How Does ZKP Technology Apply to Privacy-Focused Cryptocurrencies?
Zero-Knowledge Proof (ZKP) technology is foundational for privacy-focused cryptocurrencies like Zcash. It allows a user to prove that a transaction is valid and adheres to all network rules (e.g. they have enough funds, the transaction is correctly signed) without revealing any of the sensitive transaction details, such as the sender, receiver, or the amount transferred.
This level of privacy shields transactions from all forms of public mempool analysis, making front-running impossible.
Glossar
Technology
Infrastructure ⎊ Technology, within cryptocurrency, options trading, and financial derivatives, represents the foundational systems enabling secure transaction processing and data management.
Privacy
Anonymity ⎊ Privacy within cryptocurrency and derivatives contexts centers on obscuring the link between transaction origins and identifiable entities, a critical distinction from traditional finance’s reliance on Know Your Customer (KYC) protocols.
Zkp Technology
Technology ⎊ ZKP Technology, an abbreviation for Zero-Knowledge Proof technology, represents a suite of cryptographic methods enabling one party to prove the possession of certain information or the correctness of a computation without disclosing the underlying data.