ConsenSys Backs $2.1 Million Funding Round for Ethereum Privacy Startup
ConsenSys Labs led a $ 2.1 million seed round to AZTEC, a start-up that makes ethereum transactions private and allows financial institutions to comfortably use the second largest block chain.
Other investors in the round announced Thursday include Entrepreneur First, Samos Investments, Jeffrey Tarrant (Mov37) and Charlie Songhurst.
AZTEC, created by mathematician Tom Pocock and nuclear physicist Zachary Williamson, improves the privacy of shared librarians using zero-knowledge proof (also known as zk-SNARK), a popular cryptographic technology in zcash calls. But startups have argued that their protocol is "twice as efficient as other known technologies on the network."
The protocol is intended for use by banks, Pocock told CoinDesk, and partnerships with CreditMint, an ethereum-based platform for corporate debt issuance and trading made by teams such as AZTEC, enable technology to be leveraged.
Pocock will be announced in January 2019, adding, "We have been talking to more than 20 leading financial institutions and global top 10 banks specializing in corporate private debt." Privacy, AZTEC's technology will also help speed up payments in the lending market.
Large banks today tend to be attracted to private and allowed block chains such as those opened by CLS on Tuesday using Goldman Sachs and Morgan Stanley as their initial users. However, Pocock believes that traditional financial institutions will benefit from using public block chains.
He told CoinDesk:
"Immutability, elimination of single-source data and payment risk is the most powerful in the open chain, but financial institutions demand complete transaction privacy."
So far he said it was not possible in the ethereum public chain. So capital market activity is limited to private block chains, "he said.
AZTEC's team has been discussing with ConsenSys for months after graduating from Entrepreneur First in London in March 2018, Pocock said.
"We were impressed by the resiliency of our zero-knowledge proofing technology, and based on what we have seen, AZTEC is the most efficient in terms of production and gas costs." Min Teo, Managing Director of ConsenSys Labs Investments Europe, I told CoinDesk, referring to a small amount of ether to do. The block chain powers the transaction.
Joe Lubin, founder of ConsenSys, said his ethereum design studio is proud to support the breakthrough development of AZTEC and CreditMint to provide zk-SNARKs-based privacy, confidentiality and scalability to a wide variety of asset transactions. ether. "
Speed and Scaling
Now you need to know whether a reckless knowledge-based system is fast and scalable enough for your enterprise. There is a well-known scaling problem, especially when you do not have a privacy-intensive privacy feature.
But Pocock says that AZTEC's protocol works on decent clips.
"CoinDesk is able to handle one transaction per second over the public network without scaling, and it will grow faster through network expansion," said CoinDesk, an ethereum developer who wants to increase throughput in the block chain. Said it is continuing its efforts. "Even today, CreditMint is not enough to move the private-sector debt market into the open block. It takes several milliseconds to construct and validate AZTEC zero-proof proofs."
In September, Vitalik Buterin, the founder of ethereum, used the zk-sharks (variant of argument for simpler knowledge simplicity) to discover that variants of the zero-knowledge proof, which do not require interaction between the verifier and the verifier, I suggested that I could help. Transactions per second.
AZTEC is not the first attempt to add privacy to the ethereum protocol using zero-knowledge proof. JPMorgan added the zk-snarks technology developed at the beginning of zcash a year ago to Quorum, an ethereum-based private block chain in megabank.
Jack Gavigan, who is in charge of product and regulatory affairs of the Zcash Company on how this project was going, said in a video posted on the startup blog last month that the technology is still immature, Within months, "scalability issues have been effectively addressed.
Another attempt was the October announcement of EY's Ops Chain Public Edition prototype that the company used zero-knowledge proof to create and sell "product and service tokens" in public ethereum block chains without disclosing transaction records . .
Adhara, another project sponsored by ConsenSys, has been exploring zero-proof technology for the South African Reserve Bank's industry rating payment mechanism.
According to Pocock, AZTEC differs from previous projects because it is working on an ethereum mainnet (not a test environment or private chain) and is "more cost effective in terms of gas cost".
AZTEC plans to release technology that will improve the efficiency of the protocol over the coming months and raise additional funds in the coming months.
Joe Lubin image through CoinDesk archive
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