Cardano breaks new ground with first ZK smart contract

The Cardano blockchain has achieved a significant milestone in the blockchain environment by deploying the first zero-knowledge smart contract. I/O The research team tested Halo2 smart contracts on Plutus’ Cardano smart contract platform. Zero-knowledge proof smart contracts use the Plutus v3 ledger language, which significantly improves the capabilities of Cardano. Halo2 is an innovative cryptographic proof protocol that can significantly improve scalability while enhancing user privacy. The strategic move to introduce zero-knowledge smart contracts indicates that Cardano has a vision to become one of the most advanced blockchain platforms in the future. Let’s learn more about the Halo2 system and its impact on Cardano.

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Understand the details of your milestone initiative

Before we learn more about the Halo2 system, we need to know about the events that shifted attention to Cardano. The I/O research team deployed the Halo2 proof on the Cardano mainnet for an ad hoc threshold multi-signature scheme (ATMS). The plan worked for the successful verification of 50 out of 90 signatures, marking the beginning of zero-knowledge applications on the Cardano blockchain.

The new Cardano ZK smart contract Halo2 also allows the network to integrate partner chains like Midnight with Cardano. New developments can bring benefits to both developers and users, making networks more versatile, faster and more secure. The deployment of the innovative zk smart contract on the Cardano mainnet includes two notable transactions for locking and unlocking funds.

The first transaction of the deployment focused on freezing funds, while the second transaction unlocked funds using the Halo2 protocol. The first transaction incurred a fee of 0.16 ADA and the second transaction required 2.03 ADA. Input Output Holdings noted that the cost of unlocking funds with Halo2 is significantly lower compared to the advanced cryptographic process involved in the transaction. Tests to deploy Halo2 on the Cardano mainnet demonstrated Plutus’ ability to manage complex cryptographic operations.

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Importance of ATMS in Halo2 testing

You may have come across the term ‘ATMS’ in the basic details of Halo2 testing. Temporal threshold multi-signature schemes are an important component in developing proof-of-stake sidechains. It was created by expert cryptographers to improve the scalability of Cardano and its sidechains while also securing the security of Cardano smart contracts. The successful verification of ATMS signatures using Halo2 indicates that the Cardano blockchain is now capable of managing sophisticated cryptographic applications. This verification also provides an ideal foundation for future testing, such as recursive Halo2 proof testing on the Plutus platform.

Learn the basics of Halo2

The Halo2 system is a zero-knowledge verification system that can verify transactions without revealing sensitive details. It was created by Electric Coin Company and uses zk-SNARK or Zero-Knowledge Succinct Non-interactive Argument of Knowledge technology. Halo2’s main goal focuses on eliminating the need for a trustless environment by using cryptographic proofs to verify transactions without exposing transaction details.

Halo2 represents a quantum leap forward in Cardano transaction verification by enabling secure verification without revealing personal information. With recursive proofs available in Halo2, users don’t need a trusted setup. It will be a huge step forward in redefining existing concepts of security and scalability through blockchain technology.

Unique features of Halo2

Details of Cardano’s first ZK smart contract are also drawing attention to other aspects of the Halo2 proof system. Cardano said the Halo2 system uses the PLONK protocol, a trusted, general-purpose zk-SNARK framework to optimize flexibility and efficiency. It is also important to note that Halo2 contains many different components that divide their functionality into several modular elements. As a result, Halo2 ensures that the Cardano mainnet does not suffer from the cryptographic requirements of zero-knowledge proofs.

Halo2’s unique approach allows only one party to confirm a transaction to another party without revealing the underlying data. Halo2 differs from existing zk-SNARK systems because it does not require a trusted setup. It is also important to note that Halo2 supports recursive proofs, which allow cryptographic computations to be divided into small segments. The proof from one step of the computation is used as input to the next step of the proof computation. The most important advantage of Halo2 is that it ensures efficient evidence aggregation, which can improve scalability and performance.

Identify innovations introduced in Halo2

The Cardano blockchain is one step ahead of its competitors with the successful testing of the Halo2 proof system. The vision behind Cardano launching the zk smart contract is focused on achieving better scalability and security. Electric Coin Company created Halo2 by improving the Halo protocol to improve security, adaptability, and efficiency. It also leverages the PLONK protocol to ensure faster speeds and flexibility.

Halo2 avoids many security issues by not requiring the trusted setup that many zk-SNARK systems require. Halo2’s modular structure with unique components ensures rapid adaptation to different requirements for cryptographic computation. Halo2 also lowers overhead by reducing the cost of generating and verifying zero-knowledge proofs. The low overhead makes Halo2 a practical choice for a variety of real-world applications.

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New Opportunities for Developers Using Halo2

The introduction of Halo2 brings many new opportunities for developers using the Cardano blockchain. Halo2 offers unique benefits to developers, such as improved privacy, cross-chain compatibility, and better scalability. Developers can use Halo2 to create apps that provide better protection for user data, such as secure voting systems and apps for private transactions. Halo2 also opens up new possibilities for strengthening cross-chain innovation by connecting Cardano with other blockchain networks that support zk-SNARK. Most importantly, Halo2’s efficiency allows you to develop scalable apps that can support thousands of users without network congestion.

Developers can utilize zero-knowledge proof smart contracts to take full advantage of cryptographic capabilities. Halo2 can help create secure voting systems that provide better integrity and privacy in elections. Halo2 can also be used to protect sensitive supply chain data by creating solutions for supply chain auditing on the Cardano blockchain. Another notable application of Halo2 is that it promotes collaborative development while protecting sensitive datasets for distributed machine learning. The integration of Halo2 gives Cardano a strong foundation for creating solutions with greater scalability and privacy.

Why is Cardano the ideal choice for Halo2 deployment?

The innovative capabilities of zero-knowledge smart contracts can play an important role in enhancing privacy in blockchain ecosystems. One of the characteristics of zero-knowledge proofs is that they can improve the scalability of blockchain networks at lower costs. It is important to note that the two most important factors that give Cardano an edge over other blockchain networks are cost and scalability.

When comparing Cardano and Ethereum for Halo2 deployment, Cardano emerged as the cost-effective option. Input Output According to the research team, the cost of locking and unlocking funds in Cardano is quite low. Ethereum, on the other hand, imposes gas fees, which ultimately increases the cost of zero-knowledge proof transactions.

Cardano can also achieve better results in terms of scalability with the Halo2 system. Input Output The research team implemented a variety of tests for Halo2 and demonstrated its effectiveness even when verifying multiple signatures simultaneously. It is also important to note that Cardano has a unique UTxO model that ensures parallel transaction processing. The UTxO model is better than Ethereum’s proof-of-stake consensus, which introduces several bottlenecks in Halo2 implementation. Cardano can support nearly 250 transactions per second, while Ethereum struggles to handle 15 to 30 transactions per second.

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A new direction for cross-border payments and cryptocurrency payment platforms

The success of Cardano ZK smart contracts opens a new path to revolutionizing cross-border payment services. In fact, zk smart contracts can replace existing escrow services used for cross-border payments. The benefits of zk smart contracts help verify transactions without revealing sensitive information. As a result, you can ensure the privacy and security of cross-border payment transactions.

Cryptocurrency payment platforms can also gain promising benefits from the Halo2 system. ZK Proof can support on-chain payments associated with off-chain events while providing trustless escrow. Zero-knowledge smart contracts could create a future that improves the efficiency of cryptocurrency payments. Additionally, privacy and security elements can help cryptocurrency payment platforms achieve better regulatory compliance.

final thoughts

Input Output The team expressed details of the Halo2 proof system across all social media platforms. Zero-knowledge proofs ensure transaction verification without revealing underlying information. This can ensure better privacy and improved computation speed. The recursive proof used in Halo2 ensures that Cardano can achieve better scalability. Recursive proofs ensure the simplification of complex processes, providing an ideal foundation for achieving better efficiency for all transactions in the Cardano ecosystem. Successfully testing the ZK smart contract on the Cardano mainnet creates new possibilities for expanding and innovating Cardano operations.

*Disclaimer: This article should not be considered, and is not intended to provide, investment advice. The statements made in this article are not investment advice and should not be taken as such. 101 Blockchain is not responsible for any loss suffered by anyone relying on this document. Do your own research!