What Specific Zero-Knowledge Proof Technology Is Commonly Used in ZK-Rollups for Financial Transactions?
ZK-Rollups predominantly use zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge) and zk-STARKs (Zero-Knowledge Scalable Transparent ARguments of Knowledge). zk-SNARKs offer smaller proof sizes and faster verification but require a trusted setup. zk-STARKs are generally more computationally intensive for proof generation but offer transparency and quantum resistance, making them increasingly popular for large-scale financial applications.
Glossar
Scalable Transparent Arguments
Proof System ⎊ Scalable Transparent Arguments refer to a class of zero-knowledge proof systems, such as STARKs, designed to offer high levels of security and scalability without requiring a trusted initial setup phase, making them highly attractive for public, permissionless systems.
Zk-Snarks
CryptographicProofSystem ⎊ This advanced cryptographic primitive allows a prover to convince a verifier that a statement is true using zero-knowledge proofs, meaning the verification requires minimal computation and no disclosure of the underlying data.
Faster Verification
Objective ⎊ Faster Verification represents a core design objective for scalable blockchain architectures, aiming to minimize the computational resources and time required for the Layer 1 chain to confirm the validity of bundled Layer 2 transactions.
Technology
Infrastructure ⎊ Technology, within cryptocurrency, options trading, and financial derivatives, represents the foundational systems enabling secure transaction processing and data management.
Quantum Resistance
Requirement ⎊ Quantum Resistance refers to the necessity for cryptographic systems, including those securing digital wallets and transaction signatures, to remain secure even when faced with the computational power of large-scale quantum computers.