On-Chain Privacy-Preserving Technologies Find Applications in Financial Services and Healthcare
According to James Tromans, Google Cloud’s Head of Web3 Engineering, on-chain privacy-preserving technologies like zero-knowledge proofs (ZK-proofs) have potential applications in financial services and healthcare. Tromans emphasized that in the context of financial services and Web3, it doesn’t make sense to expose sensitive information such as option contracts, counterparties, strike prices, and notional values to everyone. ZK-proofs are cryptographic techniques that allow one party to prove knowledge of something without revealing the actual information.
ZK-proofs have gained attention as a means to enhance on-chain privacy. Ethereum co-founder Vitalik Buterin recently co-authored a paper exploring how ZK-proofs could be used in a privacy-preserving blockchain protocol that balances user anonymity with regulatory compliance. Tromans believes that if deals are conducted on-chain instead of centralized exchanges, additional privacy-preserving technologies like ZK-proofs may be necessary.
Zero-Knowledge Proofs Extend Beyond Token Prices
Tromans further argued at CCDAS that ZK-proofs and other on-chain privacy technologies have applications beyond financial services. He highlighted their potential in healthcare and other industries. Tromans mentioned that the investments made in Web3 technology over the years, including ZK-proofs and multi-party computation, will yield value beyond speculative token prices.
While acknowledging the importance of user data ownership in Web3, Tromans cautioned against expecting businesses to stop holding customer data entirely. He stated that businesses will still require access to customer data for providing valuable services. He also emphasized that Web3 adoption is a complex process for large organizations, similar to the ongoing transition to public cloud adoption. For them to embrace Web3 and blockchain technology, they need new revenue streams and access to novel opportunities.
Hot Take: On-Chain Privacy-Preserving Technologies Pave the Way for Web3 Advancements
On-chain privacy-preserving technologies like zero-knowledge proofs have significant potential in various sectors, including financial services and healthcare. These cryptographic techniques allow for secure transactions without exposing sensitive information to all participants. Additionally, these technologies extend beyond token prices, finding applications in industries such as healthcare. However, while Web3 emphasizes user data ownership, businesses will still need access to customer data for providing valuable services. Despite the growing interest in Web3, its adoption is a complex process that requires organizations to see tangible benefits and revenue streams before fully transitioning from traditional systems.
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