The blockchain team at ING Bank is testing a privacy technology that is called “bulletproofs” which is the latest in a series of new experiments by the global bank based in Netherlands. The solution is in the latest cryptocurrency news particularly because it was developed and refined by hardcore cryptographers from various universities.
The cryptographers at Stanford University, University College London as well as the popular startup Blockstream has designed bulletproofs as a technology that will hide the amounts being transferred in Bitcoin transactions which are normally visible to anyone. However, banks have privacy concerns about blockchain since they don’t want to expose the competitive or sensitive client data to their rivals.
Another early solution that was the zero-knowledge proofs (known as ZKPs) focused on a way of proving possession of a secret without revealing the secret itself. Over the past year, ING Bank has explored a lot of ZKP variants such as range proofs (technologies where a hidden number is proven to be within a certain range) as well as zero-knowledge set memberships (where alphanumeric data can be validated within a specified set).
Still, ZKPs eat a lot of computation and potentially slow down the blockchain. Currently, ING Bank sees them as a much more efficient and applicable version of these proofs. The bank found bulletproofs that turn out to be “roughly ten times faster than other range proofs for a single range proof” according to Mariana Gomez de la Villa, who is the global head of ING’s blockchain program.
When aggregated together, all of these proving schemes cain efficiency. Gomez de la Villa mentioned this and linked it to an example of a cryptocurrency exchange that uses range proofs – showing that it has enough funds to pay all of the clients if they want to withdraw their money at the same time.
“Bulletproofs would allow a solution that is 300 times more efficient than other alternative range proofs,” she noted.
The use of blockchain in banks is a hot topic on the best cryptocurrency news sites lately, along with the coming altcoin news and everything that is lined in the direction of global adoption and regulation.
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