JP Morgan testing Ethereum-based zero-knowledge proofs (zk-SNARKs)

The largest bank in the United States JP Morgan seems to be extending its crypto involvement by running trials on a privacy-offering technology referred to as zero knowledge proofs (zk-SNARKs). JP Morgan recently revealed plans to develop a stablecoin called JPM Coin that will be utilized by the bank’s customers to move funds internationally.

Precisely, JP Morgan is looking into AZTEC protocol; a zero-knowledge proof solution. The solution was created by a startup based in London and already executes on the Ethereum mainnet. According to the whitepaper:

“The AZTEC protocol enables confidential transactions in a generic form that can be implemented on blockchains that support general-purpose computation, such as the Ethereum blockchain. The AZTEC protocol can be attached to existing digital assets defined on these platforms (for example, digital assets that conform to the ERC20 token standard). The protocol also enables confidential cross-asset trades for digital assets defined on the same blockchain platform via confidential zero-knowledge decentralized exchanges.”

This particular technology is different from other zk-SNARKs solutions in that it utilizes range proofs. Range proofs are less taxing in terms of the computer power required. Moreover, transactions costs are lower. However, in terms of efficiency, it lags behind the main Ethereum network.