What Is zkOracle?

zkOracles make use of Zero Knowledge Proofs (ZKPs) as a secure way for data to move without revealing sensitive information.

Get to Know with zkOracle

A zkOracle is a type of oracle used in blockchain smart contracts. Oracles are trusted sources of information that bring data from outside the blockchain onto the chain. This data can include things like prices, transaction details, and account balances.

Unlike traditional oracles, zkOracles use Zero Knowledge Proofs (ZKPs) to ensure privacy and security while still providing accurate data to smart contracts.

How do zkOracles work?

In zkOracles, the process starts off-chain, where nodes use zk-SNARKs to prove they have certain information without revealing the actual data. Consumers interact with the blockchain through smart contracts, relying on the data and proofs provided by these off-chain nodes to make decisions. 

The initial data computation and proof generation happen off-chain, allowing users to run computations locally without high costs. The generated proof and data are then verified on-chain to ensure accuracy and security.

Advantages of zkOracles

One major advantage of zkOracles is their ability to maintain data privacy while still ensuring data integrity. Traditional oracles broadcast data publicly, while zkOracles provide proof of data without revealing the data itself. 

This makes zkOracles ideal for applications that require both transparency and privacy.

Real-world Applications

zkOracles have various applications, including confidential voting systems, financial systems that require transaction privacy, and supply chain systems that need to validate product authenticity without disclosing proprietary information.

They can also be used in identity verification, where user privacy is crucial.

The Problem zkOracles Solve

Data availability on Ethereum is limited, requiring users to rely on third-party apps for additional data. Managing large amounts of data locally is costly and inefficient. 

zkOracles address these issues by providing trustless access to data through Zero Knowledge Proofs, eliminating the need for third-party indexing or local storage.

Also Read

What is Data Privacy?

What is Data Scraping?

What is the Ethereum Virtual Machine (EVM)?

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