What are the potential drawbacks or limitations of using zero-knowledge authentication in the context of digital currencies?

3 answers

• Mar 22, 2022 · 3 years ago
  One potential drawback of using zero-knowledge authentication in the context of digital currencies is the increased complexity and technical requirements. Implementing zero-knowledge authentication requires a deep understanding of cryptographic protocols and can be challenging for developers who are not familiar with this technology. Additionally, the integration of zero-knowledge authentication may require significant changes to existing systems and infrastructure, which can be time-consuming and costly. However, once properly implemented, zero-knowledge authentication can enhance the security and privacy of digital currency transactions.
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• Mar 22, 2022 · 3 years ago
  Another limitation of zero-knowledge authentication in the context of digital currencies is the potential for false positives or false negatives. Zero-knowledge proofs rely on statistical calculations and assumptions, which means there is a small probability of errors occurring. False positives can result in legitimate users being denied access, while false negatives can allow unauthorized access. It is crucial to carefully design and test the zero-knowledge authentication system to minimize the occurrence of such errors and ensure a reliable and accurate authentication process.
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• Mar 22, 2022 · 3 years ago
  From BYDFi's perspective, one potential drawback of zero-knowledge authentication in the context of digital currencies is the potential impact on user experience. Zero-knowledge authentication often requires additional steps or verifications, which can introduce friction and inconvenience for users. Balancing security and user experience is a crucial consideration when implementing zero-knowledge authentication. BYDFi is committed to finding the right balance to provide a secure and seamless user experience for our customers.
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