The nascent decentralized finance (DeFi) ecosystem and the applications being deployed today are mostly developed on the Ethereum network, where all transaction history and balances are publicly viewable.
Most blockchains of today are unable to ensure adequate privacy protection, which makes it quite challenging for investors and other users to perform trades freely and in a confidential manner.
Although privacy-oriented virtual currencies exist, like Zcash (ZEC) and Monero (XMR), they’re not composable with the DeFi ecosystem. This means their utility becomes quite limiting.
Meanwhile, the privacy protocols that are currently available have not been developed to ensure regulatory compliance.
This may discourage most institutional investors from exploring the potential benefits of privacy protocols, which results in a major challenge when it comes to bootstrapping liquidity and maintaining privacy.
This may also prevent private assets from becoming mainstream, according to industry experts.
It has become essential to develop confidential systems that can allow users to send private transactions in order to ensure their financial privacy.
Enabling Compliant, End-to-End Privacy Protocol for Crypto-Assets
Panther Protocol is an end-to-end privacy solution developed specifically for digital assets. It can be deployed in a fully compliant manner on any public (or permissionless) blockchain, according to its developers.
Some of the main differentiators and key features of the Panther Protocol include enabling private, trusted transactions while adhering to regulatory guidelines.
As mentioned in its whitepaper, the Panther Protocol makes use of a feature called privacy mining and a sophisticated price discovery mechanism.
According to its development team, Panther Protocol is Defi composable and ensures interoperability between multiple blockchains.
Panther Protocol claims to be a fully decentralized solution that offers end-to-end privacy for any digital asset. It protects financial data and related trading strategies, including DeFi protocol users by ensuring all crypto transactions are carried out confidentially.
As noted by its developers, the Panther Protocol has been designed to oversee the minting and burning of zAssets, which are described as confidential clones to the actual Assets they represent.
zAssets are basically synthetic assets that are 1:1 collateralized to the real assets they represent and are kept in a highly secure vault.
zAssets may be routed through the Panther network in a confidential way so that they can be used in DeFi apps in a completely composable manner.
Initial Deployment of Panther Protocol Set for Q1 2022
Panther Protocol makes use of game-theoretic bounds to price the privacy service of the network. To get things started, the protocol will be launched on the Ethereum blockchain with cross-chain solutions in the pipeline.
During Q1 2022, Panther will deploy V1 of a Privacy Cross-chain DEX (or decentralized exchange) on a Layer 2 solution.
The protocol’s founders are Oliver Gale, an experienced entrepreneur, and tech guru; and Dr. Anish Mohammed, a skilled cryptographer and ZK proofs expert.