Sanjay Raghavan

This post talks about connecting disparate banking and payments systems around the world through an Interop. The combination of Prividiums and Interop allows data to remain private while messages and atomic settlements to happen seamlessly. Remember ZK = A proving to B that something is cryptographically proven to be TRUE without having to share any more info than what is absolutely needed.

@VitalikButerin 2/2 - payments related use cases are in the verge of adopting embedded wallets on IOS or Android (self custodial with TEE or MPC type solutions). Infra costs (blockchain, wallets, gas etc) will become a negligible % of cost savings app builders can achieve.

We need a good trustless onchain gas futures market. (Like, a prediction market on the BASEFEE) I've heard people ask: "today fees are low, but what about in 2 years? You say they'll stay low because of increasing gaslimit from BAL + ePBS + later ZK-EVM, but do I believe you?" An onchain gas futures market would help solve this: people would get a clear signal of people's expectations of future gas fees, and would even be able to hedge against future gas prices, effectively prepaying for any specific quantity of gas in a specific time interval.

@VitalikButerin 1/2 - I truly believe that the Ethereum ecosystem’s (including the L2’s) next billion users will come from financial apps with embedded wallets and some paymaster/gas abstraction model. Internationally wires - $40 avg Credit cards - 1.5% to 3.5% C2C Remittance - 6%

@TziokasV @zksync @ethereum Want to emphasize why this radical. Yes, you can launch chains traditionally (fairly commoditized and cheap). Challenge for app builders is access to liquidity. This is very expensive to bootstrap. With @zksync there is native access to L1 liquidity (no bootstrapping needed)

This is a major milestone for @zksync and @ethereum. 👻 Don't launch a ghost chain: building on ZK Stack means direct/native access to L1 liquidity. a huge unlock for every chain operator, from crypto-natives to institutions. no cold start problems anymore. 🔏Enterprise glocal chains: building on ZK Stack means you can stay private while still accessing public markets. best of both worlds. like a private intranet interacting with the public internet. 🚀Scaling Ethereum's liquidity: the world’s most valuable onchain financial ecosystem flows freely to all ZK Chains‍​‍​‍‌‍. Still Day 1‌​‍‌‍‍‌‌‍‌‌‍‍‌‌‍‍​‍​‍​‍‍​‍​‍‌​‌‍​‌‌‍‍‌‍‍‌‌‌​‌‍‌​‍‍‌‍‍‌‌‍​‍​‍​‍​​‍​‍‌‍‍​‌​‍‌‍‌‌‌‍‌‍​‍​‍​‍‍​‍​‍‌‍‍‌‍‍‌​‌‍‌‌‍‍‌‍​​‍‌‌‍‌‌‌‍‍‌‌​‌‍‌‌‌​‍‌​​‌​‍‌‍‍‌‌​‌‍‌‌​‍‍‌​‌‍​‌‌‍‍‌‍‍‌‌‌​‌‍‌​‍‍‌​‌‌​‌‌‌‌‍‌​‌‍‍‌‌‍​‍‌‍‍‌‌‍‍‌‌​‌‍‌‌‌‍‍‌‌​​‍‌‍‌‌‌‍‌​‌‍‍‌‌‌​​‍‌‍‌‌‍‌‍‌​‌‍‌‌​‌‌​​‌​‍‌‍‌‌‌​‌‍‌‌‌‍‍‌‌​‌‍​‌‌‌​‌‍‍‌‌‍‌‍‍​‍‌‍‍‌‌‍‌​​‌​‌‌​‌‍​‍‌‌‍‌‌‌‍​‌‍‌‍​​‌‍‌‍​‍‌‌‍‌‌‌‍‌​​​​‍​​‍‌​‌​‌‍​‌‌‍​‍‌‍‌‌​‍‌​‍​‌‍​‍​‍​​‌​​‍‌​​‍​​‌‍‌‍‌‍‌​‌‍​‍​​​‌‍​‌‍‌‌‌‍‌​​‍‌​‌​‌​‍‌‌​‌‍‌‌​​‌‍‌‌​‌‌‍​‍‌‍​‌‍‌‍‌​‍‌​​‌‍​‌‌‌​‌‍‍​​‌‌​‍‌‍‍‌‌‍​‌‍‍​‌‌‌​‌‍‌‌‌‍​‌‌​​‍‌‌​‌‌‌​​‍‌‌‌‍‍‌‍‌‌‌‍‌​‍‌‌​​‌​‌​​‍‌‌​​‌​‌​​‍‌‌​​‍​​‍‌‍‌‍​​‍‌‍​‌‍‌‍​‌‌​​‌​‌‌​​​​‍​‌‍​‌‌‍​​‌‍​‍‌‌​​‍​​‍​‍‌‌​‌‌‌​‌​​‍‍‌‍​‌‍‍​‌‍‍‌‌‍​‌‍‌​‌​‍‌‍‌‌‌‍‍​‍‌‌​‌‌‌​​‍‌‌‌‍‍‌‍‌‌‌‍‌​‍‌‌​​‌​‌​​‍‌‌​​‌​‌​​‍‌‌​​‍​​‍​‌​‌‍‌‍​​​‌‍‌‍​‌‍​‍‌‍​‌‍​‍‌‍​‌​​​‌‌​​‌​‍‌‌​​‍​​‍​‍‌‌​‌‌‌​‌​​‍‍‌‌​‌‍‌‌‌‍​‌‌​​‌‍​‍‌‍​‌‌​‌‍‌‌‌‌‌‌‌​‍‌‍​​‌‌‍‍‌‍‍‌​‌‍‌‌‍‍‌‍​​‍‌‌‍‌‌‌‍‍‌‌​‌‍‌‌‌​‍‌​​‌​‍‌‍‍‌‌​‌‍‌‌​‍‍‌​‌‍​‌‌‍‍‌‍‍‌‌‌​‌‍‌​‍‍‌​‌‌​‌‌‌‌‍‌​‌‍‍‌‌‍​‍‌‍‌‍‍‌‌‍‌​​‌​‌‌​‌‍​‍‌‌‍‌‌‌‍​‌‍‌‍​​‌‍‌‍​‍‌‌‍‌‌‌‍‌​​​​‍​​‍‌​‌​‌‍​‌‌‍​‍‌‍‌‌​‍‌​‍​‌‍​‍​‍​​‌​​‍‌​​‍​​‌‍‌‍‌‍‌​‌‍​‍​​​‌‍​‌‍‌‌‌‍‌​​‍‌​‌​‌​‍‌‍‌‌​‌‍‌‌​​‌‍‌‌​‌‌‍​‍‌‍​‌‍‌‍‌​‍‌‍‌​​‌‍​‌‌‌​‌‍‍​​‌‌​‍‌‍‍‌‌‍​‌‍‍​‌‌‌​‌‍‌‌‌‍​‌‌​​‍‌‌​‌‌‌​​‍‌‌‌‍‍‌‍‌‌‌‍‌​‍‌‌​​‌​‌​​‍‌‌​​‌​‌​​‍‌‌​​‍​​‍‌‍‌‍​​‍‌‍​‌‍‌‍​‌‌​​‌​‌‌​​​​‍​‌‍​‌‌‍​​‌‍​‍‌‌​​‍​​‍​‍‌‌​‌‌‌​‌​​‍‍‌‍​‌‍‍​‌‍‍‌‌‍​‌‍‌​‌​‍‌‍‌‌‌‍‍​‍‌‌​‌‌‌​​‍‌‌‌‍‍‌‍‌‌‌‍‌​‍‌‌​​‌​‌​​‍‌‌​​‌​‌​​‍‌‌​​‍​​‍​‌​‌‍‌‍​​​‌‍‌‍​‌‍​‍‌‍​‌‍​‍‌‍​‌​​​‌‌​​‌​‍‌‌​​‍​​‍​‍‌‌​‌‌‌​‌​​‍‍‌‌​‌‍‌‌‌‍​‌‌​​‍‌‍‌​​‌‍‌‌‌​‍‌​‌​​‌‍‌‌‌‍​‌‌​‌‍‍‌‌‌‍‌‍‌‌​‌‌​​‌‌‌‌‍​‍‌‍​‌‍‍‌‌​‌‍‍​‌‍‌‌‌‍‌​​‍​‍‌‌

This is an absolute game changer. I wrote a post on LinkedIn explaining why. linkedin.com/posts/sanjayra…

To connect to the real world (where we have ordinary folks and FIs requiring privacy on legit everyday txns) - I would rephrase as "a privacy-enabled transaction system is not a secret transaction system....it empowers individuals to reveal their identity only when and as required" - that is the essence of Zero Knowledge (ZK) technology

zcash's optional privacy and scaling privacy to the planet a big reason why privacy was quiet until now is that its proponents wanted to appeal to criminals instead of everyday individuals I understand saying you do stuff on the darknet has aura, but if you do this, everyone will think privacy is only for criminals, and privacy will get outlawed this is what is happening now you end up tremendously hurting the cause for the false image of sticking it to the man — you are, in fact, sticking it to no one but your fellow man privacy is about giving every individual the choice, dignity, and freedom in how they present themselves to the world it is ownership over one's identity emphasis on *every individual*, not just a few people on select corners of the internet — planetary scale eric hughes' cypherpunk manifesto mentions this twice "privacy is not secrecy, privacy is the power to selectively reveal oneself to the world." "an anonymous transaction system is not a secret transaction system. an anonymous system empowers individuals to reveal their identity when desired and only when desired; this is the essence of privacy" zcash leaves this decision up to the individual on the wallet level for example, the main wallet on zcash, zashi wallet, shields everything by default and gives several warnings if you are using transparent addresses it is lazy, low-resolution, and objectively false to claim that a system must be more private because criminals use it disproportionately while you're at it, what other engineering/math/life advice do you ask criminals? this is no different than thinking that TRON has better security or speed than all other blockchains because people use it disproportionately in Latin America the reason is not technical; it is a network effect from targeting that niche, nothing else anyone with basic logic can tell you that mixer-based systems (like Monero) are inherently weaker than encryption-based systems (like Zcash) a mixer-based system attempts to distract and obfuscate amongst decoys, while encryption allows for true vanishing while they are both much better than no privacy at all, it is borderline dangerous to claim that mixer-type systems will give the individual the same level of security there is no debate here, this is a fact of mathematics, no different than saying that 2 is greater than 1 — ring signatures are great, but they can not compete with encryption + integrity via ZK a mixer-based system also requires constant motion (including bait ones from people trying to break your privacy) for obfuscation, but true privacy comes from value at rest zcash's shielded pool has now surpassed billions of dollars and is the largest such pool in all of crypto, one can use it as their private Swiss vault on the internet and move funds only when necessary — that is a colossal anonymity set that gives privacy for the masses and that part is the most important: "the masses" zcash's two-mode system is an incredible Trojan horse for scaling privacy to planetary scale while continuing the mission of the cypherpunks, that privacy is about ownership and agency of one's identity it is time for privacy in crypto to stop being a fringe edge case only reserved for criminals and to start being a fundamental right for every individual on the internet

With all the chatter on X, don't want to forget to acknowledge the amazing tech @zksync keeps shipping. in Q3: Institutional Prividium Pilot, New Airbender prover (low cost + high performance), Interop messaging, sub-second block times... ZK technology is the future, and @zksync is the clear technical leader in this space! Here is the full report - forum.zknation.io/t/matter-labs-…

@gluk64 ZK = One party (prover) convincing another party (verifier) that something is TRUE w/o sharing more data than required. Add privacy & compliance (eg., ZK-KYC), you have real interop for messages & assets - not just across FIs, but all the way from BofA to Coinbase / DeFi and back

The era of ZK has begun

@balajis Meaning - add KZ-KYC for example (overhauling KYC/AML requirements under BSA) not only can you send money between BofA and Citi seamlessly, you should also be able to transfer from BofA to Coinbase to Defi and back seamlessly!

@balajis Might sound like oversimplification but spot on. ZK = one party (prover) convincing another party (verifier) that something is true without sharing tons of data about it. Add Privacy and Compliance, this opens up true 24x7 interop of messages & assets within tradfi and on-chain

The three eras of crypto. Proof of work: 2009-2017 Programmability: 2017-2025 Privacy: 2025-203X

@_abhibajwa @balajis @zksync @coinbase talking about ZK as a way to overhaul KYC/AML under the Bank Secrecy Act - coinbase.com/blog/the-bank-…

@balajis validating @zksync's entire tech stack. Privacy is the next problem frontier. @zksync's Prividium is enabling institutions and enterprises to come onchain in a compliant and private way. ZK KYC ZK Dexs ZK Smart Contracts @zksync has built and shipped all of the above.

ZK = one party (prover) to convince another party (verifier) to a statement is TRUE without revealing any data not necessary to substantiate it. Eg. use case: KYC/AML under BSA -> FIs can move assets 24x7 in a compliant manner. @coinbase on this topic: coinbase.com/blog/the-bank-…

"ZK is as technical in its own way as AI". Good summary of the evolution of the crypto experiment. Bitcoin established the basics, programmability created a solid foundation (programmable money was the single biggest invention here), and now you need privacy and compliance!

@gluk64 @DefiIgnas Ultimately every blockchain ecosystem will need to move toward driving fees to the network! Proud to be part of the pioneering team doing this for @zksync

@DefiIgnas It all started with $ZK

$UNI yesterday, $LDO today proposes buy backs. Lido’s buybacks start only when: - ETH above $3k; - Yearly revenue above $40M - If both are true, 50% of the extra revenue buys LDO. (Numbers not final) This makes buybacks anti cyclical. In good markets Lido buys more LDO. In bad markets buybacks slow down so the DAO does not drain its treasury. Lido pairs bought LDO with wstETH and adds it to the LDO wstETH LP, removing LDO from circulation and boosting liquidity. The yearly cap is $10M and current revenue levels mean ~$4M of LDO bought per year.

@zksync @Ozhar @therollupco @therollupco @DefiantNews - we are almost there on the jujitsu. More to come!

The next phase for $ZK is real economic utility. This is @Ozhar, on the @therollupco, breaking down how onchain and offchain revenue will flow value accrual to $ZK through governance.

Congratulations to our partner, @Memento_Bc, for tokenizing their third, and biggest, RWA Fund on their ZK Chain. Traditional Finance ➡️Incorruptible Finance

every bank will run a Prividium

Thank you @DefiantNews! We believe that the @zksync stack with Interop and Prividium exemplify what blockchain based future of Payments look like. For the network to be able to scale and grow, it needs to capture both on-chain and off-chain value. The future is here!

Watch the interview here: x.com/TradeTalks/sta…

3/ The network needs a mechanism to receive both on-chain (eg., Interop) and off-chain fees (eg., licensing fees). This post from @gluk64 outlines how ZK is moving from being a purely governance token, to now a token with real utility! This is big!

2/ When the network is used (and solves a problem - faster and cheaper txns that are private and compliant), it is important for value to accrue to the network so it can properly sustain and grow.

1/ Global Payments (messaging and settlement) are a natural use case for blockchains. But institutions care deeply about Privacy, Compliance, Scalability and Security. It is our view that every bank can be on a private chain using Interop for messaging and settlement.