Rangeproofs

Rangeproofs are a type of zero-knowledge proof used in the Liquid Network and other blockchains with Confidential Transactions to ensure transaction amounts are valid without revealing them.

In a transaction that is confidential, the amount being transferred is hidden but the protocol still needs to ensure no new units are being created in order to preserve the system's security and integrity. Rangeproofs achieve this by allowing a party to prove that a committed number lies within a certain range without revealing the number itself. This prevents users from creating transactions with incorrect values, which could potentially exploit the system and create coins out of thin air.