EY, the multinational professional service network commonly known as Ernst & Young, announced that the company has contributed a set of tools to privately manage transactions on the Ethereum network. Joanna Hardy, head of EY’s global media relationship, explained on Thursday how the company’s protocol helps ethereal transaction fees become more affordable and it enables the private transfer of ether.
Professional Services Giant and Big Four Members EY Publishes Ethereum Protocol Nightfall 3
EY is a well-known professional and financial services brand and the London-based company has been working with blockchain and cryptocurrency solutions for quite some time. While EY is one of the largest professional services networks worldwide, it is also a member of the accounting firms “Big Four”.
On July 1, Hardy detailed in an EY blog post that the company had released a set of tools that make ethereal transactions cheaper and more private. The protocol is called “Twilight” and it utilizes zero-knowledge demonstrations and other technologies to help reinforce the tool’s privacy and transaction goals.
“EY today released a new set of tools for privately managing transactions on the Ethereum blockchain,” Hardy said Thursday. “The project, known as Nightfall 3, combines zero-knowledge demonstrations (ZK or ZKP) with a new model to handle transaction confirmations to increase efficiency and reduce transaction costs known as optimistic accumulation. The combined protocol is known as ZK-Optimistic Rollup.”
EY’s global media relations executive added:
Dusk 3 aggregates ZKP transactions into groups, called accumulations. These are called “optimistic” accumulations because the system assumes that the transactions are valid unless proven otherwise and eliminates the process for all participants to check all transactions.
Hardy further claims that the Nightfall 3 kit with the help of ZK-Optimistic Rollups can do it, so the cost of a single transaction would be “one-eighth of the cost needed to make a conventional public token ERC20.” “When developing a new ZKP protocol, developers should be able to interact directly with low-level ZKP constructs,” said Dr. Duncan Westland, the associate director and head of global blockchain research and development at EY.
If the user only requires private token transfers, it is possible for the application to manage the ZKP interactions. In that case, as long as the user is concerned about how transfers from layer 1 to layer 2 are made, a ZKP transaction can be considered a conventional token exchange, albeit with added privacy. Having an API that allows users to work that way can speed up development.
Evening Twilight 3 Balances Safety Incentives and Mathematical Performance
Hardy EY’s announcement notes that the prototype code for Nightfall 3 is available on Github and available in the public domain. EY has devoted a lot of energy to the growing crypto industry and in 2016, the company said blockchain is ready for critical mass. The month before ET helped Australia auction off 24,000 BTC and last year in July, EY launched a program that helps U.S. crypto investors with taxes. EY has dedicated time also to Ethereum and Nightfall 3 is “designed to reduce the learning curve required by developers.”
“Based on EY experience, ZK Optimistic accumulations are currently among the most effective for balancing security incentives and mathematical efficiency for managing private transactions in the public Ethereum network,” concluded EY’s global blockchain leader Paul Brody in the blog post written by Hardy. “As we have done in the past, we are once again contributing this code to the public domain to accelerate the corporate adoption of this technology,” Brody added.
What do you think of the set of EY tools that aim to make ethereal transactions cheaper and more private? Let us know what you think about this topic, in the comments section below.
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