Bolt Labs announced working on zkChannels to expand it and provide the protocol for the Tezos blockchain. zkChannels is an off-chain protocol that focuses on providing cheap solutions for private value transfer between customers and merchants. This anonymous protocol is not dependent on the host blockchain and can be a secure solution for payment applications.
Anonymous Value Transfer in Tezos
The development team behind zkChannels is working on the protocol to expand it and make it ready to be deployed in Tezos blockchain. Bolt Labs is now collaborating with significant firms in Tezos community like Nomadic Labs and Metastate to finalize the development until next year.
Deployment of zkChannels in Tezos will have multiple benefits for the popular blockchain. It mainly focuses on privacy and keeps the included data asymmetrically.
“The customer keeps and updates all relevant channel information and proves, every time a payment is made, that the channel state is consistent with that payment. This ensures the merchant learns nothing beyond the payment amount, so customer privacy is maintained,” according to the blog post by Bolt Labs.
Bolt Labs will try to evolve zkChannels as a means to provide a cross-chain bridge in Tezos. The final goal is to provide Zcash or Bitcoin in Tezos. Besides, the protocol can result in censorship-resistant DeFi applications within Tezos blockchain.
Anonymity is the focus area in zkChannels. The development team claims users in Tezos ban benefit from privacy-focused elements. For example, users can pay for the content or other digital services without the merchant knowing the customer’s identity. Besides, decentralizes applications that are looking to scale using state channels can benefit from the privacy from zkChannels.
Bolt Labs first provided zkChannels for Bitcoin and Zcash. The team is very optimistic about new plans to work on the Tezos version of the protocol. They believe in various features of Tezos like upgradability without contention that makes it suitable for zkChannels.
“Tezos also offers a secure-by-design smart contract language with formal verification properties. This means we are able to prove that smart contracts perform correctly with respect to the intended specification,” Bolt Labs added.
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