Blockchain Technology and Privacy Protection: Applications and Implementation of Zero-Knowledge Proofs

Abstract

Imagine a digital bank where you want to prove to your friend that you have enough money to buy a gift without showing your entire bank statement. Zero-Knowledge Proofs allow you to verify your account balance without revealing any details about your transactions or other balances. This paper explains how ZKPs works in blockchain technology to protect privacy while ensuring transactions are valid. It covers the basics of ZKPs, different types like zk-SNARKs and zk-STARKs. The paper also discusses the technical challenges of using ZKPs, such as how it affects performance and storage, and suggests future improvements for making ZKPs more efficient and widely applicable.