Last year was the roller coaster of virtual currency: from the bankruptcy of large and medium-sized wallet service providers to the ongoing FTX hot blood legend, and from the familiar blanket pulling, fraud and bankruptcy. Although the sales market is still diligent in finding the starting point after this exciting year, this is a commendable fact for an enterprise that is still experiencing great sadness in person.

The scale of FTX's misbehavior has caused worldwide concern. This is obviously bad for the new data encryption project, because critics can use what happened to portray the entire market as unreliable and dangerous.

However, this is very helpful.

This event may finally separate wheat from rice husk in digital currency. Because the new project may face great pressure, it must be operated in a transparent and reliable way. Because the regulatory authorities and users will also pay high attention to platforms and projects that do not meet the standards, the situation of fraud and various bad actors will be more difficult.

Structural working pressure of platform reform and innovation

In parallel with the increased internal working pressure on the project, the reasonable and legal platform will also face the internal structural working pressure, and the requirements will exceed the requirements, and it is confirmed that it is actually operating in the way it should. It is expected that this will lead to more new projects to provide consumers with real applicability, and then cause a major reshuffle of the planning of the data encryption field. For platforms that are unwilling or unable to meet their market needs, there is no place.

In this case, the big winner is the customer, who will enjoy the data encryption field that is more in line with the initial concept behind fitness.

To achieve this, the field must operate with greater transparency. It is necessary to establish a mechanism to make consumers and regulators believe that everything generated on the platform is in a big way.

At this stage, there are many ways to realize this enterprise vision, and one of the most promising ways of reform and innovation may be the spread of zero-knowledge solutions.

Horizen and zero-knowledge solutions

Zero-knowledge cryptography is a professional technology that can be used for trading and communication. It can ensure that one party has a property or information from many aspects and will not disclose the secret data related to that property or information.

Although it is very easy to verify that a party has some property or information through simple publication, the zero-knowledge solution is committed to providing comprehensive information while maintaining the user information of the process. The zero-knowledge solution not only does not leak information, but also allows multiple parties to authenticate each other's data information without leaking sensitive information due to the complex authentication optimization algorithm.

This technology is particularly important for the decentralized financial platform being developed. By adopting an agreement to replace human error in their own interests, the blockchain technology platform - even the centralized platform with transparency in priority - will be able to operate without making users trust.

Horizen is one of the projects that focus on realizing a large number of zero-knowledge solutions in digital currency. It is a blockchain technology platform that provides developers with customized special tools for building private or public blockchains. Horizen cooperates with many projects, including Horizen Laboratory, to provide them with everything they need to create an Internet and platform that is transparent and maintains personal information security.

The way forward - transparency and efficiency

Horizen has been releasing zero-knowledge financial audit for different types of blockchain technology platforms in the industry.

Through this solution, the platform can obtain input and output without disclosing sensitive customer information. For the trading center and other key platforms, this kind of financial audit is likely to be particularly important, especially in the close combination with the off-chain risk reserve and debt financial audit, because it is expected to eliminate all potential concerns about the operation mode.

This is also very important for improving the credibility of digital currency and promoting traditional Web2 enterprises to choose Web3 technology more confidently. These enterprises must cross the line between maintaining personal information security and complying with the transparency norms expected for the DeFi agreement.

For example, using zero-knowledge verification, the data encryption transaction center can form its property reserve and outstanding debt login password verification. Similarly, data encryption loan companies can prove that assets are lent to counterparties with good reputation. In both cases, the entity line will never have to disclose to the society how much reserves they have or who their counterparties are.

In addition, Horizen is actively focusing on the release of an EVM adaptation main chain called Horizen EON, which will allow users to benefit from the improved efficiency of the EVM runtime environment and the additional transparency provided by the decentralization agreement, rather than the centralized participants like FTX. Integrating high attention to transparency and personal information security, Horizen has aimed to bring more security standards to this field.

Although personal information security is a hot topic, this solution goes far beyond simple personal privacy countermeasures and overcomes the problem of bringing the encryption market to the system state. At this stage, crypto is maintaining a trust issue. It is understandable that confidence in key platforms is at a low point.

In order to build a sustainable road, such development as Horizen's solution is very necessary, and the zero-knowledge approach will become very valuable.