Zero-Knowledge Proof, or Zero-Knowledge Protocol, is a probabilistic-based verification method that includes “fact-like statements” and “statements about personal knowledge”. The verifier asks the prover based on certain randomness. If the correct answer is given, the prover has a high probability of possessing what he claims to be “knowledge.” Zero-Knowledge Proof can verify that you did spend the money without revealing which currency was spent.
Data privacy is one of the most important subjects nowadays. Protection of personal data related to the identity of individuals (date of birth, bank statements, transaction histories, education credentials) is vitally important and will continuously increase in importance. In the era of technology, we are generating truly mind-boggling amounts of data like never before and the data that we are constantly creating about ourselves is up for grabs. Big companies like Google and Facebook have leveraged on our data to become tech giants that dominate the world today. However, the recent breakthroughs in cryptography and the rise of blockchain enable a new way to help protect our data and identity, even from organizations that we interact with. Zero-Knowledge Proof may be the answer.