The release of zkAudit marks a major milestone for the Horizen ecosystem. This is the first and only fully decentralized and privacy-enabled audit (proof of reserve) blockchain that doesn’t require any third-party validators.
zkAudit is a complete and integration-ready blockchain built by Horizen Labs for companies that would like to increase their transparency while preserving user privacy.
zkAudit is built to solve the inefficiency and lack of transparency in traditional auditing processes. By leveraging Zendoo with zkSNARK privacy technologies, zkAudit can secure, verify, and validate proof of reserves in near-real-time without revealing identifiable information or relying on third-party validators. This means a much faster, more transparent, more secure and more accurate auditing process.
Partnering with Celsius Network
We are releasing zkAudit with our partner, Celsius Network, the global industry-leading cryptocurrency yield-earning company with a mission to put economic freedom in the hands of the people. Celsius’ focus on transparency and protection of the privacy of their users makes them the perfect match with zkAudit.
“This is a major milestone for both the Horizen and Celsius. We are thrilled to work together to disrupt traditional audits by leveraging zero-knowledge proofs and Horizen’s Zendoo. I’m confident that zkAudit is going to change how the world does auditing.”
– Rob Viglione, Horizen co-founder and CEO of Horizen Labs.
Through zkAudit, Celsius will be able to unequivocally prove facts such as revenue and liquidity in near real-time without revealing any sensitive information about the underlying transactions or relying on any third party validators. This allows Celsius to further improve their transparency while preserving the privacy of their users and counterparties.
“Traditional double entry auditing processes are slow and lack transparency. The process of auditing happens at the end of the year and can take months from inception to completion and rely on one to two auditing firms and trusting their information is accurate. zkAudit enables triple entry audit by using the blockchain and making auditing transparent and removes the need for the slow antiquated process of traditional auditing. We’re thrilled to collaborate with Horizen Labs in this endeavor to bring Proof of Community to life and set the standard for transparency in blockchain finance.”
– Alex Mashinsky, CEO of Celsius Network.
On November 2nd 2020, we announced our partnership with Celsius Network when we introduced the proof of concept of building Celsius’ own entirely decentralized environment and enabling the existing functionality available on their network through Zendoo. zkAudit is the first major milestone in this partnership.
“zkAudit is a perfect example of how other projects can utilize the open ledger technology with zero knowledge privacy technology to verify information without relying on any third parties while preserving privacy. We built zkAudit to be fully programmable and flexible for seamless integration into existing systems.”
– Alberto Garoffolo, Engineering Director of Horizen and CTO of Horizen Labs.
zkAudit will be live on the Celsius Network with a block explorer in the near future. Please hear more about zkAudit from Celsius.
Jon Our Live AMA
For more insights about zkAudit and our partnership with Celsius, please tune in for a live AMA on 7/16 at 1PM EST on YouTube with Horizen co-founder Rob Viglione and Celsius CEO Alex Mashinsky.
Q: How can zkAudit keep information BOTH transparent and private?
A: zkAudit is equipped with zk-SNARKs, a privacy technology that allows verification without revealing identifiable information. This means all of the sensitive information in a transaction is undisclosed and can remain confidential, enabling privacy while upholding validity in near-real-time.
Q: How does zkAudit verify information without replying to a third party?
A: zkAudit leverages on zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge), a particular technology that allows a subject to prove that he knows some information without revealing it. Zero-Knowledge proofs require no interaction between the prover and verifier.
Q: How does zkAudit verify Celsius’ community assets are real?
A: Celsius’s zkAudit implementation tracks a number of external blockchains (i.e. the Bitcoin blockchain) where deposits come from.Through recursive zk-SNARK technology, each proof verifies all previous subset of transactions belonging to Celsius, while proving a new transaction. Thanks to this, the entire history of transactions is proven. At the end of each epoch (a defined number of blocks), the sum of the previous transactions is published together with a final recursive proof, proving that the sum is derived from the entire subset. The proof can be verified by every zkAudit node: this allows the Horizen blockchain to establish decentralized and verifiable cross-chain transfers from all blockchains in the ecosystem, without relying on trusted validators.
Q: How would zkAudit benefit the Celsius network?
A: zkAudit will:
- help prove that Celsius is the owner of particular (but hidden) blockchain addresses.
- demonstrate that the transactions associated with those addresses are real blockchain transactions
- confirm that the sum of those transactions add up to a certain amount.
Therefore Celsius can unequivocally prove facts such as income/revenue and liquidity without revealing any sensitive information about the underlying transactions that lead to those results. This ensures transparency to our users without compromising security.
Q: What will zkAudit change about the current auditing process?
A: Compared to traditional audits, zkAudit will allow Celsius to conduct audits in near-real-time without dependencies on centralized entities. This allows our community and users everywhere to verify our transactions for themselves whenever they wish. zkAudit brings the best of both worlds, providing critical transparency efficiently while preserving the security and privacy of our users.
Launched in 2017, Horizen is a technology platform that enables businesses and developers to quickly and affordably create their own public or private blockchains on the largest node network in the industry. Through its fair and inclusive ecosystem, Horizen fosters a community where everyone is empowered and rewarded for their contributions. With its unique Sidechain technology, Zendoo, Horizen provides all necessary components for an easy and fast deployment of a fully customizable blockchain. For more information, visit horizen.io.
About Horizen Labs
Founded in 2019, Horizen Labs provides the most efficient and cost-effective ways to create blockchain solutions for real-world usage while ensuring information integrity and data privacy, without compromising both scalability or security. Horizen Labs’ proprietary blockchain deployment tools allow users to create blockchain solutions leveraging Horizen’s robust and secure public blockchain platform with enhanced privacy features, low transaction fees, and configurable revenue models. For more information, visit horizenlabs.io
About Celsius Network
Celsius Network addresses the financial needs of today’s consumers worldwide through a high-interest income and low-cost loans accessible via a mobile app. Built on the belief that financial services should only do what is in the best interests of the community, Celsius is a Blockchain-based no-fee platform where membership provides access to curated financial services that are not available through traditional financial institutions. For additional information please visit celsius.network.