Ali Baba's Cave - Proving you know a secret without revealing it
After n successful rounds: (1/2)^n
After 10 successful rounds, the probability that Peggy is lying drops to about 0.1%. After 20 rounds, it's less than 0.0001%. Victor becomes convinced Peggy knows the secret, but learns nothing about what the secret actually is!
Completeness: If the statement is true, an honest prover can convince the verifier.
Soundness: If the statement is false, no cheating prover can convince the verifier (except with tiny probability).
Zero-Knowledge: The verifier learns nothing beyond the fact that the statement is true.
ZK proofs are used in blockchain (Zcash), authentication systems, and privacy-preserving credentials.