Cryptocurrencies have the potential to increase transactional privacy. To achieve this, different blockchains have created solutions that can be used to ensure privacy on their networks. One such solution is zk-SNARKS. 

In this guide, we’ll delve into zk-SNARKS, explaining what they are, how they work, and discussing their significance in the crypto realm.

What Are zk-SNARKS?

zk-SNARK (Zero-Knowledge Succinct Non-interactive Argument of Knowledge) is a cryptographic solution built to increase transactional privacy and efficiency when validating transactions on blockchain networks.

To understand zk-SNARKS, we first need to grasp the concept of Zero-Knowledge Proofs (ZK-Proofs). Zero-knowledge proofs are cryptographic functions that enable one party to prove to another that they possess specific information without revealing what that information is. In other words, it allows you to prove you know a secret without revealing it.

In zk-SNARKs, “ZK” stands for “Zero-Knowledge,” borrowing from zero-knowledge proofs, and “SNARK” stands for “Succinct Non-interactive Argument of Knowledge.”

zk-SNARKs hinges on the following three crucial concepts:

Zero Knowledge

This implies that one party can prove to another that they possess certain information without revealing it. It’s akin to a magic trick where the magician proves they can make a coin disappear without revealing how they did it.


This emphasizes efficiency. zk-SNARKS are designed to be concise and efficient in terms of computational resources. This efficiency is crucial for blockchain applications where every bit of processing power counts.


Traditional cryptographic proofs often require multiple back-and-forth interactions to validate a statement. Zk-SNARKS, however, are non-interactive, meaning they can prove something in a single interaction.

A Brief Historical Perspective

The development of zk-SNARKS started with the need for more private crypto transactions.

Satoshi Nakamoto, the creator(s) of Bitcoin, envisioned a system that provided pseudonymous transactions. However, this had a privacy gap that led to the exploration of new technologies and the eventual creation of zk-SNARKS.

The technology debuted in 2013 via a research paper titled “Pinocchio: Nearly Practical Verifiable Computation.” The name “SNARK” was coined to signify the technology’s ability to make complex statements in a succinct, non-interactive way.

As time passed, zk-SNARKS gained momentum and has been adopted by several cryptocurrencies, including Zcash (ZEC) and Polygon (MATIC).

How Do zk-SNARKs Work?

Now, let’s see exactly how zk-SNARKS work. To explain this, we’ll use a simple analogy:

Imagine you have two friends, Alice and Bob, who want to play a game without revealing their cards. Alice has a deck of cards, and Bob selects one card from it without showing it to Alice. The challenge is for Bob to prove to Alice that he holds a card from her deck without revealing which card it is.

In cryptography, Alice and Bob represent the verifier and the prover, respectively. The deck of cards symbolizes a piece of information or a statement that needs to be validated. The game they’re playing is the process of proving the statement’s authenticity without revealing the specifics. 

Here’s how it works:

  • Bob starts by converting his card (the statement) into a series of mathematical expressions.
  • He then performs mathematical operations on these expressions to generate a “proof.”
  • Alice, the verifier, checks the proof to ensure it’s valid.
  • If it checks out, Bob convinces Alice that he does have a card from her deck, even though she doesn’t know which one it is.

In the cryptocurrency context, this means that you can validate transactions without revealing the sender, receiver, or amounts exchanged. This way, the technology offers the trading parties a high level of privacy. It’s like conducting a secret transaction on the blockchain.

The components necessary for zk-SNARKS to work include cryptographic primitives, such as elliptic curve pairings and hash functions. These mathematical tools enable the creation of proofs and secure the verification process.

Benefits and Drawbacks of zk-SNARKS

As is the case with any technology, zk-SNARK has its pros and cons. Here, we look at some of them.


The following are some of this technology’s key benefits:

  • The primary advantage of zk-SNARKS is enhanced privacy. Cryptocurrency transactions can remain confidential, as sensitive details are hidden.
  • Zk-SNARKS are efficient, making them ideal for blockchain applications. They save computational resources and reduce the burden on network nodes.
  • By reducing the data needed to verify transactions, zk-SNARKS can help blockchain networks scale more effectively.
  • Zk-SNARKS can be applied to various blockchain platforms, fostering interoperability and broader adoption.


Some of the shortfalls of this technology include: 

  • Zk-SNARKS are intricate and challenging to understand for the average user. 
  • Some zk-SNARK implementations require a trusted setup, which can introduce vulnerabilities if not executed correctly.
  • While zk-SNARKS are efficient, generating proofs can be resource-intensive for the prover, which can be a drawback in certain use cases.

Why Is zk-SNARK Important?

zk-SNARKS holds immense importance in the blockchain and crypto space for various reasons. Let’s take a look at them.

  • zk-SNARKS increase privacy by offering a means to transact privately on blockchain networks.
  • With the efficiency of zk-SNARKS, blockchain networks can scale more effectively, handling a larger number of transactions without compromising security.
  • The efficient and secure nature of zk-SNARKS can bolster the overall security of cryptocurrency networks, making them less susceptible to fraud and attacks.
  • zk-SNARKS improve interoperability since they aren’t limited to a single blockchain or cryptocurrency. They can be implemented across various platforms, promoting a more interconnected and versatile crypto ecosystem.

The Bottom Line 

Privacy and security cannot be compromised in crypto. zk-SNARKS, with their ability to facilitate private transactions and enhance security, play a pivotal role in ensuring the continued growth and adoption of digital currencies and assets.