powers-of-tau ceremony
The powers-of-tau ceremony is the specific multi-party computation used to generate a universal trusted setup safely. The goal is to publish group elements encoding consecutive powers of a secret τ — that is, encodings of τ, τ^2, τ^3, … up to the degree the circuits will need — without anyone ever learning τ itself. These "powers of tau" are exactly the structured reference string that KZG-based systems like PLONK, and Ethereum's EIP-4844 blob commitments, rely on.
The ceremony works as a relay. The first participant picks a random secret s1, raises the starting elements to its powers, and passes the result on; the second picks s2 and multiplies it into every element, so the running secret becomes s1·s2; and so on down a chain of contributors. Because the published values only ever appear "in the exponent," no one can extract the accumulated secret τ = s1·s2·…·sn, and the final SRS is safe as long as a single participant honestly discarded their own contribution. Each participant also publishes a proof that they genuinely transformed the previous transcript (rather than substituting their own), so anyone can verify the chain's integrity afterward.
This 1-of-N honest model is what makes the ceremony trustworthy at scale: with thousands of independent contributors, an attacker would have to have compromised every single one. Ethereum's KZG Summoning Ceremony for proto-danksharding drew over 140,000 participants, making it one of the largest cryptographic ceremonies ever; the "perpetual powers of tau" is an ongoing community SRS that many projects reuse so they do not each have to run their own.
Contributing is verifiable, but discarding your secret is not — you cannot prove you deleted it. Security therefore rests on the belief that out of a huge crowd, at least one person was honest and competent enough to actually erase their randomness.