Zero Knowledge Proofs, Zero Knowledge Rollups and SKALE’s Levitation Protocol
Zero-knowledge proof (ZKP) is a cryptographic technique through which a piece of information’s veracity may be checked, without disclosing the information itself. For improving privacy and security, it has grown in significance in blockchain, cryptocurrencies, and decentralized finance (DeFi).
A lot of DeFi projects today, utilize ZKPs in providing privacy and improved security to users for lending, borrowing, and trading services. ZKP-based roll-ups or zkEVMs are being added by several Layer 1 blockchains. With the predicted growth in popularity of blockchain and Web3 apps, zero-knowledge proofs are anticipated to become more and more important in these fields.
A way of proving to another person (the verifier) that a statement is true without disclosing any extra information is known as zero-knowledge proof. When the material is sensitive and the prover doesn’t want the verifier to have access to it, this can be really helpful. The verifier can utilize the mathematical evidence provided by the prover to determine if the assertion is true. They are however unable to reassemble the original data using the evidence.
Blockchain and cryptocurrency’s growing use of zero-knowledge proofs is a result of the rising need for security and anonymity in online transactions. ZKPs can fill the demand for a method to validate transactions without disclosing sensitive information as blockchain technology and cryptocurrencies gain popularity. Since several protocols leveraging ZKPs have been introduced and significant blockchains have developed zero-knowledge roll-ups, zero-knowledge proofs have drawn more attention and interest.
Some use cases for Zero-Knowledge Proofs
- Verification of digital identities
- Preservation of transactions during transactions
- Tokenization and ownership verification
- Global compliance
Verification of digital identities
Users’ identities may be confirmed using zero-knowledge proofs without disclosing any sensitive personal data. This can be helpful in applications like electronic voting systems, where it’s important to confirm voters’ identities without jeopardizing their anonymity.
Preservation of transactions during transactions
Enabling transactions with privacy protection is one of the most well-liked applications for zero-knowledge proofs in cryptocurrency. Users can conduct transactions on the decentralized exchange (DEX) using, for instance, Manta Network’s MantaPay decentralized application (DApp) using ZKPs without disclosing their names or the specifics of their transactions. Users are still able to do transactions on the site while still being able to retain their anonymity.
Tokenization and ownership verification
It is also possible to tokenize assets and validate their ownership evidence using zero-knowledge proofs. For instance, a property can be tokenized such that anybody can confirm who owns it without disclosing any additional information in the open.
Global compliance
Decentralized platforms may find it challenging to adhere to the rigorous laws that some nations have regulating the gathering and sharing of financial data. The necessary information may be provided to regulators while remaining secret from outside parties by using zero-knowledge proofs. This may make it simpler for DeFi to adhere to rules in different countries by bridging the gap between decentralized platforms and conventional financial institutions.
Shortcomings of Zero Knowledge Proofs
Zero-knowledge proofs are a novel way to confirm the veracity of data while maintaining privacy, but they don’t offer a complete assurance. Although there is a very little chance that the prover is lying, consumers should be informed that ZKPs are not infallible.
Algorithms utilized by zero-knowledge proofs also need a lot of processing power. Some ZKP kinds necessitate heavy processing because they demand numerous interactions between verifiers and provers. Others have highly computationally intensive algorithms, which could restrict the applicability of ZKPs.
ZK-Rollups (ZKRs)
ZK-rollups (ZKRs) are Layer 2 solutions that execute and prove transactions in ZK-EVMs outside of the Ethereum mainnet using cutting-edge mathematics of ZK proofs, and then publish transaction data and ZK-proofs to the mainnet for verification. The entire security assurances of the mainnet are carried through to ZKRs. ZK-rollups are capable of processing thousands of transactions in bulk and then only post some minimal summary data to Mainnet.
Since validity proofs already confirm the legitimacy of state transitions, ZK-rollups don’t need to post a lot of transaction data on the blockchain. The L2 chain’s status may be independently verified without requiring permission, which enables anybody to submit batches of transactions and prevents bad operators from censoring or freezing the chain. Nevertheless, keeping data on-chain is still crucial for this reason.
For ZK-rollups, Ethereum serves as a settlement layer: L2 transactions can only be completed if the L1 contract accepts the validity evidence. As a result, there is no chance that malevolent actors would taint the chain (for example, by stealing rollup money) because each transaction must have Mainnet approval. Additionally, Ethereum guarantees that once user activities are confirmed on L1, they cannot be undone.
SKALE’s Levitation Protocol
SKALE designed the levitation protocol to enhance the capabilities of the SKALE ecosystem, and offer any operator of Zero Knowledge Proofs the opportunity to provide a decentralized ZK solution to application developers using a SKALE Chain. This new solution for developers building on SKALE, provides more flexibility for the configuration of their applications within SKALE’s app-chain network, which has over 20 EVM blockchains.
SKALE G (G stands for Ganymede, the largest moon in the solar system) was launched and the entire community was intrigued with the innovation which has the potency of becoming the world’s fastest and most scalable decentralized Layer 1 blockchain. SKALE G is sadi to be featuring in L2 ZK hooks back to Ethereum, granting developers access to the power of this cutting-edge technology even as they stay connected to the Ethereum network. This innovation will also bring about enablement of App-Chains within the SKALE ecosystem to leverage fast transactions at zero cost on SKALE or choose to use L2 ZK solutions in a configurable manner.
The levitation Protocol is solving these issues in ZKRs;
- Centralization: The majority of ZKRs now in use are centralized.
- Fragmentation: There are several ZKR projects that are now in development. Dapps require a modular interoperability layer that enables smooth operation of various ZKRs.
- Isolation: ZKRs are not able to access each other’s states. This makes it challenging to build safe cross-ZKR operations, including token transfers.
Merits of Levitation Protocol over other ZK solutions
- Decentralization: When existing ZKRs are executed on Levitation Protocol, they become decentralized, without requiring any modifications to the underlying software.
- Interoperability and modularity: Levitation protocol converts existing ZKRs into modules which interact with each other smoothly without limitations.
- Common security: More than one ZKR can run in a common environment of a single chain enabled with levitation protocol. This enables a common ledger of transactions as well as easing rollups interaction.
ZK protocols are mostly centralized. Levitation protocol is stands out through the implementation of a decentralized sequencer as a set of smart contracts deployed to a SKALE Chain. The sequencer protocol consists of pluggable modular architecture enabling existing ZKRs to run seamlessly on SKALE Chains which have chosen to implement the Levitation protocol.
The Levitation Protocol is a huge advaancement in the world of decentralized scaling solutions. This ground-breaking technology will enable programmers and companies to maximize the potential of decentralized apps.
About SKALE
According to a result carried out by Dartmouth study, SKALE is the fastest blockchain in the world. It was developed for efficient, secure, and user-focused scaling of Ethereum. SKALE networks provide 0% gas prices to end users in addition to cutting-edge features like on-chain file storage, interchain communications, free minting, ML/AI smart contracts, and better security measures. A secure Ethereum scaling option is offered by the multichain scalable network. Unlike other Layer 1 and Layer 2 networks, the SKALE architecture is built to support an ever-expanding spectrum of dapp-specific chains. Interoperability, limitless scalability, and configurability are upheld by the hybrid architecture.
Because they can easily construct their own EVM blockchain on the SKALE network without sacrificing decentralization, speed, or security, developers that build on SKALE are at a greater advantage.
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