Posted by Greg Maxwell
May 5, 2025/23:55 UTC
In the discussion about the potential use of zero-knowledge proofs to validate hash digests without revealing their pre-images, it's highlighted that although theoretically feasible, practical implementations might suffer from significant side-channels in the proof mechanisms. The conversation shifts towards the implications of such cryptographic techniques on network efficiency and transaction costs, especially in the context of blockchain and NFT transactions. The concern is raised that requiring every transaction to carry a proof to verify its content could drastically reduce the network's effective throughput, either by halving it or reducing it by some other substantial percentage due to the computational overhead introduced by these proofs.
The dialogue further explores the notion that adding complex cryptographic solutions to manage data within blockchain networks could inadvertently increase the system's overall cryptographic complexity beyond that of existing models like Bitcoin. This complexity not only challenges the premise of enhancing security but also introduces practical hurdles in scaling and maintaining network performance.
A distinction is made between the motives for embedding large amounts of data in the blockchain, contrasting the perceived objective of merely storing data with the actual, more nuanced reasons. It's argued that the act of placing data on the blockchain is driven by the unique benefits it offers over conventional storage solutions, rather than being an economically rational choice for mere data storage. This point is underscored by referencing a Reddit discussion that sheds light on why individuals might prefer blockchain for certain types of data storage despite the higher costs and inefficiencies associated with such practices (Reddit discussion).
Moreover, the email touches upon the limitations of services like Amazon S3, which, while offering data storage capabilities, do not provide for the perpetual storage or publication of data. This gap in service provision is contrasted with blockchain's ability to not only store but also publicly disseminate data, highlighting a distinct advantage of blockchain technology for specific applications. This analysis somewhat indirectly points to the broader ecosystem of digital services and how blockchain positions itself within this landscape, offering functionalities that traditional cloud storage services cannot fulfill, thereby justifying its use case beyond mere data storage.
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