Definition
A cryptographic method where one party can prove to another that they know a value (e.g., a password or transaction detail) without revealing the actual information. Used in privacy coins and Layer 2 scaling solutions.
Why It Matters
Zero-knowledge proofs enable both privacy and scalability in blockchain. They power zk-Rollups (fast, cheap Ethereum transactions) and privacy-focused cryptocurrencies.
Example
zkSync uses zero-knowledge proofs to batch thousands of Ethereum transactions and submit a single compact proof to the mainnet — proving all transactions are valid without revealing their details.
Related Terms
Rollup
Layer 2
Privacy
Cryptography