- Summary:
- Proven uses a novel technology built on zk-proofing, which enables companies to disclose their financial standing without compromising safety.
Proven, the platform using zero-knowledge proof to enhance crypto market audits, has announced a $15.8 million seed round, with funding coming primarily from Framework Ventures. Other participants in the round included influential business heads, Balaji Srinivasan, Roger Chen, and Ada Yeo. With this money, the company says it will hire more developers and scale up its zero-knowledge-based technology infrastructure to the next level.
How Proven is helping crypto companies reassure investors
Trust between investors and the platforms that keep their crypto is crucial to the digital assets industry’s long-term stability. With Proven, cryptocurrency exchanges, stablecoins, asset managers and custodians are able to provide daily proof of solvency to their clients, lenders, and regulators without compromising security. Many companies have been issuing “Proof of Reserves” periodically to assure their investors that all’s well. However, scepticism remains as to their effectiveness.
Proven uses its experience in quantitative technology and cutting-edge zero-knowledge proof technology to help its clients disclose their financial standing without compromising private data. The company says that it has gotten significant support from several established companies in the cryptocurrency ecosystem and that it is looking forward to welcoming many more businesses as customers in the weeks to come.
Proven allows companies to demonstrate both their assets and liabilities, unlike other proof of reserve programs, without disclosing any confidential information about themselves or their clients. With this strategy, the company believes it is in a good position to help the crypto ecosystem in its pursuit of transparency and privacy. By allowing a “Proof of Solvency” analysis to be performed on a daily basis, it fosters trust among consumers, lenders, and regulators by making information more readily available.
Several companies dealing with digital assets have found it difficult to simultaneously build customer trust and protect user data in the face of a protracted “crypto winter” and a decline in investor confidence.
Proven says its staff is headed by experts who know firsthand how challenging it can be to provide proof of financial stability in a confidential setting. Hence, they established the firm to aid asset managers in addressing the audit challenges without downplaying client concerns about liquidity and transparency.