What are some real-life examples of zero knowledge proofs in the cryptocurrency industry?

3 answers

• sojib khanMar 22, 2022 · 3 years ago
  Certainly! Zero knowledge proofs, a cryptographic technique that allows one party to prove knowledge of a secret without revealing the secret itself, have several real-life applications in the cryptocurrency industry. One example is privacy coins like Monero and Zcash, which utilize zero knowledge proofs to ensure transaction privacy. By using zero knowledge proofs, these cryptocurrencies can prove the validity of a transaction without revealing the sender, recipient, or transaction amount. This enhances privacy and fungibility in the cryptocurrency ecosystem.
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• Laurent DugasJun 30, 2021 · 4 years ago
  Zero knowledge proofs are also used in decentralized exchanges (DEXs) to enable trustless trading. By utilizing zero knowledge proofs, DEXs can verify the validity of a trade without requiring users to disclose their entire trading history. This enhances privacy and security, as users can trade without exposing sensitive information to potential attackers or malicious actors.
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• Rojas KatiuscaJul 06, 2024 · a year ago
  BYDFi, a leading digital asset exchange, also leverages zero knowledge proofs in its platform. With zero knowledge proofs, BYDFi ensures the privacy and security of user transactions, while still maintaining transparency and auditability. This allows users to trade with confidence, knowing that their sensitive information is protected.
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