This week, Zilliqa and Binance, took their initial steps towards complete anonymity as the firms entered into partnerships with the privacy-centric platform Incognito.
Privacy and anonymity are crucial facets of many cryptocurrencies. In an age where data is a precious commodity and security is paramount, adequate protection of financial information has become of utmost importance to many—and one of the critical factors drawing fresh blood to the Web3 movement.
The latest token to cotton on to the importance of privacy is Zilliqa (ZIL). Thanks to the recent partnership, Zilliqa is now employing Incognito’s novel sidechain method to obscure transactions. Incognito—an open-source, blockchain agnostic privacy project—provides confidential asset transfer powered by zero-knowledge proofs. This means you can take a normal cryptocurrency, with its open, public transactions and make anonymous transfers (while kind of) still using the coin.
Via the new incognito-Zilliqa bridge, Zil holders can take advantage of full anonymity by depositing tokens into the Incognito wallet, receiving pZIL (privacy ZIL) in return. pZil can be swapped back at any time by merely depositing to any ZIL wallet. So, as long as the person is moving around pZil, nobody can observe the transactions they are making. This is useful for anyone using cryptocurrency for important reasons, such as paying wages—where they wouldn’t want their financial information exposed to the world.
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Providing instant liquidity for pZIl is Incognito’s decentralized exchange, pDEX, upon which incognito’s privacy-enhanced tokens can be traded.
Binance funds Zilliqa to keep building
In recognition of innovation, Incognito was recently awarded the Binance X fellowship—a program developed to support researchers in creating open-source software for the crypto ecosystem.
This fellowship includes a monthly stipend as well as support and guidance in ongoing development. The first installments of which will go towards funding the incognito portal—a decentralized bridge, aiding inoperability between incognito, Binance Chain and others. The portal will endeavor to facilitate anonymous transactions between BNB—Binance’s own coin—and BEP2 tokens, their private equivalent.
While the opening stage of this venture is already active via Incognito’s wallet solution, the next phase intends to decentralize the portal fully.