Sealance, the world’s first blockchain-based Trust Platform for cryptocurrencies and based on advanced mathematics, cryptography, and zero-knowledge proofs, emerged out of stealth today. Sealance is backed by funding from prominent global investors, including Galaxy and Ribbit Capital, as well as several of the top crypto exchanges. Coinbase Ventures, Gemini Frontier Fund, Luno Expeditions and Jump Capital also participated in the round.
Sealance is the brainchild of Shlomit Azgad-Tromer, Matthew Green, and Eran Tromer. Matthew and Eran, founding scientists of Zcash—the first privacy preserving currency—are pioneers in privacy and blockchain research, and are considered among the world’s top applied cryptographers, having co-authored hundreds of peer-reviewed papers.
Created to protect privacy, prove identities, and enforce policies based on advanced problem-solving, Sealance Proofs extend the zk-SNARK proof technology that formed the backbone of Zcash. Introduced in 2013 in research papers by Eran and colleagues, these zk- SNARKs are a powerful cryptographic tool that lets one prove to others that they have certain information or assets, without revealing the underlying data. In light of recent developments and the clash between privacy and law enforcement, the scientists now reconvene to build a compliant privacy platform that could build trust in crypto and allow it to replace mainstreet finance.
Says Shlomit Azgad-Tromer, Sealance CEO, “Sealance changes the privacy game for crypto. In traditional finance, banks are responsible to secure financial confidentiality for their customers, subject to controls that allow compliance and monitoring for law enforcement purposes. Banks use compliance departments to perform this function. Instead, Sealance builds financial confidentiality and compliance mechanisms into the transaction itself—so crypto can enjoy the same advantages as big banks, but across a decentralized ecosystem.”
The company’s technology augments transactions with supplemental information about the individual’s identity, while preserving privacy of this information and the underlying transaction. It then reasons about this information, using zx-SNARKs, to automatically enforce regulatory compliance, risk management policies, transaction reporting obligations and record-keeping processes on the blockchain in real time.
“The Sealance Trust Platform is more than a policy enforcement and compliance engine. Using Sealance Proofs, players from across the ecosystem can prove identities while protecting user privacy,” said Matthew Green, Founding Scientist. “Our Trust Platform removes huge barriers to entry by making it easier to introduce new currencies, controlling who uses them, and making transactions compliant in their applicable jurisdictions.”
The Sealance Trust Platform works across currencies, exchanges, jurisdictions, businesses, individuals, and banks—and includes not just a policy enforcement transaction and compliance engine, but also proofs for identities.
It is one of the first policy-inclusive platforms to develop a sealed marketplace for crypto transactions that can robustly protect confidential information, except where dictated by law.
“Sealance has built a solution that works with traditional financial instruments to ensure privacy and security, but also compliance with the applicable regulatory rules,” said Noah Perlman, Chief Operating Officer at Gemini. “That’s the genius of Sealance. They’re delivering a solution that can preserve both of these important pillars of the financial system.”