Dating back to April 2014, the cryptocurrency world witnessed one of its biggest heists when a hacker managed to illegally transfer a large number of Bitcoins to himself.This was after allegedly getting hold of an Mt.Gox auditor’s credentials.In April 2014 Mt.Gox announced that Bitcoins, worth $450 million, had been stolen from customers .This ultimately led to the company’s liquidation.The company, however, would have survived had it adopted a legit protocol for asset auditing.
Calibra team leader and blockchain engineer Konstantinos Chalkias recently told the public that DAPOL protocol was setting a platform to improve on the already existing auditing methods.
Most importantly to enhance privacy .The protocol allows a distributed audit of liabilities to be undertaken on entities.DAPOL’S Main Advantage Over The Old Auditing Techniques
Arguably the main advantage brought to the table by DAPOL is its enhanced privacy, where a third party is combined together with a decentralized audit.
This typically means that during an audit, all accounts are focused on and none is overlooked.In his statement, Konstantinos Chalkias explained that in the Distributed Auditing Proofs of Liabilities ( DAPOL ), it does not expose the number of people who verify their inclusion in the totals.He said,
“The Distributed Auditing Proofs of Liabilities (DAPOL) are schemes designed to let companies that accept a) monetary deposits from consumers (i.e., custodial wallets, blockchain exchanges, banks, gambling industry etc.) or b) fungible obligations and report claims from users (i.e., fake news and hate speech reporting, disapproval voting etc.) to prove their total amount of liabilities or obligations without compromising the privacy of both users’ identity and individual amounts.”
He gave an example of the Enron corporation scandal case which ran bankrupt and collapsed some years back after the company in an attempt to cover up its illegal dealings paid an auditor Arthur Andersen to tamper with the information.He added that the corporation’s downfall would have been avoided had it adopted a more private and transparent auditing process.
Full Transparency For Everyone
DAPOL has proved to be an improvement from old distributed auditing processes in that it comes with new features.One of the features is that it allows everyone to take part in processes like proof verification and offers a more sophisticated validation tool than was not offered before.
Calibra’s team is not fully sure but is quite optimistic that DAPOL can be integrated onto Facebook’s Libra project to have an impact on such domains as economic data, crypto blockchain wallets, and public health.
The team is open to inviting any player that shares the same development enthusiasm on DAPOL’S project as them.This is after they released their plans to make the code open-source soon.
It is their hope that with time this new DAPOL distributed audit process will be adopted widely by crypto firms globally.
“The backbone of this proposal is based on the enhanced Maxwell’s Merkle-tree construction and is extended using balance splitting tricks, efficient padding, verifiable random functions, deterministic key derivation functions, and the range proof techniques from Provisions and ZeroLedge solvency protocols, respectively.
Because Bulletproofs, Gro16, Ligero, Plonk, Halo and other efficient zkSNARK or zkSTARK constructions were not available or mature when the above solvency protocols were published, we will assume that any efficient zero knowledge scheme for set membership in summation structures can be a good candidate.” Get Free Email Updates! *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates I will never give away, trade or sell your email address.You can unsubscribe at any time..
