Since the launch of Bitcoin in 2009, cryptocurrency has come a long way from being a geek game to more comprehensive technology. So what’s the next million dollar opportunity in crypto? Crypto expert Tatil Bhuyan shares his assessments on this question.
There’s Web3 and beyond in the crypto universe
There is little room for discussion about the phenomenal growth of cryptocurrencies seen recently. The use of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) has continued to evolve over the past few years. This further fueled the massive expansion of the crypto industry. The cryptocurrency industry has provided the world with cutting-edge technological innovations that are widely acclaimed and to some extent adopted. These include tokenization, decentralized exchanges, stablecoins, staking and farming, as well as the printing of digital collectibles, often referred to as NFT collections.
Amid all the excitement surrounding these innovations, there have also been significant developments in the creation and development of the underlying Blockchain infrastructure. Leveraging zero-knowledge proofs, commonly known as ZK-Proofs for short, ZK Rollups are one example that has garnered widespread attention both in the Web3 world and beyond.
Where did this ZK-Proof come from?
Technology provides a form of evidence that verifies the authenticity of data without actually revealing the data itself. In the context of blockchain, ZK-Proof can help address an important issue: Privacy. By using ZK-Proofs, individuals can verify their identity and transactions without revealing any additional information.
To put it in simpler terms, for example, a user can prove that he has enough money to make a purchase without actually revealing his balance. This is achieved by dividing the information into smaller pieces, and each piece is encrypted in such a way that only the user can decrypt it. By decrypting these small parts and verifying them, the system can make sure that the user has the necessary funds without revealing the actual balance of the user.
ZK proofs have a lot of potential, as they provide a level of privacy unmatched by traditional forms of authentication. This has caught the attention of many in the cryptocurrency space as it could lead to significant improvements in transaction privacy and security. The price of Polygon (MATIC) has witnessed a huge spike after announcing the launch of the zkEVM main-net this March.
Big step for crypto world: ZK-Proof gets EU acceptance
However, crypto isn’t the only area where ZK-Proofs are gaining traction. As you follow on Kriptokoin.com, they also entered the European Parliament. The use of such evidence is formally included by EU law in negotiating positions with the Council on the regulation of digital identity and related practices.
ZK-Proofs will be incorporated into EU law on digital identification and future EU practices, giving people more control over their personal data, unless the Council strongly opposes it. This will increase trust in digital transactions and simplify the cross-border interoperability of EU eID solutions. The proposal will also help create a safer and more privacy-compliant online ecosystem for all users. This encourages the use of privacy-enhancing technology across the EU.
Additionally, the European Digital Identity Wallet will provide the ability to verify claims derived from personal data identification or verification of attributes without requiring the user to provide source data. This will ensure that the user’s privacy is protected.
The EU’s decision to include ZK-Proofs in digital identity laws sets a precedent. It also validates the use of such protocols in the traditional world. As the cryptocurrency market continues to grow and evolve, the potential to play a key role in the development of ZK-Proofs is becoming increasingly clear. With the potential to improve scalability, reduce costs, and provide new opportunities for both growing DeFi and government startups, ZK-Proofs could be the next big thing in the cryptocurrency world.
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