Ernst & Young (EY) has become the first organization to implement the Zero-Proof Knowledge (ZPK) technology on a public Ethereum blockchain by launching their EY Ops Chain Public Edition (PE) prototype.
The purpose of introducing this new technology was to eliminate the difficulties people faced regarding their transactions and transfers on a public platform. These difficulties include the inability of organizations to make secured transactions on a public platform, the exposure in the crypto industry had become limited and the private transactions could not be recorded. Hence, in order to overcome these major issues, EY contributed by launching the new prototype. The prototype is set to function in 2019 and the hopes are high in the crypto industry from this new invention as it could play a major role in further developments and betterment in the industry. Before analyzing the invention of this new prototype by EY and studying what the ZPK technology is all about, it is important for us to understand the dynamics of a public and a private blockchain.
As it goes by the name, public blockchain is a platform for everyone who wants to join the network, make transactions and transfers which are verified by numerous computers or nodes to build an ecosystem filled with unreliable opinions. Bitcoin and Ethereum are the most common types of public blockchains where users join and make their moves in a decentralized system which makes the system more secure.
Nonetheless, this safety comes with a few risks. As the transactions made on a public blockchain need confirmation from numerous different nodes all across the platform, this prolongs the process. Not only are the transactions on a public blockchain more time consuming but they have privacy issues too as any user on the network can see the transactions occurring and the details shared as well.
On the other side of the table are private blockchains which are open to only a few selected users based on certain terms and conditions. Most finance companies and banks tend to carry out their transactions on private blockchains as only a limited amount of users can see the activities turning out.
In contrary to public blockchains, private blockchains are more centralized where a single authority or a group of assigned nodes take most decisions including the addition of users on a private blockchain. This centralized system is less secure as compared to a decentralized system and may even be more prone to attacks.
A Zero Proof Knowledge technology is basically used in the crypto industry to determine that a statement provided by one party to another is true without the need to provide further information. The ZPK technology will allow safer transactions in the public blockchains by enabling nodes to verify transactions without publicly displaying the details of the transaction.
Thus, this is why the application of EY’s new prototype is considered to make a significant impact in the world of crypto as it will allow users to make safer transactions on a decentralized public platform while also securing their transaction details. This basically indicates the accumulation of the pros of both private and public blockchains that could revolutionize the industry.
On this matter, EY’s Global Innovation Leader, Paul Brody said:
EY Ops chain PE is a first-of-its-kind application and a major step forward that empowers blockchain adoption. Private blockchains give enterprises transaction privacy, but at the expense of reduced security and resiliency. With zero-knowledge proofs, organizations can transact on the same network as their competition in complete privacy and without giving up the security of the public Ethereum blockchain.
Mr. Brody believes the introduction of the new EY Ops Chain Public Edition (PE) prototype is a revolutionary move in the crypto world, giving new opportunities to users with more security.
Ethereum has itself made efforts on introducing the Zero-Proof Knowledge technology in public Ethereum blockchain to host more transactions and activities on the public platform. However, despite the blockchain technology’s desire to bring this innovation in the crypto industry, certain factors worked against their plans.
The major issues in Ethereum’s developments were that the technology they intended to use, Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (ZK-SNARK), pioneered by ZCash was undoubtedly set to scale up the transactions on public Ethereum blockchain but was extremely expensive and even worse, not very efficient too.
This information was also backed by another source, admitting;
ZK-SNARKS are generic; they can verify any function which is particularly relevant for Ethereum which provides the Turing-complete EVM, allowing developers to build any type of logic. Generic ZKPs like ZK-SNARKs, however, come at a price. They are notably less efficient than specific zero-knowledge proofs.
Hence, this is why the introduction of EY’s new invention is considered to be a step up in the crypto industry as it is set to successfully implement the ZPK technology on a public blockchain and raises the question of ‘has Ernst & Young achieved what Ethereum itself couldn’t?’ in so many minds in the world of crypto but that is obviously subjected to the launch of the prototype as its success is analyzed.