Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: jennysmith on February 25, 2020, 10:31:28 AM
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Cryptocurrencies could not exist without cryptography. Advances in this field can have far-reaching impacts on blockchain technology and its potential. We will examine the opinions of industry experts on the latest cryptographic advances and their potential for cryptocurrencies.
Zero knowledge proofs: more than just privacy
Director of research at blockchain firm Blockstream and mathematician Andrew Poelstra told Cointelegraph that zero-knowledge proof (ZK-Proof) systems are “one of the most exciting areas of development” in the cryptography space. This kind of cryptography is known and appreciated for being the basis of privacy-preserving solutions.
ZK-Proofs are the basis of the privacy-preserving technology included in so-called anoncoin Zcash (ZEC). According to Poelstra, cryptographers have made significant progress in the application efficiency of this technology and now work “with more robust and well-accepted cryptographic assumptions.”
ZK-Proof-enabled Bitcoin sidechains
When Cointelegraph asked him about developments in ZK-Proof-based trustless sidechains, Poelstra explained that much work has to be done before such systems become feasible. He explained that efficient ZK-Proofs would enable verifying if the rules of another blockchain were followed, and Ethereum scaling solution Plasma in an example of this.
While a promising field of development, Bitcoin sidechains so far had only limited success. In fact, as of mid-October 2019, only almost $77 million of Bitcoin — about 0.054% — were locked on sidechains. During the same month, Blockstream CEO and co-founder Adam Back gave an apparent reason for the slow sidechain development when he said that there’s a greater financial incentive to creating altcoins compared to building on Bitcoin.
ZK-Proofs can make Bitcoin more private
Poelstra told Cointelegraph that ZK-Proofs can also make Bitcoin more private and cited Taproot as an example. He explained that Taproot can potentially render any transaction mostly indistinguishable from one another on the blockchain. Still, he noted that “transaction amounts and the transaction graph are still exposed, which are much harder problems to address.”
Lin explained that Suterusu is focused on the development and implementation of “setup-free, efficient zero-knowledge proof scheme with an almost constant proof size tailored for confidential payment in smart contract platforms.”
The firm’s system allows for moving the cryptoasset from the main blockchain on its second-later network and the move it while concealing “both the sender and receiver identity and also the transaction amount.” Furthermore, the solution supports smart contracts. He also expressed the idea that the cryptocurrency space should focus more on privacy.
Post-quantum cryptography
Sidhu also suggested that recent developments in post-quantum cryptography are worth looking into. This kind of cryptography focuses on ensuring that data can still be encrypted and safe from prying eyes once quantum computing reaches maturity. It also addresses fears that recent advances in quantum computing could lead to the end of cryptocurrencies.
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Yes, I think cryptography has done a lot for cryptocurrency. More precisely, without cryptography there would be no cryptocurrency that we are currently using.