Perfect online privacy?

by Jo Smith in Microcomms News

True internet privacy could finally become possible thanks to a new tool that canfor instancelet you prove you’re over 18 without revealing your date of birth, or prove you have enough money in the bank for a financial transaction without revealing your balance or other details. That limits the risk of a privacy breach or identity theft.

The tool is an emerging cryptographic protocol called a zero-­knowledge proof. Though researchers have worked on it for decades, interest has exploded in the past year, thanks in part to the growing obsession with cryptocurrencies, most of which aren’t private.

Zero Knowledge Protocol (or Zero Knowledge Password Proof, ZKP) is a way of doing authentication where no passwords are exchanged, which means they cannot be stolen. This is cool because it makes your communication so secure and protected that nobody else can find out what you’re communicating about or what files you are sharing with each other.

ZKP allows you proving that you know some secret (or many secrets) to somebody at the other “end” of communication without actually revealing it. The very term “zero knowledge” originates from the fact that no (“zero”) information about the secret is revealed, but the second party (called “Verifier”) is (rightfully) convinced that the first party (called “Prover”) knows the secret in question. Why would you need to prove you know the secret without telling it? When you don’t trust the other person, but still need to persuade them that you know it. 

Much of the credit for a practical zero-knowledge proof goes to Zcash, a digital currency that launched in late 2016. Zcash’s developers used a method called a zk-SNARK (for “zero-knowledge succinct non-interactive argument of knowledge”) to give users the power to transact anonymously.

That’s not normally possible in Bitcoin and most other public blockchain systems, in which transactions are visible to everyone. Though these transactions are theoretically anonymous, they can be combined with other data to track and even identify users. Vitalik Buterin, creator of Ethereum, the world’s second-most-popular blockchain network, has described zk-SNARKs as an “absolutely game-changing technology.”

For banks, this could be a way to use blockchains in payment systems without sacrificing their clients’ privacy. Last year, JPMorgan Chase added zk-SNARKs to its own blockchain-based payment system.

For all their promise, though, zk-SNARKs are computation-heavy and slow. They also require a so-called “trusted setup,” creating a cryptographic key that could compromise the whole system if it fell into the wrong hands. But researchers are looking at alternatives that deploy zero-knowledge proofs more efficiently and don’t require such a key. 

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