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Zero-knowledge proof

What are zero-knowledge proofs?​

Zero-knowledge proofs are a cryptographic method by which one party (the prover) can prove to another party (the verifier) that they know a value x, without conveying any information apart from the fact that they know the value x. This concept is revolutionary for privacy in blockchain applications.

Use cases for zero-knowledge proofs​

Zero-knowledge proofs have powerful applications specifically in blockchain and decentralized systems:

Private DeFi and finance​

  • Confidential transactions: Hide transaction amounts while maintaining blockchain verifiability
  • Private DEX trading: Trade tokens without revealing trading strategies or portfolio sizes
  • Anonymous lending: Prove creditworthiness for DeFi loans without exposing financial history
  • Private yield farming: Participate in liquidity pools without revealing position sizes

Decentralized identity and access​

  • Proof of membership: Verify membership in DAOs or communities without revealing identity
  • Age verification: Prove eligibility for age-restricted dApps without revealing exact age
  • Credential verification: Validate qualifications for DeFi protocols without exposing personal data
  • Sybil resistance: Prove uniqueness without revealing identifying information

Blockchain gaming and NFTs​

  • Provably fair games: Demonstrate game randomness without revealing random seeds
  • Hidden information games: Enable card games and strategy games with concealed information
  • Private asset ownership: Prove NFT ownership without revealing collection details
  • Achievement systems: Verify game progress without exposing gameplay patterns

DAO governance and voting​

  • Anonymous governance: Vote on proposals while maintaining privacy of vote choices
  • Stake-weighted voting: Prove voting power without revealing exact token holdings
  • Quadratic voting: Implement fair voting systems with privacy protection
  • Delegation privacy: Prove delegation rights without exposing delegation relationships

Cross-chain and scaling​

  • Private cross-chain transfers: Move assets between blockchains without revealing amounts
  • Layer 2 privacy: Maintain privacy in rollups and sidechains
  • Bridge compliance: Prove regulatory compliance for cross-chain transfers
  • Batched transactions: Combine multiple private transactions for efficiency