Privacy Use Cases

Privacy is the original motivation for zero-knowledge proofs in crypto. Public blockchains expose full transaction graphs — ZK enables selective disclosure when full transparency is harmful or illegal.

Privacy coins prove transactions are valid — balances do not go negative, supply is conserved — without revealing sender, receiver, or amount. Zcash uses zk-SNARKs; newer designs explore compliance-friendly privacy pools with allow/deny lists for sanctioned addresses.

Traders may want to execute strategies without broadcasting intent to mempool snipers. Prove you are not on a sanctions list, prove solvency of a reserve without revealing customer balances — ZK credentials enable compliance without full surveillance.