## What are Zk-Snarks?
Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (ZK-SNARKs) is a type of cryptography that allows two parties to prove knowledge of certain information without revealing the actual data. It stands for Zero-knowledge Succinct Non-interactive ARgument of Knowledge. In other words, it is an efficient way for one party to prove that they know something without having to reveal what exactly it is they know. Zk-Snarks was first developed by cryptographers at MIT and IBM in 2006, and since then has become increasingly popular as a means of ensuring privacy during transactions involving cryptocurrencies such as Bitcoin and Ethereum.
## How Does Zk-Snark Work?
At its core, ZK SNARKs work by providing a cryptographic proof between two parties which can be used to verify statements about specific data or programs without disclosing any additional information beyond the verification itself. This process begins with both parties creating public/private key pairs and exchanging them over an open channel. The private keys are then used to generate a “zero knowledge” proof allowing one party to confirm that the other knows certain facts while keeping those facts hidden from view.
The underlying mathematics behind this verification process involves using elliptic curve cryptography combined with polynomial commitments and zero knowledge proofs to create succinct non interactive arguments (SNARGs). These tools allow all participants in the transaction—including miners, nodes, wallets—to independently validate each other’s claims about their holdings or actions without needing access any sensitive information or data beyond what is strictly required for successful execution within blockchain networks like Ethereum or Bitcoin Cash.
## Benefits & Drawbacks Of Using Zk Snarks ?
The main benefit of using zk snarks is that it provides users with greater privacy when conducting cryptocurrency transactions on blockchains such as Ethereum or Bitcoin Cash because no extra details about their transactions need be revealed beyond what was already agreed upon initially within those networks’ consensus rulesets . Additionally , these protocols also greatly reduce the amount of computational power needed for verifying smart contracts due their highly optimized usage algorithms ; this makes them better suited than traditional methods when dealing large scale dApps with multiple stakeholders involved . However , one potential downside associated zksnark technology lies its complexity; given its intricate inner workings , many developers may find difficult understand how works operate under hood despite being very useful tool building trustless systems among peers .