Can VeChain become a privacy coin like Monero or ZCash? ZKPs are the future in billion-$-market
ZKP has several real-world use cases including Healthcare and other personal data privacy, Decentralized Identification, Decentralized Exchange (DEX), and Supply Chain Management.
It is highly possible that VeChain could become a privacy coin despite the recent criticisms and scrutiny they have been subjected to in a bid to crack down on the black markets that actively use these coins.
The tech pioneers have long advocated for privacy in the blockchain industry. Over the years, the likes of Monero and ZCash have been pushing the popularity of this concept in the crypto sphere. It is important to note that Monero does not only hide the Identity of parties involved in transactions. It also hides the amount to make it difficult to be traced back.
ZCash also uses a unique approach to promote privacy using the zk-SNARK protocol or zero-knowledge proofs. ZKP is a cryptographic technique used in cryptography and computer science. ZKP enables users to prove that information sent to another party is correct without the need to display the actual information. This raises the question of whether VeChain can be private like ZCash and Monero.
In an article titled “beyond anonymity: the future of privacy with zero-knowledge-proofs ZKP,” it is stated that the interactive verification input is needed to implement the ZKP protocol. According to the article, verification input must fulfill three ZKP characteristics namely: completeness, soundness, and zero knowledge. According to the article, there are two primary weeks to implement ZKP on a blockchain.
These are zk-SNARK and zk-STARK. The article mentions projects that use ZKP or zk-SNARK Protocols in 2023, and this includes Mina Foundation. It uses a variant of the ZK-Snark protocol known as “plonk” to offer practical zero-knowledge proofs.
No matter how many transactions are committed to the network, the Mina Protocol intends to be a light blockchain with a fixed size of just 22 kB. This size should enable everyone to manage a node and contribute to the network’s security without the need for complex computer hardware.
VeChain could become a privacy coin
Another project that helps pioneer the zero-knowledge technology is Zcash.
It helps the use of zero-knowledge technology in the sector by supporting its privacy-preserving transactions with zero-knowledge Proof. Zcash is a cryptocurrency that offers anonymous transactions through the zk-SNARK protocol. The first widely used cryptocurrency to use zero-knowledge proofs is this one.
Other projects that make use of zk-STARK are Aztec protocol, Polygon Maiden, and Starkware industry. ZKP has several world use cases including Healthcare and other personal data privacy, Decentralized Identification, Decentralized Exchange (DEX), and Supply Chain Management. VeChain especially is a blockchain based on the supply chain management platform. It makes use of the ZKP to effectively track items and supply across the supply chain more securely and transparently.
Provenance, a blockchain-based supply chain management software, employs ZKP to create tamper-proof supply chain records. The party has just started, and there is a long road ahead. The Zero-knowledge Proof is a powerful method to enhance data privacy, and in the coming years, we will witness novel, sustainable, scalable, and cutting-edge solutions to data privacy.
It is highly possible that VeChain could become a privacy coin despite the recent criticisms and scrutiny they have been subjected to in a bid to crack down on the black markets that actively use these coins.
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Filed under: Bitcoin - @ February 3, 2023 1:26 pm