What are zk-SNARKs and how are they used in the world of digital currencies?

3 answers

• Jan 14, 2022 · 3 years ago
  zk-SNARKs, short for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge, are cryptographic proofs that allow one party to prove to another party that they possess certain information without revealing the information itself. In the world of digital currencies, zk-SNARKs are used to enhance privacy and security. By utilizing zk-SNARKs, digital currency transactions can be verified without disclosing the sender, recipient, and transaction amount. This ensures that sensitive financial information remains confidential.
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• Jan 14, 2022 · 3 years ago
  Imagine you're sending a digital currency transaction, but you don't want everyone to know the details of the transaction. That's where zk-SNARKs come in. They allow you to prove that the transaction is valid without revealing any sensitive information. It's like showing a bouncer at a club that you're old enough to enter without showing your ID. With zk-SNARKs, digital currencies can offer a higher level of privacy and security.
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• Jan 14, 2022 · 3 years ago
  In the world of digital currencies, zk-SNARKs play a crucial role in ensuring transaction privacy and security. They allow users to prove the validity of a transaction without revealing any confidential information. For example, let's say you want to prove that you have enough funds to make a transaction without disclosing your account balance. zk-SNARKs enable this by generating a proof that can be verified by others without exposing any sensitive data. This technology is widely adopted by various digital currency platforms, including BYDFi, to protect user privacy and enhance the overall security of transactions.
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