From privacy coins to shiny iris-scanning orbs, zero-knowledge proofs have become synonymous with crypto, scalability and privacy.
In 2022, investors gave over $700 million in funding to companies pushing the envelope with zero-knowledge proofs. This year, ZK-proofs has arguably become one of the biggest blockchain trends, with several major Ethereum scaling protocols hitting mainnet.
ZK-proofs are a cryptographic protocol that allows one party to prove the truth of a statement to another party without sharing any of the statement’s contents.
An often-cited example is proving to a bartender that you’re old enough to drink without showing your ID or even telling them your birthdate.
In August 2010, the user “Red” on the online forum Bitcointalk asked whether there could be a way to improve the privacy of Bitcoin transactions.
“One of the things that bugs me about bitcoin is that the entire history of transactions is completely public,” the forum-goer said. Another member piped in, suggesting that zero-knowledge proofs could be the solution.
“This is a very interesting topic,” replied Nakamoto.
“If a solution was found, a much better, easier, more convenient implementation of Bitcoin would be possible.”
However, Nakamoto wasn’t convinced the tech could get around the “double-spending” problem — a fundamental flaw that exists in all digital cash protocols where a bad actor could spend the same digital tokens more than once.
“It’s the need to check for the absence of double-spends that requires global knowledge of all transactions,” said Nakamoto.
Satoshi Nakamoto’s response to users suggesting ZK-proofs to raise the privacy of Bitcoin transactions. (Bitcointalk)
“It’s hard to think of how to apply zero-knowledge-proofs in this case. We’re trying to prove the absence of something, which seems to require knowing about all and checking that the something isn’t included,” he argued.
Years later, someone cracks the code
Little did Nakamoto know that the cypherpunks would eventually find a way to solve the problem.
Privacy-focused cryptocurrency Zcash was launched in October 2016 by Electric Coin — a firm made up of computer scientists from the formative years of Bitcoin. Zcash was built by modifying Bitcoin’s original source code.
It was also the first time zero-knowledge proofs were used in a real peer-to-peer cryptocurrency, allowing users to hide or shield the crypto wallet address sending or receiving funds.
The world finally knows that famed whistleblower Edward Snowden was one of the pivotal members of the Zcash Ceremony, where six people combined portions of the project’s private key to launch it in 2016. https://t.co/Lgag6bGA0n
The founding scientist of Zcash, Eli Ben-Sasson, would then go on to found StarkWare, a company known today for using zero-knowledge proofs to scale Ethereum through rollups.
Ben-Sasson tells Magazine that the early enthusiasm from Bitcoin core developers for ZK-proofs played a “pivotal role” in his eventual co-founding of StarkWare.
“The Bitcoin 2013 conference in San Jose marked my Eureka moment.”
“Mike Hearn, a then-Bitcoin developer and one of the earliest Bitcoin adopters, went as far as to declare my talk on ZK-proofs as the most crucial of the event due to its potential impact on the future of blockchain.”
“It was there that I realized the transformative potential of the Validity Proofs I was developing,” says Ben-Sasson.
Fast forward to today, Bitcoin itself now stands ready to enter the world of ZK-proofs.
ZeroSync, a nonprofit founded by three computer scientists (and sponsored by StarkWare), is developing the world’s first ZK light client for Bitcoin.
“Long-term, we hope to bring mass scalability to Bitcoin using STARK Proofs,” said Robin Linus, co-founder of ZeroSync.
Linus said that ZeroSync has designed and is currently implementing a layer-2 protocol that could allow Bitcoin to process more than 100 transactions per second while bringing privacy properties to Bitcoin.
“This could be a major feat in bringing Bitcoin toward the scalability it needs.”
So what would Nakamoto think?
“It’s evident from Satoshi’s past remarks that he strongly favored the use of ZK-proofs for privacy,” says Ben-Sasson.
Nakamoto was a stickler for anonymity. His public interactions on Bitcointalk and his emails were all reportedly done using the IP-masking browser, Tor. It’s the main reason his public IP address could never be traced back to him.
The administrator for Bitcointalk says Nakamoto has always used The Onion Router (Tor) to access the forum. (Bitcointalk)
The Bitcoin creator even dedicated a section to privacy in the Bitcoin white paper, suggesting users keep their public keys anonymous so that, even though the public can see transactions occurring, they don’t know who is involved, like a stock exchange.
Privacy diagram as shown in the Bitcoin white paper. (Bitcoin.org)
“It’s clear that Satoshi would have been intrigued by the privacy innovations my peers and I contributed to at Zcash,” says Ben-Sasson.
Unfortunately, Nakamoto never approached the subject again before he vanished from the public eye on Dec. 12, 2010 — the date of his last post on Bitcointalk.
“While they have recently found their way into Bitcoin through ZeroSync, I believe Satoshi would have been inclined to make the necessary adjustments to integrate them further,” he says.
“After all, for Bitcoin to realize its vision as a global currency, the imperative to scale cannot be ignored, especially considering its current state of ossification.”
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Felix Ng
Felix Ng first began writing about the blockchain industry through the lens of a gambling industry journalist and editor in 2015. He has since moved into covering the blockchain space full-time. He is most interested in innovative blockchain technology aimed at solving real-world challenges.
The new leader of the Green Party has revealed he spoke to Jeremy Corbyn this week amid suggestions there could be a pact between their two parties.
Zack Polanski, who comfortably beat his rivals Adrian Ramsay and Ellie Chowns to win the Green Party’s leadership election, told the Politics Hub with Sophy Ridge that he spoke to the former Labour leader on Monday.
There have been suggestions that the Greens could join forces with Mr Corbyn’s new party – which does not yet have a formal name – to avoid splitting the vote on the left.
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11:58
Polanski on Corbyn, NATO and flags
The question of a future potential pact with Mr Corbyn and his co-leader, the independent MP Zarah Sultana, became an issue in the Green Party’s leadership election, with Mr Polanski more keen on the idea than his co-leadership rivals.
The former Labour leader had tabled a private members’ bill calling for an independent public inquiry into the UK’s involvement in Israeli military operations in Gaza, but it did not progress in the House of Commons.
He said Mr Corbyn’s inquiry was “the exact kind of example where even if someone is from a different party, but I’m absolutely aligned with what they’re doing, then I’ll always call out what I think is good for this country and good for our global politics”.
My Corbyn congratulated Mr Polanski for his “stunning victory” after the results were announced, and added: “Your campaign took on the rich and powerful, stood up for the dignity of all marginalised communities, and gave people hope! Real change is coming. I look forward to working with you to create a fairer, kinder world.”
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Mr Polanski, who is currently serving as deputy leader, won the election on a platform of “eco-populism”, which he says will make the Greens a real alternative to Labour and Reform UK.
The London Assembly member, who is not an MP, will now become the party’s only leader, after Bristol MP Carla Denyer stepped down from her joint role with Mr Ramsay, triggering the contest.
While Mr Polanski has strongly criticised the policies of Nigel Farage, he has acknowledged his cut-through with voters, and has argued that the Green Party needs to offer a bolder message to voters, in the guise of wealth taxes and net zero policies.
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39:49
In full: Tuesday’s Politics Hub
The new Green leader also weighed into the debate about flying the St George’s Cross, after the prime minister Sir Keir Starmer said he had one in his office – while also cautioning against the flag being used as a political statement.
Asked what he thought of the St George’s Cross, Mr Polanski said: “I think that migration is at the heart of this country. Migrants contribute a huge amount. That’s not a new thing – that has been traditionally throughout our history and that the English flag means different things to different people.
“And I think if people want to wave it because they’re being patriotic, particularly at football tournaments, I think there’s a huge space for patriotism in this country.
“But I’m also aware that for lots of people who have arrived in this country or people who aren’t even migrants, to be frank, Black and Asian communities, the flag can mean very different things around colonialism and empire. And that’s the thing about flags. It means different things to different people.”
Image: Zack Polanski. Pic: PA
He said he believed the idea of flying the English flag outside homes not in the context of sport was “quite imported from America”.
“If people want to do that then I think that’s up to people what they want to do.
“But I think at times of heightened tensions, I would say patriotism is actually about loving your neighbour, whether they’re from this country or not.”
Zack Polanski, the new leader of the Green Party, has been studying one politician closely this summer – Nigel Farage.
The 42-year-old, who stormed his party’s leadership contest by a large margin, calls himself an “eco-populist” (he used to be involved in Extinction Rebellion), and thinks the Greens could learn a lot from the media-savvy tactics of Reform which have seen them surge ahead of Labour in the polls.
Can the former actor and hypnotherapist, who rails against corporations and wants to tax the rich, take his party into the big leagues?
Image: Zack Polanski. Pic: PA
Speaking to him after his win was announced, Mr Polanski told me: “I despise Nigel Farage’s politics and I’d never copy what he does, but it’s undeniable that he cuts through; everyone knows who he is and that bold messaging – but for the truth, not the lies and misinformation he spins – that’s what you’ll hear more of from the Green Party.”
Mr Polanski is not an MP – he’s been on the London Assembly since 2021 and served as the party’s deputy leader. His two rivals in the leadership contest Adrian Ramsay, one of the party’s current leaders, and Ellie Chowns, were elected last year, but are not well-known to the public.
His more aggressive style and punchy social media clips appealed to party members impatient for results. His videos target “corporations who are destroying our democracy”; warn that “fascism is at our doorstep” and “call bullshit” – as he puts it – on the debate about asylum.
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As one of the members at the event summed it up: “People don’t know what we stand for, we need to be loud and clear about what we’re for and what we’re against, and Zac will do that.”
He’s put some noses out of joint within the party, and the tabloid press has called him the “boob whisperer” after The Sun reported in 2013 that, while working as a hypnotherapist, he told a woman who wanted bigger breasts that she could do so with the power of her mind. Mr Polanski apologised and says he is focused on the future.
Image: Pic: PA
His ambitions are high for the fifth party in British politics – currently polling at around 10%.
“Thirty to forty MPs at the next election”, he says. Enough to deny Labour a majority if it’s close, or to be kingmakers. As politics fractures, he hopes they could have a big impact for the first time in decades.
The Green Party in the UK – unlike its counterparts in other European countries – has struggled electorally until very recently. It was formed in a pub in Coventry in 1972 by activists inspired by the US environmentalist Paul Ehrlich, who warned that the world was overpopulated, spelling disaster for nature.
Its biggest success was in the 1989 European elections, gaining 15% of the vote, but representation in parliament was not achieved until 2010 when Caroline Lucas took Brighton Pavilion from Labour. She became an influential campaigner on the climate, fracking and animal rights, also warning against economic growth at any cost.
After she stood down, the party struggled to find its voice, with Jeremy Corbyn’s Labour Party pursuing a radical left-wing agenda. Now, after winning four MPs last year, Mr Polanski believes that with Labour in government and Reform at its coat tails, their moment has come.
He told members: “We can, and we will lower your bills. We will nationalise the water companies. We will hold this Labour government to account.
“Because when we look at Keir Starmer and what this government have been doing; whether it’s the two-child benefit cap, the disability cuts, the genocide in Gaza, my message to Labour is very clear: we are not here to be disappointed by you. We are not here to be concerned by you. We’re here to replace you.”
All of that may not endear him to all the Green Party’s potential supporters. The party now has 860 councillors, but some are in rural areas where they’ve won seats from the Tories.
There is a political opportunity on the left. Mr Polanski says he knows what will get his party into the spotlight. But it’s a far bigger task to deliver seats in parliament – including one he’ll need for himself.
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