Identity privacy protection: Zero-Knowledge Proofs for Distributed Ledger Technology & Blockchain

The disclosure of information being transacted using blockchain still represents a big hindrance for many business implementations. The Zero-Knowledge Proof or Zero-Knowledge Protocol has appeared as the answer for security and privacy concerns remaining for some regarding Distributed Ledger Technology ( DLT) and blockchain applications.

Using this mechanism, DLT-based systems can validate all the data processed and transacted on the ledger with total privacy, avoiding disclosing relevant information regarding sender, recipient, asset class or quantity.

DLT has raised the attention of plenty of industries around the world, thanks to its great potential, especially in processes with multiple participants. It has proven to increase efficiency and transparency in many use cases while reducing the overall costs of reconciling different parties. However, for many, security remains a pain point that prevents them to implement and embrace this technology due to compliance and safety concerns.