According to Odaily, a16z Crypto has published an article discussing strategies to protect crypto assets following data breaches. The article highlights the critical role of zero-knowledge proof (ZKP) technology in enhancing user privacy and security. ZKP allows users to verify information without exposing sensitive data, thereby protecting privacy while meeting compliance requirements.
a16z Crypto suggests that developers implement mechanisms at the protocol level, such as deposit and withdrawal screening and selective de-anonymization, to prevent the inflow of illegal funds and improve regulatory transparency. The article emphasizes that ZKP technology can ensure compliance verification of on-chain activities without compromising user privacy, providing stronger security for the crypto ecosystem.