Panther Protocol: The Solution to Privatized Data
While decentralized networks seem to be the world’s best bet to create markets, and societies that are more accessible, fairer, and freer, most, if not all, contain a major and critical flaw - Lack Of Privacy.
The data within these decentralized networks is public not by choice but by default. This simply means that every transaction that takes place within these walls is open to everyone, forever.
On Ethereum, for example, a third party(could be an individual or an organization) can observe, track and even follow the movement of money from one account to another. This action can result in users having their investment strategies copied, individual freedom steadily eroded, and also limits the prospects of the industry.
The early players in the blockchain privacy space created coins that could run in private ledges. This was done with the sole aim of providing users with absolute secrecy for transactions.
Though this was impressive in their time, as the industry developed, it instead provoked the outrage of regulators and has continued to be subject to niche use cases as volatile instruments.
The crypto market has since then, failed to produce a means to allow users to control their data. It has also failed to produce an ecosystem that is private by default.
“With this critical component missing, any system will be unable to gain mass adoption and may fall into the same category as its predecessors”.
Panther Protocol is an end-to-end solution that restores privacy in Web3 and DeFi while providing financial institutions with a clear path to compliantly participate in decentralized finance.
Simply put, Panther Protocol restores privacy in DeFi.
The latest advances in Privacy Enhancing Technologies (PETs) have given the opportunity for the way we share data to evolve. These new innovations are trustworthy, safe, and acceptable to all parties. Utilizing these new developments, Panther has built a generalizable, cross-chain protocol that enables a “privacy toggle” for managing digital asset transactions and on-chain data.
Some of the ways Panther solves the problem of data privacy are by:
Using zero-knowledge proofs
Zero-knowledge proof is a protocol that allows one party to convince the other party that they possess a piece of private information without having to actually reveal it.
An example of a Zero-knowledge proof panther uses is zkSNARKS. This is used in a multi-chain environment, to create privacy-enhancing versions of ordinary digital assets.
Panther also uses zk-SNARKs2, which stands for “Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge”. This also works like the Zero-knowledge proof but in this case, both parties don’t have to interact with each other. This also furthers users' privacy.
In addition to zk-SNARKs, Panther will explore integrating zk-STARKs, (Zero-knowledge Scalable Transparent ARguments of Knowledge), which in addition to most of the SNARKs’ functions are quantum resistant.
By using privacy enhancing technologies
Panther uses privacy-enhancing technologies such as differential privacy, homomorphic encryption, Secure Multi-Party Computation, and selective disclosure schemes.
By drawing upon these technologies, Panther pushes the trust from regulatory frameworks and organizational practices to trustless mathematical proofs and their interpretation.
By using regulatory-compliant PriFi
Moving transactions onto Layer-2 protocols still stands as one of the most promising ways to increase the throughput of today’s most-used blockchains. This is done by taking hundreds of transactions and bundling them together into a single transaction. Layer-2s increase speed, reduce cost and decrease network congestion.
With the advanced technologies implemented in their system, Panther can offer state-of-the-art, private, institution-friendly cross-chain swaps with minimal risk and users can now enjoy an ecosystem that is private.
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