Why Wall Street Won’t Embrace Crypto Without Zero-Knowledge Privacy
Howard Wu, founder of Aleo and CEO of Provable, emphasizes the need for confidentiality in blockchain transactions. Public blockchains expose users' financial histories, deterring institutions like banks and governments from adopting this technology due to risks of information breaches. Zero-knowledge proofs (ZKPs) provide a solution by allowing entities to prove statements without revealing underlying data, enabling compliance with regulations while maintaining confidentiality. This technology facilitates selective disclosure, allowing institutions to meet operational secrecy and accountability requirements. Examples include JP Morgan's Kinexys, a private blockchain for confidential transactions. The growing interest in ZKPs from major financial and governmental entities highlights the necessity of privacy in scalable, secure finance.
