Dear Horizen Community,
While talking about interesting use cases for Horizen 2.0, some of you mentioned a ZK prediction market. Super cool idea! So let’s get a bit more into what that could mean.
Let’s use Polymarket as inspiration and think through how we could make it better on Horizen2 with ZK.
1. User Authentication and Privacy
Implementing ZK proofs can enable users to authenticate without revealing personal information, ensuring anonymity and protecting user identities. This approach aligns with our commitment to privacy and can foster greater trust among participants. This could be linked to a KYC system.
2. Secure and Private Betting Mechanisms
ZK proofs can facilitate the placement of bets without disclosing the details to third parties, maintaining the confidentiality of user choices. This ensures that sensitive information remains private while still allowing for transparent and verifiable outcomes. The big French whale on Polymarket placing that $40m bet could have retained some semblance of privacy.
3. Transparent and Private Payouts
Utilizing ZKPs, we can process payouts in a manner that verifies the correctness of transactions without exposing transaction details. This method upholds transparency and fairness while safeguarding user privacy. Again, is KYC something we need to really scale this?
4. Enhanced Automated Market Makers (AMMs)
Integrating ZK proofs into AMMs can improve liquidity provision by enabling private yet verifiable transactions. This can lead to more efficient markets and better pricing mechanisms, benefiting all participants. I’d love to see one of our partners, like Singularity, with its ZK dark pools concept apply it here.
5. AI Agents for Predictive Analytics
Incorporating AI agents equipped with ZKPs can offer advanced predictive analytics while preserving data privacy. This integration can provide users with insights without compromising sensitive information, but it really needs a lot more thought.
OK so let’s have at it!