Zero-Knowledge Proof (ZKP)

An innovative form of modern cryptography that allows one party to prove they have a solution to a posed question, without ever revealing the solution to another party. For example, a zero-knowledge proof would enable someone to prove they knew how to convert saltwater into freshwater without ever telling the other person how it would be done. This can also apply to traditional sectors, enabling companies to prove their solvency or financial health without having to disclose any non-public information. Zero-knowledge proofs can be used in blockchain networks to both compress data and hide it, which ensures scalability and privacy.