New crypto solutions based on zero-disclosure proofs are helping to achieve the right balance between openness and privacy. This technology makes it possible to verify the reliability of information without disclosing its content. For example, an exchange can confirm that it has sufficient reserves to cover its obligations to customers. At the same time, the amount of each individual balance will remain secret. In this article, we will go into detail about what zero-disclosure evidence is and how it works
How does zero-disclosure evidence work?
Zero-knowledge proofs (zero-knowledge proofs or ZKP) are cryptographic protocols that allow one party, called the “prover”, to convince another party, the “verifier”, of the truth of some assertion without revealing any details related to that assertion. It sounds confusing, but it's actually quite simple.
Imagine that you want to prove that you know a secret password, but you can't tell us what it is. Normally, to do so, you would have to reveal the password to the reviewer. With zero-disclosure proof, you can demonstrate knowledge of the password without providing it. The verifier will be convinced that you know the password, but will never know what it is.