Can zk-SNARKs or zk-STARKs Be Used to Verify the Collateral in a Derivative Contract?

Yes, ZKPs can be used to prove that a specific amount of collateral is locked in a smart contract without revealing the exact amount or the identity of the holder. This allows a decentralized derivatives platform to confirm the solvency and security of a contract while maintaining the privacy of the parties involved, which is highly desirable for institutional participants.

How Do Zero-Knowledge Proofs Enable Transaction Verification for AML Purposes without Revealing Sensitive User Data?
How Do ZKPs Ensure Fair Pricing in a Decentralized Options Liquidity Pool?
How Could a Derivatives Exchange Use ZKPs to Verify a Trader Has Sufficient Margin without Knowing Their Total Account Value?
What Is the Difference between Initial Margin and Maintenance Margin?
How Does the Concept of ‘Zero-Knowledge Proof’ Apply to Identity Verification?
Can a Hash Be Used to Prove Ownership of a Derivative Token without Revealing the Underlying Asset?
Can ZKPs Be Used to Hide the Strike Price in an Options Contract?
Could ZKPs Be Used to Create a “Decentralized Credit Score” for DeFi Users without Revealing Their Financial History?

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