On paper, it sounds relatively straightforward to bring more privacy to cryptocurrencies and smart contract-based solutions. In reality, nothing ever comes easy where code is concerned.
It is essential to provide privacy at the core level, which is what Panter Protocol aims to achieve, based on this recent whitepaper.
The Panther Protocol Whitepaper has arrived
After much anticipation, the Panther Protocol team has finally released its whitepaper to the public. There are some very ambitious plans for this project, as bringing interoperability and privacy to the DeFi space is no easy feat.
Decentralized finance takes place on public blockchains, all of which lack privacy by default. Unfortunately, none of them will be able to enable privacy in the future, as it would require a significant restructuring of the underpinning technology.
Offering privacy requires a base feature that enables such a trait. For Panther, users will achieve that through zkSNARKs, a concept that is relatively common among privacy and cryptography enthusiasts. Offering confidential transactions in DeFi can certainly enhance the appeal of this industry. Not everyone is comfortable with having their financial records visible for everyone to see.
In the whitepaper, the Panther team explains the need for privacy and its economic aspects. Moreover, the paper also highlights how privacy and compliance can co-exist within the same ecosystem, even if that may not seem possible at first.
As a forward-thinking and future-proof protocol, Panther will leave the compliance option on the table to introduce customizable privacy for all users.
Some users will prefer full privacy at all times, whereas others will only rely on it at certain times. Giving users options is a form of empowerment, which is what decentralization is all about.
zAssets pave the way
As the whitepaper highlights, zAssets will be the core aspect of Panther Protocol. These tokenized assets represent traditional cryptocurrencies, but they have privacy features built-in by default. Moreover, the team is confident these assets will become compatible with the many different DeFi offerings on the market today and in the future.
Panther CTO Dr. Anish Mohammed comments: “One of the transformative technologies to be developed over the past 30 years is Zero Knowledge Proofs, which allow you to prove that you are telling the truth without revealing the underlying data, or secret.
“It is exciting to be able to put this powerful technology to work in our project. This is a game changer.”
Panther will leverage this protocol to create zAssets. A zAsset is a tokenized representation of existing cryptocurrencies -whether they offer privacy ro not – that will remain backed by that asset as collateral.
The protocol is set up in such a way users can mint tokens, but there will also be asset burns.
Releasing this whitepaper is an essential step for the Panther team. After raising $8 million in private funding rounds supported by over 140 investors, it is crucial to bring the vision to life.
The whitepaper highlights some important aspects of why DeFi needs privacy while still allowing for compliance. Moreover, the introduction of price discovery for privacy makes for an exciting addition.