Onchain Privacy
Snarkifying of the Ethereum Virtual Machine (EVM).
In concept this would incorporating ZK-SNARKs into the Ethereum Virtual Machine (EVM) for enhanced privacy and scalability.
ZK-SNARKs have the potential to fundamentally change how we interact with blockchain networks by providing privacy and efficiency, making them one of the most promising technologies in modern cryptography.
Benefits
- Privacy: Sensitive data can remain confidential.
- Scalability: Reduces computational load on the Ethereum network.
- Efficiency: Enables complex computations to be done faster and cheaper.
- Reduced Costs: Off-chain computations can reduce the cost of executing smart contracts
- Minimal hardware: Run
How
Developers write smart contracts that perform certain computations off-chain while generating proofs that the computation was done correctly.
Data Availability Sampling to sync conical chain.
- Solves bandwidth problem
- Only small queries of chunks of blocks are needed to verify the chain
How smart contracts can execute computations off-chain.
- Contract Deployment: Smart contracts defining off-chain computations are first deployed to the blockchain.
- Off-Chain Computation: Computations are carried out off-chain, typically on separate servers.
- Input Parameters: Off-chain components receive inputs through off-chain messages, oracles, or APIs.
- Computation Execution: The off-chain component performs calculations and generates results.
- Generating a Proof: A cryptographic proof of the computation's correctness is created.
- Proof Verification: This proof is submitted to the on-chain smart contract for verification.
- Result Verification and Execution: The smart contract verifies the proof and then either stores the result or takes some action based on it.
Use Cases
Potential use cases are
- Multi-threaded EVM layer one scaling
- Convert optimistic rollups into ZK rollups
- Validators that could run from a smart watch
Privacy-Preserving Transactions
- Confidential Transactions: You can have transactions where the amount, sender, and receiver are encrypted but still verifiable by the network.
- Anonymous Voting: Enables voting on the blockchain where the user's choice is hidden but still counted.
Data Security
- Private Identity Verification: Users can prove they meet certain conditions (like age or nationality) without revealing the actual data.
- Credential Verification: Verification of academic or professional credentials can be done without revealing the details of the credential.
Decentralized Exchanges
- Private Trading: Enables trading operations to occur in a decentralized, yet confidential manner.
- Order Matching: Privacy features could conceal orders until execution, preventing front-running and market manipulation.
Scalability
- Off-chain Computations: Complex calculations can be performed off-chain and then verified on-chain, thus reducing the computational load on the Ethereum network.
- Batching Transactions: Multiple transactions can be batched into one proof, significantly reducing the amount of data that needs to be stored on-chain.
Supply Chain
- Secret Contracts: Contracts that conditionally release payment or other assets without revealing supply chain details.
- Product Traceability: Ensures the authenticity of products in the supply chain while keeping sensitive information confidential.
Cross-chain Interactions
- Interoperability: ZK-SNARKs can be used to provide proof from one blockchain to another, enabling more seamless cross-chain interactions.
Regulatory Compliance
- AML/KYC: Allows for Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance while maintaining user privacy.
Auctions and Bidding
- Sealed-bid Auctions: Bids are kept secret until the auction ends, but their validity can be verified on-chain.
Intellectual Property
- Proof of Existence: Prove the existence of certain information at a point in time without revealing the actual information.