Decentralization can sometimes be tricky. It may happen that sometimes you sacrifice privacy to achieve a certain level of transparency. By submitting your event information to the general ledger, which happens in almost every block chain, the event is publicly confirmed, but you do not control your privacy.
Despite its revolutionary impact on the world, people who are aware of its privacy risks decide to refrain from it or look for more privacy-oriented alternatives. Data protection has become a huge challenge to address distributed applications.
It’s time for companies to start focusing on privacy and come up with such alternatives. One such solution has been developed Celsius and Horizen Labs.
Celsius, a leading global cryptocurrency-generating platform and blockchain construction technology company Horizen Good have launched zkAudit, a fully decentralized and independent proof of the reservation that has been built Horizen forum.
This blog explores what zkAudit is and what makes it so unique!
What are zkAudits?
zkAudit is built to address the inefficiency and lack of transparency of traditional audit processes. zkAudit vol protect, verify and strengthen proof of the Community’s assets in near real time without relying on third party validators.
zkAudit is equipped zk-SNARKs, a data protection technology that allows verification without disclosing identifiable information. This means that all transactions can remain confidential, meaning all information is encrypted, allowing for privacy while maintaining validity in near real time.
More about zk-SNARKs
zk-SNARKs is an abbreviation for null data, concise, non-interactive data argument.
The underlying technology is included zero data encryption which proves the possession of the data without disclosing the data without the interpreter and verifier interacting with each other.
With zk-SNARK, evidence is much more efficient and uses less information. Given that it does not require interaction between the parties, it is relatively faster, which allows them to be verified almost immediately.
Read more about zk-SNARKs This article.
Celsius and Horizen zkAudit
“Traditional double-labeling inspection processes are slow and lack transparency. The audit process takes place at the end of the year and can take months from start to finish and rely on one or two audit firms and rely on the accuracy of their information, ”said Alex Mashinsky, CEO of Celsius Network.
“ZkAudit enables triple entry audit using a blockchain and making the inspection transparent and eliminating the need for a slow obsolete process of traditional inspection. We are excited to partner with Horizen Labs in this effort to bring the community certificate to life and set the standard for transparency in blockchain funding. “, Alex added.
Launched in 2017 Horizen is the most secure and scalable interoperable blockchain platform that enables the deployment of its own public or private blockchains on the largest multilevel node network.
Built on the belief that financial services should only do what is in the best interests of customers and the community, Celsius is a blockchain-based toll-free platform where membership provides access to curated Financial Services that are not available through traditional financial institutions.
The Horizen and Celsius partnership was announced in November 2020, and zkAudit is the first major milestone they have won together.
How does it work
zkAudit is an excellent example of how projects can use open ledger technology with zero-data privacy technology to verify data without compromising privacy. Let’s see how it works!
- Organizations send zero certificates of private information to zkAudit for review using built-in software.
- zkAudit has access to the events that took place in the different block chains and handles them in encrypted and combined form.
- Private information is reviewed on the basis of aggregated transactions and added to zkAudit’s accounts as evidence of provisions / liquidity.
- ZEN transferred back and forth between the Horizen block chain and zkAudit while maintaining decentralization and data integrity.
- Help prove that Celsius is the owner of certain (but hidden) blockchain addresses.
- Show that the events associated with these addresses are real block chain events.
- Make sure that the sum of these transactions is a certain amount.
Because Celsius can unequivocally prove the facts such as income / income and liquidity without disclosing sensitive information about the underlying transactions that lead to those results. This ensures transparency for users without compromising on security.
In short, zkAudit allows Celsius to perform inspections in near real time without reliance on centralized units. This allows the community and users anywhere to review events themselves at any time.
zkAudit brings out the best in both worlds, providing critical transparency efficiently while maintaining user security and privacy.
It will be exciting to see companies take such unique and privacy-focused initiatives. One makes the road and the others follow. It will be interesting to see how other companies develop such solutions for the cryptographic community to have a pool to choose from.
Until then, review your smart contracts. It is better to reduce the risk in advance than to wait for hacking!
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