Bulletproofs technology enables selective disclosure, allowing users to demonstrate that financial transactions are correct and compliant, without revealing sensitive information, which meets financial institution compliance and confidentiality requirements.

Editor’s note: This article comes from the strategic cooperation blockchain media “Odaily Planet Daily” (Public ID: o-daily, < a href="https://download.odaily.com/">APP download)Before Coinbase CTO joins Findora, Stanford background team enters the public chain battle

“There are always endless fraud cases in the banking and private equity industries around the world. The P2P industry is particularly significant. The opacity of the financial system, system friction and technological backwardness have brought a lot of man-made losses.”

The public chain project FindoraCEOCharles Lu explained to the Odaily Planet Daily. “Findora is to create transparent operations, fraud prevention and auditable financial services.”

Findora hopes to build a global infrastructure for the underlying financial network in which users can control their own data, identity and financial assets. Everyone can build financial applications and participate in building a decentralized financial system.

Charles believes that the current financial industry is an island. Every financial institution has its own database and private books. This account book is not published. When users need to transfer money and transactions, they need to find a mutually acceptable one. In the middle of the process, such as the international remittance organization Swift, inefficiency and high cost are inevitable in this process, and the banking database is also vulnerable.

Consensus Mechanism: POS+ Federal Byzantine Consensus Agreement

Findora’s consensus mechanism is called Finsense, which combines the advantages of PoS (Proof of Stake) and Federal Byzantine Consensus Agreement (FBAS).

The main characteristics of the federal Byzantine agreement are decentralization and arbitrary behavioral fault tolerance. By means of a distributed approach, a quorum or a sufficient number of nodes can reach a consensus, and each node can decide to trust without relying on the same participants. The object to complete the consensus.

“PoS is a pure economic incentive mechanism for verification. It is fully open and any incentive mechanism can be added by anyone holding a token. Once this machine is availableThere have been problems with the system, such as downtime and large-scale corruption. At this time, the federal Byzantine fault-tolerance mechanism will automatically cut in to maintain the integrity and timeliness of the chain. We believe that this consensus mechanism is very suitable for use in the financial industry because of its high stability.

Charles revealed that in real-world network environments, Findora’s TPS can reach around 12,000/s. Charles emphasizes that this TPS is the value of a confidential transaction after KYC approval, which is not the same as the TPS value of a normal plaintext transaction.

Unlocked transactions based on Bulletproofs

The information on the Findora network is auditable. As one of the zero-knowledge proof techniques, Bulletproofs technology enables selective disclosure. Users can prove that financial transactions are correct and compliant, and do not disclose sensitive information, which meets the requirements of financial institutions for compliance and confidentiality.

Zero knowledge was proposed by S. Goldwasser, S. Micali and C. Rackoff in the early 1980s. It refers to the certifier being able to believe that a certain assertion is correct without providing any useful information to the verifier.

Bulletproofs technology was invented by Benedikt Bünz and Jonathan Bootle. The former is the co-founder and head of research at Findora.

Charles said that Bulletproofs can reduce the size of encrypted transactions, can be used for data confidentiality, and can also help auditors to audit confidential data, so as to ensure that the privacy of consumers and financial services are not violated. In October 2018, the hard fork upgrade of Monero also used Bulletproofs technology to reduce the size of its confidential transactions by about 80%.

“Before the emergence of Bulletproofs, zero-knowledge proof technology was computationally intensive and time-consuming. Zcash used a zero-knowledge proof solution called zk-SNARKs. One of the inventors of zk-SNARKs was one of our company. Senior consultant – Rosario Gennaro, but zk-SNARKs is slow to calculate, it is difficult to meet the needs of large-scale multi-party computing, Bulletproofs has done a lot of optimization in some financial applications.” Charles explained why they Choose Bulletproofs to make data confidential.

Cooperating with stockbrokers to incubate applications

The Findora platform will be divided into three layers. The financial services application is at the top. Findora is developing a variety of applications including smart investment funds, but third-party developers can buildBuild more apps.

One example application supported by the Findora platform is the Smart Investment Fund (SF), a smart contract-based fund. The fund manager is responsible for managing the fund wells to determine where the funds should flow, but all assets are tracked and recorded through a network. The platform’s privacy tools use only dedicated zero-knowledge proofs and multi-party calculations, allowing regulators and investors to ensure fund compliance while ensuring the confidentiality of fund participants.

The developer tools middle layer provides securities passes, financial passports (Findora’s identity tools), audit and asset tracking tools, and privacy protection compliance tools using dedicated zero-knowledge proofing and multi-party computing.

The

base layer is the underlying distributed ledger protocol that supports confidential payments, smart contracts, multi-signature accounts, and unmanaged exchanges.

According to Charles’s introduction, Findora’s main network is expected to go online after 6 months, and online test network after 3 months or so. Currently, stockbrokers have applied for application development in the Findora developer community. According to Charles, as of now, More than 100 developers have settled in the community, and most of the projects are still under development, including open banking platforms and P2P lending platforms.

Stanford background, former CoinbaseCTO joined

Findora was created by a team of researchers and entrepreneurs at Stanford University. Charles Lu is the co-founder and CEO of Findora. He holds a bachelor’s and master’s degree in computer science from Stanford University. He is a Ph.D. in Stanford’s cryptography. He is a professor at Dan Boneh. He founded the Stanford Blockchain Club in 2014. He is currently working as a full-time entrepreneur in Findora. project.

Ben Fisch is a co-founder and chief technology officer, Ph.D. in the Applied Cryptography Group at Stanford University, and has been involved in protocol development for Filecoin, Chia, and Ethereum. Ben Fisch and another member, BunzBenedikt, are known for several inventions in the area of ​​blockchain and cryptography, including Bulletproofs (zero-knowledge proof technology), verifiable delay function (VDF) and Filecoin’s storage proof.

Members John Powers is the former CEO of Stanford’s $25 billion school fund.

On August 14, former Coinbase CTOBalaji Srinivasan also announced that he has joined Findora as a strategic consultant. Before joining Coinbase, Srinivasan was a partner of Andreessen Horowitz and co-founder of Earn.com, Counsyl, Teleport and Coin Center. He is also StanfordSchool friends.