The blockchain industry is rapidly growing, with an impressive projected annual growth rate of 65.5%. However, this growth brings persistent challenges, particularly around scalability and security.
Major cryptocurrencies like Bitcoin and Dogecoin, while foundational to the crypto space, often struggle with these issues, limiting their capacity to handle a high volume of transactions efficiently.
To address these challenges, zero-knowledge (zk) technology has emerged as a revolutionary solution, promising to enhance both the scalability and privacy of blockchain networks.
Zero-knowledge proofs, specifically zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) and zk-STARKs (Zero-Knowledge Scalable Transparent Argument of Knowledge), are leading this transformation.
These technologies offer a way to prove the validity of information without revealing the underlying data, thereby enhancing privacy and reducing the computational load on blockchain networks.
Understanding these concepts and their practical applications is key to appreciating how they are set to scale crypto for good.
Therefore, in an exclusive interview with Cryptonews, QED’s visionary developer Carter Feldman reveals the technical breakthroughs, challenges, and future potential of this technology.
Zero-Knowledge Proofs: zk-SNARK and zk-STARK, The Future of Cryptocurrencies
Zero-knowledge proofs operate on a fundamental principle: enabling one party, the prover, to convince another party, the verifier, that a statement is true without disclosing any additional information.
This seemingly paradoxical concept has profound implications for blockchain technology, where privacy and data integrity are paramount. In practical terms, this means that blockchain transactions can be verified without exposing their details.
zk-SNARKs, or Zero-Knowledge Succinct Non-Interactive Argument of Knowledge, are a form of zero-knowledge proof that is both succinct and non-interactive.
The succinctness allows these proofs to be processed and verified quickly, which is essential for blockchain applications that demand high efficiency. Their non-interactive nature means that once the proof is generated, it does not require further communication between the prover and verifier, which will inevitably streamline the verification process.
However, zk-SNARKs rely on a trusted setup phase, which can be a security concern as it involves the generation of secret parameters that, if compromised, could undermine the system’s integrity.
To address these limitations, zk-STARKs, or Zero-Knowledge Scalable Transparent Argument of Knowledge, were developed.
Unlike zk-SNARKs, zk-STARKs do not require a trusted setup, making them more secure and transparent. Additionally, zk-STARKs offer better scalability, allowing them to handle more complex computations and larger datasets.
These technologies are not just theoretical constructs but have practical applications that can significantly enhance blockchain networks’ functionality.
zk-SNARKs and zk-STARKs can greatly reduce the amount of data that needs to be stored and processed on-chain, which will directly be addressing one of the primary bottlenecks in blockchain scalability.
This makes them invaluable tools for any blockchain looking to scale its operations without compromising on security or decentralization.
Scaling with Off-Chain Transactions: Zero-Knowledge For Bitcoin and Dogecoin
QED Protocol serves as a compelling case study in the application of zero-knowledge technology to address the scalability challenges of Bitcoin and Dogecoin.
These blockchains, rooted in proof-of-work mechanisms, have historically struggled with slow transaction speeds and high fees, making them less competitive than newer, more scalable blockchains like Ethereum and Solana.
Unlike many zk solutions that have been tailored for blockchains such as Ethereum, QED Protocol has developed its zk-SNARK and zk-STARK circuits from the ground up specifically for Bitcoin and Dogecoin.
This approach was necessary because existing zk solutions could not simply be repurposed for these proof-of-work blockchains.
Carter Feldman, the developer behind QED Protocol, explains that creating these circuits involved overcoming significant technical hurdles:
“Since there aren’t any trustless rollups on Bitcoin and Dogecoin, we had to invent all the techniques, tooling, and circuits as we went along. At the protocol level, we had to write custom circuits that could enforce trustless bridging using the transaction Sighash on Doge and take advantage of proof-of-work-based introspection on Bitcoin.”
This approach allows QED Protocol to leverage zero-knowledge proofs to handle large transaction volumes while maintaining user privacy and optimizing network performance.
The protocol manages proof recursion and block production directly at the protocol layer, enhancing both scalability and security. This is particularly important for Bitcoin and Dogecoin, which have not traditionally been associated with fast transaction processing or extensive scalability.
QED’s approach includes off-chain transactions, which are transactions processed outside the main blockchain. This reduces congestion on the blockchain itself, thereby increasing transaction speed and efficiency.
In QED, users generate proofs for each interaction with a smart contract, which are then aggregated into a single zero-knowledge proof that validates every transaction in a block.
This block is subsequently verified on the Bitcoin and Dogecoin networks, ensuring that scalability does not come at the expense of security or decentralization.
But what of efficiency?
QED’s proving system, which is optimized to run on everyday devices, exemplifies the efficiency of this process.
Feldman notes that transactions can be proven in 300-400 milliseconds on a four-year-old MacBook Pro, depending on the smart contract.
This level of efficiency is achieved through QED’s state model called PARTH, which allows for massive parallelization of proof generation without compromising security.
The Future of Zero-Knowledge Tech
Beyond blockchain scalability, zero-knowledge proofs have many applications that extend into various sectors.
For example, in identity verification, zk technology can be used to prove an individual’s identity or credentials without revealing any personal information.
This is especially valuable in regulatory compliance contexts, such as anti-money laundering (AML) and know-your-customer (KYC) regulations, where organizations need to verify identities without exposing sensitive data.
In the gaming industry, zero-knowledge proofs can be used to verify player achievements or transactions without revealing underlying game data, thereby maintaining privacy and data integrity.
Similarly, in social media and online services, zk-tech could help protect user data while enabling verifiable interactions, such as proving the authenticity of a user’s digital assets or identity without exposing the details to potential malicious actors.
Carter Feldman from QED Protocol envisions an expansive future for zk-tech that extends far beyond cryptocurrency transactions.
He sees potential in areas such as gaming, social media, and broader digital interactions where security and privacy are paramount:
“Gaming, social, and other non-currency transfer financial applications come to mind. More broadly, humanity is spending a larger and larger portion of their lives on the internet, and yet our online lives can be wiped out at a whim by an employee at a big tech company without a trial or any hope of appeal.”
The application of zk-SNARKs and zk-STARKs could lead to a more decentralized and secure Internet in which individuals have greater control over their digital identities and assets.
Looking ahead, the potential applications of zero-knowledge technology are vast and varied.
With the growth of technical advancements and industries starting to recognize the value of privacy-preserving and scalable solutions, the adoption of zk-tech is likely to accelerate.
It will touch many verticals, whether in financial services, gaming, social media, or beyond. Zero-knowledge proofs will find a way to better the future of digital interactions.
About Carter Feldman
Carter Feldman, founder of QED Protocol, the first zk-native execution layer for Bitcoin and Doge. Carter is a technical prodigy whose career began early in his teens when he founded the world’s first modding platform for Minecraft Pocket Edition, ModPE, which has more than 20 million installs across iOS and Android and garnered 150,000 developers around the world. Before his conversion to proof-of-work maximalism, he founded Rapid, a blockchain infrastructure juggernaut that ran proof-of-stake validators with over $1 billion staked.
The post 300ms Transactions: The Future of Bitcoin and Dogecoin with Zero-Knowledge? appeared first on Cryptonews.
