Zero-knowledge proofs might be the technical framework that pushes the greater financial sector into its’ next stage. According to Ant Financial, which is Alibaba’s unit for “payments and payment technologies,” this means even the most traditional banks will have to eventually embrace privacy, to some extent.
Rather than show their confidence in crypto privacy tech with a mere promise of an investment, Ant Financial and therefore, Alibaba, appears to be going all-in with regards to zero-knowledge proofs, starting with its’ existing blockchain efforts of all shapes and sizes.
Reportedly, this is because Ant Financial(not necessarily the entire Alibaba company) has the view that privacy concerns for both individual customers and institutions should be made prominent as the greater financial industry moves forward. They value “inclusion” above all.
Judging by Coindesk’s article on these events today, this was all made possible by a project called QEDIT, which works like a bridge between ZKPs and institutional grade or permissioned blockchains. More specifically, the QEDIT CEO stated that their solution works with “most enterprise blockchains.”
Perhaps, as time goes on, these bridges will become essential to the continued development of the space. Still, it is logical to ask: are they necessary when more well-established projects like Z-Cash exist, which have proven the effectiveness of ZKPs and garnered the interest of institutions already?
For now, the QEDITs of the world will likely remain important for one simple reason. Projects like Z-Cash are not exactly seen as business friendly. One could even go so far as to suggest that they view them as supporting those who wish to circumvent any sort of public disclosures related to financial transactions. This suggestion is supported by the fact that governments are trying to track or even ban privacy coins. Until all of this changes, expect the number of QEDITs to continue to rise.
By: BGN Editorial Staff