What Is Zero-Knowledge Proof (ZKP)?
Cryptocurrency Exchange
Zero-Knowledge Proof (ZKP) is a special cryptographic method that allows a person (A) to prove the validity of the information they possess to another person (B) without revealing the information itself.
In other words, person A only demonstrates that they “possess the correct information”; however, they do not disclose the information itself to B.
This method is considered a revolutionary innovation in the fields of digital security and privacy. It is frequently used in
blockchain technologies, particularly for identity verification and transaction privacy. Thanks to ZKP, users can perform transactions or go through verification processes without sharing their personal data. So, what is Zero-Knowledge Proof (ZKP) and why is it so important? Find out in the rest of our article!
What is ZKP?
Zero-Knowledge Proof (ZKP) is an advanced cryptographic method that allows one party (the prover) to prove the validity of the information they possess to the other party (the verifier) without revealing the content of that information. In other words, a person can show that they truly possess a piece of information without revealing what that information is.
Theoretically established in the 1980s, this technology is now used primarily in blockchain and cryptocurrency ecosystems to ensure a balance of privacy, security, and verifiability. While user data, transaction details, or identity information are shared openly in traditional digital systems, ZKP makes it possible to verify the accuracy of this information without compromising privacy. In this respect, it offers a revolutionary innovation in terms of protecting privacy in the digital age.
How Does Zero-Knowledge Proof Logic Work?
Zero-knowledge proof (ZKP) is based on three fundamental principles: completeness, soundness, and the zero-knowledge principle.
According to these principles, if the prover truly possesses the information, the verifier will obtain the correct result on every attempt. However, someone who does not possess the information cannot deceive the verifier with random or fake data. The most important point is this: the verifier does not learn what the information is, but only becomes certain that the information exists.
Technically, the ZKP system works with random number generation, mathematical proof methods, and cryptographic verification steps. To explain with a simple example: a user may want to show that they have sufficient balance in their digital wallet; however, they can perform this verification without sharing their wallet address or total amount. Thanks to this method, the user both protects their privacy and proves their reliability to the system.
Also see.
Crypto wallet
Types of ZKPs: What are ZK-SNARK and ZK-STARK?
Zero-Knowledge Proof technology has evolved over time and branched into different subtypes. The most well-known of these are the ZK-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) and ZK-STARK (Zero-Knowledge Scalable Transparent Argument of Knowledge) protocols. Both enable verification without revealing the content of the information; however, they have some fundamental differences in terms of security, transparency, and scalability.
ZK-SNARK stands out for producing short proofs and enabling fast verification with low processing power. However, it requires a pre-established “trusted setup” phase for the system to function. If the confidentiality of this phase is compromised, the security of the entire system may be compromised.
ZK-STARK, on the other hand, has a more transparent structure in this regard. It does not require a trusted setup and is more resistant to quantum computer attacks. However, the proofs generated in ZK-STARKs are larger in size and the verification time is relatively longer.
In conclusion, while ZK-SNARK and ZK-STARK technologies serve the same purpose of verifying information without revealing it, one excels in speed and efficiency, while the other excels in transparency and security. Usage preferences may vary depending on the application's priority requirements.
The Use of ZKPs in Cryptocurrency Projects
Zero-Knowledge Proofs (ZKP) technology is increasingly preferred in the cryptocurrency ecosystem to ensure privacy, security, and data integrity. This system not only hides transaction details but also maintains the accuracy of data on the blockchain, simplifies user authentication processes, and increases network reliability.
One of the most well-known applications of ZKP is Zcash. Zcash uses the ZK-SNARK protocol to keep the sender, recipient, and transaction amount confidential while maintaining the validity of transactions in a verifiable manner on the blockchain. This allows users to conduct transactions without compromising privacy, while preserving the security and decentralized structure of the network.
Another project that effectively uses ZKP technology is Mina Protocol. Mina utilizes the ZK-SNARK infrastructure to keep the blockchain size to a minimum. This allows participants on the network to perform verification without downloading the entire blockchain. This approach demonstrates that ZKP offers innovative solutions not only for privacy but also for efficiency and scalability.
The Role of ZKP in Ethereum and Layer 2 Solutions
Network congestion and high transaction fees, one of Ethereum's biggest challenges, have long been a priority area for developers.
Layer 2 solutions developed to overcome these issues use Zero-Knowledge Proof (ZKP) technology to both increase transaction speed and reduce the load on the main network.
Notable examples of ZKP-based Layer 2 projects include zkSync, Scroll, StarkNet, and Polygon zkEVM. In these systems, transactions are executed on the second layer; the generated ZK proof is then securely transmitted to the Ethereum mainnet. This allows users to perform faster and lower-fee transactions while preserving the network's decentralized structure.
Vitalik Buterin, one of Ethereum's founders, has repeatedly stated that ZKP will play a key role in the network's future. Roadmaps developed for
Ethereum 2.0 and beyond also show that ZKP-based scalability solutions are embraced as one of the cornerstones of the network's long-term sustainability.
2025-12-10Legal Notice
The information, comments, and evaluations contained in this content do not constitute investment advice. This content is not intended to be prescriptive in any way and is intended to provide general information. It does not constitute investment advice. CoinTR cannot be held responsible for any transactions made based on this information or any losses that may arise.
What is the Ethereum Fusaka Update?Recommended
Cryptocurrency ExchangeWhat is a Stablecoin? 2025 Stablecoin List The cryptocurrency market is known for its high volatility, posing significant risks for investors. Stablecoins provide a secure alternative by maintaining a stable value. Typically pegged to fiat currencies, precious metals, or other assets, stablecoins serve as a safe haven for investors and traders. But what is a stablecoin, how does it work, and what types exist? Let’s dive into the details. What is a Stablecoin? A stablecoin is a type of cryptocurrency designed to maintain a stable value,2024-11-24
Cryptocurrency ExchangeWhat are Bear and Bull Markets? In financial markets, the terms bear market and bull market are often used to describe overall trends. A bear market represents periods of declining prices, while a bull market refers to rising trends. These terms are particularly important in the cryptocurrency market. But what exactly is a bear market, what is a bull market, and how long do these periods last? Here’s a detailed guide. What is a Bear Market? A bear market is a period when asset prices experience a prolonged decline, typically2024-11-24
Cryptocurrency ExchangeWhat is Blockchain Technology? Blockchain is a digital ledger technology where data is stored on a distributed network without the need for central authority. As the backbone of cryptocurrencies such as Bitcoin, blockchain is now being used not only in the financial world but also across many different industries. Blocks record transactions, and each block is linked to the previous one, forming a chain. This structure makes data immutable, tamper-proof, and transparent. Key Features: Decentralization: Not controlled by a s2024-11-28
