[Applause]
okay hi today I'm going to be talking
about their knowledge cruises and how
zero knowledge proof kind of enabled
beautiful coexist with privacy and
príncipe transparently drug first off my
name is Anne Rose I'm the co-host of a
podcast called zero knowledge podcast I
also throw an event called thisor
knowledge summit and the next one will
be in San Francisco on October 26th so I
hope to see you there
just FYI I have a podcast I'm not so
used to giving public speaking where
there's no editing so please bear with
me alright I'm speaking this be ten and
I believe this is the privacy track so
I'm sure you've already had the zero
knowledge proof defined for you I'm
assuming that most of you know it but in
case you don't zero knowledge proof is a
technique for showing that a statement
is true without revealing any additional
information other than the fact that the
statement is true so for example if I
know a password I could potentially
prove to you that I know a password
without revealing what that word is you
just know that it is true with zernov
proofs you'll have a proven a verifier
the underlying information is kept
secret private the verifier knows that
the information is accurate despite not
having an entire picture in this case
there's no need for the third party to
act as a sort of certifier that this is
true the zero knowledge proof itself the
cryptographic in underpinnings or what
confirm the truth of the statement
so here's a little example later tonight
I might want to go over that I might
want to go to karaoke bar actually and I
learned that the drinking age here in
Japan is 20 now I'm Way over 20 but I
mean I may want to prove that I'm over
20 without revealing my age and I could
potentially do that with the zero
knowledge proof
so here the bouncer would know that I am
over 20 but he wouldn't actually know my
age okay so in this talk I'm gonna be
outlining sort of privacy and blockchain
as well as transparency walk in and help
it's you're not proof interactive both
of those so first let's talk about
privacy to privacy in the blockchain
blockchain isn't actually private on its
own but I didn't turn ultra proofs can
make the transactions on the blockchain
private so the most famous sort of the
first example of this was the zero cash
paper written in 2014 or they actually
proposed a model that allowed for
confidential payments since then there's
been a lot of protocols that are emerged
when they're using this kind of
underlying idea and they're creating you
know like for example Z cash they're
creating a shielded account model and
what that actually means going back to
my example with the bouncer if I have to
pay my cover I could potentially pay the
cover from my account to the bars
account and no other information would
be made obvious to the bars account for
example the bar would not know what I've
transferred before what I plan on doing
in the future the bar would not know my
balance and yet using as your knowledge
proof I can guarantee that there's no
double spend so I could guarantee that I
have those five tokens that I'm
transferring and that I haven't
transferred five tokens twice although
five tokens for an entry if it's caramel
if it's C cash would be very very
expensive so I'm hoping that my night
all right so in a traditional payment
system this makes total sense like you
should not have to reveal what you've
done before what you've done after and
like sales a business I paid your
invoice I would not want you to then be
able to see other invoices I've paid in
the past or plan to pay in the future
and so here we can see why privacy is
valuable for the blockchain and I think
if we want watching to be adopted on
large scale it definitely needs to be
secured accurate but private ok so now
let's talk about transparency in the
blockchain okay when you think about
like Bitcoin and other distributed open
block chains you will see all the
transfers being made and even though
it's just account numbers there are I
mean I think we all know this there are
methods for tracking money I'm watching
keep they're using on and off ramps like
exchanges or cracking mixer like systems
there are in tight like there's
analytics companies dedicated entirely
just to figuring out who's who on the
blockchain
in fact criminals have been caught
because these Bitcoin not displayed it
and that's actually a really good thing
like transparency is a good thing you
can actually see all the whole things
you can seal the transactions if you
want you can actually take like keep an
authentic copy of the ledger
transactions are mutable and you can see
them yourself in this case you can
actually audit any transaction and
there's no middleman needed and that
means you know where your tokens are
going how they're being used and who
touches them but if you think back to
the traditional financial world large
banks and other institutions will lose
customers funds in ways that the user
may not be aware of and in ways the user
would never want
so there's definitely value in this
transparency
into these larger systems this is why
transparency is valuable for the blob
chain okay so now I've outlined the
tension between these two forces there's
privacy and there's transparency there's
private we want our you know we want
some of our data to be confidential we
also want some key information to be
verifiable and honorable and even though
it seems contradictory during all the
proofs and blockchain enable both of
these things it's kind of cool so yeah
in this example so what I wanted to now
is talk about human examples of hauser
knowledge proofs and watching could
potentially help with compliance and
Trust building for the end-user now when
I was preparing these lives and this
presentation I wanted to use examples
from like healthcare or phony or even
taxes but in fact a lot of those are not
very developed and so instead the focus
of these examples are in the financial
sector and I think it makes sense
because there's so much activity on
chain that could be verified it's like
it's all the numbers are there and so I
think a lot of these systems will first
emerge through the financial sector I
want to talk to start about compliance
this is probably a bit of a dirty word
here in this audience but I I think this
is actually really cool like what you
could do is earn all proofs is you can
potentially cryptographically prove like
a fund could cryptographically prove its
operating compliantly without having
just disclosed all the details of their
actions and at the same time regulators
could be given visibility in the general
fund information but not access to other
confidential stuff like investing half
of activities lp's or
a lot of these examples come from a
specific project called Endora actually
this talk was inspired a little bit by
Ben fish who is one of the cofounders of
fedora in one of I think who I did an
interview with him and in that interview
he just sort of mentioned like how you
could actually use your knowledge proofs
to do selective disclosure and I think
that is one of the powers of this of
this technology and fedora what they
actually do is they use your knowledge
proofs and multi-party computation which
they related an equally powerful tool to
provide both privacy and transparency
and I think the key here is the
selective disclosure it's not that
everything is transparent it's not that
everything is kept private
you actually can allow certain
information through and keep other
information private so the first example
that I want to share is this idea of
ensuring kyc so kyc know your customer
this is something that you need to do if
you're running an exchange if you're
buying cryptocurrency if you're doing
investments what you could do here is
actually prove that a participant has
passed a kyc by a third party so what
you do is you basically take a white
list and the white list of addresses and
sort of your selection of addresses
match that and then provide a proof
saying like this like these addresses
are on the white list however you
wouldn't actually be disclosing which
addresses how many addresses you
wouldn't have no one looking for the
outside would be able to tell who on
that list has been kind of went through
and so here you see this selective
disclosure so another one would be to
prevent capital management fraud funds
could demonstrate statements about flows
even out from addresses belonging to
investors versus invest
and this could actually prevent
ponzi-scheme and embezzlement so another
example would be a server couple
examples are providing better business
practices for trust-building so here's
another example where you could
communicate better with investors you
can actually share more information
without revealing the details you could
provide on the code to be probe all of
the funds current asset Holdings using a
public database of assets and liquidity
profiles you can share general
information about a funds asset without
disclosing which assets are actually
held or you could do something like a
proof of solvency where you can actually
demonstrate the value of asset backs
back tokens the value of the tokens
actually exceed the liabilities meaning
like the fund is solvent it actually has
the funds it says and you can actually
do that without revealing how much or
what they are and this is a really
exciting example which is it actually
uses your knowledge of proof to issue
stocks them a ledger and you can
actually track these through secondary
trades except to the outside no one
would necessarily know that you are
tracking them you could to see where
they're going but outwardly like no one
else could see where they're going it
wouldn't be able to track them only
you'd be able to track them and you can
actually do that using certain altar
prints as well so some other use cases
that I kind of mentioned quickly before
and like in general this talk is very
much trying to find ways trusts to think
about the power of zernoff proofs and I
hope that this actually could inspire
you to think about more ideas and so
other ideas that have been floated or
things like taxes and auditing supply
chain management and voting there is a
project called ZK ledger from MIT where
they did a lot of work on the auditing
front as far as I know there's no
implementations yet and in general a lot
of this stuff will need like I mean
you'll have to get a lot of authorities
and regulators on word I sort of picture
it being a combined effort between funds
and regulators I don't think it would
just come from industry if that was
happen but I think it could be really
powerful cool so yeah I hope that this
talk has helped you to explain I hope
that I've explained a little bit how
valuable your knowledge proofs could be
for our personal and professional lives
and yeah and how it provides this
much-needed balance between privacy and
transparency and before I end I want to
say a big thank you to that fish as I
mentioned from Fedora because you really
helped me work on this talk and come up
with those points I think their projects
pretty cool I don't work for them but I
just I think they inspired us so I wanna
say thank you to them this is a very
high-level talk the zero knowledge
summit is something that I'm thrown in
San Francisco at the end of month
October 26 if you're into that if you're
there please apply that will have
actually some of the best researchers
around talking about details of their
protocols and so I hope that you will
consider coming so I don't know if you
have any questions or if you actually
give any comments given me and ideas
that would be really interesting to hear
also I think there's only one
so
you get lakhs welcome two men to do this
you know
inside these 18 digital machines so well
I know that there's a lot of projects
that are building on top of the air
virtual machine using zero knowledge
proof stuff and I'm sure you could do
private transactions with them but I
think what we're talking about here is
actually its constructions using this
you're an entrepreneur and as I
mentioned also NPCs it sounds like
you've actually designed systems that
allow for the disclosure right now using
this ability over a blank there's no
logic rules for the Texas and I would
say that it is absolutely a challenge to
convince eventual ministry to use of
these technology it's completely another
level of check so all these emulation
auditory understand the power of zero
knowledge proves but you need to prove
it yes for the government that's that's
actually one of the reasons why I don't
totally see it coming from industry and
like having industry pitch it to
government but rather like soar through
education or through like evangelizing
these ideas potentially have people
within those bodies come up with those
ideas themselves which may be good or
bad but I think it's good that we keep
an eye on it
I find a lot of that though there's a
motive I mean Singapore
to Authority the launcher kind of like a
- notable fortune Plumtree
and one on through the implementations
is as easy as proof serious importance
with much proof for in the bank I mean
just just give example I mean I'd be
curious to hear exactly what they're
doing there because it means your
knowledge proofs can be powerful for all
sorts of things but here what I'm
talking about is like compliance or like
some information is revealed and some is
kept private
so I like I'd be curious to hear exactly
where they use it doesn't think it's
like there are actually examples in
health care of spirit knowledge groups
that's so far there's no exams you're an
awful person and blockchain that are
like really working in the way that a
hospital would be known to or maybe you
have a counter example they're doing a
kind of real-time contentment between
pens and so this is kind of they have
had
let's enjoy our treatments yes and I
think the bullet I missed out on Laura
it's a pony scented bicycle chain yes
undeveloped also into I think is like
NASA and all those things I can get back
home
my pictures to hear from that example if
there are actually like is that designed
by regulators are set designed by a
consortium of banks so big yeah so
religion is kind of interesting
intelligent I mean not thought it so
much in order for this communicates to
political lives also it was basically
like a call government there were three
industry limitations that defunded to do
it and the author evaluates and publish
the results and their deterrence to a
higher
Oh are we of three minutes left anyone
else have any questions or ideas
if not then thank you for listening and
yeah I hope this hope you think about
these ideas that you guys do
[Applause]