blockchainThe Horizen blockchain was created to enable zero-knowledge proof systems, best known as ZKPs, which allow transactions on a blockchain network to be validated without revealing confidential information about the transaction to the public. The process, according to the company, is trustless and decentralized without any 3rd party validators
They’ve now been embraced as a key component by blockchains like Horizen, which uses ZKP cryptography to allow private blockchain transactions to be confirmed on public chains while keeping the details of each transaction concealed.
Zk-SNARKs and private/public blockchain technologies
The Horizen platform comes with built-in zk-SNARKs (a unique kind of ZKP), allowing private and public blockchains to be created and used. zk-SNARKs also unlock blockchain scalability beyond the privacy benefits.
Because the Horizen network does not require the use of any 3rd party validators to authenticate transactions, it requires far less computing power and is highly scalable and dependable. It’s ideal for business situations because it enables users to trust one another without having to rely on any 3rd parties to authenticate transactions.
Rob Viglione, Co-founder and Team Lead at Horizen and Horizen Labs, notes, “If privacy is one of the main blockers for enterprise adoption of blockchain technology, then zero-knowledge proofs represent the final solution to clear the path to embracing blockchains in their entirety.”
Horizen auditing system
ZkAudit is a blockchain-based auditing solution created by Horizen Labs, the development arm of Horizen, to allow audits to be conducted on private businesses in a completely decentralized, transparent and privacy-preserving manner using ZKPs.
The zkAudit service has aided organizations like Celsius, a leading cryptocurrency lender. It’s also feasible to use a blockchain-based solution that allows you to quickly validate proof of reserves without compromising sensitive information or relying on expensive 3rd party auditors.
Celsius’s public audit system has allowed the firm to act as a reliable partner for defi projects and public blockchains, even though it provides a centralized service.
How does the blockchain attain zero-proof knowledge privacy?
The first step toward greater privacy is to use a new address for each transaction you receive. Every time you click “receive”, most wallets will create a new address for you.
The use of multiple payment methods and change of address makes it significantly more difficult for an attacker to link your transactions together and establish a correlation.
If your business takes user data privacy seriously, then using a cryptocurrency with privacy features will provide the essential extra protection. One of the most effective privacy technologies available is Zero-Knowledge Proofs enabled cross-chain protocol offered by Horizen.
Anyone who knows the secret may check the proof, but no one else can. You don’t have to give them the data for a confidential transaction; instead, you provide evidence that you transmitted the nodes and miners rather than the real transaction data.
A description for using Zero-Knowledge Proofs for cryptocurrency transactions is as follows: You build proof that the transaction you want to send would be validated by a verifying node, without revealing any of the transaction data itself.
Zk-Proofs hides both the sender, receiver and amount from the recipient. Another great application for zk-Proofs is identity proofing. You may, for example, demonstrate your age to a 3rd party without revealing any personal information such as your date of birth.
Conclusion
There are a variety of acceptable reasons to conduct private financial transactions. If you have a medical condition and require frequent purchases of prescription drugs, you have solid grounds for conducting these transactions privately.
If you have a company, you don’t want your competitors to know about your revenue streams or if you’re buying a present for your spouse, you might not want him or her to discover it before they receive the gift.
There are several compelling reasons to conduct business privately and we think that privacy is a fundamental human right. The Horizen blockchain is one of the best ways that innovators are examining the “I’ve got nothing to hide” concept.
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