Imagine that a lending protocol on Arbitrum needs to assess a borrower's historical DeFi activity on the Ethereum mainnet.
Traditionally, this would rely on external off-chain data services. But with this, the lending protocol can use zero-knowledge proofs (ZK proofs) to verify that the borrower maintained a certain wallet balance over a specific period or avoided liquidation.
This way, risk assessment can be done entirely on-chain, across different blockchains, securely and transparently, without relying on external indices.
Additionally, for insurance DAOs, if users want to submit verifiable claims based on cross-chain transaction history, this can also provide a universal proof module to ensure that the claims process is genuine and trustworthy.
#lagrange @Lagrange Official $LA
In simple terms, this makes cross-chain lending and insurance more convenient, safer, and more in line with the spirit of decentralization!
This is a great example.