The goal of the Web3 revolution is to create a new system of accomplishing things without relying on central authorities. Given this mission, privacy and security are some of the most important values in Web3. We’re moving to this decentralized direction by applying concepts such as zero-knowledge protocols.
Simply put, zero-knowledge protocols allow you to prove something without actually revealing any secrets. With these protocols, you can share knowledge without revealing the actual knowledge itself. Applying these protocols theoretically ensures that your privacy and security are better protected.
In this article, we explain in the most simple terms how zero-knowledge protocols work, as well as why they are important to Web3.
Zero-Knowledge Proof
To understand zero-knowledge protocols, we have to explain what a zero-knowledge proof is.
A zero-knowledge proof is a way to show someone that you know something without actually revealing what it is. It’s like being able to solve a mind-bending puzzle without showing anyone how you did it. It's a magical way to prove that something is true without giving away any of the steps or secrets involved.
To give you an example of a zero-knowledge proof, let’s go to this tunnel that has a fork to two paths. We explored both paths, and they led to dead ends. Now that we’re back at the fork, I then decided to enter the path at the left and emerge from the right path. You’re now amazed that I can do that, especially given that we just saw the dead ends earlier. In effect, you’ve become a witness to my secret.
Now, you’re thinking of two things. First, you ask me how I did that. I respond, “It’s a secret that only I know, and I won’t tell you that secret.” Second, you want further proof that what I did was not a fluke. You want proof, so you come up with a game to challenge me. You will put a ball on either dead end, without me knowing which path you chose. I will then choose any random path and try to retrieve the ball each time. Because I know the secret, I can give a correct response to your challenge anytime. I’m able to win the game 100% of the time, no matter how many tries I have. As a result, I get to convince you that I know the secret, without ever revealing to you what that secret is. That’s a zero-knowledge proof.
Zero-Knowledge Protocol
So far, we’ve discussed a single instance of zero-knowledge proof. The challenge is to make a system that processes all proofs this way. This is where zero-knowledge protocols come into play.
Let’s go back to the tunnel to explain how zero-knowledge protocols work. At this point, you and I meet Ann, who knows a secret about a different tunnel similar to the one where we went earlier. This time, you repeat the ball test we played earlier, and she was able to prove that she knows the secret. I then claim that I also know her secret, even if I really don’t. So you also try the game with me, and I fail most of the time (the few successful attempts being due to sheer luck) because I don’t know the secret of Ann’s tunnel.
Later on, we realize that each one of us has a separate tunnel where only that person knows the secret. But you can’t continue playing the ball test with each person. At some point, you have to rely on a technology that allows you to do the test across several people in an efficient manner. This is where zero-knowledge protocols come in to solve this problem for you.
Zero-knowledge protocols do the ball test for you, using algorithms that check the secret you want to prove and then confirm or deny it, without sharing what the actual secret is. For this kind of protocol to work, it has to be:
Complete. The protocol must always confirm valid inputs (or secrets) as true all the time.
Correct. If I lie about knowing a secret, I should not be able to trick the protocol into thinking my lie is true.
Secure. I should only know about whether the secret is true or false, not the actual secret. I should not be able to hack into the protocol to know the secret.
Why is Zero-Knowledge Important to Web3?
Why do zero-knowledge protocols matter for Web3? Let’s go back to the tunnel one more time.
Now, imagine that each tunnel represents a transaction with another person. There are 8 billion people on Earth right now, and they pay for something at least once a day. That’s at least 8 billion transactions daily that you have to do the ball test for. How do you verify that each purchase is legitimate? In the current digital system, you do that by sharing information about you to several companies and institutions that checks the purchases you make with anyone. You trust these companies to secure your information and log your purchases. They have several protocols that allow them to track your purchases, but at the end of the day, your information is in their hands. This presents all sorts of problems that Web3 is attempting to fix.
The main point of Web3 is to replace these third parties, which are vulnerable to human error, malicious acts, and other external factors, with programs that use zero-knowledge protocols and other innovations to do a better job of keeping track of who’s paying or sending what to who, without having to give out additional information about yourself to anyone other than the person you’re connecting with. These protocols make Web3 products possible, such as blockchain and cryptocurrency. We will discuss this in our next blogs, so stay tuned.
In Conclusion
The ability to process billions of claims in a private and secure matter, as shown by zero-knowledge protocols, has the potential to change the way we verify the things that we do in daily life. When applied to real life, zero-knowledge protocols can improve the way we verify our identities, assets, and information in a private and secure manner. Zero-knowledge protocols can be intimidating to understand at first, but learning about them and what advantages they offer will be important to our future, as we constantly seek ways to interact better with the world around us.
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Additional Sources: How to Explain Zero-Knowledge Protocols to Your Children, Wired, Ethereum
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