The terms of the week
In the ever-evolving landscape of blockchain, new terms and concepts are being birthed that may seem foreign even to those who consider themselves experts in the field. Two such concepts, “Zero-Knowledge Proof” (ZKP) and “Verifiable Delay Function” (VDF), are particularly noteworthy.
Zero-Knowledge Proof (ZKP)
Zero-Knowledge Proof (ZKP) is a cryptographic methodology that allows one party to prove to another that they possess certain information without revealing any details about the information itself. In the realm of blockchain, ZKPs can ensure transactional privacy. For instance, in a financial transaction, a ZKP can verify that a user has sufficient funds for a transaction without disclosing the exact amount of money they hold. This becomes particularly salient in blockchains like Zcash, which leverage ZKPs to offer a level of privacy not found in other cryptocurrencies, such as Bitcoin.
Verifiable Delay Function (VDF)
On the other hand, Verifiable Delay Function (VDF) is a protocol that mandates a certain amount of time to elapse before a computation can be completed, while allowing anyone to swiftly verify the result once it’s been computed. Within a blockchain context, VDFs can be used to create a “time gap” that forestalls manipulation in transaction order, a common issue in public blockchains. Ethereum, for example, is exploring the use of VDFs in its forthcoming update, Ethereum 2.0.
Both of these terms, although relatively obscure outside of blockchain and cryptographic circles, represent significant developments in the field. They enable us to address key challenges plaguing modern blockchains, like transaction privacy and security. Furthermore, they remind us that blockchain isn’t just a technology but an ongoing field of research constantly brimming with new discoveries.