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XRPL Solvency Proof Unveiled at Paris Blockchain Week: Why Is This Important?

source-logo  u.today 21 March 2023 15:21, UTC

A new mechanism, XRPL Solvency Proof, is set to enhance a privacy solutions toolkit for all users of DeFis in the XRP Ledger ecosystem and those who leverage XRP in real-world use cases.

More privacy for XRP users: XRPL Solvency Proof wins hackathon in Paris

Privacy mechanism for XRP Ledger, XRPL Solvency Proof that basically unlocks zero-knowledge functions for this blockchain, became the winner of XRPL's Hackathon at Paris Blockchain Week. Jason Tigas, developer advocate at Ripple Inc., congratulated the winning team on March 20.

Congratulations to the winning team of the #ParisBlockchainWeek #XRPL #Hackathon

XRPL Solvency Proof is a way to prove solvency without revealing wallet address or transaction history (ie Renting, Loans, Investments, Insurance, etc)#BuiltOnXRPLhttps://t.co/fhonRmagfM pic.twitter.com/FQTDU0fD1Z

— Jason Tigas (@jayCryp_TO) March 20, 2023

Technically, the new obfuscation instrument allows individuals to prove solvency without revealing their wallet details, like addresses, transactional history and so on.

A flexible and feature-rich solvency proof mechanism can be integrated in various use cases: it can cryptographically prove the amount of funds stored by this or that wallet without exposing any data to third parties.

The creators of XRPL Solvency Proof stressed that there is growing interest in privacy-centric solutions that will only accelerate with the massive adoption of blockchains in the real-world economy:

However, today with the growing number of applications, particularly within the XRPL ecosystem with use cases increasingly connected to the rest of the world it is becoming increasingly difficult to detach one's on-chain identity from one's own identity.

Developers indicated some promising use cases for the new system, including the likes of insurance, charity, renting, loans, investing, real estate trading and so on.

ZK-based transactions on XRP Ledger are en route

In its MVP that is already available for XRPL testnet and mainnet users, XRPL Solvency Proof can create and verify data proofs. Its transactions module with enhanced zk-functionality is under development right now.

Mr. Tigas also added that XRPL Cashback services scored a "notable mention" award for allowing crypto-friendly merchants to offer loyal customers tokenized cashback in the form of non-fungible tokens (NFTs) on XRPL.

As covered by U.Today previously, XRPL developers introduced a number of DeFi- and NFT-focused technical concepts in Q1, 2023. They address cross-chain bridges, DEXes with AMMs and native NFT standards.