What are the potential challenges or limitations of implementing zero-knowledge proof in digital currencies?

3 answers

• Nov 28, 2021 · 3 years ago
  One potential challenge of implementing zero-knowledge proof in digital currencies is the scalability issue. As the number of transactions increases, the computational requirements for zero-knowledge proofs also increase, which can lead to slower transaction processing times. Additionally, zero-knowledge proofs may require significant computational resources, making it difficult for devices with limited processing power to participate in the network. This could potentially limit the accessibility of digital currencies to certain users or devices.
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• Nov 28, 2021 · 3 years ago
  Another challenge is the need for trusted setup ceremonies. Zero-knowledge proofs often require a trusted setup phase, where a set of initial parameters are generated. If this setup is compromised or manipulated, it can undermine the security and privacy guarantees of the zero-knowledge proof system. Ensuring the integrity and trustworthiness of the setup process is crucial for the successful implementation of zero-knowledge proofs in digital currencies.
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• Nov 28, 2021 · 3 years ago
  From BYDFi's perspective, one of the potential challenges of implementing zero-knowledge proof in digital currencies is the need for widespread adoption. Zero-knowledge proofs require support from the entire network to be effective. If only a small portion of the network adopts zero-knowledge proofs, it may not provide the desired level of privacy and security. Therefore, promoting and incentivizing the adoption of zero-knowledge proofs among digital currency users and developers is essential for their successful implementation.
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