What Is the Risk Associated with a ‘Trusted Setup’ in zk-SNARKs?
A trusted setup involves a one-time process to generate a set of public parameters required for the proof system. The risk is that if the secret random numbers used in this setup (the 'toxic waste') are not immediately and verifiably destroyed, the party holding them could potentially create fake proofs for invalid transactions.
This could compromise the security and integrity of the entire rollup. Multi-party computation (MPC) is used to mitigate this risk.