When it comes to sustainability data, transparency is paramount. Yet, organisations still need to maintain a certain level of privacy around their data when sharing with third parties.
To bridge the gap between transparency and privacy, Allinfra Climate utilises zero-knowledge private data rollups.
Zero-knowledge (ZK) private data rollups represent a technology which involves aggregating granular private data while maintaining privacy.
This is achieved through the use of zero-knowledge proofs, which allow for data integrity verification and data provenance without revealing any private information.
A zero-knowledge proof is a way of proving the validity of a statement without revealing the statement itself. One party (the ‘prover’) can validate to another party (the ‘verifier’) that something is true without revealing any information except from the fact that this specific statement is true.
To illustrate the concept in a very simple example, let's say you have to prove to someone that you are over 18 years of age. You could show your driver’s licence, but you don't particularly want the verifier to know how old you actually are, where you live or any other information your licence would reveal. A zero-knowledge proof allows you to prove your age is over a given threshold value (over 18) without revealing the actual value of your age or any other information.
Allinfra Climate employs the use of ZK private data rollups for aggregating granular private data, so that our clients can provide proof of data provenance to third parties without exposing any of their private data.
This is important when clients are aggregating granular data for reporting purposes or for environmental financial product creation, such as renewable energy certificates or emission reductions.
For example, a producer of wind energy may need to prove the provenance and accuracy of aggregated device data to a third party – a digital renewable energy certificate (dREC) buyer. The buyer needs to verify the dRECs truly represent the KWh of wind energy produced that they say they do. However, the producer does not want to show minute-by-minute data, exposing sensitive information around downtime, when maintenance is carried out, etc.
The producer and buyer are able to do this easily with the Allinfra Climate system, thanks to the use of ZK private data rollups.
The essential function of ZK private data rollups is to enable data to be validated and processed off-chain. This means that transactions or computations can be carried out away from the main blockchain, thus reducing the computational load on the primary network. The resulting effect is a significant reduction in network congestion, which can be particularly beneficial during periods of high transaction demand.
The private data rollup uses smart contracts and zero-knowledge circuits. These are designed to ensure that only valid granular private data is included in the rollup, with the smart contracts enforcing the rules of the rollup and the zero knowledge circuits the validity of granular private data.
This approach enhances efficiency, scalability and privacy within its systems. By processing and validating data off-chain, Allinfra reduces network congestion and transaction fees, leading to a more efficient system.
Furthermore, the use of zero-knowledge proofs ensures that all computations are carried out correctly, maintaining the integrity and security of the main blockchain.