Privacy, Transparency and Auditability — How the New Generation of Blockchains Are Spurring Adoption – Entrepreneur

Privacy, Transparency and Auditability — How the New Generation of Blockchains Are Spurring Adoption – Entrepreneur

5 min read

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During the second half of the last decade, enterprises began to sit up and take notice of . The promise of streamlining the turgid financial sector, revolutionizing supply chains and enabling peer-to-peer trustless transactions proved to be alluring. 

However, certain challenges immediately became apparent. The -generation blockchains left enterprises with several tradeoffs, most notably around scalability and . Public blockchains were often slow and clunky, and the prospect of having all transactions visible to the public was understandably offputting to many businesses. Not to be deterred, they turned to private and permissioned platforms, such as Hyperledger, or developed their own in-house solutions. 

However, developments in blockchain technology now mean that public blockchains are once again an option for businesses. Privacy-preserving technologies, along with high-performance networks, both offer all the benefits of public blockchains without the tradeoffs. In the area of privacy, zero-knowledge proofs offer an assurance of confidential transactions, but with a provable audit trail behind them. For high-volume enterprises, directed acyclic graphs are a form of distributed ledger that can handle ultra-fast processing at an impressive scale. 

Related: History Can Teach Us What’s Next for DeFi

What are zero-knowledge proofs? 

A zero-knowledge proof, or ZKP, enables someone to demonstrate
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