A great ink has spilled on the topic of how does quantum computers pose threats to blockchain systems. While considering the transaction of the bitcoins happening in the blockchain system, it follows a decentralized system where the end-to-end transaction happens within the blockchain network without the intervention of the third party. Now, a question comes how much bitcoins can be stolen through quantum computing?
This provoking question analyzes the fact whether the existing blockchain systems are enough to prevent quantum threats or whether advancements are essential. From an analysis done on a blockchain network, it was found that bitcoins with P2P addresses are more vulnerable to quantum threats. P2P is a peer-to-peer transaction that happens in a blockchain network in a decentralized way.
If an attempt is made to protect against this threat by transferring these coins to a safer address, the public key will be also relieved to that address making the coins vulnerable. This kind of security breach has led Blockchain Development Company to look for cryptography methods like zk proof and quantum proof to protect their blockchain networks. This blog evaluates a choice between quantum proof and zk proof to protect the blockchain against quantum security breaches.
Understanding ZK proofs
Zero-knowledge proof is the cryptographic method used in blockchain technology to verify a transaction statement without relieving the actual data in the statement. This method helps ensure that the transaction is complete and secure. In the zero-knowledge proof method, a verifier who is responsible for verifying the statement is present. If the statement is true, the verifier will be convinced or else the verifier won’t be convinced.
Role of Zero-knowledge proof in Preserving the privacy of the Blockchain
Zero-knowledge proofs are innovations in cryptography. They follow a mechanism called “verification” where a verifier verifies the fact of knowledge or a statement without accessing the actual statement or fact.
Ensuring blockchain privacy:
The Zero-knowledge proofs protect the sensitive data without revealing the public key used to encrypt the data. For example, a user can verify that he has sufficient funds to transfer without revealing the actual balance.
Smart contract integration:
The zero-knowledge proof helps in the smart contract integration process in the public blockchain networks without revealing the underlying public data. The smart contract integration protects the privacy of the blockchain.
Enhancing security:
Blockchain security is established when an additional security layer is created over the blockchain network using the cryptographic method.
Application of zk-SNARKs and zk-STARKs in DeFi, NFTs, and privacy-focused blockchains like Zcash and Mina.
zk-SNARKS are a type of zero-knowledge proof that uses short proofs for the verification. They comprise non-interactive arguments where the user gets their statement verified from the approver side without asking for information on the actual data.
zk-STARKs are a type of zero-knowledge proof that uses scalable transparent arguments to establish a verification between the approver and the verifier. In this scenario, an explained statement is made between the user and the approver to confirm that a particular statement is true.
Applications of zk-STARks in blockchain applications
Defi:
In a DeFi Ecosystem, the transactions are carried out without revealing sensitive or private data. It can also execute complex smart contract statements without revealing private or sensitive information.
Scalability:
In defi ecosystem, complex transactions can be easily handled. Also, the proof generation time will be less. The execution of the transaction happens without intervening with data privacy.
Privacy:
The application of zk-STARKS in the blockchain can enhance security. Transactions are verified quickly, protecting sensitive data.
Computational Efficiency:
The rate at which the transactions are executed and protected is high. The speed and efficiency of the transactions are also high with the zk-STARKS application in the blockchain.
Non-Fungible Tokens:
zk-SNARKS can verify the identity of the NFT tokens without disturbing the private data, making them highly secure.
Scalability:
It enables the processing of transactions in the form of batches in the NFT platform. Using a single proof, the entire number of transactions are executed thereby reducing the load in the blockchain.
Privacy:
While regarding privacy, zk-starks enable the execution of transactions without revealing the identity.
Computational efficiency:
By enabling a bundle of transactions to be verified using a single proof, the efficiency of executing the transactions is higher. Also, the cost of gas fees is less. Dynamic NFTs are used to represent digital assets whose transactions are effectively managed by Zk-snarks with less operational costs.
Privacy-focused blockchains like Zcash and Mina
Z-cash is a privacy-focused cryptocurrency which is built under a Bitcoin base in 2016. The major purpose of using Z-cash is that the transactions can be kept in a private view. It uses the concept of z-STARKS.
Mina is a decentralized light-weighted blockchain established in 2021. Due to its lightweight, it is easily accessible and scalable. The entire number of nodes connected using this blockchain can be accessed easily from any type of computer device. It does not arise any sort of complexity while a transaction is executed. It uses the concept of z-SNARKS.
Z-cash
Scalability:
Blockchain security is offered through Z-snarks even for complex transactions in less turnaround time.
Privacy:
Regarding privacy, Z-snarks offers a shielded protection to the transactions without exposing the data’s privacy.
Computational efficiency:
Z-snarks allow quick computation time and quick verification time.
Mina
Scalability:
The Mina protocol has a consistent blockchain which is capable of holding a large number of transactions with less computational time. The ZK-SNARKS holds a recursive proof method so that a large number of transactions are handled without reducing the performance of the blockchain.
Privacy:
It offers confidential transactions by holding data ownership. It holds the private data of the users without revealing them. From beginning to the end, the transaction will be smooth and private.
Computational Efficiency:
The application of Zk-snarks on Mina is highly cost-effective. All the transactions are processed in on-chain. Mina takes less time to process the transactions thereby enduring the best computational efficiency.
Exploring Quantum-Proof Cryptography:
Quantum-proof cryptography utilizes cryptographic methods to protect the blockchain from threats caused by quantum computers. It uses advanced algorithms to assure blockchain security against quantum tasks.
Quantum proof cryptography ensures blockchain security:
The quantum-proof cryptography uses quantum-resistant algorithms to preserve the security of the blockchain. They use complex mathematical problems that remain infeasible for the quantum computers to access.
Long-term blockchain security:
The long term blockchain security can be attained using cryptographic algorithms which are difficult to be solved by quantum computers.
Lattice-based cryptography:
In lattice-based cryptography, hard mathematical problems are initiated using lattices. A lattice is an extended grid formed into different dimensions through vector points. These vector points are extended to form different phases of the grid through scalar multiplication and addition. Lattice-based cryptography ensures data integrity and security. Applying this cryptography in blockchain resists quantum attacks.
Hash-based cryptography: It uses hash functions to create digital signatures that become resilient to crypto attacks.
Multi-variate polynomial cryptography: This cryptographic technique uses multivariate polynomial equations which are difficult to be solved by quantum computers.
Differences between ZK proofs and Quantum proofs:
Privacy:
The major goal of zk-proof is to ensure privacy. In zk-proof systems, a prover and a verifier will be present. It majorly focuses on verifying the statements without revealing the actual data in the statement. On the other hand, quantum proofs are resistant to quantum computing attacks.
Technology readiness:
The maturity of zk-proofs is widespread and their usage is prevalent in several applications like Z-cash and Mina. On the other hand, the quantum proofs are still emerging. The practical implications of quantum proofs are still developing when compared to zk-proofs.
Challenges in implementation
Zk-Proofs:
Even though Zk-proofs are responsible for preserving the transactions in the blockchain, it is really an intensive process of approving and verifying a transaction. Thus the computational costs are higher. Regarding scalability, when the transaction load increases, the performance will be reduced. While considering the initiation of the trusted set-ups, the secret data inputs must be properly discarded after the transaction is complete.
Quantum Cryptography:
The implementation of quantum cryptography requires a huge infrastructure. Therefore, high costs are required, reducing optimal efficiency. Quantum cryptographic methods work based on third-party setups. The set-up process requires careful consideration. If a mistake happens during the set-up process, the transactions will become vulnerable. Some of the quantum protocols are complex to implement. Researchers are still working to improve these quantum protocols for better efficiency.
Which Technology is Better for Blockchain?
When considering the best technology for blockchain, factors like ease of integration, accessibility, and scalability need to be considered. Zk-proofs are responsible for verifying the proof of the transactions. They are successfully implemented in several blockchain companies. While on the other hand, quantum-proof cryptographic methods are still in the early stages of their development.
Quantum-proof techniques are installed just to withstand quantum attacks. They also require cost for a trusted set-up. In regards to future-proof capabilities, zk-STARKS stands better when compared to quantum-proof techniques. They are capable of withstanding the resilient attacks caused by quantum computers.
Final thoughts
While choosing between quantum-proof cryptography or zk-proofs, one has to consider the efficiency of applying these methods in blockchain. The factors like scalability, optimal efficiency, and security need to be considered. While a comparative analysis is done between quantum proof and Zk proofs, zk-proofs are preferable because of their cost-efficiency and data security in the blockchain.
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ZK Proof vs Quantum Proof: Which Protects Blockchain Better? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.