Cryptocurrencies could not exist without cryptography. The progress of this field can have large -scale impacts on blockchain technology and its potential. We will examine the opinions of industry experts on the latest cryptographic advances and their cryptocurrency potential.
Zero knowledge of knowledge: more than confidentiality
The director of research in the company Blockchain Blockstream and the mathematician Andrew Poelstra told Cintelegraph that zero knowledge of knowledge (ZK resistant) are “one of the most exciting areas of development” of the cryptography space. This type of cryptography is known and appreciated to be the basis of solutions preserving privacy.
ZK’s intermediary is the basis of confidentiality preservation technology included in the so-called Anoncoin ZCASH (ZEC). According to Poelstra, cryptographers have made significant progress in the effectiveness of the application of this technology and now operate “with more robust and well accepted cryptographic hypotheses”.
Blockchain Suterusu is currently working on the implementation of confidentiality compatible with ZK as a second layer solution in addition to Bitcoin and Ethereum blockchains. The director of company technology, Huang Lin – who claims to have done research on cryptography for more than a decade – told Cintelegraph:
“Effective evidence of zero knowledge, when applied to decentralized anonymous payments, can considerably improve their privacy and performance.”
Lior Yaffe, co -founder and managing director of Jelurida – The company behind the NXT, Ardor and Ignis blockchains – also said that ZK resistance fighters can have a very positive influence on scalability. He explained:
“Instead of generating large transaction blocks and propagating them via network minors can use ZKP to generate small data sets displaying only changes in the balance of the account more cryptographic proof that no double expenditure has occurred.”
The Co-founder and main developer of Syscoin (SYS), Jag Sidhu, said that new recursive residents of ZK could allow private transactions that are cheaper, smaller and as fast as normal transactions.
Bitcoin Bitcoin impregnated with ZK
In the past, Poelstra has suggested that ZK residents also allow the development of line heads without confidence, which could provide the functionality of Altcoins in Bitcoin (BTC). In February 2019, he illustrated the requirements of such a system while talking to Forbes:
“I think that now, if we want to make a real double -way ankle, we must probably obtain complete, effective and general disruption evidence, and we need a means for Bitcoin validators to be able to validate what is happening on the key chain before allowing the ankles to come back.”
When Cointelegraph asked him questions about the developments in the levels without confidence based on ZK, Poelstra explained that a lot of work had to be done before these systems become possible. He explained that ZK effective tests would make it possible to check if the rules of another blockchain were followed, and Ethereum Solution Solution Plasma in an example of this.
However, Poelstra also explained that the use of these techniques of verification of lateral technology “would require new evidence which are many more effective orders of magnitude”. In addition, the implementation of these systems, the researchers would first have to solve complex incentive problems. He concluded:
“As a community, we continue to move towards these objectives, but we are still far away.”
Although a promising developmental field, Bitcoin failures, so far, had only a limited success. In fact, in mid -October 2019, only nearly $ 77 million Bitcoin – about 0.054% – were locked on the ladder. During the same month, the CEO and co-founder of Blockstream, Adam Back, gave an apparent reason for the slow development of Side-Lachaine’s research when he said that there was a greater financial incentive to create altcoins compared to Bitcoin construction.
ZK’s intermediary can make bitcoin more private
Poelstra told Cintelelegraph that ZK resistors can also make bitcoin more private and cited a tapot as an example. He explained that tapot can potentially make any transaction mainly indistinguishable from each other on the blockchain. However, he noted that “the transaction amounts and the transaction graph are always exposed, which is much more difficult to solve.”
Lin explained that Suterusu focuses on the development and implementation of a zero-connoissance test scheme without configuration and without configuration with an almost constant evidence adapted to confidential payment in intelligent contract platforms. “”
The company’s system makes it possible to move the cryptoset of the main blockchain to its second launcher network and to move it while hiding “the identity of the sender and the receiver as well as the amount of the transaction”. In addition, the solution supports smart contracts. He also expressed the idea that the cryptocurrency space should focus more on privacy.
Post-quantum cryptography
Sidhu has also suggested that recent developments in post-Ventum cryptography are worth examining. This type of cryptography focuses on the guarantee that data can always be encrypted and safe from prying eyes once quantum computers reaches maturity. It also addresses fears that recent progress in quantum computer science could lead to the end of cryptocurrencies.
Above all, post-quantum cryptography designs algorithms in a way that tries to cancel the advantages of quantum computers compared to traditional computers. He also suggests that Bitcoin was designed with the threat of quantum IT in mind:
“Satoshi has seen this to come, which is why he created one -way hash for addresses rather than public keys, because cryptography by public key is sensitive to quantum brute force attacks. (…) That is also why there is a change strategy for each portfolio.”
Developments in cryptography and their impact on crypto
Yaffe said that Multipartite calculation (MPC) is one of the most active research areas in cryptography. He explained the MPC function at Cointelegraph as follows:
“MPC allows entities that do not trust and could even be negligent or malicious to carry out a calculation together and to agree on the result.”
The consensus algorithms of block blocks are an example of MPC, and progress in this space can provide disparate progress to the cryptocurrency space. Yaffe also cited the verifiable delay function (VDF) as another major development, explaining that it is similar to the algorithms allowing an exploration of evidence of work, “but unlike mining, the VDF is impossible to parallel the opening of the potential for the equalization of the rules of the game for small minors.” Yaffe shared with Cointelegraph his prediction of the functioning of future blockchains:
“The use of all of the above, I expect future blockchain products to look like a drop of information for an outside spectator while users really hold the keys will be able to see the full history of their transactions. Some of these technologies are not yet ready to improve quickly (…), but in recent years there have been many improvements in this area and this continues to improve quickly. “
Although it is not a key chain, Sidhu’s SYSCOIN bridge allows users to move value through blockchains without intermediaries or police custody only with cryptographic principles. He explained:
“It had to be a step in the direction of the vision of the transversal consensus that we have where users should be freely able to move on any channel by genericly choosing attributes such as safety, convenience (performance) and the technical characteristics of the chain.”
Poelstra has also cited interactive multisignations and explained that this type of technology considerably simplifies complex contracts such as withdrawal or timeline contracts required for the Lightning network to work. More specifically, this type of cryptography makes it possible to express such contracts in a single signature.
