Using zero-knowledge proofs to ensure private and secure blockchain transactions

Abstract

Application of zero knowledge proofs makes blockchain technology more privacy-enhancing, without jeopardizing its transparency. Due to the privacy implications of blockchain networks — whose openness of transaction data tends to concern users — zero-knowledge proofs provide a viable alternative that allows the involved parties to verify the validity of a transaction without necessarily exposing any private data. The focus of the examination is on zk-SNARKs and zk-STARKs that are two improved forms of ZKPs that enhance scalability along with privacy. Studies of already established blockchain protocols revealed that the implementation of zk-SNARKs/STARKs and zk-Rollup was successful in enhancing the privacy, safety, and scalability of applications like Zcash and Ethereum, in spite of diverse computational and regulatory challenges.