List of All Zero Knowledge Proof Coins
April 2024

What is zero knowledge proof?

Zero knowledge proof method was invented by MIT researchers Shafi Goldwasser, Silvio Micali, and Charles Rackoff in 1985. It is a cryptography concept of an interactive proof system. Zero knowledge proof method is that one of the parties we will call the verifier will provide evidence that the transaction or an event happened but this will be done without revealing any details like a passcode, key, PIN, or, other details.

It is not very simple to understand in a technical term. I will explain it with an example. Let's imagine a two blocks apartment building. This building has two garages and two separate garage entrances for each block A and B. There is a door between garages. There is a man in the building we will call him ‹prover› and there is another man on the street we will call him ‹verifier›. Verifier calls prover and tells him to exit from door A or B. And they repeat this 100 times. If the prover exits from the right door each time, then the verifier can be sure that the prover has the key to open the door between blocks which makes him someone in charge or authorized in the building. If the prover fails to exit from the door verifier wanted. It means prover doesn’t have the key for the middle door. Then we understand that that person is not authorized or in charge at the building.

Zero Knowledge Proof Method on Blockchain

Zero knowledge proof is a method to improve security in an efficient way by reducing the amount of information. It is sometimes called ZK protocol. ZK protocols are becoming a hot topic in order to create faster and more secure transactions on a blockchain. ZK protocol focuses on privacy since everything is fully transparent on other blockchains.

ZK protocol can be used for authentication purposes. Users don’t need to reveal their passwords to be granted an entry. ZK Protocol allows users to be verified that they have a password or required key for the relevant system. ZK protocol is used by many cryptocurrencies. Many projects are on the way. The most popular cryptocurrency based on zero knowledge proof method is Z-cash

Z-Cash

Z-cash is created in 2016 in an effort to create a similar cryptocurrency like Bitcoin with the purpose of anonymity and security. Developers created a fork on the Bitcoin blockchain and added some features based on zero knowledge proof method. Z-Cash blockchain uses the zk-SNARK security protocol which is also used by Ethereum since its Byzantium update in 2017. Z-Cash blockchain doesn’t expose the information about the transactions, unlike Bitcoin. Z-Cash encrypts the information of the sender, receiver, and amount.

Z-Cash blockchain allows users to enjoy different transaction types; public, shielding, deshielding, and private. Transaction types depend on privacy. Both sender’s and receiver’s address is exposed in public transactions, while private transactions disclose both information. The shielding type shows the sender’s info, and the deshielding type shows the receiver’s info only. Z-Cash blockchain has advanced features for users to protect their anonymity.

Future of Zero Knowledge Proof

Decentralized blockchain technology provides a new transparent financial system. Anyone with an internet connection can easily check different wallets and transactions online. Zero knowledge proof acts as a tool for a more private decentralized financial system. ZK protocols gain popularity, especially in 2021. ZK protocols are used to scale the Ethereum blockchain and to create layer 2 solutions.

Authorities think that ZK technology is going to be an essential part of web3 developments. Web3 projects aim to create a fully decentralized internet without borders and government authorities where individuals will have more freedom and anonymity. Interoperable cross-chain scaling solution projects become more and more popular in a near future. ZK protocols will play an essential role in those projects.