Zero-Knowledge Proof (ZKP)

A Zero-Knowledge Proof is a cryptographic method that allows one party (the prover) to convince another party (the verifier) that a statement is true without revealing any underlying information used to prove it, ensuring privacy, authenticity, and integrity while proving validity without disclosure.

ZKPs possess three core properties: Completeness (if the statement is true, an honest prover can convince the verifier), Soundness (if the statement is false, no fraudulent prover can convince the verifier), and Zero-Knowledge (the verifier learns nothing beyond the truth of the statement itself).

Zero-knowledge proofs enable privacy-preserving technologies including private blockchain transactions (Zcash), confidential DeFi operations, decentralized identity verification, private KYC processes where institutions verify compliance without accessing personal data, fraud-resistant on-chain voting systems, and Layer 2 scaling solutions like zk-rollups. ZKPs are foundational to reconciling blockchain transparency with regulatory privacy requirements, allowing verification of compliance, creditworthiness, or identity attributes without exposing sensitive underlying data to counterparties or public networks.