The leading accounting firm EY has just released some epic details of a new blockchain prototype that can make Ethereum ETH private transactions – as in real ones, on the main public blockchain.
EY defines its new EY Ops Chain Public Edition (PE) system, proposing it as the world's first implementation of ZKP (zero-knowledge proof) technology on Ethereum's public blockchain.
ZKP is a method of data validation. In other words, ZKP allows blockchains to confirm transactions without having to disclose information about these transactions, which makes them safe as no sensitive data is exchanged.
The idea is that this will allow companies to create, issue and securely and securely sell new cryptocurrency tokens, which closely resemble ERC-20 and ERC-271, all via the Ethereum public blockchain, all keeping the data of private transactions.
"Private blockchains offer companies privacy of transactions, but at the expense of reduced security and resilience," explains EY exec Paul Brody. "With zero-knowledge evidence, organizations can conduct transactions on the same network as their competitors in complete privacy and without sacrificing the security of Ethereum's public blockchain. "
Until now, maintaining confidential transaction data was only possible when closed and licensed DLP (closed ledger) systems were used such as Hyperledger Fabric or IBM Blockchain Platform.
The press release mentions, however, that the prototype is equipped with a special type of private transaction monitoring, which acquires the transaction history for a subsequent review.
Public blockchains such as Ethereum are known to be safer, especially as they are more decentralized than general accounting systems distributed on private servers.
EY plans to release a corporate version of the ZKP blockchain prototype next year.
It is worth mentioning that Vitalik Buterin himself worked to bring ZKP to Ethereum. He recently co-authored an academic paper that explains in detail how ZKP could actually help Ethereum's problems remain efficient with increasing use of the network (also known as downsizing).
Published October 31, 2018 at 14:11 UTC