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.
Web3 Principles
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.