Panther Protocol, an interoperable end-to-end privacy protocol for decentralized finance, today announced that it has raised $22 million during its recent public token sale.
The sale, which closed in only 90 minutes, brings the total amount raised by the company to $32 million, including a private token sale in June.
Launched in 2020, Panther’s platform is built using zkSNARK, a form of zero-knowledge cryptography that allows one party to prove they possess certain information without revealing that information. Using this technology, it is possible to secure sensitive financial transactions between parties even on highly transparent systems such as blockchains where visibility is the norm.
The rise of blockchains, the technology underpinning popular cryptocurrencies such as bitcoin, has created an entirely new industry known as decentralized finance that runs on programmable, self-executing smart contracts. It is part of what is called web3, or the decentralized web, which eschews middlemen or centralized operators for processing financial transactions.
The DeFi market itself can be volatile, but this year alone it has exploded in value reaching $109.3 billion market value in September, up from $31.2 billion in January, according to DeFi Pulse.
DeFi supports a variety of transactions, assets and industries including stablecoins, which are pegged in value to a currency like the dollar; utility tokens, which exist to fund the development of a startup; and nonfungible tokens or NFTs, which use the blockchain to represent digital assets such as artwork, in-game items and music.
“This raise demonstrates the demand for privacy across the digits economy,” said Oliver Gale, Panther Protocol chief executive and co-founder. “Be it privacy applied to Web3 traffic, the metaverse or token-based economies, Panther’s vision of interoperable, compliance compatible ecosystems will be realized.”
Panther’s technology can currently connect Ethereum, Polygon, Flare, Songbird, Near and Elrond. The company is developing a set of application programming interfaces and software development kits designed to allow custom integrations. The objective is to permit a developer community to build privacy features into their web3 and DeFi applications without the need for highly skilled cryptography experience.
Using Panther’s protocol, users receive full privacy during the transaction of tokens even across public blockchains by default. It is also possible to vary the veil of transparency for other use cases for retail and institutional uses with custom and selective disclosure. By setting trust and viewability roles, users can disclose data to trusted counter-parties.
Finally, using the zero-knowledge proof system, Panther can allow highly regulated industries to provide compliance information without disclosing the underlying data. This would allow auditors to trust that transactions had happened as a DeFi bank’s ledger claimed they occurred without needing to unseal the records, for example.
“We are at a place in the history of privacy where we are reconciling privacy’s dual nature,” Anish Mohammed, Panther Protocol co-founder, said. “Panther has managed to allow both privacy and authenticity, by combining zero-knowledge proof systems and selective disclosures.”