zk-Evm: https://polygon.technology/polygon-zkevm
- Proton (mail, drive): https://proton.me/
February 2023: Proof-of-Reserve in the Cryptocurrency Universe
In February 2023, the collapse of the crypto bank “FTX” raised crucial questions about the concept of proof-of-reserve. This term refers to a mechanism to ensure that the funds declared by a platform are actually present and available. The CEO of Binance International, Changpeng Zhao, is behind this project aimed at strengthening trust and transparency within the cryptocurrency industry.
Summary of the Technological Watch as of April 19, 2023
Zero-knowledge proof technology is evolving rapidly and finding varied applications. Its potential to solve privacy and security problems, especially in the blockchain field, is generating growing interest. It is expected that this technology will continue to establish itself in new application areas in the coming months.