Silent Protocol is a startup initiative led by researchers from TÜBİTAK BİLGEM, Turkey’s leading technical science center focused on improving the country’s technical and scientific capabilities. Its main focus is to develop a scalable privacy layer for existing applications, removing the need to exchange liquidity from existing pools.
The project, which kicked off in 2021, has already raised initial funding from venture capital firms including Zee Prime Capital, Mechanism Capital, Hypersphere and Daedalus.
A $5 million funding round led by Sora Ventures brings silent protocol aims to extend its network inside and outside web3. The goal is to build a security layer for applications that complies with the European Union’s Markets in Crypto-Assets (MiCA) regulation, thereby facilitating collaboration with traditional institutions.
Investing in decentralized data privacy
Back in 2014, banks started looking at blockchain solutions to remove bottlenecks from their infrastructure. Many realized that without robust data privacy on blockchain, significant adoption would be nearly impossible. Most of the collaboration with banks has been through private he blockchains or consortium blockchains such as Corda, developed by R3, and Fabric, developed by the Hyperledger Foundation. Despite their high costs and largely experimental effects, these partnerships represent a major step forward in blockchain adoption.
Over time, banks realized the need to use public blockchains to take blockchain adoption a step further. Thus, Ripple’s unique approach to facilitating real-time cross-border payments has made it popular with major financial institutions like his SBI Holdings. It is important to note that this trend goes beyond the adoption of existing public blockchain platforms.
The growth and potential of web3 has created a whole new playing field for investors, putting pressure on big banks to allow a growing presence of DeFi products. As a result, each institution recognizes the need for improvement and change to remain competitive in the Web3 marketplace.
Silent Protocol: A Game Changer for Institutions Entering the Web3 Space
Silent Protocol is poised to play a key role in institutions moving into the Web3 space, providing an important data privacy layer. Unlike other companies deploying zk solutions that require asset migration to the protocol, Silent Protocol will enable existing decentralized applications (dapps) with zk solutions to maintain liquidity and scale. We are developing a layer to
This framework represents a more pragmatic business model, acting as a “supporting layer” rather than a “competitive layer” that requires further separation of existing liquidity in the DeFi space.
Silent Protocol allows banks and other financial institutions to develop DAPPs with a robust privacy layer. This ensures data privacy and hides transaction traces on public blockchains while allowing clients to take advantage of his Web3 product.
Silent Protocol’s patent-pending EZEE (Economic Zero-Knowledge Execution Environment) framework is expected to be released in early Q4 2023. This development provides a sandbox environment for the agency to test privacy-compliant solutions that can be extended on top of his existing Web3 product. .
As the Web3 landscape evolves, Silent Protocol’s approach of providing a scalable privacy layer that does not require liquidity swaps could change the way traditional financial institutions engage in the decentralized financial sector.