Zero Knowledge Proof

What is a Zero Knowl­edge proof and how does it work?

Imag­ine for a moment that you want to devel­op a sys­tem where you can quick­ly and eas­i­ly cre­ate a mech­a­nism that is both safe and effec­tive in deal­ing with finan­cial pay­ments, escrows, where one par­ty wants to buy a prod­uct or ser­vice or even a house or any oth­er prod­uct but those par­ties do not trust each oth­er…

Cue just about every crime dra­ma where peo­ple meet and every­one is armed and no one trust each oth­er, we all have seen these movies where even­tu­al­ly some­one starts doing some­thing vio­lent.

In real life though this sit­u­a­tion hap­pens often in cor­po­rate board rooms, in big trans­ac­tions, where 40 or more lawyers meet in an office, sign paper­work, sign agree­ments, that the par­ty of the first part will buy from the par­ty of the sec­ond part once cer­tain require­ments are met.

Even with this kind of sit­u­a­tion often one par­ty or the oth­er will be hid­ing some­thing that affects the price of the assets that are being sold.

An exam­ple might be one par­ty knows that the cost to pro­duce prod­ucts at their plant is going to go up by 30 per­cent and they use paper­work and lawyers to hide that fact and lat­er it is revealed that one of those par­ties are cor­rupt or is dis­hon­est.

When that hap­pens all those lawyers get angry and then begin to sue one anoth­er because that is what lawyers do…

Those thing might hap­pen in the movies all the time and yes they do hap­pen in real life too.

Prob­a­bly more than you might imag­ine, you can lit­er­al­ly just do an inter­net search for big law­suits that start­ed out as a nego­ti­a­tion to buy a prod­uct or ser­vice or com­pa­ny or land.

This is the way they used to do things using lawyers and com­plex agree­ments and all of this costs mon­ey.

You have to pay the lawyers, pay the peo­ple who pre­pare the paper­work, the cost of pro­duc­ing the paper­work, even the cost of the copy machines and the paper used to copy and pre­pare that paper­work.

All of these things are expen­sive.

But what if there were a way to use a process that would elim­i­nate most of those costs, (were talk­ing mil­lions of dol­lars for every deal that gets done) Mil­lions of dol­lars every year and in some cas­es bil­lions of dol­lars.

What if you could use Cryp­to and Blockchains plus a Math­e­mat­i­cal process that would great­ly reduce the cost to do these com­plex things?

You could save a cor­po­ra­tion Bil­lions over five years in costs.

That is what the Zero Knowl­edge proof is and soon that process will begin to change the way that big deals get done…