Requirements Category
Safeguard to protect ownership against fraud and manipulation.
Utilize zero-knowledge proofs (ZKPs), such as zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge), to allow parties to prove the validity of a statement, like asset ownership, without revealing any underlying sensitive data. A study titled “A ZK-SNARK based Proof of Assets Protocol for Bitcoin Exchanges” proposes a protocol that enables Bitcoin exchanges to prove their total asset holdings without revealing specific addresses or balances. By employing zk-SNARKs, the exchange can generate a proof demonstrating control over a certain amount of Bitcoin, ensuring transparency and trust without compromising sensitive information.