Glossary: Zero-knowledge Proofs

A zero-knowledge proof (ZKP) is a cryptographic method that allows one party to prove a statement is true without revealing any information beyond the truth of that statement itself.

What is a Zero-Knowledge Proof?

A zero-knowledge proof (ZKP) is a cryptographic method that allows one party to prove a statement is true without revealing any information beyond the truth of that statement itself.

Zero-Knowledge Proofs Explained

Say you know the password to a secret club. Someone at the door needs to verify you know it, but you don't want to say it out loud because others might hear.

So instead, the door has a special lock. You type the password into the lock, it turns green, and the person at the door sees "correct" without ever seeing or hearing the actual password.

That is a zero-knowledge proof. A system that confirms you know something is true without you having to expose what that something is.

What a Zero-Knowledge Proof Means For

Audience

Use Case

Blockchain developers

Verify computation in privacy-preserving transactions and scaling solutions without exposing underlying data

Compliance and identity teams

Confirm a user meets requirements like age or jurisdiction without storing personal data

Protocol users and traders

Prove fund eligibility or transaction validity without revealing wallet balances or history

Examples

  1. A user proves they are over 18 to access a platform without submitting their date of birth or ID document.

  2. A wallet proves it holds enough funds to cover a transaction without disclosing the actual balance.

  3. A zkRollup batches thousands of transactions and submits a single proof to Ethereum confirming all transactions were valid, without publishing every transaction's details on chain.

  4. A voter proves they are eligible to vote in a governance proposal without revealing their identity or wallet address.

FAQs

Is a zero-knowledge proof the same as encryption?

No. Encryption hides data in transit. A ZKP proves a statement is true without the verifier ever seeing the underlying data.

What are ZKPs used for in blockchain?

Primarily privacy and scaling. ZKPs hide transaction details while proving validity, or confirm large computation batches with one compact proof.

Does zero-knowledge mean the proof is anonymous?

Not necessarily. Anonymity depends on how the system around the proof is designed, not the ZKP itself.

Are zero-knowledge proofs slow or expensive?

Generating a proof is computationally heavy. Verifying one is fast and cheap. Most engineering work focuses on reducing proving time.

What is the difference between zk-SNARKs and zk-STARKs?

Both are ZKP types. SNARKs are smaller but need a trusted setup. STARKs need no trusted setup and resist quantum attacks.