Brian Weickmann discusses how ZKP2P uses ZK proofs to convert email signatures into on-chain assets, creating a trustless fiat-to-crypto P2P onramp with fee incentives for depositors. The podcast explores technical onboarding, ZK Snarks in on-chain order books, and future financial integrations in crypto, highlighting the efficiency and security benefits of zero-knowledge proofs.
ZKP2P leverages ZK Proofs for trustless Fiat-to-Crypto on-ramping with depositors charging fees for liquidity incentives.
ZKP2P utilizes ZK Snarks to validate email signatures securely, offering privacy and scalability benefits for on-ramping.
ZKP2P partners with HDFC for seamless UPI fund transfers, aims to decentralize trust assumptions in financial interactions.
Deep dives
ZKP2P: Solving Fiat-to-Crypto On-Ramp Problem
ZKP2P is a trustless Fiat-to-Crypto P2P on-ramp powered by ZK Proofs. It aims to solve the off-ramp problem by providing a robust and indestructible on-ramp solution. Currently, the UX for on-ramping is not user-friendly, requiring centralized exchanges or high fees. ZKP2P leverages ZK Proofs to validate DKIM signatures in Venmo and HDFC transaction confirmation emails, allowing users to unlock on-chain assets like ETH and USDC. Deposit users can charge fees, incentivizing liquidity into the protocol. The integration with UPI in India allows for seamless fund transfers, potentially enabling remittances and global access to USD. The project was inspired by frustrations with centralized exchanges and aims to create a global and permissionless on-ramp solution.
The Power of ZK Snarks in ZKP2P
ZKP2P leverages ZK Snarks to prove the correctness of computations without revealing sensitive data. ZK Snarks enable the validation of email signatures and extraction of relevant information from emails, allowing for secure and cryptographic on-ramping and off-ramping. The computations are done off-chain, with the proofs quickly and efficiently verified on-chain. ZK Snarks offer privacy, compressibility, and scalability advantages, allowing for a wide range of applications beyond just on-ramping and off-ramping. The technology has the potential to revolutionize data validation and computation, reducing the need for centralized validators and opening the door for provable and private computations.
Partnerships and Trust Assumptions in ZKP2P
ZKP2P has partnered with HDFC, a prominent Indian bank, to facilitate on-ramping using UPI, India's nationwide payment rails. The integration empowers users to seamlessly transfer funds between different payment networks, bridging the gap between local and global financial ecosystems. The use of public-key infrastructure and DKIM signatures relies on trust assumptions, but ongoing developments aim to decentralize and remove the need for trust in these domains. ZKP2P offers transparency regarding risks and encourages users to review documentation for a comprehensive understanding. Future improvements seek to address email template changes, provide flexibility in defining domain keys, and explore more efficient pricing models for on-ramping and off-ramping.
On-ramping Cryptocurrency through Zero-Knowledge Proofs
ZKP2P is a project that uses zero-knowledge proofs (ZKPs) to facilitate on-ramping of cryptocurrency. The process involves receiving emails from users and extracting valuable information, such as Venmo IDs and verifying signatures, using regular expressions (Regex). By deploying verifiers on-chain, ZKP2P can efficiently validate signatures and perform other cryptographic operations that are not easily feasible on the Ethereum Virtual Machine (EVM). This approach provides gas-efficient and privacy-preserving ways to verify data, protecting sensitive user information. ZKP2P's focus is to create a better finance PDP (peer to peer), exploring new payment providers, integrating with wallets, and expanding to different markets.
Use Cases and Future Plans
ZKP2P's application has potential integration with wallets and new past-key smart account wallets, allowing users to easily onboard to crypto without cumbersome KYC steps. The project also aims to expand to new countries, banks, and fiat providers to cater to various remittance markets and solve the challenge of accessing funds from countries like India and Argentina. ZKP2P is actively experimenting with different pricing strategies, including offering the ability to swap into any asset, providing users with more flexibility. Additionally, ZKP2P aspires to be a leading project in the field, making on-ramping into crypto more user-friendly and accessible to a broader audience.
ZKP2P is a trustless fiat-to-crypto P2P onramp powered by ZK proofs.
On this episode, Brian explains how ZKP2P leverages ZK proofs to translate DKIM signatures in Venmo and HDFC transaction confirmation emails to unlock onchain assets like ETH and USDC. ZKP2P lets depositors charge a fee, creating a financial incentive to draw liquidity into the protocol.
It was great learning more about ZKP2P from Brian, as this is one of the most exciting and tangible applications of ZK that is live today. I hope you enjoy the show.
As always, this show is provided as entertainment and does not constitute legal, financial, or tax advice or any form of endorsement or suggestion. Crypto has risks and you alone are responsible for doing your research and making your own decisions.