The Zero-Knowledge technology has been a game-changer to the crypto ecosystem. It's helping financial service providers to keep their transparency while increasing privacy, and efficiency.
This is possible thanks to some characteristics of this technology:
- It is compact: a Zero-Knowledge proof (zk-proof) enables a statement to be proven true without revealing the statement's content. Therefore, the content of the proof is reduced and easier to store.
- Faster to be processed: being compact means requiring less computational resources for verification. Just running the protocol to verify a zk-proof makes it faster to process.
- More privacy and security: if a zk-proof doesn't require revealing the content of the statement, the content, then, can remain private.
The Zero-Knowledge technology can have multiple use cases in the crypto environment, but when it comes to Proof of Solvency, it is leveling up the game. With a zk-proof, Bitso can prove its solvency recurrently, and that proof can be disclosed publicly without revealing any sensitive information, such as the total balance held by Bitso, wallet addresses and the number of users. We can provide transparency without exposing our customers or our business.
For informational purposes only, this is not investment advice. When buying, selling, trading or using cryptocurrencies you are subject to certain risks including price volatility and loss of capital, for more information please visit the following link.