Can ZKPs Be Applied to Smart Contract Execution?
Yes, ZKPs can be applied to smart contract execution to enable private computation. This means a smart contract can process sensitive data or complex logic without revealing the inputs or the state changes on the public blockchain.
Projects are developing platforms that allow developers to write private smart contracts, which can be essential for decentralized finance (DeFi) applications involving proprietary trading strategies or confidential business logic.
Glossar
Smart Contract Execution
Automation ⎊ The core mechanism involves the self-executing nature of code deployed on a blockchain, automatically enforcing the terms of a contract, such as options settlement or collateral liquidation, without human intervention.
Private Computation
Computation ⎊ Private computation, within cryptocurrency, options, and derivatives, represents a paradigm shift towards preserving data confidentiality during processing.
ZKPs
Cryptography ⎊ Zero-Knowledge Proofs are a class of advanced cryptographic protocols that enable a party to demonstrate the truth of a statement to a Verifier without disclosing the underlying secret information.
Decentralized Finance
Architecture ⎊ Decentralized Finance, within the cryptocurrency ecosystem, represents a paradigm shift in financial infrastructure, moving away from centralized intermediaries towards peer-to-peer systems leveraging blockchain technology.
Smart Contract
Code ⎊ The contract is fundamentally self-executing code deployed on a distributed ledger, embodying the terms of the agreement in an immutable format.