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Panther Protocol Employs Bouncer Approach in Ensuring Data Compliance -Breaking


Panther Protocol uses a Bouncer Method to Ensure Data Compliance

The Panther Protocol, a privacy-focused cryptocurrency, is concerned not only with solving the surveillance problem within Web 3.0’s infrastructure, but also with delivering strict compliance protocols that are difficult to compromise.

A revolutionary blockchain project called the Panther Protocol seeks out to eradicate a major industry problem that has been deeply embedded in data privacy. The official website describes it as an interoperable privacy protocol that can be used with multiple components. It was designed to replace Web3 and DeFi’s privacy infrastructure.

It is designed to make sure that users’ data are not lost or stolen by DeFi-related projects. This project helps users negotiate terms of compliance in onboarding processes, such as KYC (Know Your Customer). It also manages their disclosure proof that is either partially or fully signed by the 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.

However, this method does not apply to the Panther Protocol. Gale claims that the Panther Protocol employs three levels of compliance and data disclosure in its decentralized network.

While the first tier is very similar to the one found in many blockchain systems, it requires that end-users disclose all information. The second tier requests only the information required to clear a specific 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 claims that the zero knowledge proof is unlike anything else in blockchain implementation. It uses extremely advanced cryptography.

Gale described the system by explaining that someone faces a locked doors and can gain entry only if 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.

Technically, Zero-knowledge Compliance, also known as ZKP (zero knowledge protocol), allows users who have registered on the Panther Protocol, to gain trust in any DeFi and blockchain projects without needing to share any personal information or take part in the onboarding process.

Decentralized protocols can achieve this because they leverage a private and interoperable infrastructure, which is capable of interface with other Blockchain initiatives, such as wallets or decentralized exchanges (DEXs), brokers, 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 protocol protocols remain heavily dependent upon data disclosure. As such, it can be very difficult to not consent to the provision of your data.
  • The zero knowledge compliance system may not be widely adopted by existing players in the industry for some time, at least three years.

Why you should care

Although transparency is important, the public blockchain can be a threat to end-user privacy because it makes data publicly accessible. The Panther Protocol’s early adoption could help address this industry-wide issue.

You can watch the entire interview right here

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.