Steemit Crypto Academy Contest / S12W6 - Privacy is important.

Privacy and security are very important in the world of cryptocurrency and one of the solutions that have shown up to address these concerns is Zero Knowledge Proofs. (ZKP) are cryptographic ways of enabling one party which is the prover to convince another party known as the verifier that they possess certain knowledge without revealing what that knowledge is. This concept allows for a good level of privacy and security in the blockchain.

Imagine a scenario where Otedola wants to prove to Davido that she knows a secret passphrase without actually revealing the passphrase itself. ZKP enable Otedola to do just that, because she can prove to Davido that she has the correct passphrase by providing cryptographic evidence, without disclosing the passphrase itself. This core idea forms the foundation of ZKPs.

What is the ZK-SNARK protocol? Give your own opinion.

ZK-SNARK, which stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge, is a specific type of Zero Knowledge Proof protocol. It gained significant attention due to its efficient nature. With ZK-SNARK complex computations can be proven in an extremely concise way, making it ideal for use in blockchain technology where efficiency is important.

How does the ZK-SNARK work and is it possible to adapt it to the Steem Blockchain? Give your own opinion.

How ZK-SNARK work

ZK-SNARK operates by generating proof that an assertion is true without revealing any underlying data. This proof is verified by the network, ensuring the accuracy of the claim without disclosing sensitive information. This is achieved through a process of generating a public key for verification, a private key for generating proofs, and a set of algorithms to create the proof and verify it.

For example, in a ZK-SNARK based cryptocurrency, i can prove that i possess sufficient funds for a transaction without revealing my actual account balance. This is accomplished through a cryptographic proof that demonstrates the validity of my transactions, without exposing the specific account details.

Adaptability to the Steem Blockchain

The question of whether ZK-SNARK could be adapted to the Steem blockchain is a yes for me even though steem primarily employs Delegated Proof of Stake (DPoS) consensus, which focuses on efficiency and speed, ZK-SNARK could be utilized to enhance privacy on the platform.

Implementing ZK-SNARK would require significant development effort and consensus among the Steem community. However, it's possible to envision scenarios where ZK-SNARK could be employed to provide privacy options for Steem users. For instance, users might opt to use ZK-SNARK to shield their transaction history or the specifics of their wallet balances while still participating in the network's activities.
The practical aspect of such integration would depend on factors like the level of community demand, available development resources, and the broader goals of the steem blockchain.

What is the difference between ZK-SNARKs and ZK-STARKs? Explain

While ZK-SNARKs and ZK-STARKs share the common goal of privacy and security through Zero-Knowledge Proofs they differ, and here is my reason for saying this,
ZK-SNARKs are known for highly efficient proofs. However, they require a trusted setup phase where a set of initial parameters is generated and must be securely deleted to prevent potential attacks.

On the other hand, ZK-STARKs, which stands for Zero-Knowledge Scalable Transparent Arguments of Knowledge, eliminates the need for a trusted setup. It's transparent and does not rely on a secret initial phase. ZK-STARKs are computationally more intensive, resulting in larger proof sizes compared to ZK-SNARKs, but they offer enhanced security and simplicity in setup.

What's the main privacy mechanisms used by the Steem Blockchain?

Privacy has been a point of concern and development in the steem blockchain because one of the key privacy mechanisms on Steem is Stealth transactions. Stealth transactions allow users to make confidential transfers of steem or steem dollar. This feature uses a cryptographic technique to obscure transaction details while still being verifiable by the recipient.

Another mechanism is Confidential transactions, which is a technique that hides transaction amounts. While the sender and receiver's account names are still visible, the actual transaction amounts remain confidential. As blockchain technology continues to evolve, privacy mechanisms like Stealth Transactions and Confidential Transactions play a good role in safeguarding user data and transaction details on the steem blockchain. These mechanisms offer users the choices in how they interact with the blockchain while maintaining their privacy. The pursuit of privacy in the blockchain space is an ongoing journey, with ZKPs and other technologies leading the way toward a more secure and confidential future.