Question for Factomatic from Paul Bernier

Valentin Ganev

Yes, ZKP is still an area of focus for us.

We had previously developed a set of zk-SNARK circuits using xjsnark and we were planning to open-source them, however, we are also using a good chunk of those circuits for our OTC proof of funds tool and in our discussions with a couple of OTC desks, they have expressed their desire for the code to remain closed-source. The reason for this is that they are only interested in an exclusive deal for usage of the tool, as they view it as a (small) competitive advantage to facilitate deals, in which sellers are unwilling to disclose their address(es) and also as a means to filter out spam (e.g. people that don't have the necessary funds to do a deal). Overall, there is a good chance that this work would have to remain closed-source.

In terms of commercialization, discussions with two OTC desks are still ongoing, however they are moving very slowly and there are a number of difficult negotiation points, in particular around a pricing model and exclusivity. The development of the tool has been frozen for a while now at the prototype level and we will only commit to a production release, if we are able to reach an agreement, which is in line with Factomatic's expectations.

That aside, we are still committed to make open-source ZKP contributions to the Factom ecosystem, but the focus has shifted somewhat from the original plan to release a bunch of SNARK circuits, and instead we're planning on integrating ZKPs into other open-source projects developed on Factom. The first contribution will be as part of the VC work and will be used for selective disclosure. The second thing we have in mind is to evaluate the feasibility and possibly implement confidential transactions for FAT. One of the pre-requisites for this is an official release of FAT & smart contracts, which is deemed stable and at least partially production ready.
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