Cryptocurrency transactions have become increasingly common among all types of users, globally. However, one of the issues most people encounter with digital currencies like Bitcoin (BTC) and Ethereum (ETH) are that transfers are fully traceable and visible to everyone. All financial transactions can be seen by the general public, which makes it difficult, if not impossible, to maintain financial privacy.
It may be important to conduct confidential transactions for many reasons. For example, bad actors or criminal organizations may become a serious threat to legitimate consumers. Everyone should be able to keep their financial records private for their own safety and potentially that of others.
There are several crypto-related initiatives that have been launched in order to offer a greater level of security and privacy to users. Although these platforms are in their early stages of development, they have shown us that it is definitely possible to conduct private crypto transactions.
Enabling End-to-End Privacy for Crypto-Assets
Panther Protocol is a decentralized solution that offers end-to-end privacy for any crypto-asset. It has been designed to safeguard personal financial data and trading strategies for decentralized finance (DeFi) traders and investors.
Panther Protocol has been developed to ensure that all cryptocurrency transfers are performed in a confidential manner. The Protocol oversees the minting and burning of zAssets, which are described as “confidential clones” to the real Assets they represent.
zAssets are essentially synthetic assets that are 1:1 collateralized to the actual assets they represent and are maintained in a secure vault. zAssets may be routed confidentially via the Panther network for use in DeFi, in a fully composable manner.
Panther Protocol leverages game-theoretic bounds to reliably price the privacy service of the network. At first, the protocol will be deployed on the Ethereum (ETH) network with cross-chain services coming onstream. During Q1 2022, Panther will introduce Version 1 of a privacy cross-chain DEX (decentralized or non-custodial exchange) on a Layer-2 solution.
Panther Protocol’s founders are Oliver Gale, a well-known entrepreneur and experienced technologist; and Dr. Anish Mohammed, a cryptographer and ZK proofs expert.
Advanced Tools Can Compromise Privacy of Crypto Transactions
Although blockchain or distributed ledger technology (DLT) is considered a major innovation and aims to ensure privacy to some extent, individuals or organizations with advanced tools and expertise have created ways to analyze blockchain data and obtain detailed insights from their investigations.
This can potentially become a serious issue because many DeFi-related transactions contain highly sensitive financial details, and traditional blockchain or DLT platforms aren’t able to ensure fully confidential fund transfers.
There have been several attempts at addressing privacy (or lack thereof) issues on blockchain networks, however, they’ve not been able to maintain privacy for individual users or large enterprises.
Since this is a significant problem, the Panther Protocol team decided to create a viable solution that would ensure complete financial privacy.
Designed to Ensure Complete Confidentiality of Transactions
Panther Protocol has been developed with the goal of offering complete privacy when carrying out financial transactions. The protocol uses tokens in a highly sophisticated system that offers users full control over how they can access and manage their personal data.
Currently, the Panther Protocol team is offering a greater level of security when compared to most other solutions in the market. However, they’ve made the decision to raise their standards even higher so that end-users get the best solutions. As explained, the team has created “zAssets”, which serve as a 1-to-1 representation of a particular token in a confidential system.
The process of creating zAssets aims to ensure full privacy by incorporating multiple layers of protection in order to shield users’ sensitive information.
Becoming the Industry Standard
zAssets have been developed so that they can become the gold standard of the crypto industry. The platform’s developers want to maintain full privacy of transactions and also intend to safeguard users from cybersecurity threats.
Image by Gerd Altmann from Pixabay
