A Zero-Knowledge Proof (ZKP) is a cryptographic technique that allows one party to prove to another that a certain statement is true—without revealing any specific information about the statement itself. This concept is fundamental to enhancing privacy on public blockchains.
For example, a user could prove they have enough funds for a transaction without revealing their actual wallet balance. ZKPs are the foundation of technologies like zk-SNARKs and zk-STARKs, which are widely used in privacy-focused projects such as Zcash and some Ethereum Layer 2s.
ZKPs are also vital for scaling blockchain networks. By bundling transactions into a single proof, networks can validate thousands of operations with minimal on-chain data. This enhances both privacy and efficiency—a rare combination in blockchain design.
