JPMorgan Chase has announced that it is testing a new privacy protocol called as zero-knowledge proofs (ZKPs) to allow private transactions efficiently. The protocol that has been built by AZTEC, a London blockchain startup, is aimed at allowing efficient encryption of blockchain data at lesser costs.
ZKPs are used to prove the validity of a set of data without disclosing the data itself, and have the potential to address the privacy concerns of regulated companies about using shared digital ledgers. Earlier, JPMorgan has already worked on similar protocol with Quorum, its private version of the Ethereum blockchain.
According to the company, JPMorgan’s Quorum team is testing AZTEC with an intent to industrialize ZKPs for Quorum. The AZTEC and Quorum platforms follow different approaches to privacy, which are based on public and private networks respectively.
Tom Pocock, CEO of AZTEC, has said that the company is exploring efficient ways of blockchain data encryption, and looking forward to combining the benefits of private and public blockchains together. He has further added that the AZTEC protocol will enable users to take what’s restricted to a private blockchain and issue those transactions on a public blockchain, along with all of the additional execution guarantees.
It is evident that the legacy big-banks have started following technology revolutions such as the Bitcoin Revolution and are actively pursuing Blockchain based technology platforms.