Wall Street
continues to have a tenuous relationship with Blockchain technology. Large
banks have recently made statements both for and against the new technology,
with some companies like Bank of America already pursuing patents.
- Problem with privacy:
Part of the
struggle these financial platforms are having with Blockchain technology is the
issue of privacy. The key issue for traders is to keep their positions a secret
in order to keep other traders and competitors out of the loop. While
Blockchain technology provides immutability, it does not provide complete
security or anonymity - keys for enterprise level financial adoption.
However,
the ZK-Snark, or Zero Knowledge proofs recently being enabled on the Ethereumblockchain following the network’s Byzantium upgrade, represent a new way to
have both anonymity and immutability on a single chain. According to Bloomberg:
“Its ability to reshape vital financial market functions like clearing and settlement has always hinged on whether banks can keep customer and proprietary data secret. Zero-knowledge proofs, a theoretical possibility for decades, are now a reality, letting transactions be verified without the need to share any of the underlying data.”
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