This document discusses zero-knowledge proofs and their role in scaling blockchains. It explains that zero-knowledge rollups batch transactions and represent validity with compressed data and proofs, without revealing information. This allows blockchains to achieve higher transaction throughput. The document outlines applications of zero-knowledge proofs like privacy, authentication, and verifiable computation. It predicts that zero-knowledge rollups will enable blockchains to process thousands of transactions per second and that awareness of zero-knowledge proofs will grow substantially in the next decade.

1. Zero-knowledge proofs and why
they are the future of blockchain
Konrad Kokosa
@konradkokosa
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3. Moreover...
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5. Blockchain Trilemma
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6. Scalability solutions
On-chain scaling solutions, such as sharding
Side Chains (Polygon)
completely independently operating blockchain
own consensus
interopability via Bridges
State Channel (Connext)
off chain peer-to-peer ad hoc channel
open/close on mainnet
Rollups in general
batching transaction like in "carpool lane"
so... Layer 2
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7. "A rollup-centric ethereum roadmap - Fellowship of Ethereum Magicians" by
Vitalik
"eth2’s long-term future: as a single high-security execution shard that everyone
processes, plus a scalable data availability layer"
"Today, Ethereum has ~15 TPS. If everyone moves to rollups, we will soon have
~3000 TPS. Once phase 1 comes along and rollups move to eth2 sharded chains
for their data storage, we go up to a theoretical max of ~100000 TPS."
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8. Layer 2 - Optimistic Rollups
gathers and batches transactions
assumes all transactions are correct unless proven otherwise (fraud proofs)
withdrawal to Layer 1 even 7-days long
examples: Optimism, Arbitrum
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9. Layer 2 - Zero-knowledge Rollups
gathers and batches transactions
compressed data and validity proof (Zero-knowledge proofs)
examples: Loopring, Polygon Hermez, StarkNet and StarkEx, zkSync
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10. Zero-knowledge proofs
"A zero-knowledge protocol is a method by which one party (the prover) can
prove to another party (the verifier) that something is true, without revealing
any information apart from the fact that this specific statement is true." - “The
knowledge complexity of interactive proof systems", 1985
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11. Zero-knowledge proofs
"A zero-knowledge protocol is a method by which one party (the prover) can
prove to another party (the verifier) that something is true, without revealing
any information apart from the fact that this specific statement is true." - “The
knowledge complexity of interactive proof systems", 1985
In other words...
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12. Zero-knowledge proofs
"A zero-knowledge protocol is a method by which one party (the prover) can
prove to another party (the verifier) that something is true, without revealing
any information apart from the fact that this specific statement is true." - “The
knowledge complexity of interactive proof systems", 1985
In other words...
"tell me you know the secret without telling me the secret"
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13. Interactive zero-knowledge proof
A series of questions to the prover that the verifier checks - the more times such
an interaction occurs, the chance that the prover is cheating significantly
decreases
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14. Interactive zero-knowledge proof
A series of questions to the prover that the verifier checks - the more times such
an interaction occurs, the chance that the prover is cheating significantly
decreases
Classic example is "The Ali Baba cave" story ("How to Explain Zero-Knowledge
Protocols to Your Children", Quisquater, Jean-Jacques; Guillou, Louis C.; Berson,
Thomas A., 1990)
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18. Interactive zero-knowledge proof
source: Walkthrough of an Interactive Zero-Knowledge Proof for Sudoku Puzzle | by Andreas Pogiatzis | Coinmonks | Medium
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19. Non-interactive zero-knowledge proof
"Non-interactive zero-knowledge and its applications", Manuel Blum, Paul
Feldman, Silvio Micali, 1988
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20. SNARK:
trusted setup
small proof sizes
"easier"©
STARK:
no trusted setup 👍
quasilinear verifier time 👍
post-quantuum resistant
SNARKs vs STARKs
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21. Applications
Anonymous payments
ZK-based blockchains like ZCash and Monero
Tornado Cash uses zero-knowledge proofs to obfuscate transaction details
and guarantee financial privacy
Identity and authentication
decentralized identity - aka ‘self-sovereign identity’)
badges - Sismo
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22. Applications
Privacy
Aztec protocol - next-generation encrypted blockchain secured by Ethereum,
with Noir - universal ZK Circuit Language (~Q2 2023)
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23. Applications
Privacy
Chainlink's Deco - Deco-enabled oracles can prove facts about data sourced
from trusted servers without revealing the data on-chain
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24. Applications
Verifiable computation
The entity submits the result along with a proof verifying that the program
was executed correctly
used in ZK Rollups.. zk-Rollups, ZK-Rollups, zkRollups, ...😡
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25. "In the medium to long term, ZK rollups will win out
in all use cases as ZK-SNARK technology improves."
— Vitalik Buterin
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26. "In the medium to long term, ZK rollups will win out
in all use cases as ZK-SNARK technology improves."
— Vitalik Buterin
according to Vitalik said, the awareness and importance of ZKP will reach
the blockchain awerness level in the next 10 years
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27. Layer 2 - Zero-knowledge Rollups
gathers and batches transactions
correctness represented as compressed data and validity proof... but where?
source: Hermez Adds USDT to Layer 2 Ethereum as ZK-Rollups Take Off
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28. Layer 2 - Zero-knowledge Rollups
Data availability models:
Rollup - publishing data on-chain
decentralizes the data making it available for users to track and verify
the cost of publishing data is high
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29. Layer 2 - Zero-knowledge Rollups
Data availability models:
Rollup - publishing data on-chain
decentralizes the data making it available for users to track and verify
the cost of publishing data is high
Validium - storing data off-chain
reduces costs and enhances privacy
we trust towards the Operator to properly manage and store its data
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30. Layer 2 - Zero-knowledge Rollups
Data availability models:
Rollup - publishing data on-chain
decentralizes the data making it available for users to track and verify
the cost of publishing data is high
Validium - storing data off-chain
reduces costs and enhances privacy
we trust towards the Operator to properly manage and store its data
Volition - lets end-users choose per transaction
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32. source: l2beat.com
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33. Layer 2 - Zero-knowledge Rollups
There are two ways to build general DApps in zk-Rollup.
One is building application-specific circuit (“ASIC”) for different DApps.
The other is building a universal “EVM” circuit for smart contract
execution.
Proving general-purpose EVM computation in circuits is more difficult
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34. EVM-compatibility (aka zkEVM)
The different types of ZK-EVMs:
Type 1 (fully Ethereum-equivalent) - verify of Ethereum blocks as they are
today (ZK-EVM Community Edition)
Type 2 (fully EVM-equivalent) - the goal is to be fully compatible with
existing applications (at EVM level)
both Scroll zkEVM and Polygon Hermez are targeting there
Type 3 (almost EVM-equivalent) - almost EVM-equivalent, but just remove a
few features
Type 4 (high-level-language equivalent) - transpile high-level language like
Solidity to SNARK/STARK-friendly
zkSync - although it may add compatibility for EVM bytecode over time. N
StarkNet and StarkEx
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35. StarkNet and zkSync 🥰
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36. source: l2beat.com
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37. StarkNet and zkSync 🥰
zkSync 2.0 (~Q2 2023)
uses SNARKs and it's Validium (zkPorter - off-chain PoS data availability)
Type 4 EVM-compatibile zkVM - support Solidity and Vyper
native account abstraction
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38. StarkNet and zkSync 🥰
zkSync 2.0 (~Q2 2023)
uses SNARKs and it's Validium (zkPorter - off-chain PoS data availability)
Type 4 EVM-compatibile zkVM - support Solidity and Vyper
native account abstraction
StarkNet (~Q1 2023)
uses STARKs and it's zk-Rollup (but there's StarkEx too)
Type 4 EVM-compatibile, runs ZK-compatible virtual machine CairoVM
and programs written in Cairo
Warp transpiler from Solidity to Cairo (eg. Uniswap v3 Core contracts)
native account abstraction
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40. StarkNet + 2023 = 😍
Great Twitter threads:
complete tutorial on how to set up your StarkNet wallet and bring funds to it
StarkNet airdrop strategy #1
StarkNet airdrop strategy #2
StarkNet testnet opportunities
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41. ...why it is future of blockchain
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43. Materials
ZKP:
https://zkrepl.dev/
https://learn.0xparc.org/
https://appliedzkp.org/
https://zkp.science/
https://github.com/matter-labs/awesome-zero-knowledge-proofs
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44. And... that's all! Thank you, any
questions?!
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