A Look at Zero-Knowledge Proof Use Cases in Web3: Beyond Scalability, What Else Should We Pay Attention To?
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A Look at Zero-Knowledge Proof Use Cases in Web3: Beyond Scalability, What Else Should We Pay Attention To?
A Comprehensive Overview of Zero-Knowledge Proofs' Application Prospects in the Cryptographic Field
Navigating Web3 tides with focused insightsIn 2022, due to advancements in ZK-Rollups within the Ethereum ecosystem, zero-knowledge proofs (Zero-Knowledge Proof) became a buzzword for Web3. Some even predicted that zero-knowledge proof would be the engine of the next bull market, claiming its significance to Web3 is comparable to Bitcoin introducing blockchain and Ethereum introducing smart contracts.
Why does zero-knowledge proof have such immense potential? This may require starting from the development of Web3. Web3 aims to transfer ownership of the internet to its users through decentralized networks; however, currently Web3 seems to only bring user-centric values, with many issues still needing resolution before achieving its vision—privacy and security being key challenges.
Web3 networks are designed so that users interact with decentralized systems to avoid drawbacks common in Web2 centralized networks, such as data breaches, private data commercialization, and centralization of power. In other words, if you're running a full node, you achieve complete, mathematically guaranteed cryptographic security. However, running a full node requires expensive hardware and maintaining connectivity to a large blockchain exceeding 100GB.
Clearly, current crypto clients cannot meet these demands. As a result, Web3 still heavily relies on trusted centralized intermediaries to connect to decentralized Web3 networks—an approach seemingly contrary to Web3’s core vision. How can privacy and security be ensured in a decentralized network environment, using truly decentralized methods? Zero-knowledge proof technology elegantly solves this problem. Beyond network security, zero-knowledge proofs have numerous use cases. The following sections will introduce applications of this technology in the cryptocurrency field.
What Is Zero-Knowledge Proof
Before exploring zero-knowledge proof applications in Web3, let's briefly understand how it works. Zero-knowledge proof is a form of cryptography that allows one party (the prover) to prove to another party (the verifier) that a certain statement is true without revealing any additional information.
Zero-knowledge proofs must satisfy three essential criteria:
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Completeness: If the statement is true and both parties follow the protocol correctly, the verifier will be convinced of its truth without further conditions.
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Soundness: If the statement is false, no dishonest prover can convince the verifier otherwise. This method leverages probabilistic checking theory to ensure correctness.
- Zero-Knowledgeness: The verifier learns nothing beyond whether the statement is true or false.
There are two main types of zero-knowledge proofs:
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Interactive zero-knowledge proofs require the prover to perform a series of tasks or operations to demonstrate knowledge of specific information to the verifier. Most required tasks typically involve mathematical probabilities.
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Non-interactive zero-knowledge proofs do not require real-time communication between prover and verifier—the verification occurs afterward. These special forms of zero-knowledge proofs require additional computation or procedures.
Web3 Use Cases of Zero-Knowledge Proofs
Although zero-knowledge proof technology originated as early as the 1980s, it has not been widely adopted due to technical complexity. What benefits can zero-knowledge proofs bring to Web3 development? Let’s explore some technical use cases.
Off-Chain Computation
As more applications deploy on Ethereum, slow transaction processing speeds and insufficient scalability have become major obstacles. Building Layer 2 networks that move computation off-chain has emerged as a crucial solution. ZK-Rollups, such as Starkware and zkSync, are among the most recognized scaling solutions by the Ethereum community.
Scalability is currently the most prevalent use case of zero-knowledge proofs in Web3. There are also emerging solutions combining scalability with privacy, such as privacy-focused Layer 2 public chains like Aztec and StarkNet. Developers interested in learning more can refer to the article "A Brief Discussion on the Current State and Future of Privacy in Layer 2".
Cross-Chain Bridging
With the expansion of public chain ecosystems, Ethereum’s dominance is increasingly challenged, making cross-chain interoperability more critical than ever. However, the security of bridges used for cross-chain transfers remains questionable. Consequently, many projects are turning to zero-knowledge proofs to enable trustless interoperability. Projects including Wormhole, Polymer, and ZKBridge are developing cross-chain protocols based on zero-knowledge proof technology, aiming to overcome limitations caused by IBC light clients’ inability to run on Ethereum. Zero-knowledge proofs will significantly enhance bridge security, improving the safety of cross-chain interactions.
On-Chain Gaming
Take "Dark Forest" as an example—a strategy game inspired by Liu Cixin’s sci-fi novel *The Three-Body Problem*. Many strategic elements in this game stem from hidden information or asymmetric knowledge. The entire Dark Forest universe is infinite, filled with thousands of adversarial players, bots, scripts, and smart contract-based players. Yet, each player only accesses a small portion of the full map after joining the universe—this is precisely where Dark Forest derives its essence. How can “hidden” information be achieved on a blockchain where everything is transparent? This is made possible by zero-knowledge proofs, which allow selective concealment of sensitive or conditionally revealed data.
Asset Security
Blockchain technology ensures our assets are self-custodied and distributed across multiple nodes, reducing asset risk. Zero-knowledge proofs further elevate Web3 security levels. By employing mathematical verification instead of probabilistic assumptions, zero-knowledge proofs reduce potential risks via validity proofs that guarantee data accuracy. Specifically:
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Only the legitimate user can decrypt encrypted information; if the prover is fraudulent, the resulting root hash will differ, leading the verifier to reject it;
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Even if all verifiers collude with the prover, account states can still be rolled back and corrected thanks to blockchain data availability;
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Additional checks and reinforcement mechanisms are commonly implemented when using zero-knowledge proofs.
User Authentication
Zero-knowledge proofs can verify individual cryptographic identities. They allow users to authenticate themselves to a system without disclosing full personal details. For instance, logging into an account usually requires entering a username and password. With zero-knowledge proof technology, you only need to provide a ZK Proof, and the platform will never be able to derive your actual password, enabling identity verification without exposing sensitive personal data.
Document Sharing
We often face data-sharing needs online, yet sharing processes carry risks such as data loss or interception. When combined with blockchain technology, zero-knowledge proofs can encrypt data into shards, ensuring transmission security while granting users control over specific data blocks and their contents, allowing access permissions to be granted selectively—unauthorized users cannot access your shared documents.
Storage Protection
Decentralized storage, one of the three pillars of Web3, is vital for industry development. Zero-knowledge proofs enhance storage security by enabling algorithmically defined protocols that encrypt both storage units and internal protocols. Even access channels receive encryption protection, elevating the security of Web3 cloud storage to a new level.
Zero-Knowledge Proof Technology Still Has a Long Way to Go
Beyond scalability and privacy use cases, zero-knowledge proofs have broad applicability, and their role in Web3 is becoming increasingly clear. Numerous projects have already begun implementing this technology. According to Messari, key projects leveraging zero-knowledge proofs for scaling are expected to reach pivotal development stages in 2023, with mainnet launches scheduled for initiatives such as Scroll and Polygon zkEVM. The article "The Scaling Race Kicks Off Early: A Review of L2 Projects Recently Launching Testnets" covers several zero-knowledge proof projects that recently launched testnets.
However, we must recognize that despite the promising prospects and wide-ranging applications of zero-knowledge proofs in Web3, performance issues remain unresolved. While various teams are working on hardware acceleration, such improvements only partially assist in generating valid proofs. Optimization is still needed at algorithmic, software, and other levels.
Given this, effective utilization of zero-knowledge proofs in 2023 will likely appear in niche, small-scale applications rather than achieving widespread adoption. After DeFi, zero-knowledge proofs still have a long journey ahead before becoming the driving force of the next bull market. It is hoped that more Web3 developers will look ahead to the future of zero-knowledge proofs, boldly tackle and solve technical challenges, and advance practical applications through technological progress. The next article in the '2023 Crypto Industry Trend Forecast' series will focus on emerging technologies and changes in the field of crypto security—stay tuned!
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