Zero-Knowledge Proofs are cryptographic techniques that allow one party to prove to another that a statement is true without divulging any additional information. ZKPs are used to enhance privacy in the context of Blockchain technology by allowing transactions to be verified without disclosing any underlying details, such as sender or receiver identities, or transaction amounts.
Enhancing Blockchain privacy with ZKPs
- Confidential Transactions: The ZKPs allow the validation of transactions to be performed without divulging specific details. ZKPs, for example, are used in cryptocurrencies such as Zcash to keep transaction amounts and identities of parties confidential while still allowing network verification that the transactions are valid.en.wikipedia.org
- Selective disclosure: ZKPs enable users to prove ownership of certain information, without disclosing the information. This is especially useful for scenarios such as identity verification where users can prove that they are older than a certain age, without disclosing the exact date of their birth. dock.io
- Decentralized Verification of Identity: ZKPs are used in decentralized systems to authenticate users, without revealing their credentials. This preserves privacy and security.dock.io
- Secure voting systems: ZKPs are able to be applied to voting mechanisms on blockchain platforms in order to ensure accurate voting without disclosing individual voter choices. This maintains the privacy of voters and election integrity.blog.spheron.network
Blockchain systems that integrate ZKPs can ensure the integrity and verification of transactions, while also ensuring sensitive information is kept confidential. This will significantly enhance user privacy.