The investment branch focused on the crypto of the venture capital company Andreessen Horowitz argued that modern cryptographic techniques, such as zero knowledge of knowledge, can protect the confidentiality of users and allow the police to suppress bad players.
In a Tuesday report, Crypto A16z’s Policy Partner, Aiden Slaven and the Regulatory Council, David Sverdlov, said that the Nurse ZK, who verifies the authenticity of the data without disclosing detailed private information, have the “greater potential” by showing the origin of the funds, but without publicly reviving private information.
Their report only intervened two weeks after Roman Storm, the co-founder of the crypto mixture service, Tornado Cash, which allows users to hide the origin and destination of the cryptocurrency, was found guilty of the accusations related to the plot to manage a service of transmission of money without license.
The police and the prosecutors in the Tornado checkout case argued that the mixture of services which obscure the origin of the funds help to facilitate criminal activity by providing a means of hiding badly acquired gains.
“If users are able to provide such evidence during the exchange of crypto for a fiduciary currency, the rest points will have reasonable insurance that the crypto will not draw from the crime product, while users are able to keep confidentiality on their onchain transactions,” said Slaven and Sverdlov.
ZK residents have a wide variety of confidentiality uses
Slaven and Sverdlov also suggested that ZK events have use beyond simple finance; They can help with other daily tasks such as proving citizenship or equivalent.
“Using zero proof of knowledge, a person could prove this proposal to someone else without having to disclose a driving license, a passport, a birth certificate or other information,” they said.
“Proof of zero knowledge makes it possible to confirm this fact without exposing specific or additional information – whether advice of address, date of birth or indirect password – which could compromise confidentiality.”
The Commissioner of the American Securities Commission and Exchange, Hester Peirce, echoes a similar feeling on August 4 at the Science of Blockchain conference, arguing that privacy technologies should be safeguarded.
Privacy tech ready for consumer adoption
Critics often raise evolution problems concerning cryptographic confidentiality technology, but progress such as the reduction of general calculation costs make it more practical for a larger scale implementation, according to Slaven and Sverdlov.
“Cryptographers, engineers and entrepreneurs continue to improve the scalability and conviviality of zero knowledge of knowledge, making it an effective tool to meet the needs of the police, while preserving individual privacy,” they said.
The US government’s July crypto report reported ZK nurses as a method to protect users’ confidentiality while allowing compliance checks. JPMorgan’s private blockchain, Nexus, also uses the technology of chip colonies in tokens and inter -ban messaging.
In relation: The peirce of the dry defends the confidentiality of the transaction while the tornado in cash is looming
Other cryptographic confidentiality technology that deserves to be explored
In addition to ZK to the ZK, Slaven and Sverdlov test declared that there are other options that deserve to be explored, such as homomorphic encryption, a type of cryptographic technique that allows a part of data, such as numbers, to be used without deciphering other private information, such as names.
Other possibilities include multipartite calculation, which allows several people to work together to calculate without anyone revealing their private data to anyone, and differential confidentiality, which guarantees that the aggregated data collected by methods such as surveys cannot be used to identify individuals.
“New technologies – the telegraph and the Internet phone – have always aroused new anxieties about the imminent disappearance of privacy,” said Slaven and Sverdlov.
“Blockchains have not proven to be different, and intimacy on block chains is often poorly understood as creating a dangerous level of transparency or a paradise for crime.”
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