Share this article
Zero-Knowledge Technology Has Great Potential: FS Insight
The technology has a wide range of use cases in areas such as privacy, security, scalability, interoperability and sovereign identity, the report said.
By Will Canny
Updated Apr 9, 2024, 11:16 p.m. Published Mar 8, 2023, 10:53 a.m.
Make us preferred on Google
Zero-knowledge (ZK) technology has the potential to revolutionize a number of sectors by providing a safe and efficient way to verify information while maintaining privacy and security, FS Insight said in a report Tuesday.
The technology has a range of uses in areas including privacy, security, scalability, interoperability and sovereign identity, the report said. “ZK-tech has already seen product market fit in use cases such as privacy and authentication,” and it is expected that the ways in which the technology is implemented will increase over time.
STORY CONTINUES BELOW
Zero-knowledge proofs allow one party to prove to another that something is true without revealing any information.
“It is also a promising way to scale Ethereum to the masses” because it allows thousands of transactions to be bundled off-chain into one, giving greater efficiency, the note said, adding that protocols such as Polygon, Aztec and ZK-Sync have successfully implemented zero-knowledge technology. Zero-knowledge rollups are Ethereum layer 2 protocols that process transactions separately from the main blockchain to increase speed and lower fees.
FS Insight says ZK tech’s ability to make transactions on the blockchain anonymous may put it in the “crosshairs of regulators and law enforcement” looking to crack down on illegal activity such as money laundering. It notes that regulators have already targeted Tornado Cash, which uses ZK technology.
Regulators could continue to target ZK technology and may apply anti-money laundering (AML) and know-your-customer (KYC) measures to ensure that transactions are legal, the report added.
Read more: Zero-Knowledge Cryptography in 2023: The Year Privacy Becomes Practical
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Deus X CEO Tim Grant: We aren't replacing finance; we're integrating it
The Deus X CEO discussed his journey into digital assets, the company's infrastructure-led growth strategy, and why his Consensus Hong Kong panel promises "real talk only."
What to know:
- Tim Grant entered crypto in 2015 after early exposure to Ripple and Coinbase, drawn by blockchain’s ability to improve traditional finance rather than replace it.
- Deus X combines investing and operating to build regulated digital finance infrastructure across payments, prime services, and institutional DeFi.
- Grant will be speaking at Consensus Hong Kong in February.
Top Stories
