{"id":527714,"date":"2022-12-16T01:30:00","date_gmt":"2022-12-15T22:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/researchers-use-zero-knowledge-to-address-privacy-aml-concerns-in-stablecoins\/"},"modified":"2022-12-16T01:30:00","modified_gmt":"2022-12-15T22:30:00","slug":"researchers-use-zero-knowledge-to-address-privacy-aml-concerns-in-stablecoins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/researchers-use-zero-knowledge-to-address-privacy-aml-concerns-in-stablecoins\/","title":{"rendered":"# Researchers use zero-knowledge to address privacy, AML concerns in stablecoins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af0d3de30d3e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af0d3de30d3e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/researchers-use-zero-knowledge-to-address-privacy-aml-concerns-in-stablecoins\/#%E2%80%9D_Researchers_use_zero-knowledge_to_address_privacy_AML_concerns_in_stablecoins_%E2%80%9C\" >&#8221; Researchers use zero-knowledge to address privacy, AML concerns in stablecoins &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Researchers_use_zero-knowledge_to_address_privacy_AML_concerns_in_stablecoins_%E2%80%9C\"><\/span>&#8221; Researchers use zero-knowledge to address privacy, AML concerns in stablecoins &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvZGFjZTQwMDEtNGNiZC00NGVkLTk0OTQtNDY5YTY2MTUyZWU5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-30a6cf80>Researchers from German crypto blockchain-based payments fintech etonec and other organizations have proposed using zero-knowledge proofs to ensure regulatory compliance  and privacy in stablecoins. They have created a design that allows fiat-based stablecoins to be used like cash, within limits.<\/p>\n<p>The researchers\u2019 design allows a number of limits, such as transaction limits, balance limits, and turnover limits and enables Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance with the use of zero-knowledge proofs, particularly zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). Below the preset limits, transactions would be invisible to third parties.<\/p>\n<p>According to the researchers\u2019 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/93a3941f-39f9-4f04-8f5f-15c3ed543589.usrfiles.com\/ugd\/93a394_bf430e80511b4096830b55aced580b78.pdf\">report<\/a>:<\/p>\n<blockquote><p>\u201cIn essence, our goal is to create a stablecoin that provides similar privacy guarantees as the privacy coin Zcash or the mixer Tornado Cash, yet without the corresponding regulatory challenges with respect to money laundering and terrorism financing.\u201d <\/p><\/blockquote>\n<p>In this account-based model, users would create their respective ZKPs (presumably zero-knowledge protocols, although the abbreviation is not defined), then use unique digital identities to send proof of funds to the blockchain, where validators would verify the ZKPs and add the transaction to the ledger. Identity could be established by the government or a third party. <\/p>\n<p><strong><em>Related: Into the storm: The murky world of cryptocurrency mixers<\/em><\/strong><\/p>\n<p>Balancing digital privacy and AML\/CFT compliance is a topic of current debate in the United States and European Union. The researchers say their system could potentially be connected to Europe\u2019s eIDASelectronic identity system, when that system is finalized. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">How can <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/privacy?src=hash&amp;ref_src=twsrc%5Etfw\">#privacy<\/a> for digital payments be preserved, while ensuring stability and regulatory compliance? In this feasibility study co-authored by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/etonec_gmbh?ref_src=twsrc%5Etfw\">@etonec_gmbh<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MinaFoundation?ref_src=twsrc%5Etfw\">@MinaFoundation<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Privatbank1796?ref_src=twsrc%5Etfw\">@Privatbank1796<\/a>, and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SnT_uni_lu?ref_src=twsrc%5Etfw\">@SnT_uni_lu<\/a> we show how it can be done.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/JYkuvURXWi\">https:\/\/t.co\/JYkuvURXWi<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/AH9n1DTSre\">pic.twitter.com\/AH9n1DTSre<\/a><\/p>\n<p>\u2014 Dr. Jonas Gross (@Jonas__Gross) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Jonas__Gross\/status\/1603389935888830464?ref_src=twsrc%5Etfw\">December 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In addition to etonec, participants in the research were the San Francisco-based Mina Foundation, operator of the Mina Protocol; German Hauck Aufh\u00e4user Lampe bank and the Interdisciplinary Centre for Security, Reliability and Trust of the University of Luxembourg. Mina is noteworthy for its claim to be \u201cthe world\u2019s lightest blockchain\u201d and consuming outside information without an oracle. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/researchers-use-zero-knowledge-to-address-privacy-aml-concerns-in-stablecoins\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Researchers use zero-knowledge to address privacy, AML concerns in stablecoins &#8220; Researchers from German crypto blockchain-based payments fintech etonec and other organizations have proposed using zero-knowledge proofs to ensure regulatory compliance and privacy in stablecoins. They have created a design that allows fiat-based stablecoins to be used like cash, within limits. The researchers\u2019 design&#8230;<\/p>\n","protected":false},"author":1,"featured_media":527715,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/dace4001-4cbd-44ed-9494-469a66152ee9.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75493,70934],"class_list":["post-527714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-stablecoin","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/527714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=527714"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/527714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/527715"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=527714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=527714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=527714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}