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.