Introducing ‘Zero-Knowledge Proof’ Important Technology in AI and Web3 Era

Recently, Zero-Knowledge Proof (ZKP) technology has gained significant traction, such as in Blockchain applications particularly for its ability to enhance user privacy while preserving Blockchain’s distinguished transparency. The crypto and Web3 ecosystems are also exploring ZKP for various purposes, including AI-assisted credibility.

For this reason, Zero-Knowledge Proof is a technology to look out for in the age of digital assets and evolving AI.

What is Zero-Knowledge Proof?

Zero-Knowledge Proof (ZKP) is a cryptographic technique, with mathematical process, that allows individuals to prove that they possess credible information without revealing the information itself or any additional personal details.

Zero-Knowledge Proof system’s structure involves two parties: a prover and a verifier. The prover creates a proof to convince the verifier from the given condition. The verifier then checks the proof to determine its validity.

Zero-Knowledge Proof has become popular in the Web3 community in the past few years due to its ability to address both scalability and privacy concerns within Web3 applications.

Scalability is one of its key benefits. Zero-Knowledge Proof has the ability to improve performance by accumulating a large amount of information into a concise proof. Traditionally, Blockchain technology would require powerful computers to maintain performance, limiting its scalability. ZKP addresses this by enabling the development of decentralized applications (dApps) with lower computational requirements, allowing dApps to run on common hardware, such as mobile phones, making Web3 more accessible and scalable.

As for privacy concerns, ZKP technology allows Web3 users in the Metaverse, DeFi and DAOs to share information securely without revealing their personal details. Accessing products and services without revealing unnecessary information is crucial because Web2 users are constantly at risk of hacks and data breaches, which can be exploited for attacks or data espionage.

The Process and Importance of Zero-Knowledge Proof

Since data is essential in today's internet, accessing online services often requires surrendering personal data. However, constant data breaches expose the vulnerability of this information. Even Web3, with its emphasis on empowering users through digital ownership and decentralization, hasn't solved the data privacy challenge entirely. Zero-Knowledge Proof, however, offers a promising solution for Web3 data management. This cryptographic technique allows parties to exchange information on a Blockchain network without revealing the content of the data itself, such as verifying your identity to access your email without needing a password.

Furthermore Zero-Knowledge Proof is crucial to the evolution of Web3 because it allows for secure access to Web3 functionalities without the use of the traditional password system.

For example, imagine booking a flight online and revealing your entire passport number – which would mean exposing sensitive data like your age, potentially putting you at risk. ZKPs can enhance user confidence in information security by proving you're eligible without disclosing such sensitive details.

Another example of ZKP's potential is in credit score evaluation. Instead of requiring users to submit sensitive data, ZKP could allow users to prove they meet specific criteria using only their name without revealing the underlying details like their Social Security number. 

Zero-Knowledge Proof’s Key Features

Zero-Knowledge Proof offers several key features, including:

• Completeness - Zero-Knowledge Proof ensures the prover’s credential is adhere to the validity without divulging the information and the verifier to inspect the information without third party involvement

• Soundness - Verifiability is one of the most important elements of Zero-Knowledge Proof on Web3. For example, if the data presented by the prover is incorrect, the verifier can deny it while remaining anonymous, leaving no room to influence or manipulate the outcome.

• Zero Knowledge Property - Even if the information is correct, the verifier wouldn't see the actual data. They can, however, request additional information through separate means if needed for further inspection.

Most importantly, Zero-Knowledge Proof offers a powerful solution to privacy and security challenges. By allowing users to share valid data with decentralized networks without revealing personal details, eliminating the risk of exposing personal details while simultaneously ensuring data credibility. ZKP also enhances security by removing the need for a third party to verify information validity. 

The Challenges of Zero-Knowledge Proof

Zero-Knowledge Proof is still a new technology in development for implementation across industries. It still possesses limitations, such as:

1. Cannot provide 100% authenticity: While highly unlikely, ZKP carries a small inherent probability of error in the verification process, unlike traditional mathematical methods which are deterministic (always produce the same output for a given input) and guarantee authenticity.
2. Utilize high processing power: Current ZKP implementations can be computationally demanding due to the complexity of interaction between the prover and the verifier. This can make ZKP less suitable for devices with limited resources, such as handheld devices or real-time applications.
3. Complexity: Zero-Knowledge Proof Technology can be difficult to use and understand for individuals unfamiliar with cryptography or complex technological concepts because it requires a certain level of technical understanding.
4. Establishing Standard: The lack of widely adopted standards for ZKP protocols mean the interoperation between system is still unfeasible
5. Security Risk: Despite its strong security properties, Zero-Knowledge Proof’s potential vulnerabilities may be discovered over time like any system. 

Despite these limitations, Zero-Knowledge Proof is a rapidly developing technology with ongoing research actively addressing them. Advancements in algorithm design, increasing hardware processing power and efforts towards establishing standards are all paving the way for broader ZKP adoption across various applications.

Example of Zero-Knowledge Proof usages

• Decentralized Identity Verification On Blockchain: Users can prove they possess the necessary qualifications for a dApp without revealing any underlying personal details like names, passwords, or identification numbers. This does not affect the eligibility, such as revealing citizenship or nationality without revealing names. In essence, ZKPs empower users with greater control over their personal data within decentralized identity systems.

• Usage on Blockchain that is transparent but not private: Public Blockchains, like Bitcoin and Ethereum, offer remarkable transparency. Anyone can inspect transaction data, fostering trust and immutability. However, this transparency comes at a cost – reduced privacy. Through ZKP, users can selectively share information conforming to specific criteria without compromising their privacy.

• Example of ZKP Operations

• • Zcash: Digital currency Zcash uses a powerful cryptographic technique called Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARKs). Zcash transactions can be conducted without revealing the sender, recipient, or transaction amount on the public Blockchain.
  • Ethereum: Ethereum is developing Zero-Knowledge Scalable Transparent Argument of Knowledge (zk-STARK) that has the potential to address both privacy and scalability issues.

• Zero-Knowledge Proof Online Polling: offers a way to create highly secure and transparent voting systems. It allows everyone to participate in the vote while keeping their choices confidential. Additionally, the system can be verified to ensure that all submitted votes are counted accurately.

• Zero-Knowledge Proof With AI: Zero-Knowledge Proof can be used to verify the credibility of a machine learning model to other users without revealing the model's inner workings. Imagine you trained a model to accurately predict loan default periods. You can use zero-knowledge proof to assure a bank that your model works effectively, without disclosing the specific mathematical formulas it uses.

• Zero-Knowledge Proof and Finance: There is a case of ZKP adoption by ING Bank that allows customers to verify their eligibility for loans without revealing sensitive information such as their exact income.  A mortgage applicant could prove their income falls within the required range using ZKP, without disclosing the specific figure.

Summary

Zero-Knowledge Proof (ZKP) is a cryptographic technology that allows verification of information's truthfulness without revealing any personal information or sensitive details. ZKP is gaining significant notoriety across various industries, from Blockchain to AI due to its potential in solving key challenges like scalability and data privacy. As a result, ZKP is poised for widespread adoption across diverse fields in the future.