True privacy in blockchain and transactions in general is something to aspire to, even more so because we’re dealing with sensitive information like financial records. This means removing as much data as possible from the process.
One of the ways in which the industry is trying to accomplish this is through privacy technologies like zero-knowledge cryptography. These technologies have plenty of real-world potential and are expected to experience a wider adoption, as in the crypto-world, so in the mainstream.
What is zero-knowledge cryptography?
Non-interactive Zero-knowledge Proofs: zk-SNARK and zk-STARK
Plenty of platforms are already deploying zero-knowledge proofs.
What does one of the blockchain’s most notable figures think about this technology?
The first is address generation. Namely, wallet software could remain stateless, allowing users to easily export and import their keys between wallets. This would imply using “some deterministic scheme like privkey_for_dapp = hash(master_key + dapp_id)”. But then, he wonders what the dapp_id is and how this would work for multi-contract dapps.
The second issue is dapp interaction, which includes the most common category - using ERC20 tokens inside another dapp. Buterin isn’t sure which workflow would achieve this.