EY Introduced a Method for Reducing the Cost of Private Transactions by 90%

December 19, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

EY, one of the four largest auditors in the world, has introduced an advanced tool to reduce the cost of private transactions in the Ethereum public blockchain.

The EY solution uses third-generation zero-knowledge proof (ZKP) technology, which the company says leads to a “significant” reduction in user costs.

“In the prior iteration released in April 2019, public blockchains were already getting competitive with private networks. With this iteration, we cut the cost per transaction by more than 90% again, making private transactions more accessible for mainstream business application,” said Paul Brody, EY Global Blockchain Leader

The new tool allows you to group several private transfers in one transaction, thereby reducing their size on the blockchain, and with its costs. The technology can combine up to 20 transactions — in this case, the cost of each of them will be about $0.05. According to EY, this corresponds to a 400-fold improvement over the initial prototype introduced in October 2018.

“This technology is perhaps the most important EY blockchain milestone in making public blockchains scalable for the enterprise,” Brody said.

The company also noted that the tool can be used in private blockchains created on the basis of Ethereum to provide additional security and privacy.

In the future, EY intends to continue to engage in the development of technology.

“I believe we will look back upon the industrialization of ZKPs as a key milestone in the wide enterprise migration from private to public blockchains,” Brody added. “Organizations are increasingly seeing the potential for public blockchains, with 75% of enterprises likely to use these networks in the future. The third-generation EY ZKP technology brings us even closer to private and secure transactions on the public blockchain.”

Author: Marko Vidrih