Panther Protocol is a privacy-focused Blockchain. It is not interested only in solving the issue of surveillance in Web 3.0 infrastructure but also in creating a strong compliance protocol that’s hard to compromise.

The innovative Blockchain project, the Panther Protocol, seeks to address a critical industry flaw in data privacy. On the official website, it is described as an interoperable and end-to-end privacy protocol, with many components. This protocol was engineered to be the privacy infrastructure de facto of DeFi or Web3.

It is designed to make sure that users’ data are not lost or stolen by DeFi-related projects. The project aims to assist users in negotiating the terms of their compliance through onboarding processes like KYC (Know Your Customer) and managing their disclosure evidence, which can be fully signed or partially by end-users.

Analogy of the Bouncer

Oliver Gale (co-founder and CEO of Panther Protocol) used an analogy to describe how the three-tier disclosure and compliance system operates during an interview with DailyCoin.

Gale underlined that, in the existing blockchain landscape, the system already keeps a track record of a user’s details (personal or transactional), and as with a bouncer, the blockchain system already knows pretty much everything about the user.

The Panther Protocol, however, does not follow the same procedure. Gale claims that the Panther Protocol employs three levels of compliance and data disclosure in its decentralized network.

This first tier requires all end-users, similar to what is found in most blockchain systems to provide, to reveal their full information. However, the second tier asks only for the required information to complete a clearance.

There is a third-tier, which is referred to as ‘zero knowledge disclosure,’ where an end-user can actually prove something about a data set without revealing the data itself.

“What if we can prove to the bouncer that I’m able to enter and that I check all of the requirements, without giving him any information. It’s just a green tick box, or a red cross box. So that’s what zero knowledge proofs enable; the ability to prove and verify something about a data set, without revealing the underlying information,”
Gale explained.

Gale says that unlike any other proof of implementation for blockchain technology so far, Gale’s zero knowledge proof uses highly advanced cryptography.

Gale described the system by using an analogy. A person is facing a locked doors and their ability to get in depends on whether they have a key. In this way, Gale enthused that there wouldn’t be a need to ask if the person possesses a key or not.

Zero-knowledge compliance (also known as ZKP) is a technical term that allows end-users who are registered on Panther Protocol to trust any DeFi or blockchain project without the need to reveal any personal data or participate in the onboarding process.

This is possible because the decentralized protocol leverages a private interoperable infrastructure which can interface with other blockchain initiatives like wallets, DEXs, aggregators and other DeFi primitives.

Also, going by Panther’s whitepaper, ZKP must first satisfy three major properties, including ‘soundness,’ which implies that if a statement, or provided proof is found false, the verifier will be required to override the verification.

The second, which is ‘completeness,’ implies that if the statement is true, the verifier will accept it, while the third property, ‘zero-knowledge,’ implies that the verifier should not be able to learn any information aside from the truth of the statement.

To The Flipside

• DeFi Protocols are still heavily dependent on data disclosure. It is difficult to refuse to provide your personal data.
• The zero knowledge compliance system may not be widely adopted by existing players in the industry for some time, at least three years.

What are the reasons to care?

Public blockchain, despite its transparency requirements, can compromise the privacy of end-user data by being publicly available. This could make it difficult for the existing problem to be addressed.

Here’s the video interview

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