What Are the Security Risks Associated with Private Computation on a Blockchain? ⎊ Path

What Are the Security Risks Associated with Private Computation on a Blockchain?

Key risks include potential bugs in the complex cryptographic proofs (ZKPs), which could allow a malicious actor to generate invalid proofs and commit fraud. Additionally, if the trusted setup for a zk-SNARK is compromised, it could undermine the entire system.

There is also the risk of front-running if the inputs are revealed just before the transaction is executed, even with privacy layers.

What Is the Difference between Front-Running in CEXs and DEXs?

What Are the Differences between Front-Running in Traditional Finance and on DEXs?

How Do Zero-Knowledge Proofs (ZKPs) Ensure Transaction Validity without Revealing Underlying Data?

Explain the Function of a ‘Private Transaction’ or ‘Private Mempool’ in Preventing Front-Running

What Are the Primary Risks Associated with API Key Management for Exchange Access?

What Are the Computational Overhead and Transaction Cost Implications of Implementing ZKPs on a Public Blockchain?

Explain the ‘Trusted Setup’ Requirement for Some zk-SNARK Implementations

How Do ZKPs Impact the Efficiency of Decentralized Options Trading Platforms?

Glossar

Private Computation

Execution ⎊ Private Computation refers to the execution of algorithms or smart contract logic in an environment where the inputs and the resulting output are shielded from the network validators or the public ledger itself.

Private Computation Layer

Definition ⎊ A private computation layer refers to a blockchain or off-chain network specifically designed to execute smart contracts and process transactions while maintaining the confidentiality of the data involved.