What are zero-knowledge proofs and why are they important?

Zero-knowledge proofs are cryptographic methods that allow one party to prove to another that a statement is true without revealing any additional information. For example, you could prove you have enough money for a purchase without showing your bank balance. This technology is revolutionary because it enables secure verification without compromising privacy, which is crucial for sensitive financial transactions, identity verification, and secure data sharing in our digital world.

What is fully homomorphic encryption (FHE)?

Fully homomorphic encryption is a special type of encryption that allows computations to be performed directly on encrypted data without needing to decrypt it first. Imagine sending your financial information to your bank in a locked box, and they can analyze it and provide services while the box remains locked. This breakthrough technology enables companies to process sensitive data while maintaining complete privacy and security, which is especially valuable for industries like healthcare, finance, and AI that handle confidential information.

How does the Zero-Knowledge Economy relate to cybersecurity?

The Zero-Knowledge Economy represents the next evolution of cybersecurity. Traditional cybersecurity focuses on building walls to keep data safe, but still leaves information vulnerable once accessed. Zero-knowledge technologies take a fundamentally different approach by making data usable while it remains encrypted and protected. Companies in this theme include both specialized cryptography innovators and established cybersecurity firms incorporating these advanced methods to create more secure systems that protect data even while it's being processed.

Why is this investment theme connected to artificial intelligence?

AI needs massive amounts of data to train effectively, but much of the world's most valuable data is sensitive or regulated (like healthcare records or financial information). Zero-knowledge technologies solve this critical problem by allowing AI systems to learn from confidential data without ever actually seeing the raw information. Companies pioneering these privacy-preserving methods are becoming essential to AI advancement, as they enable access to previously unavailable datasets while maintaining privacy and regulatory compliance.

What does "Zero Trust" security mean?

Zero Trust is a security approach based on the principle "never trust, always verify." Unlike traditional security that focuses on defending a network perimeter, Zero Trust assumes breach and verifies each request regardless of where it originates. It's like requiring ID at every door inside a building, not just at the entrance. This approach is fundamental to the Zero-Knowledge Economy because it establishes the continuous verification framework necessary for systems where sensitive data must remain protected even during processing. Several companies in this theme are leaders in implementing Zero Trust architecture.

15 handpicked stocks

Zero-Knowledge Economy

Discover a carefully curated selection of companies at the forefront of privacy-preserving cryptography. These stocks have been handpicked by our expert analysts for their potential to transform how data is used securely in the digital economy, without ever compromising confidentiality.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17