Everything You Need to Know About Ethereum Zero-Knowledge Virtual Machines (zkEVM)
Before we understand zkEVMs (Zero-Knowledge Ethereum Virtual Machines), let’s understand a few key concepts.
A blockchain is like a digital notebook that securely records transactions without needing someone to monitor it.
Ethereum is a popular blockchain that can do even more, like make agreements called “smart contracts” that automatically do things for us, like count votes or manage digital assets.
Blockchains and smart contracts are very useful, but they have a problem: everyone can see what’s going on there, and sometimes we want to keep things private. This is where zero-knowledge proofs (ZKP) come in.
ZKPs are like a secret handshake that lets us prove we know something without actually showing it. This makes them perfect for keeping our digital lives private.
Now that we have our main ingredients, let’s mix them together to create something amazing: zkEVMs!
By bringing together zero-knowledge and Ethereum proofs, zkEVMs allow us to use smart contracts and transact without anyone knowing the details. It’s like being able to send a secret message or make a private deal, all thanks to the power of zkEVMs.
Some of the use cases for zkEVMs are:
1) Secure and anonymous blockchain-based voting systems where every vote is counted without revealing the identity of individual voters.
2) Transfers of confidential assets without disclosing transaction details like sender, recipient or amount.
3) Lending, borrowing and other decentralized financial transactions without exposing personal information.
3) Track the movement of goods within a supply chain while maintaining the confidentiality of sensitive data such as trade secrets, pricing information, manufacturing processes, etc.
4) Privacy-preserving identity verification solutions, allowing users to prove their identity without revealing unnecessary personal information.
5) Allow users to trade, sell and showcase their digital assets without exposing their personal data or transaction history.
6) Allow storage and access to medical records on the blockchain while maintaining patient privacy.
7) Help businesses and organizations meet privacy requirements (e.g. GDPR or HIPAA), by enabling private transactions and data storage on blockchain networks.
Rohas Nagpal is the author of the Future Money Playbook and chief blockchain architect of the Wrapped Asset Project. He is also a retired amateur boxer and hacker. You can follow him on LinkedIn.
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