// GLOSSARY -- SECURITY & COMPLIANCE

What is Zero-Knowledge Proof (ZKP)?

1 min read Updated

A zero-knowledge proof (ZKP) is a cryptographic method that allows one party to prove knowledge of information to another party without revealing the information itself — enabling privacy and scalability in blockchain systems.

WHY IT MATTERS

ZKPs are one of the most important cryptographic advances for blockchain. The concept: prove a statement is true without revealing any additional information. 'I know the password' without showing the password. 'This batch of transactions is valid' without re-executing them.

Blockchain applications include: ZK rollups (prove transaction batch validity for L2 scaling), privacy (prove you're eligible without revealing identity), and compliance (prove your funds are clean without revealing transaction history).

ZK technology is advancing rapidly. ZK-SNARKs, ZK-STARKs, and newer proof systems each offer different tradeoffs in proof size, generation time, and trust assumptions.

FREQUENTLY ASKED QUESTIONS

ZK-SNARKs vs ZK-STARKs?
SNARKs: smaller proofs, faster verification, but require a trusted setup. STARKs: no trusted setup, quantum-resistant, but larger proofs. Both are actively used in production.
How do ZK rollups use ZKPs?
The rollup executes transactions off-chain, generates a ZK proof that all transactions were valid, and posts the proof to L1. Anyone can verify the proof without re-executing transactions.
Can ZKPs provide privacy on public blockchains?
Yes. Zcash, Aztec, and other privacy protocols use ZKPs to shield transaction details while proving validity. ZK-based identity solutions prove properties (over 18, verified human) without revealing data.

FURTHER READING

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