What is a Trusted Setup?
A Trusted Setup is a special initialization process used in some cryptographic systems (like zk-SNARKs) to generate secret keys or parameters that allow zero-knowledge proofs to function.
The problem? If those secret parameters are ever leaked or misused, the entire system’s security can be broken.
Key Points
- Initial Configuration — Trusted setups generate a hidden “master key” at the start of the system.
- Trust Assumption — You have to trust that the people who created the setup destroyed the secret parts—and didn’t keep a copy.
- Permanent Risk — If the secret was compromised—even once—the system could be silently faked, forever.
Why It’s a Problem
- Breaks Decentralization — A small group holds too much power during setup.
- Creates a Single Point of Failure — If the setup is dishonest or hacked, any proof could be forged, and no one would know.
- Not Transparent — Even in well-documented setups, the public must trust the process—which goes against the zero-trust principle of cryptography.
How Xcoin Avoids This
Xcoin does NOT use trusted setups. It relies on
zk-STARKs
and
Halo 2,
which are transparent, trustless, and quantum-secure.
That means: no hidden keys, no central authorities, and no backdoors—ever.