Zero-knowledge cryptography is bigger than web3 | Opinion#Web3
When people talk about zero-knowledge cryptography in 2024, they’re often referring to a privacy-focused use case that relies on a combination of blockchain technology, cryptocurrencies, digital wallets, and users with some degree of web3 knowledge.
Zero-knowledge proofs have existed since the 1980s, long before the advent of web3. So why limit their potential to blockchain applications? Traditional companies can—and should—adopt ZK technology without fully embracing web3 infrastructure.
At a basic level, ZKPs unlock the ability to prove something is true without revealing the underlying data behind that statement. Ideally, a prover creates the proof, a verifier verifies it, and these two parties are completely isolated from each other in order to ensure fairness. That’s really it. There’s no reason this concept has to be trapped behind the learning curve of web3.
Most organizations that could benefit from ZK technology aren’t using blockchains or are not even aware of web3. The industry is still young, with many just now familiarizing themselves with Bitcoin Bitcoin
-2.61%
Bitcoin and Ethereum Ethereum
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Ethereum, not to mention Layer 2s and 3s.
Despite all that, ZKPs can already be applied to a variety of real-world use cases, and they don’t need to integrate fully web3 rails to do so.
Do you trust your slot machine payout?
With zero-knowledge proofs, you don’t have to trust a gaming operator. You can just enjoy playing and have peace of mind knowing that the game is designed fairly. Every digital gambling machine in the world should be designed with ZKPs; it just makes sense for the operators and the players. The best part is that players can enjoy the benefits without the words “web3” or “crypto” even entering their minds.
Recently, DraftKings and White Hat Gaming were fined $22,500 by the state of Connecticut for their online slot machine game, which failed to pay any winners over one week in August 2023.