Zero Knowledge Coins Explained: The Future of Privacy and Security in Blockchain

8/28/2025, 7:49:35 AM
This article introduces Zero Knowledge Coins and the underlying Zero Knowledge Proof (ZKP) technology, explaining how this technology balances transaction privacy with the decentralized characteristics of Blockchain.

Zero-Knowledge Coin and Technical Principles

Zero-Knowledge Coin is based on zero-knowledge proof technology, ensuring the privacy of all parties is protected during transactions. Unlike traditional public chains where all transaction information is public, ZK Coin only generates non-falsifiable proofs during legitimate transactions, maintaining decentralization while ensuring user privacy and security. Major zero-knowledge proof technologies such as zk-SNARKs, zk-STARKs, and Bulletproofs help enhance overall system security and scalability.

Represents the project and price trends

Among many ZK coins, ZKSync is regarded as a model for Ethereum Layer 2 scaling, using EVM-compatible zkEVM technology. Another heavyweight project, Mina, is known for its extremely lightweight blockchain characteristics, with data only a few KB and nodes easy to run. The above tokens can be traded on mainstream exchanges like Gate.

Latest applications of zero-knowledge proofs

In May 2025, Google Wallet adopted ZKP for authentication, allowing users to complete age verification without disclosing sensitive information, marking a step towards mainstream application of ZKP technology. On the other hand, Aleo demonstrates financial privacy solutions using zero-knowledge technology, enhancing transaction efficiency and paving the way for the commercialization of technology.

Investment Risks and Strategic Recommendations

Zero-knowledge coin technology has a relatively high technical threshold, and the project’s security and development progress need to be closely monitored. The market is highly volatile, and investors should carefully set their take-profit and stop-loss strategies. For beginners, it is recommended to purchase mainstream ZK coins through major exchanges and pay attention to community activity and project progress, adjusting the holding ratio in a timely manner to control risk.

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
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