Zero-Knowledge Finance
Zero-knowledge finance (ZeFi) is a form of decentralized finance that does not reveal sensitive financial information such as identifiers, quantities, or rates to offer traditional financial instruments. It is an opaque and unregulated[1] financial system being built on modern technologies. The transparency of decentralized finance has led to numerous problems, exempli gratia, surveillance[2], front running[3], fungibility[4], censorship[5].
Use Cases
- Dark pool is a trading exchange where orders and matches are concealed.[6]
- Anonymous loan is for lending or borrowing without disparity stemming from regulations.[7]
- Peer-to-peer leasing is a practice of renting out property when isn’t in use or accessing an asset without acquiring ownership. The notable example is stake pool.
Development
ZeFi awaits zApps to be on the mainnet.
References
- Tim May, Untraceable Digital Cash, Information Markets, and BlackNet, .
- Xiao Fan Liu, Xin-Jian Jiang, Si-Hao Liu, Chi Kong Tse, Knowledge Discovery in Cryptocurrency Transactions: A Survey, .
- Massimo Bartoletti, James Hsin-yu Chiang, Alberto Lluch-Lafuente, Maximizing Extractable Value from Automated Market Makers, .
- Domokos Miklós Kelen, István András Seres, Towards Measuring the Traceability of Cryptocurrencies, .
- Anton Wahrstätter, Jens Ernstberger, Aviv Yaish, Liyi Zhou, Kaihua Qin, Taro Tsuchiya, Sebastian Steinhorst, Davor Svetinovic, Nicolas Christin, Mikolaj Barczentewicz, Arthur Gervais, Blockchain Censorship, .
- Citigroup Inc., Citi Match Reference Guide – Asia Pacific, .
- Poorya Kabir, Tianyue Ruan, Reducing Racial Disparities in Consumer Credit: Evidence from Anonymous Loan Applications, .