Cardano Launches First Zero-Knowledge Smart Contract on Mainnet

Cardano has reached a new milestone with the deployment of its first zero-knowledge (ZK) smart contract on the mainnet, a step that could redefine scalability and privacy in its ecosystem.

The transaction, carried out by Input Output, Cardano’s core development team, utilized the Halo 2 proving system for zero-knowledge verification. The initial transaction locked funds, while a subsequent one, verified through a ZK proof generated by Halo 2, successfully unlocked them. The unlocking process came with a modest transaction fee of 2.03 ADA (approximately $1.90).

Halo 2, a zkSNARK system developed by the Electric Coin Company, eliminates the need for a trusted setup and enables cryptographic proofs that verify computations without exposing underlying data.

In a detailed explanation, Input Output underscored the significance of recursive proofs – one of Halo 2’s standout features – which enhance scalability and interoperability by breaking complex computations into manageable segments.

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Input Output acknowledged that while this is a groundbreaking step, further development is required to fully integrate ZK capabilities into the Cardano ecosystem. The integration of zero-knowledge proofs is expected to boost scalability, improve efficiency, and enhance security for the blockchain.

Alexander Zdravkov