Zero-knowledge tokens

What are Zero-knowledge coins?

A Zero-knowledge coin is a type of cryptocurrency designed to enhance privacy and security for its users. It employs a cryptographic technology called zero-knowledge proofs. This technology allows one party to prove to another that a transaction is valid without revealing any of the transaction's details. This means that information such as the sender's and receiver's identities, as well as the transaction amount, remains confidential.

For instance, Zcash (ZEC) is a well-known zero-knowledge coin that uses a specific type of zero-knowledge proof called zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge). This method ensures that transaction details are hidden while still verifying the transaction's legitimacy. Monero (XMR) is another example, famous for its strong focus on privacy and untraceable transactions, using techniques like ring signatures and stealth addresses to obscure transaction details.

These zero-knowledge coins operate on decentralized networks, meaning they are not controlled by any single entity. This decentralization is a core principle of cryptocurrencies, ensuring that no central authority can control or manipulate the currency. By combining decentralization with enhanced privacy features, zero-knowledge coins offer users a more secure and private way to conduct transactions.

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