According to Danny Ryan, Wall Street's involvement in the crypto market may lead to the development of privacy in Ethereum.
He believes that the market is unable to operate completely openly.
The demand from institutions for privacy may change the rules of the game for all blockchain users.
Co-founder and president of Etherealize Danny Ryan believes that the needs of Wall Street will promote the development of privacy on the Ethereum network. According to him, traditional financial institutions, which are increasingly moving to blockchain, have clear requirements for confidentiality. This is mentioned in an interview with Decrypt.
"The market does not function and cannot function completely openly. If we are going to move the world to blockchains, the approach of 'everyone sees everything all the time' simply will not work," said Ryan.
Ryan explained that the need for privacy arises not only from ordinary users but also from major players, for whom complete access to information about treasury operations or trading strategies is undesirable.
He compared this process to a "Trojan horse": the demand for privacy from institutions gradually normalizes such an approach for ordinary users.
"When we start to update these markets, institutions will demand privacy, and we will move forward towards practical, applicable, and at the same time compliant with regulatory requirements privacy," emphasized Ryan.
In the crypto industry, zero-knowledge proofs (ZK-proofs) have long been considered the key to scalability and privacy for Ethereum. Over the past few years, hundreds of millions of dollars have been invested in the development of ZK-based solutions within the ecosystem.
Let us remind you that Ethereum co-founder Vitalik Buterin presented a virtual machine with ZK-proofs called leanVM, aimed at reducing scaling costs.
At the same time, competition is increasing: other players, such as Tempo (incubated by Stripe and Paradigm) and Arc (by the stablecoin issuer Circle), are developing blockchains with built-in privacy mechanisms.
However, Ryan is convinced that in the coming years, Ethereum, thanks to "specialized applications that provide privacy at a more detailed level," will be able to make private transactions a common element of the ecosystem.
It should be noted that recently the company Etherealize announced the completion of a financial round totaling $40 million. The funds raised are planned to be directed towards the development of infrastructure for trading and settlements with tokenized assets based on ZK-proofs.
