The use of blockchain for payment systems of institutions and large enterprises in the crypto industry is rapidly becoming widespread. However, the transparency that blockchains inherently offer puts companies’ competitive advantage and financial privacy at risk. In particular, the fact that every transaction, balance and counterparty information is publicly available creates significant security vulnerabilities in commercial activities. This prevents blockchain-based payments from becoming a widespread solution in the corporate field.
Transparency barrier and institutional reservations
Important agreements for companies, supplier relationships or moves to enter new markets can be revealed to competitors thanks to transactions made on the blockchain. Transaction volumes, payment frequency and partnership relationships can be easily tracked with simple analysis tools.
According to analyst Tanaka, “Every on-chain payment made today reveals balances, transaction history, fund flows, and address relationships. While transparency in the DeFi ecosystem creates trust, it poses risks to real-world payments.”
Even “pseudonymous” addresses, which are thought to provide confidentiality, can be easily resolved by monitoring the movements on the chain. Not only individuals but also businesses face the danger of having their asset structures and spending habits monitored.
Stablecoins have enabled fast and cheap global transfers but do not offer a direct solution to the need for payment privacy. For increasing commercial use, more control and selective disclosure models are needed in blockchain payments.
Selective data sharing and the rise of ToM technology
The desired model in corporate payments; The transaction can be verified by relevant parties or auditors, but the details are not visible to third parties. At this point, zero-knowledge proofs (ZK) come into play. ZK technology can prove that the transaction has occurred or the balance is sufficient without revealing past financial history.
Mini dictionary: Zero-Knowledge Proof (ZK) is an encryption technique that allows one party to prove to another that a particular statement is true, without providing any additional information about that statement. In the blockchain world, thanks to ZK, it can be verified that the transaction took place, but the transaction details are kept secret.
Thanks to this technology, competitive company secrets can be protected on fully public networks, while regulators and auditors gain controlled access to necessary information.
Among the projects that integrate zero-knowledge proofs into payment systems, ZK-based solutions that are on the roadmap of Canton Network, Aztec Network, RAILGUN, Zcash and Ethereum stand out. These initiatives aim to offer verifiable privacy in line with the legal framework rather than complete anonymity.
New needs triggered by artificial intelligence
In the near future, on-chain payments will be automated by AI-powered applications. These high-frequency, algorithmic processes will both create big data and lead to the emergence of user behavioral patterns. If adequate privacy measures are not taken, competitors or malicious third parties can glean clues about commercial strategies by analyzing open data of addresses and payments.
Vitalik Buterin, one of the founders of Ethereum, also argues that privacy is no longer a luxury but a basic need for ZK-based payment technologies, especially artificial intelligence-based payment infrastructures.
Payment infrastructure of the future and sectoral transformation
Payment systems built with zero-knowledge proofs promise a secure and compatible solution for a wide range of uses, from the corporate world to AI applications. However, these systems are expected to provide an environment for safe commercial activity in compliance with regulators, not to hide illegal activities.
All these developments pave the way for the institutionalization of crypto as a real alternative not only for individual investment and speculation, but also in the professional commercial and industrial sphere.
