Recent Ethereum Upgrade May Make Wall Street Fall in Love With Blockchain
Wall Street continues to have a tenuous relationship with Blockchain technology. Large banks have recently made statements both for and against the new technology, with some companies like Bank of America already pursuing patents.
Problem with privacy
Part of the struggle these financial platforms are having with Blockchain technology is the issue of privacy. The key issue for traders is to keep their positions a secret in order to keep other traders and competitors out of the loop. While Blockchain technology provides immutability, it does not provide complete security or anonymity - keys for enterprise level financial adoption.
However, the ZK-Snark, or Zero Knowledge proofs recently being enabled on the Ethereum blockchain following the network’s Byzantium upgrade, represent a new way to have both anonymity and immutability on a single chain. According to Bloomberg:
“Its ability to reshape vital financial market functions like clearing and settlement has always hinged on whether banks can keep customer and proprietary data secret. Zero-knowledge proofs, a theoretical possibility for decades, are now a reality, letting transactions be verified without the need to share any of the underlying data.”